HoR Moves to Resolve Importers, Refiners Rift, Seeks Consensus On Downstream Reforms

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The House of Representatives has commenced efforts to resolve the growing disagreement between petroleum importers and domestic refiners as part of moves to build industry-wide consensus on reforms in Nigeria’s downstream petroleum sector.

The initiative, led by the House Committee on Petroleum Resources (Downstream), comes on Tuesday, against the backdrop of increasing debate over the future of petroleum product imports following the expansion of local refining capacity. While some stakeholders have called for stronger support for local refiners through reduced dependence on imports, others have argued that strategic imports remain necessary to guarantee energy security, market competition and uninterrupted fuel supply.

To foster dialogue and harmonise the differing positions, the committee on Tuesday convened an interactive session at the National Assembly with key industry players, including 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).

Addressing participants, Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Imo Ugochinyere, said the engagement underscored the House’s commitment to inclusive lawmaking and stakeholder-driven reforms.

“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 House would not formulate policies affecting the downstream petroleum industry without extensive consultations with stakeholders whose investments sustain the country’s petroleum distribution network.

According to him, Nigeria is at a defining stage in its energy transition, with expanding domestic refining capacity, evolving import dynamics and renewed efforts to strengthen pipeline security and improve 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 committee chairman said submissions made during the engagement would guide legislative interventions aimed at encouraging investment, strengthening domestic refining, promoting healthy competition and guaranteeing the affordability and uninterrupted supply of petroleum products across the country.

He further assured stakeholders that the committee would continue to prioritise constructive engagement over confrontation in carrying out its oversight and legislative responsibilities.

Presenting DAPPMAN’s position, the association’s Executive Secretary, Olufemi Adewole, urged 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).

He said the guidelines should clearly define standards for stock measurement, reporting, quality assurance and accessibility, stressing that strategic stockholding should not be measured solely by product volume but also by the industry’s capacity to finance, transport and rapidly deploy products during emergencies or supply disruptions.

Adewole 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.

He further called on the Federal Government to prioritise investments in critical infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots, to reduce the industry’s heavy dependence on long-distance trucking from a few coastal supply hubs.

DAPPMAN also advocated the establishment of a permanent government-industry consultative platform comprising regulators, marketers, refiners, NNPC Limited, transport agencies and security institutions to periodically review supply conditions, infrastructure gaps and emerging risks.

Presenting IPMAN’s position, the association’s National President, Abubakar Maigandi Shettima, 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.

Shettima observed that the implementation of the Petroleum Industry Act (PIA), the deregulation of fuel prices, the rehabilitation of government-owned refineries and the emergence of large-scale private refineries have positioned Nigeria to evolve from a major importer of refined petroleum products into Africa’s leading refining and distribution hub.

He, however, identified several challenges slowing the sector’s growth, including high financing costs, multiple taxation, foreign exchange volatility, inadequate storage and transportation infrastructure, pipeline vandalism, limited access by independent marketers to refinery products, delayed payment of bridging and NTA claims, as well as insufficient stakeholder engagement.

The IPMAN president 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.

Speaking on behalf of MEMAN, its Executive Secretary, Clement Isong, acknowledged that Nigeria now possesses the capacity to refine petroleum products locally, satisfy domestic demand and export refined products to international markets.

He, however, cautioned against imposing blanket restrictions on petroleum product imports, arguing that the Federal 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 shield 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.

Although stakeholders expressed differing views on the role of imports in a deregulated market with increasing local refining capacity, they were unanimous in calling for policy consistency, improved infrastructure, stronger regulatory collaboration and sustained engagement between government and industry operators.

The engagement forms part of the House Committee’s ongoing oversight of the downstream petroleum sector and its efforts to ensure that the implementation of the Petroleum Industry Act delivers a competitive, investment-friendly and consumer-oriented market. As Nigeria expands its refining capacity, lawmakers are seeking to balance support for domestic production with the need to maintain adequate fuel supply, stable prices and long-term national energy security.