The House of Representatives today Monday called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and billionaire businessman Aliko Dangote to stop their media war over the refinery and distribution of fuel.
Its directive came in a press statement by the Reps Joint Petroleum Committee, reacting to the alleged dearth of crude oil for the country’s refineries.
Chairman of the joint Committee of the House, Ikenga Imo Ugochinyere, disclosed this to newsmen in Abuja, as the they commenced investigating of the allegation of production and importation of substandard fuel products and non-supply of crude to domestic refineries.
The development comes days after the Chief Executive Officer, Dangote Refinery, Aliko Dangote, reacted to the allegations by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that his refinery is producing products of low quality.
Chief Executive of the NMDPRA branch of state-owned NNPC, Farouk Ahmed, last week highlighted concerns over the consistency and standardisation of the output of Aliko Dangote’s refinery.
Ahmed alleged that the quality of Dangote Refinery products proved inferior compared to imported ones.
He also claimed that Dangote Refinery had yet to be licensed by the appropriate agency and yet to be completed for smooth operation.
He said, “I think we have about 45 percent completion. We cannot rely heavily on one refinery to feed the nation because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery.
“That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.”
The House of Representatives Joint Committee on Midstream and Downstream has said that the allegation of non-availability and non-supply of crude oil to domestic refineries in Nigeria raises concern about the quality of fuel in Nigerian markets.
Ugochinyere said while the non-supply of crude oil to local refineries is a concern, the committee will take a closer look at the integrity of the testing processes for petroleum products in the country, particularly focusing on the capacity and credibility of all the testing laboratories of all stakeholders in the downstream midstream value chain including local middlemen and the laboratories they employ.
“We are firstly addressing allegations concerning the importation of substandard petroleum products and the non-availability of crude oil to domestic refineries, which has raised serious concerns about the quality and safety of fuel in our market.
“The committee will conduct a legislative forensic investigation into the presence of middlemen in crude trading, indiscriminate issuance of licences and alleged unavailability of international standard laboratories to check adulterated products,” he said.
The lawmaker added that relevant stakeholders will be invited to answer questions regarding the alleged availability of substandard products.
“So in view of the above, the joint committee resolved that both parties in the raging argument; Dangote Refinery, other refining companies, NMDPRA, marketers and relevant stakeholders should henceforth cease further allegations and counter-allegations pending the conclusion and outcome of the investigation.
“Letters of invitation will be dispatched today for submissions of relevant documents and appearances to key stakeholders, regulatory bodies, State Oil Companies, Petroleum Products Refining Companies, IPMAN, PETROAN, independent oil producers, international oil companies (IOCs), importers, marketers, depot owners and other stakeholders too numerous to mention”.
Dangote had disclosed that it commenced discussions with Libya to import crude oil for its 650,000 barrels per day plant as it increases production, implying a shortage of supply from Nigeria’s regulators.
