House to probe downstream, midstream petroleum sectors

The House of Representatives on Tuesday initiated a special joint investigative committee tasked with conducting an extensive forensic investigation into the Nigerian downstream and midstream petroleum sectors. This move aims to address and resolve the multitude of challenges and issues plaguing these sectors, ranging from subsidy payments to nefarious activities at petrol depots.

The investigative committee, led by Ideato Rep Hon. Ikenga Imo Ugochinyere and the Chairman of the Downstream Sector, will delve into various anomalies affecting the sector.

The House’s unanimous decision mandates this committee to scrutinize areas such as subsidy payments, depot sharp practices, non-availability of domestic crude supply to local refineries, fuel queues, high PMS costs, and the source of funding for PMS subsidies.

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The investigation will also cover the continuous shifting of refinery rehabilitation timelines, the status of downstream pipeline and depot projects, indiscriminate issuance of licenses, OVH and NNPCL Retail product anomalies, the use of middlemen in crude sales to refineries, and the non-domestication of profits from crude oil sales by International Oil Companies (IOCs).

Hon. Billy Osawaru, who sponsored the movement alongside Hon. Philip Agbese, the Deputy Spokesman of the House of Reps, highlighted the constitutional duty of the National Assembly to ensure peace, order, and good governance in Nigeria. Osawaru expressed concern over the resurgence of fuel queues, high PMS costs, and the non-availability of fuel stock for domestic refineries, pointing to regulatory failures and lack of support for local crude refiners as significant issues.

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Osawaru further outlined allegations of unfair PMS subsidisation, racketeering, and favouritism within the Pro Forma Invoice (PFI) system, as well as indiscriminate licensing and importation of refined petroleum products. He also raised concerns about the alleged return of PMS price intervention, endless refinery rehabilitation delays, and the use of middlemen in crude supply, all contributing to product scarcity and inflated costs.

The investigation will also address the indiscriminate issuance of licenses, the lack of laboratories to check for adulterated products, the influx of substandard products, non-domestication of crude marketing profits, and the abuse of the PFI regime. Furthermore, issues such as importation of products already produced in Nigeria, unfair market practices, and the impact of subsidisation on local refineries will be scrutinised.