The Nigerian Senate is launching a comprehensive investigation into the operations of the Nigerian National Petroleum Company Limited (NNPCL), Dangote Petroleum Refinery, and other key players in the petroleum sector.
This investigation follows concerns about the $1.5 billion approved in 2021 for the turnaround maintenance of the Port Harcourt Refinery, which has yielded little to no visible results.
The Senate’s decision to probe these entities stems from widespread allegations of sabotage within the industry, particularly concerning the supply of crude oil to domestic refineries.
The National Assembly, alarmed by the current state of government-owned refineries and the continued reliance on imported refined petroleum products, has invited officials from NNPCL, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and other relevant bodies to provide explanations.
Senator Opeyemi Bamidele, the Senate Leader and Chairman of the Senate Ad-hoc Committee on Economic Sabotage in the Nigerian Petroleum Industry, expressed deep concern over the poor performance of government refineries despite the substantial investments made over the years.
“The long queues at filling stations are obviously a testament to this challenge. A situation, whereby we now depend almost entirely on the importation of these products. Even when we daily supply the global oil market no fewer than two per cent of its crude oil requirements, is, to say the least, highly worrisome.
“We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous petroleum products and dumping of substandard diesel into the country.”
Under different administrations since 1999, Bamidele observed that the Federal Government “has invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri. But the refineries are not functioning.”
He stressed that “in 2021, specifically, the Federal Executive Council approved $1.5bn for the turn-around maintenance of the Port Harcourt refinery. Yet, this investment has not yielded significant returns.
“For us, in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving.”
Bamidele emphasized the gravity of the situation, pointing out that Nigeria, despite being a major crude oil producer, still struggles with irregular supply and distribution of refined petroleum products. He noted that the country is overly dependent on imports, which has led to frequent fuel shortages and long queues at filling stations.
In light of these issues, Bamidele stated that the Senate, in collaboration with the House of Representatives, is determined to investigate the alleged economic sabotage in the petroleum sector.
He assured that the investigation would be thorough, fair, and aimed at uncovering the root causes of the inefficiencies plaguing the industry. The goal, he added, is to develop a legislative framework that will improve transparency, attract investments, and eliminate corrupt practices in the sector.
“We are also taking it seriously to address fundamental issues that pose grave threats to our economic prosperity, fiscal stability, and public health as a federation. In line with our mandate, we will unravel factors and forces aiding sabotage in our petroleum industry.
“From our findings, we will craft a legislative framework that will entrench global best practices in the industry; open it up for more investments, especially in the midstream and downstream sectors, and end vicious regimes of subterfuge in the petroleum industry.
“We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair, and just to all parties to promote and protect the strategic national interests of our fatherland,” Bamidele said.
