The House of Representatives has begun moves to tackle lingering challenges in Nigeria’s downstream petroleum sector, declaring its opposition to the continued imposition of United States dollar-denominated charges on petroleum products refined within the country while also announcing plans to investigate alleged irregularities in the allocation of fuel import licences.
The House Committee on Petroleum Resources (Downstream) made this known on Tuesday during an interactive session with stakeholders in the oil and gas industry, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and the Major Energies Marketers Association of Nigeria (MEMAN).
The meeting forms part of the National Assembly’s ongoing review of the Petroleum Industry Act aimed at strengthening domestic refining, improving energy security and creating a more competitive downstream petroleum market.
Speaking during the session, the Chairman of the committee, Ikenga Ugochinyere, said the lawmakers would invite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Ports Authority (NPA), the Central Bank of Nigeria (CBN), refiners and other relevant agencies to respond to the concerns raised by stakeholders.
“We’ll be meeting with the NMDPRA, NUPRC, the refiners, both modular refinery owners and the large refinery operators, as well as the NPA, the CBN and other relevant agencies on the issues that have been raised. These will form part of our downstream reforms, including proposed amendments to the Petroleum Industry Act and legislative motions to correct identified gaps,” Ugochinyere said.
The lawmaker also criticised the continued collection of port charges in foreign currency for petroleum products refined and transported within Nigeria, describing the practice as harmful to the economy.
“We have taken special note of the issue of dollar-denominated charges by the Nigerian Ports Authority. It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit,” he stated.
House To Investigate Fuel Import Licence Allocation
Ugochinyere further disclosed that the committee would investigate allegations that import licences for the first three quarters of 2026 were repeatedly issued to the same group of marketers.
“We have also taken note of what you said about the lopsidedness in the issuance of import licences, where allocations for the first, second and third quarters went to the same set of operators. We will raise these questions when the NMDPRA appears before the committee to explain the criteria used in issuing those licences,” he added.
According to him, lawmakers are determined to strike a balance between supporting Nigeria’s growing refining capacity and protecting the huge investments made by petroleum marketers over the years.
“How do we encourage and protect owners of domestic refineries while also protecting the investments of marketers? We cannot continue importing the same volume of petroleum products as before, given that more refineries are coming on stream.
“At the same time, we must guarantee national energy security in case local refineries experience disruptions.
“We need a balanced framework that supports domestic refining, preserves healthy competition and ensures the country always has a reliable fuel supply. That is the direction this committee is pursuing,” he said.
DAPPMAN Raises Monopoly, Import Permit Concerns
Presenting a memorandum on behalf of DAPPMAN, the association’s Executive Secretary, Olufemi Adewole, told lawmakers that structural imbalances were threatening the survival of petroleum marketers and depot operators.
He disclosed that 72 out of Nigeria’s 154 licensed petroleum depots recorded little or no commercial activity over the past year.
“From the records of the NMDPRA, not fewer than 72 of the 154 depots nationwide had no regular or consistent trading activity in the last one year. They are merely paying salaries without engaging in meaningful business. This is largely due to an uneven playing field, persistent trading losses and the inability to access alternative sources of supply,” Adewole said.
While acknowledging the commencement of operations at the Dangote Refinery, he warned that marketers were becoming increasingly dependent on a single supplier of Premium Motor Spirit.
“Our experience has been one of mixed feelings, bordering on an almost total monopoly in the supply of PMS by the mega refinery. Although the Petroleum Industry Act provides for a fully deregulated market where prices are determined by market forces, that has not been our experience,” he stated.
The association also accused the NMDPRA of repeatedly allocating fuel import permits to the same marketers.
“The same set of marketers received import allocations in the first, second and third quarters of 2026, as though other qualified operators do not exist. This is unacceptable, and we urge this committee to ensure greater transparency and fairness in future allocations,” Adewole said.
According to him, retaining fuel importation as a contingency option remains essential to preventing fuel shortages whenever local refineries experience maintenance shutdowns or operational challenges.
“In order to avoid the return of fuel queues, the import option provided under the Petroleum Industry Act must remain available as a regulated contingency mechanism whenever domestic supply is insufficient,” he added.
DAPPMAN also criticised what it described as multiple port charges and the continued invoicing of domestic petroleum transactions in foreign currency despite an existing presidential directive against the practice.
“Marketers are invoiced at the loading point and again at the discharge port for products moved entirely within Nigeria. More critically, certain charges are still imposed in US dollars despite the purely domestic nature of these transactions.
“This practice persists despite a presidential directive suspending foreign currency-denominated billing for local operations. We urge the committee to ensure compliance,” Adewole said.
The association further urged the Federal Government to accelerate the dredging of waterways, rehabilitate petroleum pipelines and depots, improve rail transportation for petroleum products and develop a national downstream logistics master plan.
IPMAN Seeks Petroleum Bank, Lower Financing Costs
The National President of IPMAN, Abubakar Shettima, commended the Federal Government for encouraging private investment in local refining but lamented that marketers continued to face high borrowing costs, multiple taxation, foreign exchange volatility and limited access to refinery products.
“We support strengthening domestic refining, but we also need equitable access to locally refined petroleum products, affordable financing and reduced regulatory costs that ultimately increase pump prices,” he said.
Shettima proposed the establishment of a specialised Petroleum Bank that would provide operators with single-digit interest loans.
“Today, marketers borrow from commercial banks at interest rates of up to 32 per cent. Those costs are eventually passed on to consumers. We are proposing a Petroleum Bank that will provide single-digit interest loans, similar to what exists in the agriculture and industrial sectors,” he said.
He also urged multinational oil companies currently involved in fuel importation to channel investments into local refining to boost domestic production.
“Before now, we depended almost entirely on imported petroleum products. Today, Nigeria is exporting refined products. Multinational companies should invest in domestic refineries to complement the existing capacity rather than relying solely on imports,” he added.
On the future of Nigeria’s government-owned refineries, Shettima suggested that independent marketers should be allowed to participate in their management.
“If independent marketers are allowed to participate in operating the government refineries, we believe we can contribute significantly to their revival. We have done it before. Independent marketers invested in what is today NIPCO, which has become one of Nigeria’s leading petroleum marketing companies,” he said.
