The House of Representatives Committee on Petroleum Resources (Downstream) has begun moves to ease growing tensions between petroleum importers and domestic refiners
The House of Representatives Committee on Petroleum Resources (Downstream) has begun moves to ease growing tensions between petroleum importers and domestic refiners.
To this end, the committee has convened major stakeholders in the downstream oil and gas industry to explore solutions aimed at guaranteeing energy security, stable fuel supply and sustainable sector reforms.
At an interactive session held at the National Assembly on Tuesday, the committee met with executives of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Energies Marketers Association of Nigeria (MEMAN).
The meeting focused on striking a balance between supporting Nigeria’s expanding domestic refining capacity and maintaining uninterrupted availability of petroleum products nationwide.
Chairman of the committee, Rep. Ikenga Imo Ugochinyere, said the engagement underscored the House’s commitment to consultative lawmaking, assuring stakeholders that reforms in the downstream petroleum industry would be driven by collaboration rather than confrontation.
“We are here not to interrogate, not to accuse and not to put anyone on trial. We are here to listen. We are here to talk to one another as partners who share one common destiny, a Nigeria where energy is affordable, supply is stable and no citizen suffers because petroleum products are out of reach,” he said.
Ugochinyere assured operators that the committee would not formulate policies affecting the sector without extensive consultations with industry players whose investments sustain Nigeria’s fuel distribution network.
He noted that Nigeria’s downstream petroleum industry is at a critical turning point, driven by increasing local refining capacity, changing import dynamics and renewed efforts to improve pipeline security and product distribution.
“The marketers, depot owners, independent operators and major marketers remain the bridge between government policy and the pump. When that bridge is strong, Nigerians enjoy stable prices and reliable supply. When it is weak, the entire nation feels the consequences,” he stated.
The lawmaker said the committee would study submissions from all stakeholders before proposing legislative measures aimed at encouraging investment, strengthening local refining, promoting healthy competition and ensuring affordable and uninterrupted fuel supply.
He also pledged that the committee would continue to prioritise dialogue and partnership in carrying out its oversight and legislative responsibilities.
Presenting DAPPMAN’s position, the association’s Executive Secretary, Olufemi Adewole, called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop practical operating-stock guidelines in line with Section 182 of the Petroleum Industry Act (PIA).
According to him, the guidelines should clearly define standards for stock measurement, reporting, quality assurance and accessibility, stressing that strategic stockholding should not be assessed solely by product volumes but also by the industry’s ability to finance, transport and release products quickly during emergencies.
DAPPMAN also proposed the establishment of a joint market-monitoring framework involving the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) to track supply concentration, product availability, allocation transparency, fair competition and emerging market risks.
The association further urged the Federal Government to prioritise investments in critical infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots, to reduce the industry’s dependence on long-distance trucking from coastal supply hubs.
It also advocated the creation of a permanent government-industry consultative platform involving regulators, marketers, refiners, NNPC Limited, transport agencies and security institutions to periodically assess supply conditions, infrastructure gaps and emerging challenges.
In its submission, IPMAN described the downstream petroleum industry as a strategic pillar of Nigeria’s economy, noting that it powers transportation, manufacturing, agriculture, healthcare, households and national security.
The association said the implementation of the Petroleum Industry Act, fuel price deregulation, rehabilitation of state-owned refineries and the emergence of large-scale private refineries have positioned Nigeria to become Africa’s leading refining and petroleum distribution hub.
However, IPMAN identified major constraints facing the industry, including high financing costs, multiple taxation, foreign exchange volatility, inadequate storage and transportation infrastructure, pipeline vandalism, limited access to refinery products by independent marketers, delayed payment of bridging and NTA claims, and inadequate stakeholder engagement.
The association urged lawmakers to support reforms that would improve logistics, deepen competition, lower distribution costs, encourage investment and guarantee the sustainable availability of affordable petroleum products.
On behalf of MEMAN, Executive Secretary Clement Isong acknowledged that Nigeria now has the capacity to refine sufficient petroleum products to meet domestic demand and supply export markets.
He, however, warned against imposing blanket restrictions on fuel imports, arguing that government should retain the flexibility to approve imports whenever necessary to safeguard national energy security.
According to him, strategic imports remain essential during supply shortages or unforeseen market disruptions, helping to stabilise prices and prevent fuel scarcity.
Isong recommended the establishment of a strategic petroleum reserve capable of sustaining at least 60 days of national fuel consumption to protect the country against global supply shocks and price volatility.
He cited the Liquefied Petroleum Gas (LPG) market as an example where increased imports successfully bridged supply gaps and moderated prices, demonstrating the importance of timely regulatory intervention.
While reaffirming MEMAN’s support for the Federal Government’s drive to strengthen domestic refining, Isong maintained that decisions on petroleum product imports should remain the exclusive responsibility of the Federal Government and the NMDPRA to ensure adequate supply, preserve healthy competition and protect consumers.
The engagement exposed differing views among industry operators on the future role of petroleum imports as Nigeria expands local refining capacity. Nevertheless, stakeholders unanimously called for policy consistency, improved infrastructure, stronger regulatory coordination and sustained dialogue with government to build a competitive, resilient downstream petroleum sector capable of guaranteeing long-term energy security.
