The House of Representatives has commenced a forensic investigation into the importation of adulterated petroleum products into the country and the non-supply of crude oil to local refineries.
A joint Committee of the House on Midstream and Downstream are carrying out the investigation which is expected to address some sharp practices in the industry.
Declaring the investigation open, Speaker of the House, Hon. Abbas Tajudeen said the parliament is determined to ensure that the petroleum products brought into the country are of the best quality, while local refineries should be able to get quality crude for their operations.
Represented by his Deputy, Hon. Benjamin Kalu, the Speaker said the investigations will delve into the complexities surrounding the importation of adulterated petroleum products, the difficulties of our domestic refiners in accessing crude oil feedstock, especially our modular refineries, and the broader threats these issues pose to Nigeria’s energy security.
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He said: “The resurgence of fuel queues at petrol stations, the increasing cost of Premium Motor Spirit (PMS), and the unavailability of crude oil feedstock for our downstream domestic refineries are of particular concern. The investigation will also extend to other related issues impacting the sector.”
The Speaker said further that the quality of petroleum products imported into Nigeria has come under scrutiny, adding that the House must ensure compliance with global standards.
He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA) and the Standards Organization of Nigeria (SON) must guarantee that all petrol imported into the country is rigorously tested in laboratories to ensure that it meets the standard sulphur and octane levels.
He said: “It is unacceptable that the petrol imported into the country contains high sulphur levels, is led, and has low octane levels – as experienced in the recent past that even led to socio-economic losses on a national scale including the knocking down of the engines of vehicles of Nigerians in their hundreds.
Abbas said further that In carbon control economies, maintaining high octane levels is a significant regulatory issue for both energy regulators and environmental protection agencies as the lower the octane level, the cheaper the cost of refining.
He however that this should not be at the expense of quality and environmental standards.
He emphasised that the role of regulatory bodies such as the Standards Organization of Nigeria (SON), the National Environmental Standards and Regulations Enforcement Agency (NESREA), and the NMDPRA is pivotal in ensuring that the petrol consumed in Nigeria is environmentally friendly grade.
He said: “One critical aspect we must address is the infrastructure for quality assurance that enables robust testing of petroleum products with the standard practice for manual sampling fully adhered to. It is expected that the joint committee on this nationally important assignment will carry out investigations on the quality and the number of laboratories that both the NMDPRA and SON have or use for their tests and return with actionable feedback.
“As for the difficulties encountered by domestic refiners in accessing reliable supplies of crude oil feedstock for their refineries, it must be reiterated that President Bola Ahmed Tinubu is fully committed to providing a level playing ground for producers and refiners to do business in the industry.
“I also implore the Joint Petroleum Committees on Midstream and Downstream sectors to work toward convergence between the Domestic crude Oil Supply Obligation and the nation’s energy security as it works with the sector regulators to re-engineer their respective regulatory processes to address the challenges.
“I firmly advocate for further high-level engagements, studies, and in-depth analysis to dive into other pressing questions concerning local crude oil refining dynamics in Nigeria. This endeavour is pivotal in providing a comprehensive roadmap and policy suggestions that address the concerns and interests of government entities, businesses, and households alike.
“Let us move forward with a shared sense of purpose and determination to ensure that Nigeria’s energy sector operates at the highest standards of quality, efficiency, and environmental sustainability.
The chairman of the Joint Committee, Hon. Ikenga Ugochinyere recalled that the House had mandated the Committees 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.
They also have the mandate to investigate 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 among others.
Ugochinyere said the committees will first address allegations of 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.
In addition, he said: “We are going to 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 midstream value chain, local middlemen and the laboratories they employ.
“To ensure a thorough and transparent investigation, the committee will undertake detailed laboratory investigations at all local refineries, marketers and Importers facilities, regulatory agencies, State Oil Company, and other players in the sector.
“We will visit various filling 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 product handling outfits.
“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.
“Samples shall be taken in the presence of Representatives of NMDPRA, refineries 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. Components to be tested for as listed as follows: Sulfur Content, Density, Distillation, Flash Point, Octane number (for gasoline), and Cetane number (for diesel).
“Out of the over 30 identified key items that will undergo our forensic investigation, we are starting with the most current issues and the recent development involving one of the refiners Dangote Refinery, and our regulatory body NMDPRA over quality of produced and imported products and the complaints by all Refining companies in Nigeria over non-availability of crude Oil Supply to all their Domestic Refineries”.
He said the forensic legislative investigation is crucial for restoring trust and ensuring the quality and security of Nigeria’s petroleum sector in line with the FG Renewed Hope Agenda program.
He said the committee is 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.