The Senate on Wednesday constituted an ad-hoc committee to investigate the continued importation of hazardous petroleum products and dumping of substandard diesel into the country.
The upper chamber also appointed the Senate Leader, Senator Opeyemi Bamidele, to lead 14 other senators to unravel the masterminds of the illicit practice and transactions and submit its report within three weeks.
Senate President, Godswill Akpabio, set up the committee at the plenary on Tuesday after the Chairman, Senate Committee on Niger Delta Development Commission, Asuquo Ekpenyong, moved a motion on the urgent need to probe the continued importation of hazardous petroleum products.
Reports had revealed that 12 diesel cargoes conveying a total of 660 kilo-tonnes of diesel were exported by refineries to offshore Lomé, Togo for further distribution to West African markets, mainly Nigeria.
At Tuesday’s plenary, Akpabio lamented the danger of hazardous petroleum products, pointing out the need for the Senate to immediately investigate and unravel those behind the hazardous practice.
Concerned about the reports, Ekpenyong observed the quality of the said diesel was below the Nigerian standard in terms of flash and Sulphur levels
He explained that the diesel “is priced below fair market value, which constitutes dumping on the World Trade Organisation (WTO) rules, which stipulates that countries are permitted to take measures to protect their local industries in the event of dumping.
“The WTO also recognises the impact of dumping on domestic industries, and therefore stipulates tariff regimes, such as anti-dumping duties and import restrictions measures to ensure that domestic producers are unfairly disadvantaged.”
He disclosed that though the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently revised the standards of diesel importation into the country in line with the Petroleum Industry Act, 2021, it had been incapable of enforcing compliance with the standards.
He further explained that the ban on the importation of diesel would be beneficial to the Nigerian Petroleum Industry and indeed the entire nation and as such, NMDPRA should cease import licenses to address all concerns.
He, however, said if the situation is allowed to continue, the local production would have no option but to stop the commissioning of gasoline units and shut down refineries until the regulatory environment improves.
Other members of the ad-hoc committee include Senator Adams Oshiomhole (Edo North), Senator Abdul Ningi (Bauchi Central), Senator Osita Izunazo (Imo West), among others.