Reps to probe IOCs for ‘attempts to frustrate operations’ of Dangote refinery

The house of representatives has resolved to probe the international oil companies (IOCs) in Nigeria for allegedly conspiring to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

The lower legislative chamber also intends to investigate the Nigerian National Petroleum Company (NNPC) Limited over its failure to subscribe for 20 percent shares in the Dangote refinery.

The lower legislative chamber passed the resolution during the plenary on Thursday after the adoption of a motion of urgent public importance.

The motion, titled ‘Need to investigate conspiracy by international oil companies (IOCs) to frustrate the operations and survival of Dangote Refinery and the actual percentage holding of the federal government in Dangote Refinery’, was sponsored by Kingsley Chinda, the minority leader of the house.

On June 23, Devakumar Edwin, vice-president of oil and gas at Dangote Industries Limited (DIL), accused IOCs in the country of doing everything to frustrate the survival of the Dangote refinery.

Edwin alleged that the IOCs are deliberately frustrating the refinery’s efforts to buy local crude by jerking up prices above the market price.

This, he noted, forced the refinery to import crude oil from countries like the United States, with its attendant huge costs.

He also lamented the activities of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in granting licences indiscriminately to marketers to “import dirty, refined products into the country”.

Moving the motion, Chinda said that while the IOCs are “keen on exporting raw materials to their home countries and thus creating wealth and employment for their countries, adding to their GDP,”  they are making Nigeria a “dumping ground for the refined products”.

Chinda said the IOC’s strategy and plan are capable of making Nigeria face a higher rate of unemployment and poverty.

He called for an urgent need for the federal government, relevant ministries, departments, and agencies (MDAs), including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NMDPRA, to support Dangote refinery to succeed.

He said unless urgent steps are taken by the federal government and the allegations are investigated, Dangote refinery and its operations would be prematurely forced out of business.

The motion was unanimously adopted when it was put to a voice vote by Tajudeen Abbas, the speaker of the house.

On July 14, Aliko Dangote, Africa’s richest person, said the NNPC no longer owns a 20 percent stake in his refinery.

Dangote said NNPC now owns 7.2 percent of the refinery after failing to pay the balance of its share, which was due in June.

Explaining why the equity participation in the refinery was limited to 7.2 percent, Femi Soneye, NNPC’s spokesperson, said the national oil firm periodically evaluates its investment portfolio to make sure it is in line with the company’s strategic objectives.