01Aug, 24
- Temidayo Taiwo-Sidiq
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The House of Representatives, through its Joint Committee on Petroleum Resources (Midstream and Downstream), is conducting a forensic investigation into the challenges affecting the midstream and downstream petroleum sectors in Nigeria.
This initiative is empowered by sections 88 and 89 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), which authorises the National Assembly to conduct investigations. The investigation follows a resolution of the House on July 9, 2024, mandating this inquiry to address issues within these critical sectors (HR. 16/07/2024).
In view of this, the Joint Committee (Midstream and Downstream) invites stakeholders, petroleum industry experts, private oil companies, and the general public to submit memoranda to assist in this comprehensive investigation. The issues under investigation include but are not limited to:
1. Resurgence of fuel queues in petrol stations;
2. Unavailability of fuel stock for downstream domestic refineries;
3. Disruption of distribution of PMS products;
4. Unfair subsidization of PMS and other petroleum products racketeering and favouritism in the Pro Forma Invoice System (PFI) regime;
5. Indiscriminate issuance of licenses and importation of refined petroleum products;
6. Alleged return of PMS price intervention;
7. Allegation of product unavailability to marketers from NNPC Retail;
8. Endless shifting of timelines for refinery rehabilitation, the nefarious activities at petrol depots;
9. Unavailability of laboratories to check adulterated products;
10. Influx of adulterated products into the country;
11. Allegation of non-domestication of profits realised from crude marketing sales in local banks, abuse of the PFI regime;
12. Importation of products already being produced in Nigeria;
13. Use of international trading companies to resell fuel stock to local refineries;
14. The allegation of return of subsidy on downstream PMS products;
15. Unclarity about the exact landing cost of PMS;
16. Reduction in retail price and its impact on downstream operations;
17. Allegation of importation of substandard products and high-sulphur diesel into Nigeria;
18. Sale of petroleum products below fair market value impacting downstream and local refineries, and sources of funds for price interventions;
19. The lack of support to local crude refiners;
20. High cost of Premium Motor Spirit (PMS) and lack of clarity on PMS landing costs;
21. Allegations of unfair subsidisation, racketeering, favoritism in the Pro Forma Invoice (PFI) system and abuse of PFI regime;
22. Presence of middlemen in trading;
23. Importation of locally produced products like jet fuel and AGO;
24. Alleged return of PMS subsidy and issues surrounding the subsidy regime;
25. Importation of substandard/high-sulphur diesel;
26. Failure of regulators like Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce compliance and standards;
27. Forward sales, revenue from it and its impact on domestic crude availability;
28. The sustainability of the ongoing endless turnaround maintenance of refineries;
29. Alleged non-completion of merger of OVH and NNPCL retail and other challenges in the merger;
30. The allegation of introduction of monopoly in petroleum products production;
31. Sharp practices at depots and non-availability of petroleum products after payment;
32. Main cause of fuel availability crisis, high cost and alleged racketeering by marketers;
33. Demand for ban on importation of PMS and other petroleum products.
Memoranda should address these issues, highlighting concerns, challenges, and proposed solutions.
*Submissions must be delivered in 10 hard copies, accompanied by two flash drives,* to the office of the Clerk, Committee on Petroleum Resources (Downstream), Room HB. 44, White House, National Assembly, Abuja, by Wednesday, August 14, 2024.
Digital submissions can be sent to house.petroleumresources@nass.gov.ng.
*For further inquiries, please contact:*
* Abdulrahaman-Naibi S. Alfa, Clerk, Committee on Petroleum Resources (Downstream) at 08033143418
* Muhammad Ali, Clerk, Committee on Petroleum Resources (Midstream) at 08033112996
Signed:
Rep. Akin Rotimi, Jr.
Spokesman, House of Representatives
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