The House of Representatives Committee on Petroleum Resources (Downstream) has thrown out allegations of money laundering and conflict of interest against the Nigerian National Petroleum Company Limited’s Executive Vice President (Downstream), Dr Mumuni Dagazau, citing a lack of supporting evidence from the petitioners.
The committee also passed a vote of confidence in President Bola Tinubu and NNPCL management over their handling of reforms in the downstream petroleum industry.
The committee’s chairman, Ikenga Ugochinyere, announced the resolutions on Monday at the National Assembly Complex in Abuja while presenting findings from investigations and reviewing the implementation of reforms in the sector.
Ugochinyere said the allegations were raised in a petition submitted by the Coalition for Transparency and Accountability in Nigeria’s Petroleum Sector and subsequently referred to an ad hoc subcommittee for investigation.
He explained that the petitioners and Dagazau’s representatives were given opportunities to present their positions during the investigation.
He said, “The petitioners appeared before the sub-committee on Wednesday, October 21, but presented newspaper clippings rather than documentary evidence to support the allegations.”
According to the committee chairman, the petitioners were asked to provide additional documents but failed to appear on Thursday and Friday to substantiate their claims.
Dagazau, however, responded to the committee’s invitation through representatives who addressed questions raised during the proceedings, Ugochinyere said.
He added that members also considered an existing court order relating to the matter before deciding on the petition.
“Having considered the report of the sub-committee, this committee has today resolved to dismiss the petition in its entirety. No evidence was placed before us in support of any of the allegations. An allegation is not evidence, and a newspaper clipping is not proof”, he stated.
Ugochinyere faulted the petitioners for failing to back their accusations with credible materials, warning that unsubstantiated claims could undermine the reputations of public officials and misuse the National Assembly’s oversight process.
“When petitioners bring weighty allegations against public officers, attract public attention, and then fail to substantiate them or even to return, they abuse the processes of the National Assembly and damage the reputations of those who serve the nation,” he added.
He nevertheless assured the public that the committee would continue to receive petitions supported by credible evidence and carry out its oversight duties without fear or favour.
Beyond the petition, lawmakers reviewed proposed amendments to the Petroleum Industry Act 2021 and examined measures intended to boost domestic refining, improve petroleum product distribution and strengthen energy security.
Lawmakers back Tinubu, NNPCL reforms
The committee’s vote of confidence in Tinubu and NNPCL management followed its assessment of the Federal Government’s downstream petroleum reforms.
Ugochinyere said the measures had contributed to more stable supplies and greater domestic participation in the petroleum market, despite increases in international crude oil prices.
He cited a reported rise of more than 75 per cent in the contribution of domestic refineries to petrol supply, alongside improved crude supply arrangements for local refiners and the expansion of alternative-fuel infrastructure.
According to him, the industry regulator had reported no supply shortfalls and more than 25 days of national sufficiency.
He said the committee had reached an agreement with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to increase national sufficiency to 45 days within the current quarter and establish strategic national stocks capable of meeting demand for up to 90 days in 2027.
On crude supply, Ugochinyere disclosed that deliveries to domestic refineries under the Domestic Crude Supply Obligation reached 97.4 per cent of allocated volumes in the second quarter of 2026.
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He added that between January and September, locally sourced crude accounted for more than 80 per cent of the crude received by Nigerian refineries.
The lawmaker also reported that Nigeria’s crude oil production climbed to 1.56 million barrels per day in June, its highest level in 74 months.
He presented the figures as indicators of progress under the government’s downstream reform programme.
NNPCL introduces measures to ease fuel costs
The committee chairman highlighted steps taken by NNPCL to cushion the impact of rising petrol prices on Nigerians.
He cited a reported N66-per-litre petrol discount introduced on October 1 and said the Federal Government announced on October 8 that NNPC Retail would suspend its profit margin and sell petrol at cost for 30 days, prioritising commercial transport operators.
According to Ugochinyere, the arrangement was designed to offer temporary relief without reinstating the former fuel subsidy, as the reduction would come from NNPC Retail’s profit margin rather than public funds.
He also praised the company’s efforts to expand compressed natural gas infrastructure.
Ugochinyere said more than 120,000 vehicles were operating on CNG, while NNPCL had acquired 500 CNG-powered trucks for distributing petroleum products.
He added that the company had supplied 35 CNG-hybrid buses to the Presidential CNG Initiative.
The committee chairman further highlighted the commissioning of a solar-powered smart energy station by NNPC Retail in Abuja in September. The facility provides petrol, liquefied petroleum gas, CNG and electric vehicle charging services.
He said between 50 and 70 similar stations were expected to be established within six months.
Refinery rehabilitation, proposed PIA amendments
On efforts to revive Nigeria’s state-owned refineries, Ugochinyere said technical partners had assessed the Port Harcourt and Warri facilities as part of plans to restore reliable and commercially viable operations.
The update comes amid persistent challenges in the country’s refining industry, where repeated rehabilitation efforts have failed to deliver sustained production from government-owned facilities.
According to the statement presented to the committee, the Port Harcourt, Warri and Kaduna refineries had yet to resume production as of July 2026.
The committee also examined proposed amendments to the Petroleum Industry Act 2021, which Ugochinyere said were designed to strengthen domestic crude supply arrangements, regulate imports, safeguard product quality and improve oversight of pricing and market competition.
The proposed changes would also address pipeline security and support the expansion of CNG and LPG infrastructure.
Meanwhile, the committee granted its subcommittee investigating NIPCO Plc an additional 14 days to complete its assignment, saying the extension would allow for a comprehensive examination of the issues.
Ugochinyere said lawmakers would continue monitoring the implementation of their nine-pillar roadmap for downstream energy security, covering domestic crude supply, strategic reserves, product quality monitoring, pipeline protection and transparent pricing.
“The Renewed Hope downstream sector agenda is working,” he said, assuring Nigerians that the committee would maintain its oversight of the industry.
The dismissal of the petition ends the committee’s consideration of the allegations against Dagazau based on the evidence presented before it. However, the decision does not independently establish whether wrongdoing occurred; it reflects the panel’s finding that the petitioners failed to substantiate their claims during the proceedings.