Feud in Petroleum Industry: Senate Leader urges stakeholder to cease fire for NASS probe

 

Feud in Petroleum Industry: Senate Leader urges stakeholder to cease fire for NASS probe

The Nigerian Senate on Monday reiterate its commitment to unreal factors and forces aiding sabotage in the country petroleum industry.

Leader of the Senate and Chairman, Senate ad Hoc Committee to investigate the Alleged economic sabotage in the Nigerian petroleum industry, Senator Okpeyemi Bamidele, gave the assurance at an interactive session with some critical stakeholders in the industry at the National Assembly in Abuja.

According to Okpeyemi, the findings of his committee will herard the enactment “legislative framework that will entrench global best practices in the industry; open it up for more investments, especially in the midstream and downstream sectors and end vicious regimes of subterfuge in the petroleum industry.”

He assured stakeholders of his committee’s readiness to discharge its duty with every sense of responsibility. Adding that on organization and or individual will be spared.

He said,”We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair and just to all parties with a view to promoting and protecting the strategic national interests of our fatherland.”

He sought the support of stakeholders to towards achieving transparency, accountability, and fairness within our petroleum industry.

The investigation of the Senate follows a motion sponsored by the Chairman, Senate Committee on Niger Delta Development Commission, Senator Asuquo Ekpenyong who represents Cross River South.

Full Statement

ADDRESS DELIVERED BY THE LEADER OF THE SENATE AND CHAIRMAN, SENATE AD-HOC COMMITTEE TO INVESTIGATE THE ALLEGED ECONOMIC SABOTAGE IN THE NIGERIAN PETROLEUM INDUSTRY, SENATOR MICHAEL OPEYEMI BAMIDELE, CON AT AN INTERACTIVE SESSION WITH SOME CRITICAL STAKEHOLDERS IN THE PETROLEUM INDUSTRY HELD ON 5TH AUGUST 2024 AT CONFERENCE ROOM 231, SENATE NEW WING, NATIONAL ASSEMBLY COMPLEX, ABUJA.

Protocols

On behalf of His Excellency, Senator Godswill Obot Akpabio, GCON, President of the Senate of the Federal Republic of Nigeria, and my Distinguished colleagues here present, I warmly welcome all our invited guests to this interactive session.

I thank you, also for your positive responses to our invitation, which effectively marks the commencement of the Senate investigation into allegations of economic sabotage in our petroleum industry.

It will interest you to know that this interactive session is one in the series of engagements that are lined up by this Committee in its quest to carry out this national assignment.

I urge all parties to set aside the ongoing accusations and counter-accusations as we embark on a journey towards uncovering the truth behind these matters of economic importance.

This Ad-Hoc Committee was set up by the Senate out of genuine concern for the well-being of our nation. I, therefore, assure you that we are all committed to conducting a thorough and impartial investigation across all areas outlined in the Senate Resolution of 3rd July 2024.

For ease of reference, the terms of reference include:

Examine the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority with a view to uncovering loopholes, if any, being exploited to get toxic cargoes into the country;Determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase arrangements in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability in the scheme;

Beam legislative searchlight on the activities of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, including payments made to transporters in the last 10 years;

Enquire from the NNPCL the state/status of the 22 depots built by the defunct NNPC to eliminate road distribution of petroleum products;

Engage with stakeholders within the oil and gas industry with a view to identifying possible gaps in regulating and strengthening the surveillance and monitoring structures in place to enable Nigeria to detect violations of best practice standards in the importation of products before they enter into the domestic supply chains;

Engage with the NNPCL with a view to understanding the extent of its determination and timelines for the start-up of government-funded oil refineries;Investigate how institutions across the importation and distribution chain failed to conduct quality sampling, shipped in products without auditing, and performed port validations by the Nigeria Customs Service, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Maritime Administration and Safety Agency, Standards Organization of Nigeria; and Nigerian Ports Authority;

andSuch other consequential amendments the Ad-hoc Committee deems fit. It is imperative that we all approach this process with integrity and cooperation.

There will be no room for grandstanding, and I want to make it crystal clear that no one will be exempted from scrutiny. Our collective goal is to serve the overriding public interest, and it is essential that each stakeholder actively contributes towards this noble cause.

Before the takeoff of this investigative hearing, however, this Ad-hoc Committee, constituted on the 3rd July 2024 consistent with Sections 88 and 89 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and Legislative Agenda of the 10th Senate has been carrying out its mandate to perfect our modalities and workings with a view to ensuring fair hearing and resolving deep-seated challenges that have been clogging the functionality of our petroleum industry for decades.

Respected Stakeholders, you will agree with me that this is truly a challenging period in the recent history of our fatherland.

The supply of refined petroleum products has been irregular and problematic. The long queues at filling stations are also a testament to this challenge.

A situation, whereby we now depend almost entirely on the importation of these products, even when we daily supply the global oil market no fewer than 2% of its crude oil requirements, is to say the least, highly worrisome.

We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous and substandard petroleum products.

Under different administrations, the federal government invested billions of Dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri. In 2021, specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns. For us, in the Senate, we believe, it is unfair and unpatriotic to treat government business as an orphan while private businesses are flourishing.

Each of these challenges has put undue pressure not just on our foreign exchange market, but also contributes to the sub-optimal performance of our domestic economy, which the Executive Arm has been taking decisive measures to address in the interest of all Nigeria.

While we have absolute confidence in the Executive Arm to address these challenges, the Senate deemed it apt to constitute this Ad-hoc Committee to investigate diverse allegations of economic sabotage in the petroleum industry and develop a responsive regime that will deepen global best practices in the industry.

The constitution of this Ad-Hoc Committee became highly imperative after an extensive debate at the 3rd July 2024 plenary of the Senate on a motion on the importation of hazardous and substandard petroleum products into the country through Lome, Republic of Togo.

The motion was sponsored by the Chairman, Senate Committee on Niger Delta Development Commission, Senator Asuquo Ekpenyong (Cross River South). Initially, it was a clear case of the importation of hazardous and substandard petroleum products, which the Senate condemned in its entirety. In their contributions, Distinguished Senators offered diverse perspectives on the implications of such illicit practice for our national economic and security interests.

These perspectives, painstakingly offered by the Distinguished Senators, informed the resolution of the Senate to constitute “an Ad-hoc Committee to Investigate the Alleged Economic Sabotage in the Petroleum Industry.

”It is pertinent to note that in the course of interactions with the identified stakeholders, this Committee will visit any of their facilities that it deems necessary, especially the state-owned refineries, to ascertain their status, considering the huge funds already invested in their various Turn Around Maintenances without any meaningful result.

The Committee, alongside all Nigerians, is particularly interested in understanding why local refineries are not working despite the substantial amounts of money spent annually on their maintenance and operations. We will closely examine what NNPCL has been doing to address this persistent problem.

Our investigation would seek to identify and hold accountable all parties involved in the importation and distribution of the adulterated petroleum products, especially Premium Motor Spirit and Automotive Gas Oil and such other acts that are detrimental to the operations of the petroleum industry. This includes suppliers, importers, regulatory bodies, and any other entity that may have contributed to lapses in the petroleum industry.

We will conduct a thorough review of current regulatory frameworks and procedures to identify deficiencies and recommend necessary reforms to prevent such occurrences in the future.

To ensure broad participation and transparency, we have already created a platform for the general public and stakeholders to submit memoranda before the public hearings that is slated to hold from September 10 – 12 2024. These sessions will enable us to engage directly with key actors in the petroleum industry and unravel those behind the illicit practice of importing hazardous and substandard petroleum products into the country contrary to established protocols and standards.

After the public hearing, the committee will go into close sessions during which we consider all the submissions from the key actors. Respected Stakeholders, why did the Senate resolve to carry out this investigation?

Will this investigative hearing end up like the previous ones? Can the Senate really address the challenges in the petroleum industry given the entrenched interests of some powerful interests?

These are some of the questions the media have been asking in their analyses and reports since the constitution of this Ad-hoc Committee on the 3rd July 2024.

These questions may seem difficult, but I am confident that we are on a mission to make a difference.We have accepted this huge responsibility with the resolve to make a difference.

We are also staking our integrity and safety in order to develop an efficient and functional regime that guarantees the transparent management of strategic national resources; endears serious investors to our petroleum industry and creates more opportunities for our people at home and abroad.

Why are you here? Every Stakeholder invited here plays significant statutory roles and collaborates to provide comprehensive oversight, regulatory compliance, security, and policy direction to address and mitigate any acts of economic sabotage in the Nigerian petroleum industry.

For instance: Standards Organization of Nigeria (SON) is responsible for setting and enforcing quality standards for products and services. In this context, it ensures that petroleum products meet specified quality standards, preventing substandard products that could lead to economic sabotage.

The Nigerian National Petroleum Corporation Limited (NNPCL), oversees the exploration, production, refining, and marketing of petroleum and petroleum products in Nigeria. Its involvement is crucial in providing data, operational insights, and identifying potential areas where economic sabotage could occur within the supply chain.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regulates the midstream and downstream sectors of the petroleum industry. It ensures compliance with regulations, monitors operations, and can provide insights into regulatory breaches or inefficiencies that might contribute to economic sabotage.

The Nigerian Navy plays a critical role in securing Nigeria’s maritime borders. In this context, its role includes preventing illegal bunkering, oil theft, and ensuring the safe transportation of petroleum products across Nigerian waters.

The Nigerian Customs Service regulate and controls the import and export of oil and gas products to ensure compliance with Nigerian laws and international trade agreements while enforcing standards and specifications.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regulates the upstream sector of the petroleum industry. Its role involves overseeing exploration and production activities, ensuring adherence to regulations, and identifying any acts of sabotage or non-compliance that could affect the upstream operations.

The Ministry of Petroleum Resources is responsible for formulating and implementing policies for the petroleum sector. It provides strategic direction, coordinates activities among various stakeholders, and ensures that policies are in place to prevent economic sabotage.

The Nigerian Maritime Administration and Safety Agency (NIMASA), is responsible for regulating shipping, maritime labor, and coastal waters. In the context of the petroleum industry, it ensures the safety and security of maritime operations, which is crucial in preventing illegal activities such as oil theft and unauthorized bunkering.

The Ministry of Trade and Investments, oversees trade policies and investment opportunities. Its role involves promoting fair trade practices, ensuring that investments in the petroleum sector are protected from economic sabotage, and fostering an environment conducive to legitimate business activities.

The justifications continue for every invited Stakeholder.We are therefore appealing to all the stakeholders to cooperate with this Committee and put the national interest above any form of parochial interests.

We are not on a self-serving mission, and we shall never be. Rather, we are on a national mission that will significantly redefine the future of our dear country.

Our mission is never to witch hunt any individual, corporate entity or government agency, but to unravel the root causes of fundamental challenges within the petroleum industry and devise a functional legislative framework to discourage the activities of some rogue actors in the industry.

This task is urgent, and we are ready to carry it out with all senses of honour and responsibility. We are also taking it seriously with a view to addressing fundamental issues that pose grave threats to our economic prosperity, fiscal stability and public health as a federation.

In line with our mandate, we will definitely unravel factors and forces aiding sabotage in our petroleum industry. From our findings, we will craft a legislative framework that will entrench global best practices in the industry; open it up for more investments, especially in the midstream and downstream sectors and end vicious regimes of subterfuge in the petroleum industry.

We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair and just to all parties with a view to promoting and protecting the strategic national interests of our fatherland.

Together, let us work towards achieving transparency, accountability, and fairness within our petroleum industry.

Your collaboration and support are invaluable as we strive to uphold the integrity of our nation’s economic landscape.

Thank you for your attention and let us all work together towards a shared commitment to the greater good of our nation.

Thank you and God bless.