The Health of Mother Earth Foundation (HOMEF) has called for transparency and an investigation into allegations of importing and distributing ‘dirty’ fuels in Nigeria. This demand comes amidst the ongoing conflict between the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refineries.
In a statement released on Wednesday, HOMEF criticized NNPCL for its prolonged inability to refine petroleum products domestically, describing it as a national embarrassment. The environmental advocacy group highlighted that NNPCL’s poor performance has forced Nigeria into dependency on imported refined products, often of questionable quality.
Nnimmo Bassey, Executive Director of HOMEF, condemned NNPCL’s track record, labeling it as one of the worst examples of a post-colonial state’s handling of raw material exports. He expressed concern over the high ecological costs of the petroleum industry and noted that the failure of NNPC refineries has led to the rise of toxic bush refineries.
Bassey emphasized that the importation of refined petroleum products has placed significant economic strain on Nigerian citizens. He also pointed out the ecological concerns associated with the Dangote Refinery, particularly its impact on neighboring communities and the environment.
“HOMEF is alarmed by the controversies surrounding the Dangote Refinery,” said Bassey. “The role of NNPC in these disputes highlights the opacity of the sector and the flaws in the regulatory frameworks.”
He recounted the history of Nigeria’s refining capabilities, noting the decline in performance following government directives and mismanagement. The total installed capacity of Nigeria’s refineries was once 445,000 barrels per day (bpd), with facilities in Port Harcourt, Warri, and Kaduna.
According to Bassey, the military government’s decision in the early 1990s to centralize NNPC’s accounts with the Central Bank of Nigeria marked the beginning of the refineries’ decline. Successive governments have perpetuated this unproductive arrangement, resulting in poor governance, lack of maintenance, and widespread corruption.
Bassey also questioned why NNPCL, despite its supposed profit-making status, could not meet its financial obligations for a 20% share in the Dangote Refinery, which has a capacity of 650,000 bpd. He noted that recent closed-door meetings between the Ministry of Petroleum Resources and Dangote Refineries hinted at internal conflicts over product quality and regulatory approvals.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) attributed the operational inefficiencies to local refiners, citing issues with payment instruments, vessel specifications, and timing.
Bassey urged NNPC to clarify the quality of imported petroleum products and those produced by Dangote Refinery. He also called for transparency regarding NNPC’s shares in the refinery and the status of subsidies on imported petroleum products.
Stephen Oduware, HOMEF’s Fossil Politics Programme Manager, echoed these concerns, highlighting the need for transparency in sectoral regulatory frameworks. He criticized NNPCL for creating complexities that burden the public.
HOMEF called on the federal government to audit the operations of all refineries and implement environmental management plans to protect communities near these facilities. Additionally, the foundation urged the depoliticization of the petroleum sector and recommended that the president should not simultaneously serve as the head of the Petroleum Resources Ministry.
“The public deserves clarity on these issues,” said Bassey. “Ensuring transparency and accountability in the petroleum sector is essential for the economic and environmental well-being of Nigeria.”
