ABUJA (Sundiata Post) – The leadership of the Senate and the House of Representatives, have flouted own rules as investigations into corruption in the oil and gas sector have commenced in the National Assembly.
This is coming amidst pervasive allegations of sabotage in the petroleum industry. Questions are being raised over $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery with little or no result.
Before embarking on their annual recess, the Senate and the House of Representatives, at plenary, resolved to commence a probe. The two chambers have, however, flouted their rules.
While the two chambers had decided at plenary to carry out investigations separately, they have reneged and decided to conduct a joint investigation without reverting to plenary in line with their standing rules.
Instead, the leadership of the two chambers resolved to merge the two committees of the two chambers.
The Senate lamented that it was unfair and wrong to treat government businesses or public companies as an orphan while private businesses were flourishing and thriving.
Senate leader and Chairman, Ad-hoc Committee to Investigate the Alleged Economic Sabotage in the Nigerian Petroleum Industry, Opeyemi Bamidele, raised the questions at a session with stakeholders in the industry at the National Assembly Complex, Abuja, yesterday.
The session was attended by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Group Managing Director, Nigerian National Petroleum Corporation Limited (NNPCL), Malam Melee Kyari; Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe and Chief Executive Office, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Mr. Farouk Ahmed, among others.
The Federal Executive Council had approved the plan by the Ministry of Petroleum Resources to rehabilitate and turn around the Port Harcourt Refinery with $1.5 billion under the administration of former president, Muhammadu Buhari.
Despite the huge investment, the refinery is yet to function effectively, a situation that compelled the country to depend almost entirely on the importation of petroleum products.
At the session with stakeholders, yesterday, however, Bamidele expressed concerns about the dysfunctionality of the government-owned refineries despite billions of Dollars invested to carry out turn-around maintenance on the installation.
He observed that the federation “is undergoing a truly challenging period,” pointing out that the distribution and supply of refined petroleum products “has been irregular and problematic in the recent history of our fatherland.
“The long queues at filling stations are obviously a testament to this challenge. A situation, whereby we now depend almost entirely on the importation of these products, even when we daily supply the global oil market no fewer than two percent of its crude oil requirements, is to say the least, highly worrisome.
“We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous petroleum products and dumping of substandard diesel into the country.”
Under different administrations since 1999, Bamidele observed that the federal government “has invested billions of Dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri. But the refineries are not functioning.
“In 2021, specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns.
“For us, in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving,” Bamidele pointed out.
To permanently nip these challenges in the bud, the chairman of the ad-hoc committee disclosed the plans of the Senate to jointly conduct investigation into diverse allegations of economic sabotage in the petroleum industry along with the House of Representatives.
Bamidele equally noted that there would be no room for grandstanding during the investigative hearing, promising that the committee would carry out its mandate fairly and impartially.
While insisting that nobody will be untouchable, Bamidele said the task of ridding the petroleum industry of malfeasance is urgent and must be carried out in the spirit of nationalism and patriotism. We are ready to carry it out with all senses of honour and responsibility.
“We are also taking it seriously with a view to addressing fundamental issues that pose grave threats to our economic prosperity, fiscal stability and public health as a federation. In line with our mandate, we will definitely unravel factors and forces aiding sabotage in our petroleum industry.
“From our findings, we will craft a legislative framework that will entrench global best practices in the industry; open it up for more investments, especially in the midstream and downstream sectors and end vicious regimes of subterfuge in the petroleum industry.
“We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair and just to all parties with a view to promoting and protecting the strategic national interests of our fatherland.”
Bamidele, therefore, promised that the National Assembly “is ready to carry out the investigative hearing with all senses of honor and responsibility,” citing impeccable professional backgrounds of the members of the committee.
Mr. Mele Kyari, group chief executive officer of the Nigerian National Petroleum Company Limited (NNPCL), refuted claims of sabotaging domestic refineries.
“All of us here see what is happening in the media. Targeted personal attack on my person, on the institution. And we all know how this works.
“They are deliberate, they are calculated. So, that creates the impression that NNPCL and our leadership are doing anything to create economic sabotage in our country….
“It is far from it. This company has grown. We are proud to say this. From a lost company for 43 years to a profit-making company today,” said Kyari.
Mr Heineken Lokpobiri, minister of state for Petroleum Resources, said the oil sector was bedeviled by a lot of misinformation. “This senate should do Nigerians a favour by televising the proceedings of this committee live. This will do a whole lot of justice not only to the Senate but we in the Executive and key leaders in the sector. Because of the fundamental nature of this investigation that has to do with alleged economic sabotage with importation of substandard products into the country, we urge the Senate to ensure we do a live broadcast.”
He said the government was committed to ensuring that local industries and all stakeholders in the oil sector were protected.
“We are committed to supporting Dangote Refinery; we are also supporting modular refineries and we have been resolving whatever issues they had brought to our attention,” the minister said.
Also speaking at the investigative hearing, Mr. Aliyu Suleiman, chief strategy officer, Dangote Industry Ltd., said the refinery started full production in March. “Since then, we have processed about 50 million barrels of crude. We have produced about five million tons of petroleum products and these petroleum products have been sold in various parts of the country.”
Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, in his own remarks, said the increase in crude oil production would stabilise the country’s foreign exchange market.
