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Nigerian legislators have initiated an investigation into the alleged importation of contaminated fuel into the country. The probe aims to address issues causing a rift between an oil refinery owned by Africa's richest man and the industry regulator.
A legislative committee is looking into allegations of contaminated products, indiscriminate issuance of licenses, and the unavailability of international standard laboratories. The committee has urged parties in Nigeria's petroleum sector to deescalate tensions that have arisen in recent weeks.
The 650,000-barrels-per-day refinery in Lagos, touted as a game-changer to reduce Nigeria's dependence on imported petrol, has faced challenges since its opening over a year ago. The facility has struggled to secure local crude oil supplies due to issues like oil theft and corruption.
The refinery's senior executive has accused international oil companies in Nigeria of hindering its operations by demanding high premiums or claiming crude oil shortages. The regulatory authority recently criticized the quality of products from local refineries, including the Dangote refinery.
The refinery owner has denied the allegations and invited lawmakers to inspect the plant for testing. He emphasized that there were no government incentives involved in the refinery project and dispelled claims of seeking a market monopoly.
The dispute between Nigerian authorities and the refinery owner has raised concerns among analysts about its impact on foreign investments and the country's economy. The timing of the rift, following a presidential election, has added complexity to the situation.
Economists have questioned the validity of claims regarding product quality, noting the absence of consumer complaints. The allegations are seen as potentially masking deeper issues within the industry.