Muhammed Abubakar, Reporting
THE House of Representatives Committee on Petroleum Resources (Downstream) has launched a fresh drive to resolve the growing friction between petroleum importers and domestic refiners, as it engaged key industry stakeholders in a bid to chart a common path towards energy security and sustainable sector reforms.
At a high-level interactive session held on Tuesday at the National Assembly, 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). Discussions centred on balancing support for local refining while ensuring uninterrupted fuel availability across the country.
Committee Chairman, Hon. Ikenga Imo Ugochinyere, emphasised that the engagement reflected the House’s commitment to inclusive lawmaking, stressing that downstream petroleum sector reforms would be driven by dialogue 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 stakeholders that no policy affecting the downstream sector would be formulated without broad consultations with operators whose investments sustain Nigeria’s petroleum distribution network.
According to him, Nigeria stands at a defining stage in its energy transition, with increasing domestic refining capacity, evolving import dynamics and renewed efforts to improve pipeline security and distribution efficiency.
“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 further assured industry operators that the committee would continue to prioritise constructive engagement over confrontation in carrying out its oversight and legislative responsibilities.
DAPPMAN Calls for Stock Guidelines and Joint Monitoring
Presenting DAPPMAN’s position, Executive Secretary Olufemi Adewole urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop practical operating-stock guidelines under Section 182 of the Petroleum Industry Act (PIA).
He said the guidelines should clearly define standards for stock measurement, reporting, quality assurance and accessibility, adding that strategic stockholding should not be measured merely by product volume but also by the industry’s capacity 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 monitor supply concentration, product availability, transparent allocation, fair treatment of operators, and early warning indicators of market stress.
The association further called on the Federal Government to prioritise investments in critical infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots, to reduce the sector’s heavy dependence on long-distance trucking from a few coastal supply hubs.
IPMAN Highlights Sector Challenges
IPMAN described the downstream petroleum industry as one of Nigeria’s most strategic sectors, noting that it remains central to powering households, industries, agriculture, transportation, healthcare and national security.
The association observed that the implementation of the Petroleum Industry Act, deregulation of fuel prices, rehabilitation of government-owned refineries, and the emergence of large-scale private refineries have positioned Nigeria to evolve from a major importer into Africa’s leading refining and distribution hub.
However, IPMAN identified several challenges slowing the sector’s growth, including high financing costs, multiple taxation, foreign exchange volatility, inadequate storage and transport infrastructure, pipeline vandalism, limited access by independent marketers to refinery products, delayed payment of bridging and NTA claims, and insufficient stakeholder engagement.
The association urged the House committee to support reforms that would improve logistics, deepen market competition, reduce distribution costs, encourage investment, and guarantee the sustainable availability and affordability of petroleum products nationwide.
MEMAN Cautions Against Blanket Import Restrictions
Speaking on behalf of MEMAN, Executive Secretary Clement Isong acknowledged that Nigeria now possesses the capacity to refine petroleum products locally, meet domestic demand, and export to international markets.
However, he cautioned against imposing blanket restrictions on fuel imports, arguing that government must retain the flexibility to approve imports whenever necessary to safeguard national energy security.
According to him, strategic imports remain indispensable during supply shortages or unexpected market disruptions, helping to protect consumers from sharp price increases and supply crises.
Isong recommended that Nigeria establish a strategic petroleum reserve capable of sustaining at least 60 days of national consumption to cushion the country against global supply shocks and price volatility.
He cited the recent Liquefied Petroleum Gas (LPG) market as an example where increased imports successfully bridged supply shortages and moderated prices, demonstrating how timely regulatory intervention can stabilise the market.
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.
A Unified Call for Policy Consistency
The engagement highlighted the differing perspectives among downstream operators on the future of petroleum imports and domestic refining. However, stakeholders were united in calling for policy consistency, improved infrastructure, stronger regulatory collaboration, and continuous dialogue with government to ensure Nigeria’s downstream petroleum industry remains competitive, resilient, and capable of guaranteeing long-term national energy security.
The committee has pledged to carefully consider all submissions in developing legislative interventions that would encourage investment, strengthen domestic refining, deepen competition, and guarantee affordable and uninterrupted petroleum product supply.
