NNPCL threatened to reveal identities of suppliers of adulterated fuel across the country.
The Senate ad-hoc committee investigating the alleged economic sabotage in Nigeria's petroleum industry has expressed concern over the failure of government-owned refineries to function despite committing billions of dollars to their rehabilitation yearly by successive governments.
Chairperson of the committee, Opeyemi Bamidele, raised the concern at an interactive session with individuals and companies in the petroleum industry at the National Assembly Complex, Abuja on Wednesday.
The session was attended by Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of State for Petroleum, Heineken Lokpobiri and Group Managing Director, Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari.
Others are Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, and Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, among others.
During the session, Mr Bamidele, the senate leader, specifically said about $1.5 billion was approved for the turn around maintenance of Kaduna, Port Harcourt and Warri refineries during the administration of former President Muhammadu Buhari but yielded no significant returns.
He said that some individuals managing the rehabilitation of Kaduna, Port Harcourt and Warri refineries are not patriotic and as such reducing the commitment to make the refineries function.
He said the individuals are managing the government businesses like an orphan and putting efforts in private businesses to make it flourish at the expense of the government properties.
"Under different administrations, the federal government invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri.
"In 2021, specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns.
"For us, in the Senate, we believe, it is unfair and unpatriotic to treat government business as an orphan while private businesses are flourishing," he said.
Concerns over long queues at filling stations
Mr Bamidele also expressed displeasure with the persistent long queues at petrol stations across the country.
He said the long queues were as a result of the irregular supply of refined petroleum.
The panel chairman also listed the circulation of the adulterated petroleum products across the country as part of the challenges in the sector.
"Respected stakeholders, you will agree with me that this is truly a challenging period in the recent history of our fatherland. The supply of refined petroleum products has been irregular and problematic. The long queues at filling stations are also a testament to this challenge.
"A situation, whereby we now depend almost entirely on the importation of these products, even when we daily supply the global oil market no fewer than two per cent of its crude oil requirements, is to say the least, highly worrisome.
"We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous and substandard petroleum products," he added.
Mr Bamidele noted that the challenges have also put pressure on the foreign exchange market.
"Each of these challenges has put undue pressure not just on our foreign exchange market, but also contributes to the sub-optimal performance of our domestic economy, which the Executive Arm has been taking decisive measures to address in the interest of all Nigeria."
No monopoly of products
Mr Kyari, in his remarks, said that the NNPCL is not monopolising Nigeria's petroleum industry, contrary to the allegation circulating on social media.
He noted that the leadership of the NNPCL under his directive is protected and guided by the provisions of the Petroleum Industry Act.
The GMD said some individuals are attempting to blackmail his leadership for involvement in the importation and circulation of adulterated petroleum products which is sabotaging the Nigerian economy.
"And all of us here see what is happening in the media. Targeted personal attack on my person, on the institution. And we all know how this works. They are deliberate, they are calculated. So that creates the impression that NNPC Limited and our leadership are doing anything to create economic sabotage in our country.
"It is far from it, Mr Chairman. This company has grown, Mr Chairman. We are proud to say this. From a lost company for 43 years to a profit-making company today, Mr Chairman.
"Mr Chairman, it is very clear from everything you have said through this investigative hearing that you can see the majority of the issues you have raised have nothing to do with NNPC Limited. Yet, everybody believes, by sheer misinformation which my minister has highlighted, that NNPCL is responsible for creating any economic sabotage in our country," he added.
Identities of adulterated fuel suppliers
Mr Kyari assured that he would reveal identities of suppliers of adulterated fuel across the country.
"We follow the rules. Nobody will bring products into this country that don't meet specifications. If it does happen, it's a crime. It couldn't have passed through any regulatory institution. It is impossible."We all know what happens. Smuggling does take place. And I'm happy that the Customs Service is here. No one can deny that smuggling takes place across our border. But for PMS and every other commodity that you can think of. This is real.
"Mr Chairman, when the details come, we will tell you what we know. Mr Chairman, I also suggest that it should be said live so that everybody will hear what is going on in the industry."
Nigeria below target
Mr Edun, on his part, submitted that Nigeria is below the estimated 1.78 million barrels it is projected to produce per day.
"For the 2024 budget, we had estimated and projected 1.78 million barrels per day. We are below that target at the moment, although production is moving up, I believe. And we have the experts here, but I believe we are at about 1.6 million barrels per day.
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"And we have a commitment that we will be able to reach two million barrels per day. And that is critical. And why it is critical is that that is the first source that we look to for foreign exchange, as well as government revenue," Mr Edun said.
The finance minister said the federal government is committed to developing the petroleum sector.
"There is a commitment to dealing with these issues. And the focus also remains in the oil and gas industry in improving incentives. Already Mr. President has signed some executive orders which have meant that oil and gas investments, particularly in the gas sector, have started to flow back," he added.
Oil and gas quickest way to solve Nigeria's economic challenges - Minister
Mr Lokpobiri, in his submission, said the best method to resolve the challenges of the Nigerian economic situation is to develop the oil and gas sector.
"The oil and gas sector is the most critical sector of our economy. The oil and gas sector is the quickest way to solve our economic problems in the country.
"You heard from the minister of finance that the quickest way we can also get forex is also through the oil and gas sector. And so this is one sector that is very fundamental and requires the support of all stakeholders," the Minister added.
