HOSTCOM Threatens Renewed Agitation Over Local Refining Autonomy
By Patience Ikpeme
The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) have issued a stern warning to the Nigerian National Petroleum Company Limited (NNPCL) and International Oil Companies (IOCs) regarding the supply of crude oil to local refineries, including the Dangote Refinery.
Over the weekend, HOSTCOM threatened to renew its agitation for greater autonomy and control of their natural resources if these entities fail to support Nigeria’s bid to achieve self-sufficiency in local production of Premium Motor Spirit (PMS) and diesel.
HOSTCOM, representing all oil and gas-producing states in Nigeria, voiced their frustrations over the continued reliance on imported refined products despite the billions of dollars spent on turnaround maintenance of Nigeria’s refineries. The group pointed to rampant corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals who benefit from the current system of exporting crude oil and importing refined products. HOSTCOM warned that it would not hesitate to publicly name these cabals if necessary.
The National President of HOSTCOM, Dr. Benjamin Tamaramiebi, led a delegation including executives and traditional rulers from the Niger Delta region on a tour of the Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex. Notable figures in attendance included HRM Frank Okorakpo, Chairman of the Niger Delta Monarchs Forum; HRM Obafemi Ogaro, Deputy Chairman of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria (TROMPCON); and HRM (Capt) Frank Okiakpe, Egbesuwei Gbanraun X Agadagba Pere.
Following the tour, Dr. Tamaramiebi expressed deep concerns about the state of Nigeria’s oil refineries, stating, “Our visit today to the largest and magnificent 650,000 bpd private Refinery in Africa (Dangote Refinery) has opened our eyes to several ills, particularly to the monumental corruption going on in the Nigeria oil and gas industry. It is obvious why the existing Federal Government Refinery in Port Harcourt, Warri and Kaduna can never work or operate maximally despite the billions of dollars spent on the so-called Turn Around Maintenance over the years. It is now clear that some persons in government and outside government have been identified as the cabal holding Nigeria’s oil sector by the jugular. We have identified them, and we shall reveal their names to the people of Nigeria if this trend continues.”
Emphasizing the need for Nigeria to refine its crude locally, HOSTCOM urged the Federal Government to support the Dangote Petroleum Refinery & Petrochemicals and other domestic refineries to end the nation’s persistent reliance on imported petrol, diesel, and other refined products. The group also called for nationwide support for Dangote Refinery and other modular refineries to eliminate the need for imported refined products, expressing gratitude to the National Assembly and Nigerians for their support while warning against any sabotage that could hinder the country’s progress towards self-sufficiency in refined products.
Dr. Tamaramiebi added, “We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We at HOSTCOM have come today to drum up support for Dangote Refinery. We will stand with Dangote to put an end to continuous importation of less quality and costly refined petroleum products into Nigeria.”
HOSTCOM stressed that the aspiration of every Nigerian is for the country to refine its own crude oil for the benefit of its people, warning that any individual who opposes this national desire will face the wrath of the masses. The group also criticized Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for his recent statement that the government would not halt the importation of refined petroleum products. HOSTCOM called on President Bola Ahmed Tinubu to remove Ahmed from his position, citing his previous associations with key players in the sector, which they argue make him unfit to effectively regulate the downstream industry.
“We unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that he, as the CEO of NMDPRA, is responsible for issuing import licences to his cronies outside the government to continue to import sub-standard refined petroleum products into the country. This is not surprising given that he has served on the boards of some downstream companies in the past. He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to immediately replace him with an individual who is not encumbered by such conflict,” the group asserted.
HOSTCOM praised Aliko Dangote, President of Dangote Industries Limited, for his patriotism in investing in and constructing the refinery in Nigeria, noting that his endeavor has significantly contributed to the country’s economic growth and development. The group emphasized that the refinery is crucial in providing local solutions to Nigeria’s refining needs, thereby reducing the nation’s dependency on imported refined petroleum products. They urged President Tinubu to support the project, highlighting its potential to enhance the economy, create thousands of jobs, ensure the sustainability and affordability of products, and bring substantial benefits to the host communities.
“We call on President Bola Tinubu to support and sustain this refinery which is in his own state. He must do away with the cabals holding the oil sector to ransom,” the group added. HOSTCOM further asserted that the President must not tolerate the economic sabotage being carried out by the IOCs operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries. They condemned this as an affront to the Nigerian people and a deliberate attempt to undermine the President’s renewed hope agenda, which aims to revive the economy.
“We call on Mr. President to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply crude oil to Dangote Refinery and other local Refineries in line with section 109 of the Petroleum Industry Act PIA 2021, particularly section 109(4)(b), which states that ‘the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,'” HOSTCOM emphasized.
The group pointed out that, despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities. HOSTCOM warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be forced to take decisive action.
Devakumar Edwin, Vice President (Oil & Gas) at Dangote Industries Limited, who hosted the delegates, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy. Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents. He added that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.
