By Henry Umoru

ON July 3, 2024, SenatePresident Godswill Akpabio resolved to engage in another probe of the oil and gas sector over alleged gross abuse.

Akpabio set up a 15-member Ad- hoc Committee to carry out a holistic investigation into alleged sabotage in the oil sector sequel to a motion: “Alleged Economic Sabotage in the Nigerian Petroleum Industry” sponsored by Senator Asuquo Ekpenyong, APC, Cross River-South.

The Committee is chaired by Senate Majority Leader, Senator Opeyemi Bamidele, APC, Ekiti Central.
Bamidele and members of his Committee were then asked to beam the searchlight on the entire industry and unravel alleged growing cases of malpractices, weak regulation or failure to comply with industry rules and regulations, in spite of the Petroleum Industry Act, PIA.

Ekpenyong’s alarm

In his presentation, Ekpenyong raised the alarm over deadly activities of a cartel with a vast network cutting across offshore/onshore Nigeria, importing hazardous petroleum products and dumping substandard diesel on the country with dire consequences on safety of lives, loss of property and other economic losses.
To buttress his motion, he cited a June 16, 2024 development where “12 diesel cargoes, totaling 660kt, were shipped by refineries to offshore Lome, Togo, for distribution in West African markets, particularly Nigeria. The quality of the diesel was reported to be below Nigerian standards in terms of flash and sulfur levels. Despite its substandard nature, this diesel still found its way into the Nigerian market.”
Ekpenyong said the “pricing of the imported diesel was below fair market value, constituting a violation of World Trade Organisation, WTO, rules against dumping,” and called calling on Nigeria to protect its local industries and domestic producers against such unfair practices that could reverse efforts to reorganise the sector.
He also raised concerns that though the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, had revised the standards for diesel importation in line with the PIA, not much seemed to be working in terms of enforcement of the standards.

Bamidele’s committee begins work
Senator Bamidele on July 25, 2024 addressed a press briefing where he told Journalists the details of the assignment before the 15 – member Committee. Members of the ad-hoc committee include Senator Adams Oshiomhole, APC, Edo North; Senator Abdul Ningi, PDP, Bauchi Central;  Senator Osita Izunazo, APC,  Imo West;  Senator Diket Plang, APC, Plateau Central, Senator Tahir Monguno, APC, Borno North; Senator Adetokunboh Abiru, APC, Lagos East; Senator Sahabi Ya’u, APC, Zamfara North and Senator Yahaya Abdullahi, PDP, Kebbi North.
Others are Senator Mustapha Khabeeb, APC, Jigawa South West; Senator Ekpenyong Asuquo, APC, Cross River South; Senator Williams Jonah, APC, Cross River Central; Senator Ipaligo Banigo, PDP, Rivers West and Olamilekan Adeola, APC, Ogun West. Late Senator Ifeanyi Uba, APC, Anambra South was also a member of the Committee.

Past probes
Issues around the oil and gas sector have been of serious concern to Nigerians, hence there have been series of Ad-hoc committees by both the Senate and the House of Representatives to unfold the happenings in the industry.
There have been several attempts to revive the sector, re-position it and make its multi-billion dollar resources useful to poor Nigerians which include the passing into law of the Petroleum Industry Act (PIA, 2021) and these have yielded little or no results.

Records show that since 1999 and before the current 10th National Assembly, both Senate and House of Representatives have carried out investigations into the oil sector, x-raying the operations of the Nigeria National Petroleum Company Limited, NNPCL, and its subsidiaries among others.

On October 10, 2023, Chairman, Senate Committee on Reparation and Repatriation, PDP, Delta North had moved a motion titled: ‘Urgent need to investigate incessant and nefarious acts of crude oil thefts in Niger- Delta region’ saying that the National Bureau of Statistics, NBS, reported that oil sector contributed 6.33 per cent of the nation’s GDP which translated to 45.6 billion dollars in 2022.

According to Nwoko, the oil sector in Nigeria plays pivotal role in providing employment opportunities for millions of Nigerian citizens accounting for 70 per cent of its budget financing, while oil and gas made up of 90 per cent of export and 85 per cent of government revenue in the first quarter of 2022, adding that statistical data which has been reported over the years, indicated that pipeline vandalism, oil bunkering, has brought Nigeria Into serious socio-economic crisis.
At the end of his presentation, the Senate mandated its Committees on Petroleum Resources, (Upstream, downstream,) Gas, host communities and Niger Delta to conduct investigation on oil theft in the region.
Also, the House of Representatives had declared that between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil daily, worth about $10bn due to theft, vandalism, and other criminal activities.
As a result, the House of Representatives Special Committee on Oil Theft and Losses commenced investigations into the illegal lifting of crude oil in Nigeria, as the Senate summoned the Nigerian National Petroleum Company Limited, Dangote Petroleum Refinery, and other major stakeholders in the oil sector for interrogation.
The Senate vowed to expose those responsible for economic sabotage and the importation of toxic fuel into the country. The committee on oil theft was inaugurated on November 22, 2023, to determine the immediate and remote causes of oil theft, and recommend appropriate remedial measures, among others to the House.
It is also on record that these investigations after series of meetings, summoning of officials, interrogation, and submission of reports, never yielded the needed result.

Nagging questions
It is on this ground that the necessity of the current probe is being questioned. Will this Senate’s Oil industry sabotage probe  not be yet another voyage in futility
What happened to previous probe reports? Why were they not implemented? What happened to the reports? Where are the reports? Why can’t the Senate dust previous reports or ask the executive to act on them, instead of another probe that will gulp huge sums of money that at the end of day may not be implemented?
 The Legislative arm often answers that it has done its own part by forwarding the reports to the Executive arm. However, the legislative arm is often accused of not using its power of oversight and appropriation to ensure that the Executive implement its decisions.

Mainstay of economy
Since the discovery of oil in commercial quantities, the sector has remained the mainstay of Nigeria’s economy with an estimated revenue of over $741.48 billion between 1999 and 2020. The Nigeria Extractive Industries Transparency Initiative, NEITI, said that from 2011 to 2022, oil sector revenue was $394.02bn.
In 2021, the annual oil revenue was $23.046bn, up by 13% from the N$20.43bn generated the previous year. Available statistics also indicate that as of July 2022, oil sales commanded 80% of the country’s total export revenue and adding up to 8.79% to its GDP.
It has also been recorded that due to crude theft and vandalism of installations, it has led to a daily loss of around 800,000 barrels per day, The July 2023 oil revenue stood at N1.6trillion (around $3.6bn).

Mandate of Bamidele’s committee
To ensure that the current probe did not go way of past probes, the Bamidele committee has been mandated “to examine the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority, NMDPRA, with a view to uncovering loopholes, if any, being exploited to get toxic cargoes into the country;
“Determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase (DSP) arrangements in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability in the scheme.
“Beam legislative searchlight on the activities of the NMDPRA including payments made to transporters in the last 10 years; Enquire from the NNPCL the state/status of the 22 depots built by the defunct NNPC to eliminate road distribution of petroleum products;
“ Engage with stakeholders within the oil and gas industry with a view to identifying possible gaps in regulating and strengthening the surveillance and monitoring structures in place to enable Nigeria to detect violations of best practice standards in the importation of products before they enter into the domestic supply chains; Also engage with the NNPCL with a view to understanding the extent of its determination and timelines for the start-up of government-funded oil refineries;
“Investigate how institutions across the importation and distribution chain failed to conduct quality sampling, shipped in products without auditing, and performed port validations by the Nigeria Customs Service, NMDPRA, Nigerian Maritime Administration and Safety Agency, Standards Organization of Nigeria, SON; and Nigerian Ports Authority, NPA: and Such other consequential amendments the Adhoc Committee deems fit.”
According to Bamidele, there will be on-the-spot-assessment to facility sites and other physical inquiries would be carried out by the committee, including reviewing the Turn Around Maintenance, TAM, contracts of the country’s four refineries, which had gulped billions of dollars without positive gains.

Those to be Investigated by committee
Stakeholders in the petroleum sector summoned to appear before the committee at public hearing fixed for September 10 to 12, 2024, are the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Trade and Investment; Nigerian National Petroleum Company Limited, NNPCL; National Engineering and Technical Company Limited, NETCO, and Contractors; Central Bank of Nigeria, CBN, and NMDPRA.
Others are Nigerian Upstream Petroleum Regulatory Commission, NUPRC; Standards Organization of Nigeria, SON; Nigerian Maritime Administration and Safety Agency, NIMASA; Nigeria Customs Service, Nigerian Navy; OBAT Oil; and Matrix Energy Depot.
Also summoned are Independent Petroleum Marketers Association of Nigeria (IPMAN); International Oil Companies (IOCs); Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN; Major Oil Marketers Association of Nigeria, MOMAN; Nigeria Ports Authority, NPA; Dangote Group; Modular Refineries and Capital Oil.
Assuring Nigerians that the probe will not be another voyage in futility, Bamidele said: “May I categorically state that this Ad-Hoc Committee is not meant to witch-hunt any individual or group of people, or corporation, but rather to find a lasting solution for our collective mutual gains. To this regard, the Ad-Hoc Committee seeks the cooperation of stakeholders in order not to jeopardize the good intention of the Senate.
“We are also taking this task seriously with a view to addressing fundamental issues that pose grave threats to our economic prosperity, fiscal stability and public health as a federation. In line with our mandate, we will definitely unravel the roots of economic sabotage in Nigeria’s petroleum industry and make necessary recommendations that will entrench global best practices in the industry and open it up for more investments, especially in the midstream and downstream sectors. We are utterly committed to this -mandate. We shall also carry out this national -assignment without fear or favour. We shall be fair and just to all parties with a view to promoting and protecting the strategic national interests of our fatherland.”
Still assuring Nigerians that this investigative panel will be different from the previous ones, Senator Bamidele noted that the absence of the PIA in the past made it easier for the industry to be taken hostage by economic marauders. He stressed that lack of a legal framework was the excuse for what happened in the past, adding that the Committee will not hesitate to fully apply the law to recommend punishment for breaches.

No sacred cows
“We are going to approach the assignment on a note of integrity for our nation, our future and for our own sake. There’ll be no sacred cows or any form of protection for anyone”, Bamidele maintained, adding that even if a senator was found to be behind any shady deal or an economic saboteur, the rod would not spare him.
He mentioned the fact that the current row between the management of Dangote Refinery and industry regulators over alleged attempts to sabotage the $20bn facility and the regulators’ claim that Aliko Dangote sought to become a monopoly by driving out other players, would be probed. “Our mandate is to investigate the entire industry. And we have a duration of three weeks to accomplish this task.”

Oshiomhole, Abiru, Ningi speak
Also speaking, Senator Oshiomhole, who is a member of the committee, said: “Mr Senate President wants a thorough job done and it’s not for nothing that he chose the Leader to chair the committee.”
On the possibility of compromising the committee, he said: “At this age, what do I need? Most of us here are professionals and we are ready to do this work. Anyone with conflict of interests will be excused along the way.”
Also assuring Nigerians of the Committee’s readiness to deliver and will be different from others, Senator Abiru said “this is a time when the government was bold enough to remove fuel subsidies; so anything that will cause setbacks for the industry will not be condoned.”
On his part, Senator Ningi said: “This is a very hard assignment. We are here to assure you that we will walk the talk. There will be changes this time, and the press will be made aware of all our findings for the benefits of Nigerians.”
It is to be seen if the current probe will be different.