President of the Senate, Godswill Akpabio, announced the Adhoc Committee, following a motion on Alleged Economic Sabotage in the Petroleum Industry sponsored by Senator Asuquo Ekpenyong (Cross River South), to unravel the allegation of importation of adulterated petroleum products into the country and the scarcity of the Premium Motor Spirit, PMS.
The Adhoc Committee which has the Senate Leader, Senator Opeyemi Bamidele as its Chairman, was subsequently inaugurated by the President of the Senate, Akpabio, on Monday, July 22, 2024.
The Committee was charged with the mandate to: examine the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority, NMDPRA, with a view to uncovering loopholes, if any, being exploited to get toxic cargoes into the country; 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 in the scheme.
The Senate Committee is also expected to: beam legislative searchlight on the activities of NMDPRA, including payments made to transporters in the last 10 years; 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.
Other terms of reference is to: 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); among others.
At a world press conference in Abuja on Thursday, the Committee Chairman, Senator Bamidele, assured Nigerians that no stone would be left unturned in the course of doing diligence to the mandate given to the Committee.
He said Members of the Committee were eminent and distinguished Senators meticulously drawn from across the regions and different backgrounds, saying their pedigree and integrity spoke for them, adding that the Committee hit the ground running.
"Members of the Ad-Hoc Committee immediately rolled up their sleeves, met on several occasions to determine the best ways to achieve its mandate, and collectively resolved to sacrifice a portion of their recess period to carry on with the assignment devoid of bias in the overall national and public interest. This commitment led to the inauguration of the Ad-Hoc Committee by the President of the Senate, His Excellency Senator Godswill Obot Akpabio, GCON, on Monday, July 22, 2024", he said.
Speaking further, Senator Bamidele said, "our mandate is of strategic national interests. Each member of the committee is carefully selected based on his/her records of sterling performance. We are all men of integrity who will never pursue selfish interests at the expense of the national interests. The Senate did not constitute this committee to intimidate and witch-hunt any party. Rather, the committee was constituted for the purpose of ensuring social and economic justice in the light of grim realities we are facing as a federation.
"We are also taking this task 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 the roots of economic sabotage in Nigeria's petroleum industry and make necessary recommendations that will entrench global best practices in the industry and open it up for more investments, especially in the midstream and downstream sectors".
He said the Committee would be interacting with the following agencies and stakeholders in its course of investigations: Hon. Minister of State for Petroleum (Oil); 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; NMDPRA and Nigerian Upstream Petroleum Regulatory Commission, NUPRC.
Others are, Standards Organization of Nigeria, SON; Nigerian Maritime Administration and Safety Agency, NIMASA; Nigeria Customs Service, NCS; 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.
"It is pertinent to note that in the course of interactions with the identified stakeholders, the Ad-Hoc Committee will visit any of their facilities that it deems necessary, especially the state-owned refineries, to ascertain their status, considering the huge funds already invested in their various Turn Around Maintenances, year in, year out, without any meaningful result.
"The Committee, along with Nigerians, is particularly interested in understanding why local refineries are not working despite the substantial amounts of money spent annually on their maintenance and operations. We will closely examine what the Nigerian National Petroleum Corporation Limited (NNPCL) has been doing to address this persistent problem.
"Additionally, the Committee will meet with stakeholders in their various zones to gather localized insights and feedback. To ensure broad participation and transparency, the Committee will create a platform for the general public and stakeholders to submit memoranda before the public hearings", Senator Bamidele added.
The Committee also announced that a public hearing will be held as from September 10th - 12th, 2024, saying, "the sessions will enable us to engage directly with key actors in the petroleum industry and unravel those behind the illicit practice of importing hazardous and substandard petroleum products into the country contrary to established protocols and standards"; while calling on Nigerians and stakeholders in particular, for their full cooperation.
