The House of Representatives on Thursday, July 18, resolved to investigate allegations that the Nigeria Upstream Petroleum Regulatory Commission and International Oil Companies operating in the country have colluded to deny Dangote Refinery crude oil supply thereby frustrating its operation.
The House also resolved to investigate the claim by the chairman of Dangote Refinery, Alhaji Aliko Dangote, alleging that Nigeria, through the NNPCL, own only 7 percent shares of the refinery instead of the 20 percent known to Nigerians.
This followed the adopting a motion of urgent public importance sponsored by Minority Leader, Hon. Kingsley Chinda, on an alleged conspiracy by International Oil Companies to frustrate the operation and survival of the Dangote refinery and the actual percentage of holding of the federal government in the refinery.
The House asked the Minister of Petroleum Resources and the NUPRC to support Dangote refinery and ensure its success.
Hon. Chinda noted the successful completion and coming into full operations of Dangote oil Refinery and Petrochemicals which can reduce the importation of petroleum products.
He said even though Nigeria is a major oil-producing and exporting country, she has for several years 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 7% largest by capacity, and its construction was meant to alleviate the petroleum products needs and accompanying pains faced by Nigerians.
He recalled that recently, the management of Dangote Refinery accused International oil companies (IOCs) operating in the country of conspiracy, in an attempt to frustrate the smooth operations of the refinery.
He said further that the alleged conspiracy against the Dangote refinery relates to efforts by the IOCs to deliberately frustrate the refinery 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 crude oil at very exorbitant cost from other countries, Such as the United States, and thereby increasing the cost of Production locally and increased product price.
He revealed that information from the management of Dangote Refinery indicated that whilst the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) was trying its best to allocate crude to Dangote Refinery, the 1OCs were deliberately frustrating Dangote Refinery’s effort to buy the local crude.
He said: “The management of Dangote Refinery alleged that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was still granting import licenses, indiscriminately, to marketers to import sub-standard refined petroleum products into the country.
“Whilst the IOCs are keen on exporting raw materials to their home countries and thus create wealth and employment for their countries, thereby adding to their GDP, Nigeria continues to be a dumping ground for refined products, thus making us dependent on imported petroleum products”.
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