The committee will investigate the role of international oil companies (IOCs) and NNPCL in alleged plot against Dangote refinery
The House of Representatives has resolved to investigate the alleged conspiracy by International Oil Companies (IOCs) to frustrate the operations and survival of Dangote refinery. The committee will also ascertain the actual percentage of shares owned by the federal government in the refinery.
To this effect, the House has set up an ad-hoc committee that will also investigate reported inability of the Nigeria National Petroleum Company Limited (NNPC Ltd) to subscribe for to the 20 per cent shares in Dangote refinery and the lack of supply of crude oil to the plant.
The House further urged the federal government, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Nigeria Midstream and Downstream Regulatory Agency (NMDPRA), key stakeholders and well-meaning Nigerians to support the local refinery to succeed.
These resolutions followed the adoption of a matter of urgent national importance raised by the minority eader, Rep. Kingsley Chinda (PDP Rivers) on Thursday.
Leading the debate, Rep. Chinda said Nigeria, a major oil producing and exporting country for several years, has continued to import refined petroleum products from other countries, to the detriment of the economic well-being of the country
He noted that the refinery, has the capacity of producing 650,000 barrels per day (bpd), and is said to be Africa’s largest refinery, and the World’s 7th largest by capacity, adding that its construction was meant to alleviate the petroleum products needs and accompanying pains faced by Nigerians.
The lawmaker said recently, the management of the company accused IOCs operating in the country of conspiracy, in an attempt to frustrate the smooth operations of the refinery.
Chinda said the alleged conspiracy against Dangote relates to efforts by the IOCs to deliberately frustrate the refinery’s to buy local crude oil by manipulating and jerking up the premium price above the market price, thus forcing the company to reduce output, as well as import oil at exorbitant cost from other countries.
The minority leader said according to the management of the company, while the NUPRC was trying its best to allocate crude to the refinery, the IOCs were deliberately frustrating the refinery’s effort to buy the local crude.
He quoted the management of the company which alleged that NMDPRA was still granting import licences indiscriminately to marketers to import sub-standard refined petroleum products into the country.
Chinda expressed concern that whereas the IOCs are keen on exporting raw materials to their home countries and creating wealth and employment for their countries, thereby adding to their GDP, Nigeria continued to be a dumping ground for their refined products, making citizens dependent on imported petroleum products.
“The IOCs strategy/plan which is capable of making Nigeria face a higher rate of unemployment and poverty. There is an urgent need for the federal government, relevant MDAs, including the NUPRC and the NMDPRA, key stakeholders and well-meaning Nigerians to support Dangote refinery to succeed.
“Further worried that whilst the federal government of Nigeria subscribed 20 per cent shares in Dangote Refinery, the Chairman (Aliko Dangote) claimed that Nigeria was unable to redeem its obligation and now owns 7.2 per cent through NNPC Ltd.
“There is an urgent need to look into these allegations and end/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, “ he said.
He therefore insisted that unless urgent steps are taken by the federal government to call the IOCs to order, Dangote refinery and its operations would be prematurely forced out of business and that would not be good for the people,
Thereafter, the green chamber urged the ministry of petroleum resources to intervene in the situation for the good of the country.
STAR Check: Nigerians, particularly, constituents of Ohio/Akpor federal constituency, can keep tabs on the legislative performance of Rep. Chinda throughout the 10th House here
