The House of Representatives on Tuesday, July 9, resolved to investigate the failure of the Nigeria Midstream and Downstream Petroleum Regulatory Authority and the Nigeria Upstream Petroleum Regulatory Commission to enforce compliance with industry standards and support local crude refiners despite local production capabilities.
The investigation will also address the issuance of import licenses and other related issues.
The House tasked its relevant committees with conducting a forensic investigation into allegations of substandard product importation, introducing high-sulfur diesel into Nigeria, and selling petroleum products below fair market value, assessing their impact on downstream operations and local refineries
Adopting a motion of urgent public importance sponsored by Hon. Billy Adesuwa Osawaru (APC, Edo) and Hon. Phillip Agbese (APC, Benue), the House also resolved to investigate the resurgence of fuel queues at petrol stations, allegations of high PMS costs, and the unavailability of fuel stock for domestic downstream refineries.
The House is also to investigate disruption in the distribution of PMS products, unfair subsidization of PMS and other petroleum products racketeering and favouritism in the Pro Forma Invoice System (PFI) regime, indiscriminate issuance of licenses and importation of refined petroleum products.
Also to be investigated is the alleged return of PMS Price intervention, the allegation of product unavailability to marketers from NNPC Retail, the endless shifting of timelines for refinery rehabilitation, and the nefarious activities at petrol depots.
In addition, the House directed the relevant committees to carry out a legislative forensic investigation into the presence of middlemen in trading, indiscriminate issuance of licenses, unavailability of laboratories to check adulterated products, influx of adulterated products into the country, the allegation of non-domestication of profits realized from crude marketing sales in local banks and abuse of the PFI regime.
The committee is also to. Investigate the importation of products already being produced in Nigeria, use of international trading companies to resell fuel stock to local refineries, the allegation of return of subsidy on downstream PMS products, unclarity about the exact landing cost of PMS, reduction in retail price and its impact on downstream operations.
Presenting the motion, Hon. Osawaru said that in recent times, there has been a resurgence of fuel queues in petrol stations, with allegations of high cost of PMS and non-availability of fuel stock for downstream domestic refineries in Nigeria and disruption of distribution of PMS products.
He said there is also allegation of unfair subsidization of PMS and other petroleum products which negatively affects competitiveness in the sector as well as claims of racketeering and favouritism in the Pro Forma Invoice System (PFI) regime, indiscriminate issuance of licenses and importation of refined petroleum products.
He alleged the return of PMS Price intervention with its impact on the domestic market and the allegation of product unavailability to marketers from NNPC Retail.
The Edo lawmaker decried endless shifting of timelines for refinery rehabilitation, the nefarious activities at the petrol depot which have affected product distribution and caused scarcity, and the use of middlemen in trading which has negatively impacted domestic crude supply.
He condemned the indiscriminate issuance of licenses, the unavailability of laboratories to check adulterated products and the influx of adulterated products into the country, allegations of non-domestication of profits realized from crude marketing sales in local banks, importation of products already being produced in Nigeria like jet fuel, AGO, etc and use of international trading companies to resell fuel stock to local refineries, and all issues surrounding subsidy regime.
He expressed concern about allegations of the return of subsidy on downstream PMS products, unclarity about the exact landing cost of PMS, reduction in retail price and its impact on downstream operations, the allegation of importation of substandard products and high-sulfur diesel into Nigeria, sale of petroleum products below fair market value and its impact on downstream and local refineries and as the source of funds for such interventions.
He also expressed concern about the failure of the regulators such as NMDPRA, NUPRC, etc to enforce compliance with standards that will help achieve the growth of the downstream sector and the lack of support to local crude refiners, and issuance of import licenses, despite local production
