The Senate is set to investigate “The Alleged Economic Sabotage in the Nigerian Petroleum Industry”, a wholesale probe undertaken by a 15-member panel Chaired by the Leader of the Senate, Sen. Opeyemi Bamidele (APC, Ekiti-Central).
The panel disclosed on Thursday that over 22 major stakeholders and groups in the country’s oil and gas industry had already been identified to appear before it and provide useful information on developments in the sector.
Speaking at a news conference in Abuja, Bamidele said those identified were the Minister of State for Petroleum (Oil), Sen. Heineken Lokpobiri; Federal Ministry of Finance; Federal Ministry of Trade and Investment; Nigerian National Petroleum Company Limited (NNPCL); National Engineering and Technical Company Limited (NETCO) and Contractors); Central Bank of Nigeria (CBN); Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); Nigerian Upstream Petroleum Regulatory Commission (NUPRC); Standards Organisation of Nigeria (SON); and the Nigerian Maritime Administration and Safety Agency (NIMASA).
The list also named the Nigeria Customs Service; Nigerian Navy; OBAT Oil; Matrix Energy Depot; Independent Petroleum Marketers Association of Nigeria (IPMAN); International Oil Companies (IOCs); Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN); Major Oil Marketers Association of Nigeria (MOMAN); Nigeria Ports Authority (NPA); Dangote Group; Modular Refineries; and Capital Oil.
The Senate had on July 3, passed a resolution to probe alleged malpractices in the industry, including the importation of substandard products and the dumping of toxic diesel on Nigeria following a motion moved by Sen. Asuquo Ekpenyong (APC, Cross River-South).
The Senate leaders, who stated this time round there would be “no sacred cows”, also reeled out the specifics of the mandate of the panel.
He said among others, the panel a) would examine the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority “with a view to uncovering loopholes, if any, being exploited to get toxic cargoes into the country” and determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase (DSP) arrangements “in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability.”
Bamidele said the Ad-hoc committee would also beam searchlight on the activities of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), including payments made to transporters in the last 10 years.”
He spoke further, “Enquire from the NNPCL the state/status of the 22 depots built by the defunct NNPC to eliminate road distribution of petroleum products.
“Engage with stakeholders within the oil and gas industry with a view to identifying possible gaps in regulating and strengthening the surveillance and monitoring structures in place to enable Nigeria to detect violations of best practice standards in the importation of products before they enter into the domestic supply chains.
“Also engage with the NNPCL with a view to understanding the extent of its determination and timelines for the start-up of government-funded oil refineries.
“Investigate how institutions across the importation and distribution chain failed to conduct quality sampling, shipped in products without auditing, and performed port validations by the Nigeria Customs Service, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Maritime Administration and Safety Agency, Standards Organization of Nigeria (SON); and Nigerian Ports Authority (NPA): and (h) Such other consequential amendments the Ad-hoc committee deems fit.”
In the course of the probe, the Ekiti lawmaker said on-the-spot-assessment to facility sites and other physical inquiries would be carried out by the committee, including reviewing the turn around maintenance (TAM) contracts of the country’s four refineries, which had gulped billions of dollars without positive gains.
Sensing the doubts Nigerians always expressed over the outcome of such probes that hardly punished the culprits, Bamidele said, “The Senate Ad-Hoc Committee on Alleged Economic Sabotage in the Petroleum Industry assures the public that we will pursue this investigation with the utmost diligence and integrity.
“We are dedicated to safeguarding the interests of all Nigerians and restoring confidence in our energy sector.”
According to him, certain malpractices occurred in the past because the perpetrators took advantage of the absence of a regulatory framework for operations in the industry.
He explained that with the PIA now in place, the panel would apply the law while conducting the investigation and make appropriate recommendations for both the Executive arm of government and the Judiciary to implement.
He assured Nigerians that anyone found wanting of economic sabotage, including a senator, would not be spared.
“There will be no sacred cows,” he said.
Some members of the panel include Senate Whip, Sen. Mohammed Monguno (APC, Borno-North); Sen. Abdul Ningi (PDP, Bauchi-Central); Sen. Adams Oshiomhole (APC, Edo-North); Sen. Ipalibo Banigo (PDP, Rivers-West); and Sen. Asuquo Ekpenyong (APC, Cross River-South.)
The public hearing on the probe will open on September 10.
