The House of Representatives Committee on Petroleum Resources (Downstream) has launched a comprehensive investigation into several critical issues affecting Nigeria’s downstream oil sector.
The investigation will cover, among others, the controversial Turn Around Maintenance (TAM) of the country’s refineries, the acquisition of OVH Energy, and the mounting concerns over market dominance by the Dangote Refinery.
Speaking at a press conference on Wednesday, the Chairman of the Committee, Ikenga Ugochinyere (PDP, Imo), said the investigation aims to uncover the reasons behind the persistent underperformance of the Port Harcourt and Warri refineries, despite substantial investments and public assurances of operational readiness.
Mr Ugochinyere noted that the committee intends to establish whether these failures justify the proposals to sell or privatise the refineries, even as he insisted that a thorough fact-finding process must precede any such decision.
He said the committee will investigate the constraints faced by local and modular refineries in accessing crude oil.
According to the chairman, it is “unacceptable” that Nigerian refiners are compelled to travel as far as Switzerland to negotiate the purchase of Nigerian crude, calling for urgent solutions to ease domestic crude supply.
The committee, Mr Ugochinyere said, has received numerous petitions from stakeholders across the sector including refinery operators, oil marketers, and retailers, raising concerns about policy inconsistencies that threaten their investments.
Among the most contentious issues is the alleged plan by the Dangote Refinery to assume control over the transportation and retailing of petroleum products, a move stakeholders fear could lead to market monopoly. The lawmaker noted that several marketers and retailers have warned that such a development could cripple private investments and trigger market instability
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