As the newly appointed chairman of the Senate Committee on Petroleum Downstream, Senator Sumaila Kawu has promised to tackle the persistent lack of transparency in Nigeria’s petroleum industry, which he likens to a “cabal.”

Kawu was appointed as chairman of the Committee following the demise of Senator Ifeanyi Uba who represented Anambra South who held sway as the chairman of the committee

Speaking to newsmen on Wednesday at the National Assembly, Kawu detailed his plans to shed light on the sector’s operations and engage the public in meaningful dialogue.

With rising fuel prices impacting Nigerians daily, Kawu emphasized the urgent need for clarity and accountability within the industry. “Our first step will be to study the current situation and gather information from relevant agencies,” he stated.
He highlighted the importance of holding public hearings, which will allow citizens to voice their concerns and experiences directly.

Kawu’s committee will focus specifically on reviewing contracts awarded by previous administrations and overseeing the current contracts for refinery repairs.
By scrutinizing the agreements, Kawu targets to expose any irregularities and ensure that funds are being used effectively.
He remarked, “We need to ask the hard questions and hold a public hearing to allow Nigerians to express their views.”

In his commitment to transparency, Kawu detailed his plans to engage with stakeholders, including the Nigerian National Petroleum Corporation (NNPC) and refinery operators, to understand the barriers to efficient production and accountability.
According to him, the recent visits to the refineries have given course fir concerns about unmet production timelines, prompting a call for a more rigorous evaluation of the situation.

Kawu’s focus on transparency is not only about identifying issues but also about fostering a culture of openness within the sector.
He promise to use the committee to dismantle the “cabal-like” operations that have characterized the industry, ensuring that decision-making processes are accessible and understandable to the public.

Senator Kawu expressed determination to implement measures that will stabilize the petroleum sector and address the legitimate concerns of Nigerians.
By prioritizing transparency and public engagement, he expressed the hope to restore confidence in the management of Nigeria’s petroleum resources.

The ongoing fuel crisis in Nigeria, marked by skyrocketing prices and shortages, has triggered a wave of mixed reactions over the continued leadership of Mele Kyari, the Group Managing Director (GMD) and Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL).
Many Nigerians, alongside key industry stakeholders, are calling for accountability as the country’s oil and gas sector struggles under immense pressure.

Fuel prices have ballooned from N145.48 per liter in 2019 when Kyari assumed office, to nearly N1,000 per liter today, leaving the country in the grip of a cost-of-living crisis. This has led to widespread criticism of Kyari and the NNPCL, with some accusing the corporation of inefficiency and mismanagement that has further strained the already fragile economy.

Speaking in Abuja, Felix Osakwe, the 2023 presidential candidate of the National Rescue Movement (NRM), expressed deep disappointment with the state of the oil sector. He placed much of the blame on both Kyari and President Bola Tinubu, who also serves as the Minister of Petroleum.

“Engr. Mele Kyari should not be held solely responsible for the current crisis. The President, as the Minister of Petroleum, should also be accountable,” Osakwe said. “Kyari takes instructions directly from him, and they have failed to address the suffering of Nigerians due to the high cost of fuel.”

Osakwe further criticized the government for its lack of empathy, stating that the rising cost of transportation caused by escalating fuel prices has eroded the essence of democracy, making everyday life a struggle for Nigerians.

The call for Kyari’s removal has been echoed by lawmakers in the National Assembly.
A group, known as The Economy Rescue Group, led by Rep. Esosa Iyawe, has demanded Kyari’s resignation, citing the mismanagement of NNPCL as a primary cause of the sector’s decline. Iyawe emphasized that Kyari’s leadership has undermined President Tinubu’s administration and the promises of economic recovery under the “Renewed Hope Agenda.”

“We, the concerned lawmakers, believe that the mismanagement and failures of the NNPCL under Kyari have been disastrous for the country,” Iyawe said in a statement. “If he does not resign, we urge the President to suspend him to allow for a full investigation into the NNPCL’s activities.”

The lawmakers pointed to numerous issues plaguing the oil sector, including the distribution of adulterated fuel, indiscriminate licensing, and ongoing fuel scarcity despite Nigeria’s position as a major oil-producing nation.
They argue that the presence of cronyism within NNPCL and the use of middlemen for fuel trading have contributed to the crisis, demanding that Kyari’s management be thoroughly investigated.

Despite these growing calls for his resignation, Kyari has defenders. Rev. Olusegun Peters, National Chairman of the Democratic Peoples Congress (DPC), argued that Kyari should not be the scapegoat for Nigeria’s fuel crisis. Peters called for full deregulation of the oil sector, believing that more competition in the downstream sector would naturally drive prices down.

“Mele Kyari is not the real problem,” Peters said. “We need to open the oil and gas sector to competition. The more players we have, the better prices will become. No one man or entity should be allowed to dominate the supply of fuel.”

Peters also criticized the government for creating monopolistic conditions in the sector, suggesting that Kyari and the NNPCL are being unfairly blamed for deeper structural issues.

This controversy comes against a backdrop of significant challenges for Nigeria’s oil industry, including delayed refinery rehabilitation and allegations of corruption. Under Kyari’s leadership, the sector has been hit by accusations of inefficiency and mismanagement, leaving many to wonder if his continued tenure is sustainable in the face of public discontent.

As the pressure mounts, Nigerians continue to bear the brunt of the country’s fuel crisis, with hopes that swift and effective reforms will provide relief. The question remains whether the government will take decisive action to address the issues at the heart of the crisis, starting with the leadership of NNPCL.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has querried the rational behind the Nigerian National Petroleum Company Limited (NNPCL) projections that make the price of petrol lifted from the Dangote Refinery higher than imported ones.
IPMAN’s National Welfare Officer, John Kekeocha spoke on Channels Television’s, the Morning Brief breakfast programme.
“If NNPC can sell Dangote products higher than the imported products, then it doesn’t make sense.
“What is the celebration we are having all these while then?” he querried.
Recall that the NNPCL started loading the first batch of petrol from the Dangote Refinery on Sunday.

The NNPCL had stated that it got the petrol at N898 per litre from the private refinery.
Meanwhile NNPCL retail outlets in Lagos have been selling petrol for around N855 before lifting petrol from the Dangote Refinery on Sunday.

However, a litre of Dangote petrol now sell for N950 per litre in Lagos and N1,019 in Borno.

The association urged NNPCL to ensure the product is not sold at a higher price than imported fuel.

IPMAN argued that such a disparity would be counterproductive to the nation’s drive for energy self-sufficiency and could negatively impact consumers and marketers alike.

According to IPMAN the pricing strategy for locally refined petrol should reflect the advantages of domestic production, offering Nigerians a more affordable option.

The association emphasized that maintaining competitive pricing is crucial for the success of the Dangote Refinery and for fostering a sustainable fuel market in the country.