Reps Probe NNPC Executive Over Money Laundering Claims, Review NIPCO Gas Licences

The House of Representatives has commenced investigations into allegations of money laundering and abuse of office against the Executive Vice-President, Downstream, of the Nigerian National Petroleum Company Limited (NNPCL), Mumuni Dagazau, alongside a separate petition seeking the cancellation of gas distribution licences held by NIPCO Plc.

The Chairman of the House Committee on Petroleum Resources (Downstream), Ikenga Imo Ugochinyere, disclosed the investigations on Monday during a technical briefing marking the end of Downstream Week 2026 in Abuja.

Ugochinyere said the committee had established two subcommittees to conduct preliminary investigations into the petitions, stressing that the allegations would be examined before any conclusions were reached.

The first subcommittee, chaired by Aliyu Ibrahim Al-Mustapha, with Cyril Hart as deputy, was given seven days to investigate the petition against Dagazau and submit its findings to the main committee.

The second subcommittee, chaired by Matthew Nwogu and assisted by Shehu Dalhatu, will examine a petition seeking the suspension or cancellation of gas distribution licences issued to NIPCO by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The petition covers operations in Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones. The petitioners have also requested a public hearing.

Ugochinyere emphasised that the allegations remained unproven and that all parties would be given a fair opportunity to present their positions. He said the committee would not disregard complaints that could undermine public confidence in the downstream petroleum sector.

In a related development, the committee called on the Federal Government to improve funding and ensure timely provision of operational logistics for pipeline surveillance, warning that inadequate support could jeopardise the protection of critical petroleum infrastructure.

Ugochinyere attributed improvements in crude oil production and supply partly to enhanced pipeline surveillance, arguing that effective protection of pipelines could reduce crude losses, improve feedstock availability for domestic refineries and increase government revenue.

He urged the government to release funds owed to surveillance contractors promptly, expressing confidence that Nigeria could achieve its target of producing three million barrels of crude oil daily with adequate operational support.

The committee also raised concerns about crude oil supply to domestic refineries, saying investments in local refining would remain vulnerable without reliable access to feedstock.

It disclosed that it was pursuing legislative measures to strengthen crude supply obligations, protect domestic refiners and guarantee fair access to the market.

On petroleum product imports, the committee maintained that import licences should be used to address verified domestic supply shortfalls rather than become a permanent alternative to local refining. It also rejected a World Bank recommendation on import licences, arguing that Nigeria’s energy policy should reflect domestic priorities.

The lawmakers further disclosed that they had questioned NNPCL over legacy transactions and refinery rehabilitation, while opening an inquiry into allegations that some companies underpaid for crude oil.

Despite the investigations and concerns over pipeline security, crude supply and market regulation, the committee passed votes of confidence in President Bola Tinubu, the leadership of NMDPRA and Aliko Dangote.

Ugochinyere commended NMDPRA Chief Executive Rabiu Abdullahi Umar and the authority’s executive directors, citing improvements in domestic petrol supply and regulatory operations.

Figures presented at the briefing indicated that domestic refineries’ contribution to national petrol supply had increased by more than 75 per cent, with no supply shortfalls recorded and more than 25 days of national sufficiency maintained.

The committee also cited the commissioning of the Port Harcourt petroleum products laboratory, the licensing of a petroleum liquids trading exchange and the completion of a framework for a national strategic petroleum stock of up to 20 days, with plans to expand the reserve to 90 days in 2027.

It described Dangote Petroleum Refinery, valued at approximately $20 billion, as a strategic national investment deserving protection while insisting on fair competition in the sector.

The committee said it would continue pursuing amendments to the Petroleum Industry Act to strengthen provisions on crude supply to local refineries, licensing, domestic refining and petroleum product imports.

It also commended petroleum industry associations, including MOMAN, DAPPMAN, IPMAN and PETROAN, for investments in depots, jetties, trucks and filling stations.

The committee said sustaining improvements in domestic supply and crude production would require stronger pipeline security, reliable feedstock for local refineries and effective enforcement of petroleum sector regulations.