Nigeria’s petrol import from Malta surges by 342% to $2.08 billion

• Senate wades into Dangote, NNPC faceoff
• Summons Edun, Lokpobiri, NNPC, CBN, NMDPRA, Dangote, others
• Lawyers call for Kyari, Farouk, others’ suspension ahead of Reps probe 

Amid the ongoing faceoff between Chairman of Dangote Group, Aliko Dangote, and regulators of the country’s oil and gas sector, Nigeria’s petroleum products import from Malta has surged 43 folds and increased by 342 per cent in 2023 to $2.08 billion.

This is coming days after Dangote alleged that officials of the Nigerian National Petroleum Company (NNPC) Limited own blending plants in Malta.

Data sourced from Trade Map, a global database on international trade statistics showed Nigeria imported petroleum oils and oils obtained from bituminous minerals worth $2.08 billion in 2023, a 342 per cent increase from $47.5 million as of 2013.

Between 2013 and 2016, import values fluctuated. There was a peak in 2015 at $117.01 million, followed by a significant drop in 2016 to $13.32 million. For six consecutive years, from 2017 to 2022, petroleum imports from Malta recorded zero. Meanwhile, most recently, in 2023, Nigeria’s import from Malta rose to $2.08 billion.

Further insights from the National Bureau of Statistics (NBS) data in the third Quarter of 2023 showed Malta was among the top five import destinations for Nigeria. In Q3 alone, Nigeria’s import worth from Malta alone stood at N561.37 billion. However, in Q1 and Q2, Malta was not among the top five import destinations for Nigeria.

Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have been embroiled in a dispute over the latter’s comment. Chief Executive Officer of NMDPRA, Farouk Ahmed, claimed that diesel from Dangote Refinery is of inferior quality compared to imported ones.

The accusation had spurred a wide range of outrage from Nigerians leading to a call for the suspension of the NMDPRA boss by the House of Representatives pending investigation into the matter. The development comes on Dangote’s announcement that his refinery would commence petrol supply in the Nigerian domestic market from August 2024.

Meanwhile, the Senate yesterday said it would wade into the faceoff between regulators in the petroleum sector and Dangote with a view to facilitating the take-off of the latter’s refinery. It also launched a marathon investigation into cases of sabotage in the petroleum industry in the last 10 years. Public hearings on the issues, according to the adhoc committee will commence on September 10, after the Senators resume from holiday.

The ad-hoc committee at a briefing in Abuja said its terms of reference included extending invitations to all key stakeholders including regulators for questioning on issues that led to the poor state of the petroleum sector in the country.

Senate Majority Leader and chairman of the ad-hoc committee, Senator Opeyemi Bamidele, said the crisis involving Dangote Group is within the responsibilities given to the committee, adding that all parties to the crisis will soon be invited to a crucial meeting.

Stakeholders in the petroleum sector summoned to appear before the committee are the Minister of State for Petroleum (Oil), Heineken Lokpobiri; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Trade and Investment; NNPC; National Engineering and Technical Company Limited (NETCO); Central Bank of Nigeria (CBN) and NMDPRA.

Others are Nigerian Upstream Petroleum Regulatory Commission (NUPRC); Standards Organisation of Nigeria (SON); Nigerian Maritime Administration and Safety Agency (NIMASA); Nigeria Customs Service, Nigerian Navy; OBAT Oil; and Matrix Energy Depot.

Also summoned are Independent Petroleum Marketers Association of Nigeria (IPMAN); International Oil Companies (IOCs); Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN); Major Oil Marketers Association of Nigeria (MOMAN); Nigeria Ports Authority (NPA); Dangote Group; Modular Refineries and Capital Oil.

However, no fewer than 20 constitutional lawyers have called on the House of Representatives’ Joint Committee on Petroleum (Downstream and Midstream) to recommend the suspension of key officials of NNPC to President Bola Tinubu. The officials include the Group Chief Executive Officer (GCEO), Mele Kyari; NMDPRA boss, Ahmed; Managing Director of NNPC Trading Company, Lawal Sade; and Chief Upstream Investment Officer, Bala Wunti. The lawyers argue that their suspension is necessary to ensure an unobstructed forensic investigation into the state of the NNPC and the downstream sector.

The lawyers, in a statement by Tijani Usman, said suspending these officials would prevent them from accessing sensitive information and documents that could derail the investigation.

SOURCE: Guardian Nigeria