Fuel subsidy: Reps C’ttee demands detailed NNPC’s contractual agreements with major marketers.

 

.As minister, perm sec shun hearing again

Jonas Ezieke, Abuja

The House of Representatives Ad-hoc Committee probing the fuel subsidy regime between 2017 and 2021 has urged all  major oil companies that signed agreement with the defunct Nigeria National Petroleum Corporation NNPC on the Direct Sale, Direct Purchase (DSDP) of crude oil to refined product to submit all relevant and detailed documents to its secretariat on Friday July 29, 2022

Chairman of the House Ad-hoc Committee, Hon Almustapha Aliyu made the call during a public hearing organised by the probe panel in Abuja on Wednesday.

Aliyu also directed that these oil marketing companies to provide their profiles with the Corporate Affairs Commission before the panel for them to ascertain if they truly merit the contract deal or not.

The public hearing which was almost stalled due to the representation of Chief Executive Officers (CEOs) of Mocol Oil and Gas, Sahara Business Development, Matrix Energy, A.A. Rano amongst other companies involved as against the earlier directives that they appeared in persons at the probe later continued as companies representatives took turns to respond to questions fielded by members of the committee.

Appearing before the probe panel first was Sahara Business Development who CEO who was represented by Stephanie Useni.

Useni said Sahara Business Development was not involved in oil subsidy with the federal government.

She explained further that their deal with the Nigeria National Petroleum Companies NNPC was on Direct Sale, Direct Purchase (DSDP) of crude oil to Premium Motor Spirit (PMS) and was signed in 2016.

According to her, they lift NNPC crude oil to international market and refined and bring back fuel into the country.

Members of the committee on this report frowned at Sahara Business Development for submitting only 2016 document on contract signed with NNPC instead of other contract agreement signed from 2017 to 2021.

Similarly, Mocol Oil and Gas representative at the hearing and Director of Operations, Hauwa Alfa after reeling out list of documents to the ad-hoc committee as requested from companies involved in the probe said the company has never defaulted on the agreement arrangement with NNPC.

On his part, Director of Operations, A.A Rano Ltd Mr Sabiu Saidu who represented the company explained that A.A Rano, NNPC and Trafigura international company signed Direct Sale, Direct Purchase (DSDP) contract agreement from 2017 to 2020.

Saidu said the 2021 agreement contract between NNPC, A.A Rano and Trafigura International company for the allocation of crude oil for PMS are yet to be signed by Trafigura international company.

He further explained to the committee that A.A Rano have never received any cash payment under DSDP contract with NNPC as it is purely crude oil for PMS as stated in the agreement.

The Aliyu led ad-hoc committee in its ruling resolved that Sahara Business Development, Mocol Oil and Gas, A.A Rano amongst others present submit all other relevant documents on contract agreement with NNPC from 2017 to 2021 on Friday July 29 2022.

Meanwhile the Minister of State for Petroleum Resources Mr Timipre Sylva and the Permenent Secretary Dr Nasiru Sanni Gwazo has again failed to appear before the Committee.

The Minister was earlier invited by the Committee to appear before it and explain all issues of approvals of the contracts and  and other issues between the NNPC and these oil marketing companies.

But the Minister who was absent in a letter to the probe panel by a Director  told the committee chairman that himself as well as his Permenent Secretary are out of the country for a national assignment.

It would be recalled that the House Adhoc Committee probe on the Fuel Subsidy Regime during an investigative hearing on July 20, 2022 was abruptly adjourned due to power outage.

 The hearing was almost postponed before its commencement as the Minister and other invited government agencies failed to appear.