THE Senate Committee on Wednesday, August 7, interrogated the group chief executive officer (GCEO) of the Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari, over the alleged importation of substandard petroleum products into the country.
The Senate ad-hoc Committee hearing is investigating alleged economic sabotage in the Nigeria Petroleum Industry, following recent allegations of inferior petroleum products in the country.
The chairman of Dangote Industries Limited, Aliko Dangote, had earlier urged federal lawmakers to probe ‘poor quality’ fuel in circulation at various filling stations and other retail outlets in Nigeria, stating that many vehicle issues could be traced to the “substandard” imported fuel.
Dangote had urged the House of Representatives leadership to set up an independent committee to verify the quality of petrol available at filling stations when he appeared before the house on Monday, July 22, The ICIR reported.
Earlier on July 18, the chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, had accused the Dangote refinery of producing inferior products compared to the ones imported into the country.
The ICIR reports that NNPCL, the state-owned oil company, is the sole importer of petroleum products into the country.
At the Senate hearing on Wednesday, the NNPCL boss said the NNPCL had no involvement in such an act.
Kyari’s response to the Senate was conveyed in a statement by the chief corporate communications officer of NNPCL, Olufemi Soneye.
He said, “The NNPC Limited has nothing to do with that as the relevant regulatory agencies will, by law, not allow any sub-standard product into the country.”
Kyari said he supports the calls for the ad-hoc committee to broadcast the interactive sessions live on national television to prevent misinforming Nigerians.
He said the country has enough infrastructure to produce two million barrels of crude per day but the challenges of crude oil theft, pipeline vandalism and absence of investment in the upstream are the major factors hindering the sector.
Kyari further argued that the NNPCL had not breached any of the enabling laws guiding its dealings with partners.
He said investors in local refineries ought to secure their feedstocks as well as find a market for their refineries, stressing that as a straightforward part of the refining business.
“The refining business is a straightforward business which any investor should know before coming into the market.
“Refining business is a straightforward business. You must secure (a source for) your feedstock and you must find a market. This is basic and this determines what happens in any refinery anywhere in the world. That is the business of refining. We have done nothing to sabotage any domestic refinery,” he explained.
The NNPCL boss said further that the law was clear on domestic crude oil supply obligations and on providing for local refineries, noting that the law provides for a “willing buyer and a willing seller,” arrangement.