The National Assembly may bring up the Petroleum Industry Act and the agreement between NNPC and Dangote Refinery for possible revision.
The resolution is likely to be tabled in the National Assembly with a view to reviewing the Petroleum Industry Act (PIA), and the agreement between the Nigerian National Petroleum Corporation and the Multi-Billion Naira Dangote petroleum refinery in Lagos, Nigeria for possible amendment.
This comes after the GMD of the Nigeria National Petroleum Corporation (NNPC) told the House of Representatives that a refinery can get its feedstock from anywhere in the world.
The Managing Director/CEO of the Nigerian National Petroleum Corporation (NNPC), Mallam. Mele Kyari, says: “In the case of Dangote Oil Refinery, no document was signed to encourage them to source feedstock anywhere in the world,
The House of Representatives’ Committee on Finance stated that it would be a disservice to the country if the abundance of crude oil was traded while investors in the refineries were allowed to buy crude oil from other countries.
The Nigerian government is planning to secure an equity stake of 20% in Dangote Refinery at a cost of $2.7 billion. The National Petroleum Company must also broker a deal with the refinery to ensure that Nigeria has a market for its products.
While the chairman of the Committee on Finance, James Faleke was considering Mele Kyari’s statement that Dangote Refinery could choose where to buy crude for processing.
“We structured our equity participation on the basis of the fact that this refinery must buy at least 300,000 barrels per day of our production into this refinery. This guarantees your market, “Kyari said.
However, lawmaker James Faleke said, “If it is true that those who are investing in refinery construction in Nigeria, have in the agreements or whatever they have signed with Nigeria, that they can buy crude oil anywhere because they operate in a free trade zone, then those who have signed those documents must have done a disservice to Nigeria.”
“I thought that the idea of investment in refineries in Nigeria, even though it is a free trade zone, should be able to utilise our crude oil. But if it is not, then, what is the essence? “
Faleke did not agree with the decision, saying, “We could also make a law that makes any import of crude oil contraband. We can not have a product here and have others importing it from elsewhere and hurting our economy. No way!
The GMD of the NNPC said that the Dangote Refinery will make it possible for Nigeria to stop importing oil products.