The importation of refined petroleum products into Nigeria is going to continue alongside the production of the commodities by the Dangote Petroleum Refinery to prevent monopoly and ensure energy security, the Federal Government has declared.
It warned against being over-dependent on the $20bn refinery located in the Lekki Free Zone in Lagos, stressing that the demand by the refinery that all oil marketers should buy products from the plant does not support competition.
This came as the House of Representatives constituted an ad-hoc committee to probe allegations of non-supply of crude oil to the Dangote refinery as oil marketers condemned the International Oil Companies operating in Nigeria for not supplying crude to indigenous refiners.
Also commenting on the issue, the Nigerian Upstream Petroleum Regulatory Commission insisted that it was doing a lot to ensure the supply of crude to Dangote refinery and other modular refinery operators, as it vowed to resolve the lingering crisis.
Fuel importation continues
The Nigerian Midstream and Downstream Petroleum Authority, an agency of the Federal Government, said the government would not stop the importation of petroleum products, saying Nigeria cannot depend on one refinery to feed the nation.
The Chief Executive of NMDPRA, Farouk Ahmed, stated this in Port Harcourt while addressing newsmen, as the video of his address was made available to one of our correspondents on Thursday.
Ahmed also dismissed claims by the Dangote Group that international oil companies were frustrating the refinery by denying the refinery of crude supply, saying that the claim was not so.
He also revealed that the refinery, which had been selling diesel and aviation fuel in Nigeria for months, had not been licensed, stating that the Dangote refinery was still at the pre-commissioning stage.
“The claim by some media houses that there were steps to scuttle the Dangote refinery is not so. The Dangote refinery is still in the pre-commissioning stage. It has not been licensed yet; we haven’t licensed them yet. They are still in pre-commissioning. I think they have about 45 per cent completion,” Ahmed declared.
The NMDPRA boss warned that Nigeria cannot rely heavily on the Dangote refinery for its fuel supply.
According to him, the refinery had requested the regulator to stop giving import licences to other marketers so as to be the only fuel supplier in Nigeria.
“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop the importation of all petroleum products, especially AGO, and direct all marketers to the refinery, that is not good for the nation in terms of energy security. And that is not good for the market, because of monopoly,” he stressed.
Efforts to reach the Dangote Group for reactions proved abortive.
The company spokesman, Tony Chiejina, did not answer repeated calls and did not reply to messages sent to him by one of our correspondents as of the time of filing this report.
IOCs probe
The House of Representatives has constituted an ad-hoc committee to probe allegations of non-supply of crude oil to Dangote Refinery and Petrochemicals Limited.
This followed the adoption of a motion of urgent public importance moved by the Minority Leader of the House, Kingsley Chinda, during plenary on Thursday.
Chinda who represents Obio Akpor Federal Constituency, Rivers State had in a motion on “Need to investigate alleged conspiracy by international oil companies to frustrate the operations and survival of Dangote Refinery and the actual percentage holding of the Federal Government in Dangote Refinery,” told his colleagues that the management of Dangote refinery recently accused IOCs operating in the country of conspiracy, “in an attempt to frustrate the smooth operations” of the company.
He stated, “The alleged conspiracy against the Dangote refinery relates to efforts by the IOCs to deliberately frustrate the refinery to buy local crude oil by manipulating and jerking up the premium price above the market price, thus forcing the refinery to reduce output, as well as import crude oil at very exorbitant cost from other countries, such as the United States, thereby, increasing the cost of production locally and increased product price.”
He also accused the IOCs of deliberately frustrating the Dangote refinery from buying crude at a time the Nigeria Upstream Petroleum Regulatory Commission was trying its best to allocate crude to the company.
“While the IOCs are keen on exporting raw materials to their home countries and thus creating wealth and employment for their countries, thereby adding to their Gross Domestic Product, Nigeria continues to be a dumping ground for the refined products, thus making us dependent on imported petroleum products,” he added.
The Peoples Democratic Party chieftain called on relevant government agencies, NUPRC, and other critical stakeholders to support the refinery to succeed.
Chinda said, “While the Federal government of Nigeria subscribed 20 per cent shares in Dangote Refinery, the Chairman (Aliko Dangote) has claimed that Nigeria was unable to redeem its obligation and now owns 7.2 per cent through the Nigerian National Petroleum Company Limited.
“There is an urgent need to look into these allegations by the Dangote refinery and break all forms of dominance and monopoly of the petroleum sector by the IOCs and confirm the quantum of Federal Government interest in the refinery.
“Unless urgent steps are taken by the Federal government to investigate this matter and call the IOCs to order, the Dangote refinery and its operations would be prematurely pushed or forced out of business and this would not be good for us as a people.”
Following the overwhelming support for the motion, the Speaker, Tajudeen Abbas, announced the constitution of an ad-hoc committee to be chaired by the member representing Nkanu East/Nkanu West Federal Constituency, Enugu State, Mr Nnolim Nnaji.
Other members of the committee are Kabir Amadu, Babajimi Benson, and Ghali Tijani, members representing Gusau/Tsafe, Ikorodu, and Albasu/Gaya/Ajingi Federal Constituencies of Zamfara, Lagos and Kano states respectively.
The committee was also tasked to investigate the inability of NNPCL to subscribe for the 20 per cent shares in the refinery and report back within four weeks for further legislative action.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.