Reps ask NNPC to review modular refinery licences

The house of representatives has asked the Nigerian National Petroleum Corporation (NNPC) to review the status of licences issued to indigenous companies in the country to run modular refineries.

The house resolution is sequel to the adoption of a motion moved by Alex Egbona at a plenary session on Tuesday.

Egbona, in the motion, said in 2018 the federal government issued 38 licences to indigenous firms to set up modular refineries in different parts of the country.

He claimed that only two out of the 38 have been reported to be at advanced stages of completion preparatory for commencement of production.

Egbona said the decision to approve the modular refineries was to prepare grounds for the full deregulation of the downstream sector and to checkmate the incessant cases of crude oil theft and piracy in the oil-producing communities and the high seas.

He also said that the approval for setting up the refineries was in response to the outcry that the federal government should intervene and address the perennial problems that were plaguing the oil and gas industry in Nigeria.

Egbona further said that the refineries, when operational, would be expected to close the gap of importation of petroleum products for local consumption.

“The inability of the modular refineries to commence operations has continually forced the Federal Government to import petroleum products and sell to consumers at subsidised rates,” the lawmaker said.

“The essence of issuing the licences has been defeated as the beneficiaries have not been able to put them to proper use which is to refine petroleum products for local consumption and export.

The house, therefore, urged NNPC to “review the status of each of the licences, revoke and re-issue them to competent and reliable operators.”

It advised the corporation to give technical assistance to those who have started construction work to enable them to commence operation to meet up the demands of Nigerians.

The green chamber also mandated its committee on petroleum resources (upstream and downstream) to ensure implementation of the directives.