The Senate has formed an ad hoc committee to investigate the alleged importation of substandard diesel and hazardous petroleum products into Nigeria. This resolution followed a motion by Senator Asuquo Ekpenyong of Cross River State, highlighting the urgent need to address the issue.

Presided over by Senate President Godswill Akpabio, the committee will examine pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA). The aim is to uncover any loopholes that allow toxic cargoes into the country.

The committee’s terms of reference include assessing the compliance of the Nigerian National Petroleum Company Limited’s (NNPCL) Direct Sale and Direct Purchase arrangements with the Petroleum Industry Act provisions. They will also scrutinize the activities of the Petroleum Equalisation Fund and investigate payments made to transporters over the last decade.

The Senate’s investigation will also focus on the state of the 22 depots built by the NNPC to reduce road distribution of petroleum products. The committee will engage with stakeholders in the oil and gas industry to identify gaps in regulation and monitoring structures.

Senator Ekpenyong highlighted a recent incident on June 16, 2024, when 12 diesel cargoes, totaling 660 kilotons, were exported from refineries to offshore Lome, Togo, for distribution to West African markets, mainly Nigeria. The diesel quality was reportedly below Nigerian standards in terms of flash and sulphur levels.

Despite the substandard nature of the diesel, it entered Nigerian markets through ship-to-ship transfers and subsequent discharges at jetties in Warri and the Obat Oil Terminal. Ekpenyong noted that this diesel was priced below fair market value, constituting dumping under World Trade Organisation rules, which allow countries to take measures to protect their local industries.

The senator emphasized that the NMDPRA, despite revising diesel import standards in line with the Petroleum Industry Act, has struggled to enforce compliance. He called for a total ban on diesel imports, as local refineries can meet domestic demand.

Ekpenyong warned that if the situation continues, local production may cease, affecting refinery operations and leading to increased reliance on imported dirty fuel. He noted that substandard diesel has harmful human and mechanical consequences, causing respiratory illnesses and engine degradation.

Senate President Akpabio observed that local investors, including the Dangote Group, which invested over $4 billion in a refinery, may be discouraged by the current industry practices. The Senate has given the committee 21 days to conduct its investigation and submit a report.