The Senate has taken a decisive step to investigate the importation of adulterated diesel and fuel into Nigeria, a move that aims to protect the nation’s economic prosperity.
Senate President Godswill Akpabio has announced the formation of a 15-man committee, with Senate Leader Opeyemi Bamidele (Ekiti Central) appointed as the chairman.
The decision to establish the ad hoc committee follows the adoption of a motion sponsored by Senator Asuquo Ekpeyong (Cross River South) titled “Need to investigate the continued importation of Hazardous Petroleum Products and dumping of substandard Diesel into Nigeria.”
Senator Ekpeyong expressed deep concern over the ongoing importation of hazardous petroleum products and the dumping of substandard diesel in Nigeria. He highlighted a recent incident where 12 diesel cargoes, totalling 660kt, were exported by refineries to offshore Lome, Togo, for distribution in West African markets, particularly Nigeria. The quality of the diesel was reported to be below Nigerian standards in terms of flash and sulfur levels. Despite its substandard nature, this diesel still enters the Nigerian market.
Senator Ekpeyong further noted that the pricing of this imported diesel is below fair market value, constituting a violation of World Trade Organization (WTO) rules against dumping. He emphasised the need for Nigeria to protect its local industries and domestic producers against such unfair practices.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has recently revised the standards for diesel importation in line with the Petroleum Industry Act, 2021. However, enforcement of these standards has been lacking. Senator Ekpeyong proposed a total ban on diesel importation as long as the local refineries can meet the demand in Nigeria. He argued that such a ban would benefit the Nigerian petroleum industry and the nation as a whole.
During the discussion on the motion, Senator Solomon Olamilekan (Ogun West), Chairman of the Senate Committee on Appropriation, expressed disappointment with the operation of the Petroleum Industry Act (PIA) by some officials in the petroleum and gas sector. He called for a major reform and stated that “heads must roll.”
Senator Ali Ndume, the Senate Chief Whip, added to the discussion by highlighting the challenges faced by Dangote Refinery. He claimed that the NMDPRA deliberately issued licences to import adulterated foreign diesel, causing difficulties for Dangote Refinery. He emphasised the need for the ad-hoc committee to investigate why Dangote Refinery is forced to sell its diesel outside the country while toxic diesel is imported into Nigeria.
In response to the motion’s urgent national importance, the Senate resolved to establish an ad hoc committee. The committee’s primary task is to examine the pre-shipment and pre-discharge standard test parameters adopted by the NMDPRA, to uncover any loopholes exploited to bring toxic cargoes into Nigeria.
The committee’s terms of reference include assessing the compliance of the NNPCL’s Direct Sale and Direct Purchase (DSDP) arrangements with the provisions of the Petroleum Industry Act, investigating the activities of the Petroleum Equalisation Fund, and examining the state and status of the 22 depots built by the NNPC to eliminate road distribution of petroleum products.
Additionally, the committee will engage with stakeholders in the oil and gas industry to identify regulation gaps and strengthen surveillance and monitoring structures. It will also investigate the failure of institutions across the importation and distribution chain to conduct quality sampling and adhere to auditing and validation processes.
The committee has been given a three-week deadline to submit its report before the Senate proceeds on its annual recess at the end of July 2024. The Senate’s proactive measures aim to safeguard Nigeria’s economy and ensure the importation of high-quality petroleum products that meet the nation’s standards.
