The House of Representatives Committee on Petroleum Resources (Downstream) has initiated a comprehensive investigation into key challenges plaguing Nigeria’s downstream oil sector.
The probe will focus on several pressing issues, including the controversial turnaround maintenance of the nation’s refineries, the acquisition of OVH Energy, and growing concerns over the potential market monopoly by Dangote Refinery.
Committee Chairman, Hon. Ikenga Ugochinyere, made this known during a press briefing in Abuja on Wednesday. He expressed concern over the re-shutdown of the Port Harcourt and Warri refineries shortly after being declared operational.
“It’s troubling that after all the excitement about these refineries resuming operations, they are already shut down again. We are not here to shield anyone; any individual found culpable of corrupt practices must face the law,” Ugochinyere stated.
The committee also plans to examine the hurdles faced by local and modular refineries in securing crude oil. Ugochinyere questioned why local refiners are forced to travel abroad, particularly to Switzerland, to negotiate for crude sourced domestically.
He emphasized the need to understand the failures behind the refinery maintenance efforts, especially since a reputed firm was contracted for the project. The outcome of the investigation, he added, would help determine whether privatization or sale of the refineries should be considered.
Ugochinyere disclosed that the committee has received numerous petitions concerning the petroleum sector.
Many came from refinery owners, oil marketers, and retailers, particularly raising alarm over the Dangote Refinery’s alleged plans to dominate the distribution and retailing of petroleum products.
