The Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, and his Deputy, Rt. Hon. Benjamin Okezie Kalu, have received a pat on the back by the African Centre For Transparency and Reform (ACTR) over the resolve of the 10th House to conduct forensic investigation into the downstream sector of the nation’s petroleum resource.
ACTR, in a statement signed by its strategy director, Mallam Abubakar Ali, threw its weight behind the investigation of the downstream sector administered by the Mele Kyari-led Nigerian National Petroleum Company Limited (NNPLC), saying the exercise will
unravel the mysteries surrounding the dwindling fortune of the critical area of the country’s economy.
The Centre urged the House Joint Committee on Petroleum (Downstream and Midstream) chaired by Hon. Barr Ikenga Imo Ugochinyere, and Hon. Odianosen Henry Okojie, respectively, to carry out the assignment with due diligence and spare no one found guilty of the weighty allegations uncovered by the Green Chamber of the National Assembly.
According to the statement, Abbas and Kalu-led House has again proven that it was truly the ‘People’s House’ and can not stay aloof when such an all-important sector like the downstream sector was being sabotaged by privileged few to detriment of the entire country and her people.
“We wholeheartedly welcome the resolve of the House of Representatives mandating its Committees on Petroleum Resources (Downstream) and (Midstream) to carry out a legislative forensic investigation into the resurgence of fuel queues in petrol stations, allegations of the high cost of PMS, and the unavailability of fuel stock for downstream domestic refineries, among other things.
“We are also delighted that the committees are to carry out a legislative forensic investigation into the presence of middlemen in trading, the indiscriminate issuance of licenses, the unavailability of laboratories to check adulterated products, the influx of adulterated products into the country, the allegation of non-domestication of profits realised from crude marketing sales in local banks, and other anomalies.
“Interestingly, the panels will be conducting a legislative forensic probe into the allegation of the importation of substandard products and high-sulphur diesel into Nigeria, the sale of petroleum products below fair market value, and the impact on downstream and local refineries and as the source of funds for such interventions, amongst other things, and report back to the House within four weeks for further legislative action,” the group said.
The ACTR said the allegations uncovered by the House were as astonishing as astounding and recalled that; “these bordered on unfair subsidisation of PMS and other petroleum products which negatively affects competitiveness in the sector, racketeering and favouritism in the Pro Forma Invoice System (PFI) regime, indiscriminate issuance of licenses and importation of refined petroleum products.
“Return of PMS price intervention with its impact on domestic market, product unavailability to marketers from NNPC Retail. Endless shifting of timelines for refinery rehabilitation, the nefarious activities at petrol depot which have affected product distribution and caused scarcity and the use of middlemen in trading which has negatively affected domestic crude supply.
“Stage back of subsidy on downstream PMS products, unclarity about the exact landing cost of PMS, reduction in retail price and its impact on downstream operations, allegation of importation of substandard products and high-sulphur 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.
“The failure of the regulators such as NMDPRA, NUPRC, etc to enforce compliance with standards that will help achieve the growth of downstream sector and the lack of support to local crude refiners, issuance of import license, despite local production.
“It is therefore commendable that the House under the leadership of Speaker Abbas and Deputy Speaker Kalu have saddled the Downstream and Midstream Committees headed by unyielding and firm Ikenga Ugochinyere and Henry Okojie with the assignment. We believe that by their antecedents, the probe will carried out to logical conclusion with appropriate sanctions recommended for the defaulters useful suggestions for overhaul of the sector.”
