The House of Representatives at the plenary on Tuesday resolved to investigate the allegations made by Alhaji Aliko Dangote against Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Boss, Engr Farouk over indiscriminate issuance of importation licenses for fuel despite availability of the product produced by indigenous refineries and issue of payment of over 5million dollars on tuition fees alone for his kids.
The resolution of the lawmakers was sequel to the adoption of a motion sponsored by Hon.Midala Usman.
Midala, who moved the motion, noted that Section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.
He also said that Section 29 (3) of the Petroleum Industry Act 2021 provides that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shall be responsible for the technical and commercial regulation of the midstream and downstream petroleum operations in the petroleum industry.
According to him, the House is aware of the dispute between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote Refinery over alleged arbitrary grant of importation licenses, allegation of corruption against the NMDPRA Chief Executive, Petroleum Motor Spirit pricing benchmarks, and other sundry issues.
He said that if the brewing dispute between the NMDPRA and Dangote Refinery is not addressed, it is likely to get escalated and thus lead to fuel supply crisis during the yuletide season and beyond.
He added: “Also aware that the Dangote Refinery represents a strategic national investment poised to end Nigeria’s historical dependence on imported Petroleum Motor Spirit, conserve foreign exchange, stabilize domestic supply, and moderate fuel pricing in the long term.
“Worried that unresolved regulatory disagreements between a statutory regulator and the country’s largest domestic refinery pose a real risk of supply chain disruption, pricing volatility, policy inconsistency, and erosion of investor confidence in Nigeria’s petroleum sector.
“Also worried that the absence of a clearly articulated, transparent, and consistently applied Petroleum Motor Spirit pricing framework creates room for arbitrary determinations, and market distortions to the detriment of Nigerian consumers.
“Disturbed that Nigerians continue to experience frequent Petroleum Motor Spirit price fluctuations without adequate public disclosure of:(a) (b) (c) (d) Refinery gate prices;Regulatory pricing assumptions,Cost and margin components, andthe comparative impact of local refining versus import-based pricing.
“Convinced that energy security, downstream stability, and consumer protection cannot be achieved where regulatory uncertainty and pricing opacity persist;Also convinced that urgent legislative investigation is required to clarify regulatory boundaries, harmonize pricing expectations, and restore confidence in Nigeria’s downstream petroleum governance architecture.”
The motion was adopted and sent to the Committees on Petroleum Resources (Midstream) and (Downstream) to investigate the root causes of the dispute and report within four weeks for further legislative action.
