The House of Representatives on Thursday resolved to set up an Ad-hoc Committee that will investigate the inability of Nigerian National Petroleum Corporation Limited (NNPCL) to subscribe for the 2 per cent shares in Dangote Refinery and the lack of supply of crude oil to Dangote Refinery.
The resolution was passed sequel to the adoption of a motion on matter of urgent public importance on the ‘Need to investigate alleged conspiracy by International Oil Companies (IOCs) to frustrate the operations and survival of Dangote Refinery and the actual percentage holding of Federal Government in Dangote Refinery’, sponsored by the Minority Leader, Hon. Kingsley Chinda who solicited for the House intervention.
In his lead debate, Hon. Chinda who expressed excitement over the successful completion and coming into full operations of Dangote Oil Refinery and Petrochemicals, underscored the need to support the legacy project in the country.
“The House also notes that whereas Nigeria is a major oil-producing and exporting country, she has for several years continued to import refined petroleum products from other countries to the detriment of the economic well-being of the country.
“The House further notes that Dangote Refinery, with a capacity of 650,000 barrels per day (bpd) is said to be Africa’s largest refinery, and the World’s 7th largest by capacity, and its construction was meant to alleviate the petroleum products needs and accompanying pains faced by Nigerians.
“The House is aware that recently, the management of Dangote Refinery accused International oil companies (IOCs) operating in the country of conspiracy, in and attempt to frustrate the smooth operations of the refinery.
“The House is also aware that 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.
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The development, according to him, is forcing Dangote Refinery to “reduce output, as well as import crise oil at a very exorbitant cost from other countries such as United States thereby increasing the cost of production locally and increasing product price.”
He further lamented that: “whilst the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) was trying its best to allocate crude to Dangote Refinery, the IOCs were deliberately frustrating Dangote Refinery’s effort to buy the local crude.
“Also, the management of Dangote Refinery alleged that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was still granting import licenses, indiscriminately, to marketers to import sub-standard refined petroleum products into the country.
“The House is concerned that whilst the IOCs are keen on exporting raw materials to their home countries and thus create wealth and employment for their countries, thereby adding to their GDP, Nigeria continues to be a dumping ground for the refined products, thus making us dependent on imported petroleum products.
“The House is also concerned about the IOCs strategy/plan which is capable of making Nigeria face higher rate of unemployment and poverty.
“The House is further concerned that there is an urgent need for the Federal government, relevant MDAs, including the NUPRC and the MDPRA, key stakeholders and well-meaning Nigerians to support Dangote Refinery to succeed.
“The House is further worried that whilst the Federal Government of Nigeria subscribed 20% shares in Dangote Refinery, the Chairman (Aliko Dangote) claimed that Nigeria was unable to redeem its obligation and now owns 7.2% through NNPC Limited.
“The House is worried that there is an urgent need to look into these allegations by Dangote Refinery 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.
“The House is also worried that unless urgent steps are taken by the Federal government, as well as investigate this matter and call the IOCs to order, Dangote Refinery and its operations would be prematurely pushed/forced out of business and this would not be good for us as a people.
“The House is concerned that NNPC Limited is said to be unable to subscribe for the 20% shares.”
Worried by the development, the House urged Federal Government, the NUPRC, the NMDPRA, key stakeholders and well-meaning Nigerians to support Dangote Refinery to succeed.
The lawmakers also tasked Minister of Petroleum Resources and all relevant MDAs to immediately take urgent steps and intervene in the matter of crude oil supply to Dangote Refinery.
NIGERIAN TRIBUNE