ABUJA – The House of Representatives Committee on the Downstream Petroleum Sector has intervened in the ongoing dispute between the Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), summoning both parties to a hearing to prevent potential disruptions to the supply of refined products.
The move was one of several key resolutions announced following a three-day retreat held by the committee in Lagos to address critical issues in the downstream oil and gas sector.
Chairman of the Committee, Ikenga Ugochinyere, stated that the dialogue aims to find a middle ground and resolve all issues affecting the sector’s smooth operation. “By the time we dialogue with all sides, it will be easier to come to a middle point and resolve all knotty issues,” Ugochinyere said.
Fresh Probe into NNPC’s OVH Acquisition
In a significant development, the committee confirmed it has officially commenced a fresh investigation into the Nigerian National Petroleum Company Limited (NNPC Ltd.) acquisition of OVH Energy Marketing’s downstream assets. This reinvestigation follows a direct order from the House, which rejected an earlier report from a different committee for omitting “critical facts.”
Ugochinyere clarified that this new probe is distinct from the previous inquiry. “The House, therefore, mandated the Downstream Committee to undertake a fresh investigation, with a clear directive to uncover what truly transpired,” he stated.
The investigation will scrutinize the funds paid, the details of the acquisition agreement, and the assets involved. It will also examine allegations that former OVH managers formed a new company that later acquired OVH, and that the same individuals subsequently assumed leadership roles within NNPC Retail, raising concerns about the transaction’s transparency.
The committee has resolved to proceed with the investigation with or without the cooperation of all stakeholders, citing delays due to a failure by some to submit vital documents. The public has been invited to submit relevant information to the committee clerk.
“Any individuals found to have acted improperly—either through direct wrongdoing or failure in oversight—will be identified, and appropriate recommendations will be made in the best interest of the nation,” Ugochinyere assured.
Other Key Resolutions
The retreat also yielded resolutions on other sectoral challenges:
Refinery Probe: The committee is pressing ahead with its investigation into the Turn Around Maintenance (TAM) of the country’s state-owned refineries. Ugochinyere disclosed that memoranda have been received from workers and stakeholders concerning the significant expenditure on the refineries and their continued non-operational status, with a report expected soon.
Feedstock Supply: Deliberations were held on ensuring a steady supply of feedstock to local refineries to guarantee product availability.
Regulatory Vote of Confidence: The committee passed a vote of confidence on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), urging that calls for its dissolution be discountenanced.
PIA Amendment: Discussions were also held on amending the Petroleum Industry Act (PIA) to attract more investment into the sector.
