Nigeria is a leading crude oil producer in Africa and a major exporter globally. Oil receipts account for more than 80 percent of the country’s income, making it a critical economic sector. According to Statista, Nigeria’s crude oil reserves stand at 36.9 billion barrels, valued at roughly 74 million metric tons. Despite this, Nigeria still imports petroleum products like premium motor spirit (petrol), diesel, and aviation fuel (Jet A1), which significantly drains government finances.
By Kingsley Okoye
A key aspect of President Bola Tinubu’s monetary and fiscal policies is to stimulate additional revenue and foreign exchange earnings, ultimately improving the livelihood of Nigerians. These policies are also aimed at stabilizing the exchange rate, reducing inflation, lowering interest rates, and encouraging investments. The petroleum sector is central to achieving these goals, as virtually all economic policies revolve around it.
However, recent developments in the oil sector threaten these ambitions, as accusations and counter-accusations of corruption and sabotage have dominated the news. Particularly concerning is the recent narrative of the alleged importation of hazardous and substandard petroleum products into the country.
The issue of toxic petroleum product importation came to public attention when Senator Asuquo Ekpenyong, representing Cross River South Senatorial District, moved a motion on July 3, 2024, in the Senate to probe the alleged importation and distribution of hazardous petroleum products. Following a comprehensive debate, the Senate constituted an ad hoc committee to investigate the matter, with Senate Leader Sen. Opeyemi Bamidele as the chairman.
This committee has the daunting task of not only investigating the toxic petroleum imports but also conducting a comprehensive probe of the entire sector to end decades of problematic narratives. However, the pressing question on the minds of Nigerians is whether the 10th National Assembly (NASS) can truly address the deep-seated issues in the sector through this investigation, given the lackluster outcomes of previous probes.
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Sen. Bamidele, speaking at an interactive session with key stakeholders in Abuja, acknowledged the public’s concerns, noting that many Nigerians believe past investigative hearings have amounted to little more than “jamborees.” He asked, “Will this investigative hearing end up like the previous ones? Can the Senate really address the challenges in the petroleum industry, given the entrenched interests of some powerful groups?”
Despite these concerns, Bamidele assured that the Senate is committed to resolving the longstanding challenges that have hindered the smooth functioning of the petroleum industry. He called on all parties to set aside their differences as the committee embarks on its investigation. “We are all committed to conducting a thorough and impartial investigation across all areas outlined in the Senate resolution of July 3,” Bamidele said, emphasizing that no one will be exempted from scrutiny and that the committee’s goal is to serve the public interest.
The importance of this investigation cannot be overstated, especially given the irregular and problematic supply of refined petroleum products in Nigeria, which has led to long queues at filling stations. Bamidele highlighted the absurdity of Nigeria’s dependence on imported petroleum products, despite being a major supplier of crude oil to the global market.
To ensure broad participation, the committee has invited the general public and stakeholders to submit memoranda before the public hearings scheduled for Sept. 10–12. “We have accepted this huge responsibility with the resolve to make a difference,” Bamidele said, stressing that the committee is committed to developing a transparent and functional management system for Nigeria’s strategic national resources.
Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources, also emphasized the importance of the investigation, noting that the oil sector is plagued by misinformation. He called for a live broadcast of the investigation to ensure transparency, given the serious nature of the allegations, which include economic sabotage through the importation of substandard products.
Similarly, Sen. Abdul Ningi, speaking at a news conference organized by the committee, acknowledged the scepticism of Nigerians but assured them that the committee would produce solid recommendations to move the country forward. Sen. Yahaya Abdullahi added that the committee members, who are known for their integrity, are determined to uncover the truth and add value to Nigeria’s governance.
Analysts believe the committee can function effectively, given the pedigree, strength of character, and public service records of its members. If the committee members live up to expectations, this investigation could mark the beginning of the end of the perceived challenges in the petroleum industry. However, while public perception is important, the reality of what policymakers and implementers will do with the investigation’s outcome remains a separate challenge.
Nigerians cannot afford to wait any longer for relief from the troubles inflicted by the oil and gas sector, which, in other countries, is a source of blessing.
NANFeatures
