Reps seek consensus between importers, refiners on downstream reforms
By Gift ChapiOdekina, Abuja
The House of Representatives Committee on Petroleum Resources (Downstream) has begun efforts to resolve differences between petroleum importers and domestic refiners as part of measures to strengthen Nigeria’s downstream oil and gas sector.
The committee on Tuesday held an interactive session with key industry stakeholders, 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), to deliberate on reforms aimed at ensuring stable fuel supply and attracting investment.
Chairman of the committee, Rep. Ikenga Imo Ugochinyere, said the House was committed to promoting inclusive legislation through dialogue and consultation 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 stressed that no major policy affecting the downstream sector would be developed without input from operators whose investments sustain the nation’s fuel supply chain.
He said Nigeria was at a critical stage in its energy sector transformation, with increasing domestic refining capacity, changing import patterns and renewed efforts to improve pipeline security and distribution infrastructure.
The lawmaker noted that marketers and depot operators remain critical links between government policies and consumers, warning that disruptions in the supply chain could have serious economic consequences.
He assured stakeholders that legislative interventions would focus on encouraging investment, supporting domestic refining, promoting competition and ensuring uninterrupted access to affordable petroleum products.
Presenting DAPPMAN’s position, its Executive Secretary, Olufemi Adewole, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to establish clear operating-stock guidelines as provided under Section 182 of the Petroleum Industry Act (PIA).
He said the guidelines should provide transparent standards for stock measurement, reporting, quality assurance and accessibility.
DAPPMAN also called for the establishment of a joint market-monitoring framework involving NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) to track product availability, market concentration, allocation transparency and possible supply disruptions.
The association urged the Federal Government to invest in critical infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots, to reduce dependence on long-distance trucking from coastal terminals.
It further proposed a permanent government-industry consultative platform involving regulators, refiners, marketers, NNPCL, transport agencies and security institutions to address emerging challenges in the sector.
IPMAN described the downstream petroleum industry as a strategic sector that supports transportation, agriculture, healthcare, manufacturing and national security.
The association said the implementation of the Petroleum Industry Act, deregulation of fuel pricing, rehabilitation of government-owned refineries and the emergence of private refineries had positioned Nigeria to become a major refining and distribution hub in Africa.
However, it identified challenges including high financing costs, multiple taxation, foreign exchange volatility, inadequate storage and transportation infrastructure, pipeline vandalism, delayed bridging claims and limited access to refinery products by independent marketers.
IPMAN urged lawmakers to support reforms that would improve logistics, reduce distribution costs, attract investment and guarantee affordable petroleum products nationwide.
Speaking for MEMAN, its Executive Secretary, Clement Isong, said Nigeria now has sufficient refining capacity to meet domestic demand and export refined products.
He, however, cautioned against blanket restrictions on fuel imports, saying government should retain the option of approving imports whenever necessary to safeguard energy security.
Isong argued that strategic imports remain important during supply shortages or market disruptions to prevent scarcity and price spikes.
He recommended the creation of a strategic petroleum reserve capable of sustaining at least 60 days of national fuel consumption to protect the country against global supply shocks.
While supporting government’s efforts to expand domestic refining capacity, MEMAN maintained that decisions on petroleum imports should remain with the Federal Government and NMDPRA to ensure adequate supply, competition and consumer protection.
Stakeholders at the meeting agreed on the need for policy consistency, improved infrastructure, stronger regulatory coordination and continuous engagement between government and industry players to build a resilient and competitive downstream petroleum sector.