Oil and Gas
Alleged Economic Sabotage in Petroleum Sector: Senate panel commences investigation
The Ad-hoc Committee to investigate alleged Economic Sabotage in the Petroleum Sector has commenced investigation barely a month after it’s inauguration by the Senate President, Godswill Obot Akpabio.
In his opening address at a one-day stakeholders’ interactive session on Wednesday in Abuja, Chairman of the Ad-hoc Committee, Michael Bamidele Opeyemi charged feuding stakeholders to ceasefire and allow investigation to be carried out by the panel.
He said the Committee would work in the interest of the country, emphasizing that no one was under trial, hence, all stakeholders in the industry should be ready to cooperate which requires releasing some sensitive documents to the Committee for their perusal.
The allegation of economic sabotage in the petroleum sector he said has been in the public domain through the media with accusation and counteraccusation, stressing that such accusation was not in the public interest now that the Committee has commenced investigation.
He said: “I urge all parties to set aside the ongoing accusations and counter-accusations as we embark on a journey towards uncovering the truth behind these matters of economic importance.
“This Ad-Hoc Committee was set up by the Senate out of genuine concern for the well-being of our nation. I, therefore, assure you that we are all committed to conducting a thorough and impartial investigation across all areas outlined in the Senate Resolution of 3rd July 2024.”
Senator Opeyemi noted that it will be necessary for the Committee to look into the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority with a view to uncovering loopholes.
The lawmaker’s charge was at the behest of allegations of importation of toxic fuel and other oil-related substandard substances which he said, will be investigated.
He added: “Determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase 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 Nigerian Midstream and Downstream Petroleum Regulatory Authority, 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.”
He said the Committee will engage with stakeholders within the oil and gas industry to identify 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.
In his presentation, the Group Chief Executive Officer/CEO of the Nigerian National Petroleum Company Limited, Mele Kyari assured the Committee of cooperation, insisting that the Company does have a skeleton in its cupboard.
He lamented that he and the NNPCL management have been under media attack by those who did not mean well for the country, notwithstanding that the NNPCL is a company that belongs to over 250 million Nigerians.
According to him, the NNPCL under his leadership has grown tremendously compared to its past in oil and gas activities, while he canvassed that the proceeding of the Adhoc investigation be transmitted live on major television stations for Nigerians to be aware of happenings in the NNPCL.
He said: “Mr Chairman, we in the NNPCL are not criminals, we are not thieves as is portrayed in the media. The company belongs to over 250 million Nigerians and the company is our future; the company belongs to all Nigerians.
Those in attendance for the interactive session were : the Minister of Finance and Coordinating Minister of the economy, Wale Edun, Minister of State for Petroleum Resources, Heineken Lokpobiri, the National Chairman of IPMAN; Dangote Refinery, Executive Secretary of NMDPRA, Farouk Ahmed and other stakeholders.
The Nigeria Liquefied Gas on Friday called for energy security to be made a national priority through proactive measure in a manner that the infrastructure and critical assets are protected for the sustainable growth of the oil and gas industry.
Speaking at a panel session titled “Driving Cross-Continental Investments: Scaling Africa’s Energy Frontier” at the 8th Nigeria International Energy Summit (NIES), the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila stated that there were growing concerns over gas infrastructure security, stressing that while improvements have been recorded in securing oil assets, that gas infrastructure remains vulnerable, and without adequate protection which will lead to underperformance in the industry.
Mshelbina stated that NLNG was focused on boosting both domestic and regional energy access, adding that the company was making smaller-scale investments to retain more gas for local consumption. He noted that a major step in this direction was NLNG’s decision to domesticate 100% of its Liquefied Petroleum Gas (LPG) supply for the Nigerian market.
Beyond the domestic market, Mshelbila remarked that the Company was also working towards enhancing regional energy security. He revealed that, as part of the Train 7 project, the company was constructing a third jetty to support small-scale vessels in supplying gas across Africa’s coastal markets.
Additionally, he said the company was supporting the Federal Government of Nigeria (FGN) in connecting Bonny Island to the mainland to facilitate LPG trucking, thereby strengthening domestic gas distribution. This initiative is expected to boost West Africa’s energy distribution network, positioning NLNG as a key player in the region’s energy landscape, he noted.
Mshelbila also emphasised the need for clear and consistent regulatory frameworks to attract long-term investments.
Through proactive methane reduction, low-carbon innovations, and impactful social initiatives, Mshelbila remarked that NLNG’s commitment to local content and sustainability aligned with global energy transition priorities, stating that NLNG was building investor confidence and demonstrating long-term value.
The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Dr. Orji Ogbonnaya Orji has said, the sum of $200 billion is needed to be injected into Nigeria’s gas infrastructure for its development and maximization of the natural resources as the ninth largest gas producer in the world as number one in Africa.
He pointed this out in the 2021 – 2023 reports on Oil, Gas and Solid Minerals presented to the Public Accounts Committee chaired by Senator Aliyu Wadada Ahmed, saying the required infrastructure for maximization of gas resources in the country are not there.
He said, there was need for the injection of $20 billion yearly into gas infrastructure for a period of ten years for construction of gas pipelines along and across West African sub-region, and beyond which is a huge expenditure”, he said.
Orji said: “In Nigeria, what we need, is to invest in gas infrastructure to evacuate gas as our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.
A member of Senate Committee on Public Accounts, Senator Abdul Ningi asked, “what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023”, the NEITI boss said the Economic and Financial Crime Commission, EFCC , is already probing the agencies involved.
Senate panel were further irked by the submission in the NEITI’s report that less than 1% of solid minerals is remitted into Federal Government’s Consolidated Revenue Fund account.
Chairman of Senate Committee on Public Accounts, speaking on remittances of Solid Minerals into the Consolidated Revenue Fund decried the less than 1% contribution of proceeds from the sector on yearly basis.
Other members were unanimous that, NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.
They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report excluding Nasarawa , Zamfara , Kebbi , Plateau, Bauchi etc .
Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.
“This definitely must not continue, there must be complete overhaul of the sector “, he said
Oil and Gas
Niger Tanker Explosion: NUPENG urges government to repair roads, senditise citizens on danger of fuel scooping
The national secretariat of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has urged the Federal Government to repair roads to avert tanker tragedies across the country.
NUPENG made the call in reaction to the recent tragic tanker explosion in Suleja, Niger State.
A statement jointly signed by Williams Akporeha and Olawale Afolabi, respectively, President and General Secretary stated that the union was “deeply saddened by the loss of lives, the destruction of properties, and the injuries sustained by many in this devastating incident.”
The statement, issued to newsmen in Abuja on Sunday, also appealed to the Federal Government to urgently address the poor condition of federal roads.
The statement read in part: “The Union takes this opportunity to urgently appeal to the Federal Government to repair bad roads to prevent such incidents and to intensify efforts in sensitising the public about the dangers of scooping fuel from petroleum truck accidents.
“Our thoughts and prayers are with the victims and their loved ones during this traumatic and challenging time.”
NUPENG further sppealed to the Federal Government to take urgent steps to repair federal roads which it noted were in bad shape.
It also tasked the Federal Government to mandate its relevant agencies to seize the initiative towards sensitising Nigerians on the danger of scooping fuel from scenes of petrol tanker accidents.
The statement further reads in part:”The Union takes this opportunity to urgently appeal to the Federal government to repazir bad roads to prevent such incidents and to intensify efforts in sensitizing the public about the dangers of scooping fuel from accidental situations of petroleum trucks on highways.
“As a responsible organization, NUPENG collaborates annually with relevant agencies, including the Federal Road Safety Corps, the Police, and State Traffic Management agencies, to train our drivers on road safety. The Union is committed to continuously training and retraining our members on best driving and safety practices.
“We stand in solidarity with the affected families and the entire Dikko community in Niger State. We commend the emergency responders who bravely extinguished the fire and rescued many injured victims.
“We urge all relevant authorities to provide the necessary support and medical care to those injured and to take measures to prevent future tragedies.
“May the souls of the departed rest in peace, and may their families find the strength to bear these irreparable losses.”
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