The House of Representatives Committee on Petroleum Resources (Downstream) has dismissed a petition alleging conflict of interest and money laundering against the Nigerian National Petroleum Company Limited’s (NNPCL) Executive Vice President, Downstream, Dr Mumuni Dagazau, citing a lack of documentary evidence to support the allegations.
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The committee also passed a vote of confidence in President Bola Tinubu and NNPCL Group Chief Executive Officer, citing developments in domestic refining, crude oil supply and efforts to stabilise the downstream petroleum sector.
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The committee’s chairman, Ikenga Imo Ugochinyere, announced the decisions in Abuja during proceedings on pending matters and the Federal Government’s downstream sector reforms.
Ugochinyere said the committee acted after reviewing a subcommittee report which found that the petitioners, the Coalition for Transparency and Accountability in Nigeria’s Petroleum Sector, had failed to substantiate their allegations against Dagazau.
He explained that the petitioners appeared before the subcommittee on October 21 but presented newspaper clippings instead of documentary evidence to support their claims of money laundering.
According to him, the petitioners were given additional opportunities to provide supporting documents but failed to return on October 22 and 23.
Dagazau, however, honoured the committee’s invitation through representatives who responded to questions raised during the investigation.
Announcing the dismissal of the petition, Ugochinyere said allegations could not be treated as evidence and that newspaper reports alone were insufficient proof.
He criticised what he described as a frivolous petition, warning that the National Assembly would not allow its oversight proceedings to become a platform for unsubstantiated attacks against public officials.
However, he maintained that the committee remained willing to investigate allegations of wrongdoing against public officers whenever credible evidence was presented.
The committee also granted its subcommittee investigating NIPCO Plc an additional 14 days to complete its assignment.
Reps Reject Blanket Fuel Subsidy Return
On the debate over fuel subsidy, Ugochinyere argued that restoring the former nationwide subsidy regime would place an enormous burden on public finances.
He said Nigeria consumed about 50 million litres of petrol daily and estimated that returning to the former pump price would cost more than ₦20 trillion annually, based on Federal Government projections.
According to him, the expenditure would approach the total revenue shared among the federal, state and local governments through the Federation Account in 2025.
Ugochinyere argued that a blanket subsidy would not eliminate the cost of fuel but merely shift the financial burden from one party to another.
He said any relief for consumers should instead be targeted, temporary and affordable, adding that proposals for subsidies must clearly state their costs, funding sources and expected pump prices.
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The committee chairman cited interventions by NNPC Retail, including a ₦66-per-litre petrol discount introduced on October 1 and an October 8 announcement that the company would forgo its profit margin and sell petrol at cost for 30 days.
He said the measures prioritised commercial transport operators responsible for moving passengers and food across the country.
According to him, the intervention did not amount to a return to the former subsidy regime because the relief was funded through NNPC Retail’s profit margin rather than direct expenditure from public funds.
CNG Expansion, Refinery Rehabilitation
Ugochinyere also highlighted developments in the rehabilitation of the Port Harcourt and Warri refineries, saying prospective technical partners had carried out on-site assessments to determine how the facilities could resume reliable and commercially sustainable operations.
He said the reforms had also created investment opportunities in the compressed natural gas (CNG) and liquefied petroleum gas (LPG) markets, with more than 120,000 vehicles now operating on CNG.
According to him, NNPCL had acquired 500 CNG-powered trucks for petroleum product distribution and delivered 35 CNG hybrid buses to the Presidential CNG Initiative.
He further disclosed that NNPC Retail commissioned its first solar-powered smart energy station in Abuja in September. The facility combines petrol, cooking gas, CNG and electric vehicle charging services.
Ugochinyere said between 50 and 70 similar stations were expected to be established nationwide within six months.
He attributed these developments to the Tinubu administration’s reforms and commended NNPCL management and Dagazau for their contributions to the downstream petroleum sector.
Committee Unveils Energy Security Roadmap
To sustain the progress, Ugochinyere said the committee had adopted a nine-pillar Roadmap to Downstream Energy Security.
The roadmap covers enforceable crude oil supply obligations for domestic refineries, amendments to the Petroleum Industry Act, a regulated fuel import market and the establishment of a national strategic stock.
Other priorities include setting up fuel-quality laboratories nationwide, accelerating CNG and gas infrastructure development, strengthening pipeline security, ensuring fair and transparent pricing with targeted relief, and establishing firm timelines for the rehabilitation of state-owned refineries.
He said the committee would continue to monitor the implementation of the reforms and hold relevant agencies accountable for their performance.
Ugochinyere maintained that the Tinubu administration’s Renewed Hope agenda for the downstream petroleum sector was producing results.
The committee’s decisions come amid continued pressure on petrol prices following the removal of fuel subsidies and fluctuations in international crude oil markets, which have continued to affect transportation costs, food prices and household spending across Nigeria.
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