Petroleum Sector Stakeholders Deny Allegations of Economic Sabotage

The Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other key players in the petroleum industry have denied being involved in any economic sabotage.
The allegations emerged amid reports of tension between NNPCL and Dangote Refinery. Dangote Refinery has stated that 60% of its crude oil supply comes from NNPCL.

In a recent session with the Senate Ad hoc Committee investigating these allegations, Minister of State for Petroleum Senator Heineken Lokpobiri, NNPCL Group Chief Executive Officer Mallam Mele Kyari, and NMDPRA Chief Executive Officer Engineer Farouk Ahmed all presented their defense.

Senator Lokpobiri emphasized that misinformation has clouded public understanding of his ministry’s role and the operations of other agencies involved in the sector. He urged that the upcoming public hearing be broadcast live to provide clarity on these issues.

Mallam Mele Kyari, the CEO of NNPCL, strongly denied any involvement in sabotage. He stressed that NNPCL, owned by over 200 million Nigerians, is dedicated to enhancing the country’s oil production and maximizing value. Kyari highlighted that NNPCL, which has turned a profit after 43 years of losses, has increased its production from 1.4 million barrels per day to 1.65 million barrels, with a goal of reaching 2 million barrels per day. He called for transparency and support for the public hearing to clear up any misconceptions.

Engineer Farouk Ahmed of NMDPRA also supported the call for the hearing to be televised, noting that negative narratives about NMDPRA’s regulatory actions have been widely circulated. He emphasized that a public hearing would allow them to present their side of the story and identify any real instances of sabotage.

Aliyu Sulaiman, Group Chief Strategy Officer of Dangote Refinery, stated that out of the 5 million barrels of crude oil recently used, 60% came from NNPCL, with the rest being imported or purchased elsewhere. He praised NNPCL for its support but emphasized the need for continued backing for Dangote Refinery to thrive.

Abdulkabir Adisa Aliyu, National Chairman of the Depot and Petroleum Marketers Association of Nigeria (DAPMAN) criticized Dangote Refinery for allegedly making N133 billion in profit from sugar sales, suggesting that such success may be due to monopolistic practices. He warned against allowing any company to dominate the petroleum sector.

Similarly, Alhaji Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), cautioned against monopolies in the sector and urged improvements in product distribution to end fuel shortages.

Senator Micheal Opeyemi Bamidele, Chairman of the Ad hoc Committee, clarified that the committee’s goal is not to target individuals but to uncover the truth about potential sabotage in the petroleum industry. He highlighted concerns about the importation of hazardous products and the underperformance of government-owned refineries.

The committee has scheduled the public hearing for September 10 to 12, 2024, in collaboration with the House of Representatives, to further investigate these issues and ensure accountability.