In the latest episode in Nigeria’s petroleum sector drama, the House of Representatives is stepping into the fray, calling for the immediate removal of key figures at the Nigerian National Petroleum Corporation (NNPC).
This comes after Aliko Dangote, the billionaire industrialist and head of Dangote Group, made explosive allegations that certain NNPC officials are behind a clandestine operation in Malta, importing inferior fuel into Nigeria.
The allegations, which have reverberated across the nation’s political and economic landscape, suggest a deep-seated illegal oil operation within the NNPC, condoned by the Nigerian government. Dangote claims that a cabal within the corporation has established a blending plant in Malta, where they refine and import substandard fuel into Nigeria.
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“Some of the NNPC people and some of the traders have opened a blending plant somewhere off Malta. We all know these areas, we know what they’re doing. It’s not that we don’t know…,” Dangote alleged.
In response, Mele Kyari, the NNPC’s CEO, vehemently denied the allegations. In a public statement, he challenged Dangote to name the individuals involved, asserting that neither he nor his colleagues own any blending plant in Malta.
Kyari’s defense, however, has done little to quell the controversy, as calls for transparency and accountability continue to grow. The allegation has not only raised questions about the quality of fuel in the market but also cast a shadow over the NNPC’s integrity.
Against this backdrop, Philip Agbese, Deputy Spokesman of the House of Representatives, has been vocal about the need for accountability. He called on President Bola Tinubu to take decisive action by removing Mele Kyari, the NNPC’s Group Chief Executive Officer, along with other top executives.
Agbese accuses these officials of orchestrating a campaign to de-market the Dangote Refinery, which is one of the country’s most significant industrial projects.
His statements reflect a broader concern within the House of Representatives about the state of Nigeria’s oil industry. He asserts that the NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are behind false reports claiming that the Dangote Refinery is reselling crude oil allocated to it. This, he argues, is part of a concerted effort to undermine the refinery’s credibility and disrupt its operations.
Reuters reported, citing sources, that the refinery has been offering Nigerian Escravos and Forcados crude, as well as U.S. WTI Midland crude, back on the market.
The backstory
The controversy erupted on July 18, when Farouk Ahmed, Chief Executive Officer of the NMDPRA, alleged that local refineries, including the Dangote Refinery, were producing inferior products compared to imports.
This allegation by Ahmed opened a flurry of counter-accusations and rebuttals between Dangote and the oil sector regulating agencies.
The House of Representatives’ intervention adds a new dimension to the saga, suggesting that there may be more at play than just business interests. Agbese’s remarks hint at the possibility of a vested interest in the refinery’s operations by people in the government. This has fueled speculation about the true motives behind the government’s stance on the issue, with some suggesting that the high-stakes battle could be influenced by broader political and economic considerations.
Speaker Tajudeen Abbas recently led a delegation to the Dangote Refinery, where tests were conducted to confirm the quality of oil products refined at Dangote Refinery.
“Our quality is about 600 to 650 ppm and is one of the best in terms of quality at that time when we started. But as at today, we’re at 87 ppm,” Dangote stated.
The 650,000 bpd refinery has been touted as a game changer, not only in the Nigerian oil sector but in Africa as a whole. Thus, the ongoing conflict between the Nigerian government and the oil plant raises important questions about the future of Nigeria’s oil industry.
Although there have been moves to reconcile the parties and put an end to the dispute, the efforts so far appear futile. Prominent Nigerians, including former presidential candidate, Peter Obi, former Vice President Atiku Abubakar, the President of African Development Bank, Akinwunmi Adesina, and business tycoon, Femi Otedola, have called on the Nigerian government to support the refinery.
However, the House of Representatives’ call for action could mark a turning point, setting the stage for either a resolution or further escalation in this high-stakes drama.