Senate probes NNPCL over importation of hazardous diesel, tired of promises on refineries

Taiye Odewale

The Senate Wednesday resolved to probe the Nigerian National Petroleum Corporation Limited (NNPCL) over importation of hazardous petroleum products particularly Diesel into the country.

It also resolved that thorough investigation should be carried out on federal government owned moribund refineries despite $4billion expended on them recently and several failed promises made by NNPCL.

It consequently set up 15 – man ad – hoc committee to carry out holistic investigation on the sector and report back in three weeks.

Members of the committee to be chaired by the Senate Leader , Senator Opeyemi Bamidele , are Senators Asuquo Ekoenyong, Abdullahi Yahaya, Tahir Monguno, Olamilekan Adeola, Diket Plang and Abdul Ningi.

Others are Senators Khabeeb Mustapha, Ipanibo Banigo, Adams Oshiomhole, Adetokunbo Abiru, Osita Isinaso, Sahabi Ya’U, Olajide Ipinsagba and Ekong Samson.

The resolutions were sequel to a motion sponsored to that effect by Senator Asuquo Ekpenyong (APC Cross River South).

Senator Ekpenyong in the motion , noted with deep concern, the continued importation of hazardous petroleum product and dumping of substandard diesel into the Nigeria.

He said, “On 16th of June, 2024, it was reported that 12 diesel cargoes, conveying a total of 660kt of diesel was ‘exported by refineries to offshore Lome, Togo for further distribution to West African markets, mainly Nigeria.

“Inspite of the substandard nature of the diesel, it still finds its way into the Nigerian markets, as & track on Mt “Kalle” which arrived Lome on the 16* of June, which immediately did ship-to-ehip (STS) transfer to DV MT (Matric Triumph” and then proceeded to discharge into Matric jetty in Warri on 21% June, 2024.

“Thereafter, another STS was made to DV MT “Matric Pride”, which then proceeded to discharge into Obet Oil terminal on 22 June, 2024.

“The diesel is priced below fair market value, which constitutes dumping on the World Trade Organisation (WTO) rules, which stipulates that countries are permitted to take measures to protect their local industries in the event of dumping.

“Though the Nigesian Midstream and Downatream Petroteum Regulatory Authority (RIMDPRA) has recently revised the standards of diesel ! importation into Nigeria in line with the Petroleum Industry Act, 2021, it is apparent that they are incapable of enforcing compliance with the standards.

“NMDPRA has persistently continue to issue import Licenses for diesel and jet, despite sufficient local production capacity.

“Therefore, the best option for protecting Nigerians and our local refineries against dumping, is to place a total ban on the importation of diesel since our local refineries can meet the Nigerian demands.”

The Senate on the strength of the motion, also mandated the Ad- hoc committee to 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, exploited to get toxic cargoes into the country.

Determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase (DSDP) arrangements in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability in the scheme.

Beam legislative searchlight on the activities of the Petroleum Equalisation Fund, including payments made to transporters in the last 10 years;

Enquire from the NNPCL the state/ status of the 22 Depots built by the 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 detect violations of best practice standards in the importation of products before they enter into domestic supply chains;