By ……House of Representatives to Investigate NNPCL’s Non-Subscription to Dangote Refinery Shares and Crude Supply Issues.
On Thursday, the House of Representatives resolved to establish an Ad-hoc Committee to investigate the Nigerian National Petroleum Corporation Limited’s (NNPCL) failure to subscribe to the 2 percent shares in the Dangote Refinery and the lack of crude oil supply to the facility.
This decision followed the adoption of a motion of urgent public importance presented by Minority Leader Hon. Kingsley Chinda. The motion sought to investigate alleged conspiracy by International Oil Companies (IOCs) to undermine Dangote Refinery’s operations and to clarify the Federal Government’s actual percentage holding in the refinery.
In his debate, Hon. Chinda highlighted the importance of supporting the Dangote Oil Refinery and Petrochemicals project, noting its significance in alleviating Nigeria’s dependency on imported refined petroleum products.
“Nigeria, despite being a major oil producer, has been importing refined petroleum products, which negatively impacts our economy,” Chinda stated. “Dangote Refinery, with its capacity of 650,000 barrels per day, is Africa’s largest refinery and the world’s seventh largest by capacity. Its operations are crucial for meeting our petroleum needs and easing the burdens faced by Nigerians.”
Chinda pointed out that the management of Dangote Refinery has accused IOCs of conspiring to frustrate its operations by manipulating crude oil prices, forcing the refinery to import crude at exorbitant costs, thereby increasing production costs and product prices locally.
He lamented that while the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) tries to allocate crude to Dangote Refinery, IOCs are hindering the refinery’s efforts to purchase local crude. Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) allegedly grants import licenses indiscriminately, leading to the importation of sub-standard refined products.
Chinda expressed concern that IOCs’ strategies could exacerbate unemployment and poverty in Nigeria, as the country remains a dumping ground for refined products while IOCs export raw materials to their home countries, boosting their own economies.
The motion also highlighted discrepancies in the Federal Government’s stake in the refinery. While the government initially subscribed to 20% shares, it now holds only 7.2% through NNPCL.
The House called for immediate support for Dangote Refinery from the Federal Government, NUPRC, NMDPRA, and other stakeholders. It also urged the Minister of Petroleum Resources and relevant MDAs to take urgent steps to resolve the crude oil supply issues facing the refinery.
