The House of Representatives Committee on Petroleum Resources (Downstream) has initiated a comprehensive investigation into critical issues plaguing Nigeria’s downstream oil sector.
The probe will scrutinise various aspects, including the contentious turnaround maintenance of national refineries, the acquisition of OVH Energy, and growing concerns about market dominance by the Dangote Refinery.
Committee Chairman Ikenga Ugochinyere announced the inquiry during a press conference in Abuja yesterday.
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He expressed dismay over the repeated shutdowns of the Port Harcourt and Warri refineries, particularly after much fanfare surrounded their supposed return to production.
“We are not out to protect anybody. If anybody is found to have been engaged in corrupt activities, the law should be allowed its course,” Ugochinyere stated, emphasising the committee’s commitment to accountability.
The committee also revealed it would investigate the hurdles faced by local and modular refineries in acquiring crude oil, questioning why domestic refiners must reportedly travel to Switzerland to negotiate local crude supplies.
Ugochinyere indicated the House’s intent to uncover what went wrong with the refinery maintenance, especially given the reputable company involved.
He stressed that a thorough understanding of these issues would precede any consideration of selling or privatising the refineries.
Numerous petitions regarding the petroleum sector have prompted the lawmakers to seek lasting solutions, particularly concerning the consistent supply of feedstock for modular and other local refineries.
Ugochinyere noted that refinery owners, oil marketers, and retailers have voiced concerns about policies that could negatively impact their significant investments, specifically citing allegations of the Dangote Refinery’s plans to monopolise petroleum product transportation and retail.
This alleged takeover, stakeholders warned, has generated considerable tension across the country.
Furthermore, the committee will revisit the investigation into the acquisition of OVH and address complaints from NNPCL retail staff.
Ugochinyere explained that the House had previously rejected an earlier report on this matter and mandated a renewed investigation.
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Finally, the committee plans to explore amendments to the Petroleum Industry Act to address emerging issues not currently covered by the legislation.
This initiative aims to strengthen the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and enhance the overall downstream petroleum sector.
