The House of Representatives Committee on Petroleum Resources (Downstream) has commenced efforts to address potential conflicts of interest between petroleum importers and domestic refiners by bringing together major players in Nigeria’s downstream oil and gas industry to develop a coordinated approach toward energy security, reliable fuel supply and sustainable sector reforms.

The engagement, held on Tuesday at the House wing of the National Assembly, brought together executives of 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). Discussions focused on striking a balance between promoting local refining and maintaining uninterrupted petroleum product availability across the country.

Chairman of the House Committee, Hon. Ikenga Imo Ugochinyere, described the meeting as part of the House’s commitment to inclusive lawmaking, emphasizing that reforms in the downstream petroleum industry would be shaped through 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 assured industry operators that no policy affecting the downstream petroleum sector would be introduced without extensive engagement with stakeholders whose investments support Nigeria’s petroleum distribution network.

He noted that Nigeria is entering a critical phase in its energy transition, driven by expanding domestic refining capacity, changing import patterns and renewed efforts 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,” he stated.

According to the committee chairman, submissions made by stakeholders would guide legislative measures aimed at encouraging investment, strengthening domestic refining, promoting competition and ensuring affordable and uninterrupted petroleum product supply nationwide.

He further assured operators that the committee would continue to prioritize dialogue and collaboration in fulfilling its oversight and legislative responsibilities.

Presenting DAPPMAN’s position, Executive Secretary Olufemi Adewole urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to establish practical operating-stock guidelines under Section 182 of the Petroleum Industry Act (PIA).

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

DAPPMAN also proposed a joint market-monitoring framework involving the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC). The framework, according to the association, would monitor supply concentration, product availability, transparent allocation, fair treatment of operators and early warning indicators of market stress.

The association further urged the Federal Government to prioritize 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 limited number of coastal supply hubs.

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

In its presentation, IPMAN described the downstream petroleum industry as one of Nigeria’s most strategic sectors, highlighting its importance to households, industries, agriculture, transportation, healthcare and national security.

The association noted that the implementation of the Petroleum Industry Act, fuel price deregulation, rehabilitation of government-owned refineries and the emergence of large-scale private refineries have positioned Nigeria to transition from a major importer of refined petroleum products to Africa’s leading refining and distribution hub.

However, IPMAN identified several constraints affecting industry 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, and inadequate stakeholder engagement.

The association called on the House committee to support reforms that would improve logistics, expand competition, reduce distribution costs, attract investment and ensure the sustainable availability and affordability of petroleum products across the country.

Speaking on behalf of MEMAN, Executive Secretary Clement Isong acknowledged that Nigeria now has 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 imports, arguing that the Federal Government should retain the flexibility to approve imports whenever necessary to safeguard national energy security.

According to Isong, strategic imports remain essential during supply shortages or unexpected market disruptions because they help shield consumers from severe price increases and supply crises.

He recommended that Nigeria establish a strategic petroleum reserve capable of sustaining at least 60 days of national consumption to protect the country against global supply shocks and price volatility.

Isong cited the recent Liquefied Petroleum Gas (LPG) market as evidence that increased imports successfully addressed supply shortages and moderated prices, demonstrating how timely regulatory intervention can stabilize the market.

While reaffirming MEMAN’s support for the Federal Government’s efforts to strengthen domestic refining, he maintained that decisions regarding petroleum product imports should remain the exclusive responsibility of the Federal Government and the NMDPRA to guarantee adequate supply, preserve healthy market competition and protect consumers.

The engagement underscored differing viewpoints among downstream industry operators regarding the future role of petroleum imports and domestic refining. Despite those differences, stakeholders agreed on the need for consistent policies, improved infrastructure, stronger regulatory collaboration and sustained engagement with government to ensure Nigeria’s downstream petroleum sector remains competitive, resilient and capable of delivering long-term national energy security.

Source: Champion News