The House of Representatives has launched a forensic investigation that will allow it to test diesel, Premium Motor Spirit and other products produced by the Dangote Refinery and imported into the country by licensed dealers.
The Chairman of the House Committee on Petroleum Resources Downstream, Ikenga Ugochinyere said this on Monday during the launch of the House of Representative Joint Investigative Committee on the Midstream and Downstream Sector.
The committee was set up following the directive by the lower chamber on July 9, 2024, which ordered a forensic investigation into issues in the downstream and midstream sectors.
The decision to immediately begin an investigation came after the Nigerian Downstream, Midstream Regulatory Authority (NMDPRA) alleged that the Dangote Refinery was producing high-sulfur diesel.
However, the refinery had accused International Oil Companies of denying the 650,000 barrels per day of crude oil, adding that the government issued licenses for importers to import substandard products.
But the Nigerian Upstream Petroleum Regulatory Commission citing the Petroleum Industry Act said sales of crude to domestic refiners must be in line with international standards.
The Deputy Speaker of the House of Representatives, Benjamin Kalu who represented the speaker, Tajudeen Abbas said in his opening remarks that the investigation which took off with immediate effect is of national interest.
Kalu said the committee would carry out an investigation into the challenges in the downstream and midstream petroleum sector.
Ugochinyere said his team has been mandated to unravel the reason for the disruption of the distribution of petroleum products, and allegations of alleged production of substandard diesel and other petroleum products by some domestic producers.
He said the committee would also conduct a legislative forensic investigation, as ordered by the House, into the presence of middlemen in crude trading and the alleged unavailability of international standard laboratories to check petroleum products.
Ugochinyere said, “Today, we have officially commenced a comprehensive forensic legislative investigation into several critical issues that threatens the stability and trust in our petroleum industry.
“We are going to take a closer look at the integrity of the testing process for petroleum products in the country, particularly focusing on the capacity and credibility of all the testing labs of worst stakeholders in the downstream and midstream value chain, local middlemen, and the laboratories they employ.”
To achieve this, Ugochinyere said the committee will investigate products from local refineries and importers.
The lawmakers said, “To ensure a thorough and transparent investigation, the Committee will undertake detailed laboratory review of local refineries, importers facilities and regulatory agencies, state oil companies and other players in the sector.
“We will visit various filing stations, depots and tank farms to take samples in line with international standards, verify the quality of imported products and assess the testing capacities of all refineries and all refined products handling outfits.”
He said the collection of the samples will be done transparently and in line with global best practices.
According to him, the committee will select different locations including filling stations, depots and discharging ships.
“Samples shall be taken in the presence of the representatives of the NMDPRA and other regulators, refinery representatives, marketers, importers and the committee.
“After collection, the samples will be tested jointly and independently by the committee and the stakeholders to ascertain the contents,” he added.
He said the investigation will proceed in phases beginning with the allegation of alleged production and import of high-sulfur diesel and non-availability of crude oil to supply domestic refineries.
“Letters of invitation will be dispatched today for submission of relevant documents and appearances to key stakeholders, regulatory bodies and state-oil company, petroleum product refining companies, Independent Petroleum Marketers Association Of Nigeria (IPMAN), importers, marketers, depot and all parties and stakeholders that will be invited,” he revealed.
The Chairman, House Committee on Petroleum Resources, midstream, Henry Okojie in his remarks, said the investigation would provide a level playing field for players in the industry.
Okojie said, “The unique opportunity before us allows both the midstream and the downstream committees to work collaboratively to tackle the present issues within our petroleum industry.
“To the Nigerian public, we are giving you the assurance of our commitment to thoroughly and fearlessly address our issues raised within and by us and with a great sense of responsibility. We look forward to working together to ensure safeguard and integrity of our petroleum industry.”