House Launches Investigation Into Issues In Downstream Sector

The House of Representatives has launched an investigation into several key issues affecting the nation’s downstream petroleum sector.

The inquiry will focus on failed refinery rehabilitation projects, controversial oil industry acquisitions, and concerns over potential monopolistic practices linked to the Dangote Refinery.

Briefing newsmen after a Special Strategic Committee meeting, Chairman of the House Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere noted that the committee is determined to uncover why major refineries in Port Harcourt and Warri shut down again, despite recent Turn Around Maintenance efforts.

“We are concerned about the enormous funds committed to these projects and yet, we are back to square one,” he said.

The committee is also examining challenges faced by local and modular refineries in securing crude oil.

Mr Ugochinyere said it was troubling that Nigerian operators must travel to Switzerland to negotiate access to crude produced domestically.

Lawmakers are also probing complaints from oil marketers and small refinery owners who claim their businesses are being threatened by policy decisions that could grant the Dangote Refinery dominance over product transportation and retail.

“We’ve received numerous petitions warning of the negative impact of potential monopolies on investment and employment in the sector,” Mr Ugochinyere noted.

The committee is reopening its investigation into the acquisition of OVH Energy by NNPC Retail after the House rejected an earlier report on the matter.

Further areas of inquiry include the stalled Biomass Ethane Project, fuel importation practices, and calls to integrate artisanal refiners into the broader petroleum refining chain.

According to Ugochinyere, the committee will also propose amendments to the Petroleum Industry Act to address emerging gaps and strengthen regulatory oversight.

The House rejected a petition seeking the dissolution of the petroleum regulatory authority, with Mr Ugochinyere emphasizing that the President retains sole appointing powers under the existing law.

An annual “Downstream Petroleum Week” is scheduled to begin on 2 October as part of efforts to encourage reforms and industry transparency.

“We will not allow a return to old practices or unchecked monopolies,” Mr Ugochinyere said. “Our aim is a stronger, more competitive downstream sector.”

Oduyemi Odumade, Edited By Grace Namiji