The house of representatives joint committee on petroleum resources (downstream and midstream) has launched a probe into claims that local refineries, including the Dangote Petroleum Refinery, produce inferior products.

The committee is also investigating the allegations that the international oil companies (IOCs) in Nigeria are frustrating the survival of the Dangote refinery.

At the inaugural sitting on Monday, Ikenga Ugochinyere, chair of petroleum resources downstream committee, said a “thorough and transparent” probe would be carried out on the claims, including detailed laboratory investigations at all local refineries, marketers and importers facilities, and regulatory agencies.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote refinery have been embroiled in a dispute that began recently.

On July 18, Farouk Ahmed, the chief executive officer of NMDPRA had said local refineries, including the Dangote refinery, were producing inferior products compared to the ones imported into the country.

The oil regulator also accused the Dangote of monopoly.

Aliko Dangote, CEO of the Dangote Group, has denied both claims.

Ugochinyere said the committee would further investigate the “indiscriminate” issuance of licences and importation of refined petroleum products, return of PMS price intervention, allegation of product unavailability to marketers from NNPC retail, and endless shifting of timelines for refinery rehabilitation and the nefarious activities at petrol depots.

“The committee will also conduct a legislative forensic investigation into the presence of middlemen in crude trading, alleged unavailability of international standard laboratories to check adulterated products, influx of contaminated products into the country, the allegation of non-domestication of profits realized from crude marketing sales in local banks, abuse of the PFI regime, importation of products already being produced in Nigeria and use of international trading companies to resell fuel stock to local refineries at high mark up prices,” Ugochinyere said.

“The two committees were also mandated to carry out a legislative forensic investigation into the allegation of importation of substandard products and high-sulphur diesel into Nigeria, the alleged production of substandard diesel and other petroleum products by some domestic producers.”

He said the panels will also probe the alleged anomalies in the importation and distribution of PMS by the state oil company, the economic viability of the alleged sale of petroleum products below fair market value and its impact on downstream and local refineries and revenue generation as well as the source of funds for such price interventions, quantity imported, the amount spent and why the products are still high in the retailing market.

In addition, the lawmaker said the committee will investigate the alleged failure of some of the regulators to enforce compliance on standards, the lack of support to local crude refiners, and the issuance of import licences, despite local production.

“Following the investigative order given to the committee by the 10th people’s house, today we are going to officially commence the comprehensive forensic legislative investigation into several critical issues that threaten the stability and trust in our petroleum industry,” he said.

‘WE’LL CONDUCT THOROUGH PROBE’

The lawmaker said the probe will start with addressing allegations concerning the importation of substandard petroleum products and the non-availability of crude oil to domestic refineries, which has raised serious concerns about the quality and safety of fuel in our market.

He said the panel will take a closer look at the integrity of the testing processes for petroleum products in the country, particularly focusing on the capacity and credibility of all the testing labs of all stakeholders in the downstream and midstream value chain, local middlemen and the laboratories they employ.

Ugochinyere said to ensure a thorough and transparent investigation, the committee would undertake detailed laboratory investigations at all local refineries, marketers’ and importers’ facilities, regulatory agencies, state oil companies, and other players in the sector.

“We will visit various filling stations, depots, and tank farms to take samples in line with intl standards, verify the quality of imported products and asses the testing capacities of all refineries and all refined product handling outfits,” he said.

“The collection of samples will be done transparently and in line with global best practices and would be in 4 specimens for independent testing in a different standard, accredited Laboratory including that of all stakeholders involved in refining and importation of refined petroleum products.

“The committee will select different locations, including filling stations, depots and even currently discharging ships. Samples shall be taken in the presence of representatives of NMDPRA, refinery representatives, marketers/importers and the committee.

“After collection, the samples will be tested jointly and also independently by the committee and the stakeholders to ascertain the contents. Component to be tested for as listed as follows: sulfur content, density, distillation, flash point, octane number for gasoline and cetane number for diesel.”

‘STAKEHOLDERS WILL BE INVITED’

Ugochinyere said zonal interaction committees would be set up to ensure “swift movement” to different parts of the country to interact with stakeholders and take samples from stakeholders’ facilities for immediate laboratory analysis.

He said invitations would be dispatched on Monday (today) for submissions of relevant documents and appearances to key stakeholders, regulatory bodies, state oil companies, petroleum products refining companies, IPMAN, PETROAN, independent oil producers, IOCs, importers, marketers, depot owners and other stakeholders too numerous to mention.

“We are committed to transparency, thoroughness, and accountability throughout this process that will help us to identify and resolve the underlying issues plaguing Nigeria’s petroleum sector,” Ugochinyere said.

Therefore, he said the committee resolved that parties in the raging argument — Dangote refinery, other refining companies, NMDPRA, marketers and relevant stakeholders — “should henceforth cease further allegations and counter-allegations pending the conclusion and outcome of the investigation”.

Former Governor of Anambra State, Peter Obi, has raised concern over the lingering economic crisis in Nigeria, recalling that Nigeria had the biggest economy in Africa as of 2014.

Naija News recalls that Nigeria, as of 2014, was being led by former President, Goodluck Ebele Jonathan, on the platform of the Peoples Democratic Party (PDP).

A year later, in a surprising turn of events, Jonathan, an incumbent president, lost a re-election bid to the candidate of the All Progressives Congress (APC), Muhammadu Buhari.

Recall that Obi was a former member of the PDP before defecting to the Labour Party in 2023 to pursue his presidential ambition.

Taking to his official account on X on Monday, Peter Obi, a candidate of the Labour Party in the 2023 presidential election, said the country’s economy soon began to drop in 2015.

In his message, Obi drew attention to the stark difference between Nigeria’s economic achievements during its early post-democracy years and its current economic condition.

According to him, upon returning to democratic rule in 1999, Nigeria saw an average GDP growth rate of approximately 6.72% over 16 years, 1999-2014.

However, he highlighted a decline in this momentum, with GDP growth dropping to 2.79% in 2015, leading to an economic downturn in 2016.

Obi said: “In 2014, just before the inception of a new administration a year later, Nigeria had the biggest economy in Africa with a Gross Domestic Product of $568.5 billion and a GDP Per Capita of about $3,200.”

On the other hand, he observed that by 2023, Nigeria had dropped to the 4th position in terms of the largest economies in Africa, boasting a GDP of $375 billion and an average income per person of $1700.

He noted that subsequently, the economic situation deteriorated in 2024, with the GDP expected to fall even further to around $253 billion and the average income per person to decrease to $1087.

This information, according to him, is based on data collected from StatiSense, a company that uses artificial intelligence for analyzing financial reports, examining bank statements, and providing services through AI chatbots.

Subsequently, the former governor expressed alarm at the current state of affairs, saying, “Today, poverty is pervasive and on the increase. Unemployment is rising. Food inflation has skyrocketed to over 43%. Foreign and local investors are losing faith in the future growth of our economy and are leaving in large numbers. Businesses are shutting down.”

Obi urged for immediate measures to stop more economic downturns and shift it from spending to creating as he criticized the present leadership.

He said, “Urgent actions need to be taken to salvage the nation from further economic collapse and move it from consumption to production.

“However, instead of concerning ourselves with all these challenges threatening our collective existence and finding ways to recreate an inclusive and sustainable economy, pull millions of people out of poverty, and return our nearly 20 million out-of-school children to schools, our leaders are more concerned with funding their selfish luxuries and individual lavishness while throwing blames at others who are only committed to solving the nation’s problems.

“In the face of all these challenges, we the leaders, should commit to inclusive and sustainable growth to end the hardship which has continued to burden our fellow Nigerians. Only through that can we achieve a peaceful and secure society.”

Recently, Naija News reported that Nigeria’s headline inflation rate reached 34.19 per cent in June, even as the food inflation was over 40 per cent.

Abuja Electricity Distribution Company (AEDC) has announced the appointment of Engr. Chijioke Okwuokenye as the acting Managing Director, with immediate effect.

This appointment, which is part of the transformation agenda of the company, will see Engr. Okwuokenye drive the positioning of AEDC as the foremost, customer-focused electricity distribution company in the Nigerian power sector.

Prior to his appointment, he served as the company’s Chief Operating Officer, where he oversaw strategic support units and embedded generation projects of the company. He brings to the role a wealth of experience and expertise in the power sector, as well as a passion for the attainment of the vision for the Nigerian electricity supply industry.

Speaking on the appointment, the Chairman of the Board of Directors, Dr. Stanley I. Lawson, said, “Chijioke Okwuokenye is an experienced leader who has been a part of the company’s transformation agenda and is well suited to drive its corporate turnaround. I am confident that, with his technical and commercial background, he will continue to drive value for all AEDC stakeholders”.

The company also announced the appointment of Olumide Jerome as the Chief Operating Officer. Prior to this, he served as one of the company’s Chief Business Officers. He will drive efficiency and operational excellence across the company as part of his new responsibilities.

Abuja Electricity Distribution Plc (AEDC) is an electricity distribution company in Nigeria, committed to delivering dependable electricity to millions across the nation's key commercial centres - Federal Capital Territory (Abuja), Kogi, Niger, and Nasarawa states.

In May 2023, a Transcorp-led consortium, became the core investor in AEDC, following its 60% acquisition of the company's shares. Since this strategic acquisition, the company has intensified efforts to upgrade substations, expand distribution networks, and integrate cutting-edge technologies, to enhance power supply reliability and operational efficiency. AEDC prioritizes customer experience and consistently strives to create value for all stakeholders, while contributing to the socioeconomic development of the regions it serves.

For inquiries, please contact:
Adefisayo Akinsanya
Head, Marketing and Corporate Communications, Abuja Electricity
Distribution Company (AEDC)
08030507514 | This email address is being protected from spambots. You need JavaScript enabled to view it.

The 2023 Labour Party, LP, presidential candidate, Peter Obi, has charged those attacking him to focus on alleviating the sufferings of Nigerians.

Obi’s comment is coming when President Bola Tinubu’s spokesman, Bayo Onanuga accused Obi of planning mayhem in Nigeria.

Onanuga also painted Obi as a failed presidential candidate, stressing that he should be held responsible for whatever crisis that would emanate from the action. 

However, Obi said his attackers should use the energy against him to focus on making Nigeria a great place.

Posting on X, the former Anambra State governor wrote: “I urge you to channel your energy and resources towards helping everyday Nigerians who are struggling to find their next meal, secure education for their children, gain employment, and access adequate healthcare.

“Rather than fabricating lies, you and your paymasters should listen to the cries of the poor, who cannot afford medicine and who are uncertain about their next meal. Pay attention to the voices of reason from individuals and institutions that emphasize the plight of our citizens. Let us unite in building a nation where everyone can thrive-PO”