The House of Representatives Committee on Petroleum Resources (Downstream) has initiated consultations with major industry operators to de-escalate conflicts between petroleum importers and domestic refiners, aiming to strengthen Nigeria's downstream sector and guarantee a steady fuel supply. Chaired by Ikenga Ugochinyere (APP, Imo), the committee held an interactive session on Tuesday at the National Assembly with representatives from 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).
Dialogue Over Confrontation
Ugochinyere emphasized that the engagement was designed to align legislation and regulatory interventions with the realities faced by businesses and consumers. '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. He assured operators that the House would not endorse policies affecting the downstream sector without prior consultation with the businesses and institutions responsible for the petroleum distribution chain.
The chairman noted that Nigeria is at a critical juncture in its energy transition, with expanding domestic refining capacity, evolving import patterns, and renewed efforts to improve pipeline security and distribution infrastructure. '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 a reliable supply. When it is weak, the entire nation feels the consequences,' he added. The committee plans to review recommendations from the associations before proposing legislative measures to attract investment, boost domestic refining, promote competition, and ensure a reliable supply of affordable products.
DAPPMAN Seeks Clear Stockholding Rules
DAPPMAN's Executive Secretary, Olufemi Adewole, called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to establish explicit guidelines for operating stock under Section 182 of the Petroleum Industry Act (PIA). He argued that guidelines should specify requirements for measuring, reporting, and assessing the quality of petroleum stocks, and for ensuring their quality. Adewole stressed that strategic stockholding should not be evaluated solely on product quantity; operators' ability to rapidly finance, transport, and release products during emergencies or supply disruptions must also be considered.
DAPPMAN also proposed a joint market-monitoring mechanism involving the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) to monitor supply concentration, product availability, allocation practices, and treatment of operators—indicators that could signal emerging market stress. The association urged increased federal investment in roads, railways, inland waterways, pipelines, and petroleum depots to reduce long-distance road transportation from coastal supply points. Additionally, DAPPMAN called for a permanent consultation platform with regulators, marketers, refiners, NNPC Limited, transport agencies, and security institutions to regularly assess supply conditions, infrastructure deficiencies, and emerging threats.
IPMAN Highlights Cost and Infrastructure Hurdles
IPMAN President Abubakar Shettima described the downstream petroleum industry as a strategic component of the Nigerian economy, vital for households, manufacturing, agriculture, transportation, healthcare, and national security. He noted that the PIA's implementation, price deregulation, efforts to revive government-owned refineries, and the emergence of large private refineries create an opportunity for Nigeria to reduce imported refined product dependence and become a major refining and distribution hub in Africa.
However, Shettima identified persistent constraints: high financing costs, multiple taxes, foreign exchange volatility, inadequate storage and transportation facilities, pipeline vandalism, limited access for independent marketers to refinery products, delays in bridging and NTA claims, and insufficient government-industry consultation. He urged the committee to support measures improving petroleum logistics, increasing competition, lowering distribution costs, and encouraging investment, while ensuring nationwide availability and affordability of products.
MEMAN Cautions Against Blanket Import Bans
MEMAN Executive Secretary Clement Isong acknowledged Nigeria's growing domestic refining capacity, stating the country could potentially refine enough to meet local demand and export. However, he cautioned against imposing blanket restrictions on petroleum product imports. 'The government should retain the ability to authorise imports when domestic supply falls short of demand or when unexpected disruptions threaten the market,' Isong said. He argued that imports can serve as a temporary mechanism to prevent shortages, protect consumers from sudden price increases, and maintain stability during supply disruptions.
MEMAN proposed creating a strategic petroleum reserve capable of meeting at least 60 days of national consumption, citing developments in the Liquefied Petroleum Gas (LPG) market where increased imports helped address shortages and moderate prices. Isong stressed that decisions on petroleum product imports should remain with the Federal Government and the NMDPRA, allowing authorities to respond to supply conditions, maintain competition, and protect consumers while supporting domestic refining expansion.
Call for Policy Stability
The discussions revealed differing views among downstream operators on the optimal balance between domestic refining and imports. Nevertheless, stakeholders broadly agreed on the need for predictable policies, better infrastructure, stronger regulatory coordination, and regular government-industry engagement. The committee's consultation provides a platform to examine how Nigeria can expand domestic refining capacity while retaining flexibility to prevent supply shortages. Ultimately, stakeholders aim for a competitive and resilient petroleum market that delivers reliable, affordable energy, supports long-term investment, and ensures national energy security.
