Reps Move to End Importers, Refiners’ Rift

The House of Representatives Committee on Petroleum Resources (Downstream) has begun efforts to resolve growing tensions between petroleum importers and domestic refiners, seeking consensus on reforms to ensure energy security, stable fuel supply and a competitive downstream sector.

The committee, chaired by Hon. Ikenga Imo Ugochinyere, held an interactive session with key downstream operators on Tuesday at the National Assembly, including the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Energies Marketers Association of Nigeria (MEMAN).

The meeting focused on balancing the government’s push for increased domestic refining with the need to maintain uninterrupted petroleum product supply nationwide.

Ugochinyere said the engagement was part of the House’s commitment to inclusive lawmaking, stressing that reforms in the downstream sector must 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.

The lawmaker assured stakeholders that the committee would not support policies affecting the sector without broad consultations with operators whose investments sustain the country’s petroleum distribution network.

He noted that Nigeria was at a critical stage in its energy transition, with domestic refining capacity expanding, import dynamics changing and renewed efforts underway 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,” Ugochinyere stated.

He said the committee would consider the submissions from stakeholders in developing legislative interventions aimed at encouraging investment, strengthening domestic refining, deepening competition and ensuring affordable and uninterrupted petroleum product supply.

DAPPMAN seeks strategic stock guidelines
Presenting DAPPMAN’s position, its Executive Secretary, Olufemi Adewole, called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop clear operating-stock guidelines under Section 182 of the Petroleum Industry Act.

Adewole said the guidelines should establish standards for stock measurement, reporting, quality assurance and accessibility.

He argued that strategic stockholding should not be determined solely by product volume but should also consider the industry’s ability to finance, transport and quickly release products during emergencies and supply disruptions.

DAPPMAN also proposed a joint market-monitoring framework involving NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) to track supply concentration, product availability, allocation transparency, fair treatment of operators and early warning signs of market stress.

The association urged the Federal Government to invest more in critical infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots, to reduce the sector’s dependence on long-distance trucking from a few coastal supply hubs.

It also called for a permanent government-industry consultative platform involving regulators, marketers, refiners, NNPC Limited, transport agencies and security institutions to regularly review supply conditions, infrastructure gaps and emerging risks.

IPMAN lists barriers to growth
The National President of IPMAN, Abubakar Maigandi, described the downstream petroleum industry as strategic to Nigeria’s economy, noting its importance to households, industries, agriculture, transportation, healthcare and national security.

He said the implementation of the Petroleum Industry Act, deregulation of fuel prices, rehabilitation of government-owned refineries and emergence of large-scale private refineries had created an opportunity for Nigeria to move from being a major importer of refined products to becoming a leading refining and distribution hub in Africa.

However, Maigandi identified 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 as major challenges confronting the sector.

He urged the committee to support reforms that would improve logistics, deepen competition, reduce distribution costs, attract investment and guarantee sustainable availability and affordability of petroleum products nationwide.

MEMAN opposes blanket import ban
Speaking for MEMAN, its Executive Secretary, Clement Isong, acknowledged that Nigeria now has the capacity to refine petroleum products locally, meet domestic demand and export refined products.

However, he cautioned against blanket restrictions on petroleum product imports, arguing that the government must retain the flexibility to authorise imports when necessary to protect national energy security.

According to Isong, strategic imports remain important during supply shortages and unexpected market disruptions, helping to prevent sharp price increases and supply crises.

He recommended the establishment of a strategic petroleum reserve capable of sustaining at least 60 days of national consumption to shield the country from global supply shocks and price volatility.

Isong cited developments in the Liquefied Petroleum Gas market, where increased imports helped bridge supply shortages and moderate prices, as an example of how timely regulatory intervention could stabilise the market.

While reaffirming MEMAN’s support for domestic refining, he maintained that decisions on petroleum product imports should remain the responsibility of the Federal Government and NMDPRA to ensure adequate supply, healthy competition and consumer protection.

The engagement exposed differing positions among downstream operators on the balance between petroleum imports and domestic refining.

However, stakeholders agreed on the need for policy consistency, improved infrastructure, stronger regulatory coordination and sustained government-industry dialogue to build a competitive and resilient downstream petroleum sector capable of guaranteeing Nigeria’s long-term energy security.