Reps To Probe IOCs’ Alleged Frustration Of Dangote Refinery

The House of Representatives has resolved to investigate the alleged conspiracy by International Oil Companies (IOCs) to frustrate the operations and survival of Dangote Refinery and the actual percentage holding of the federal government in the refinery.

The House also resolved to investigate matters of the inability of NNPC Ltd to subscribe for the 20 per cent shares in Dangote refinery and the lack of supply of crude oil to Dangote Refinery.

It further urged the federal government, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Nigeria Midstream and Downstream Regulatory Agency (NMDPRA), key stakeholders and well-meaning Nigerians to support Dangote Refinery to succeed.

The green chamber equally urged the minister of state, Petroleum Resources, and all relevant MDAs to immediately take urgent steps and intervene in the matter of crude oil supply to Dangote Refinery.

These resolutions followed the adoption of a motion of urgent public importance moved by the Minority Leader, Hon. Kingsley Chinda at plenary on Thursday.

Moving the motion, Chinda said  Nigeria, a major oil producing and exporting country for several years, has continued to import refined petroleum products from other countries, to the detriment of the economic well-being of the country.

He said Dangote Refinery, with a capacity of 650,000 barrels per day (bpd) is said to be Africa’s largest refinery, and the World’s 7th largest by capacity, and its construction was meant to alleviate the petroleum products needs and accompanying pains faced by Nigerians.

The lawmaker said recently, the Management of Dangote Refinery accused IOCs operating in the country of conspiracy, in an attempt to frustrate the smooth operations of the refinery.

Chinda said the alleged conspiracy against Dangote refinery relates to efforts by the IOCs to deliberately frustrate the refinery’s to buy local crude oil by manipulating and jerking up the premium price above the market price, thus forcing the refinery to reduce output, as well as import oil at exorbitant cost from other countries.

The minority leader said according to the management of Dangote Refinery, while the NUPRC was trying its best to allocate crude to Dangote Refinery, the IOCs were deliberately frustrating the refinery’s effort to buy the local crude.

He quoted the management of Dangote Refinery alleging that NMDPRA was still granting import licences, indiscriminately, to marketers to import sub-standard refined petroleum products into the country.

Chinda expressed concern that whereas the IOCs are keen on exporting raw materials to their home countries and creating wealth and employment for their countries, thereby adding to their GDP, Nigeria continued to be a dumping ground for the refined products, making citizens dependent on imported petroleum products.

“The IOCs strategy/plan which is capable of making Nigeria face a higher rate of unemployment and poverty. There is an urgent need for the federal government, relevant MDAs, including the NUPRC and the NMDPRA, key stakeholders and well-meaning Nigerians to support Dangote Refinery to succeed.

“Further worried that whilst the federal government of Nigeria subscribed 20 per cent shares in Dangote Refinery, the Chairman (Aliko Dangote) claimed that Nigeria was unable to redeem its obligation and now owns 7.2 per cent through NNPC Ltd.

“There is an urgent need to look into these allegations by Dangote Refinery and end/break all forms of dominance and monopoly of the petroleum sector by the IOCs and confirm the quantum of federal government interest in the refinery, “ he said. The opposition leader insisted that unless urgent steps are taken by the federal government to call the IOCs to order, Dangote Refinery and its operations would be prematurely forced out of business and that would not be good for the people, adding that NNPC.