The House of Representatives has begun fresh consultations with key players in Nigeria’s downstream petroleum sector as part of efforts to develop a clear roadmap that will guarantee stable fuel supply, strengthen energy security and build a more competitive petroleum market.
The move comes as Nigeria’s oil and gas industry undergoes major changes following the deregulation of the petrol market, the implementation of the Petroleum Industry Act (PIA), the rehabilitation of government-owned refineries and the start of large-scale production by private refineries.
These developments have renewed debate over whether Nigeria should continue importing refined petroleum products as domestic refining capacity continues to expand.
At an interactive session held at the National Assembly on Tuesday, the House Committee on Petroleum Resources (Downstream) met with 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).
The meeting was aimed at reconciling different views among stakeholders and gathering recommendations that will guide future legislative reforms in the downstream sector.
Speaking during the session, Chairman of the House Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, said the lawmakers were not seeking to impose policies on operators but were committed to listening to all stakeholders before making decisions.
He said the committee’s goal was to build consensus on reforms that would ensure affordable fuel, stable supply and long-term energy security for Nigerians.
“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 operators in the downstream sector play a critical role in ensuring that government policies translate into reliable fuel supply across the country.
According to him, marketers, depot owners and other operators serve as the bridge between government policy and consumers.
He said when that bridge is strong, Nigerians enjoy stable prices and uninterrupted fuel supply, but when it is weak, shortages and price increases affect households and businesses nationwide.
The lawmaker noted that Nigeria is at an important stage in the development of its energy sector as local refining capacity continues to increase while efforts are also being made to improve pipeline security and strengthen product distribution.
He assured stakeholders that the committee would continue to adopt an inclusive approach to lawmaking and oversight, adding that future legislative interventions would be based on recommendations from industry players.
According to him, the committee intends to support policies that encourage investment, deepen competition, strengthen local refining and guarantee affordable petroleum products.
Nigeria’s downstream petroleum sector has experienced significant reforms over the past few years. The removal of petrol subsidy and deregulation of the market ended government control of fuel prices, allowing market forces to determine pump prices.
At the same time, the Federal Government has continued rehabilitation work on state-owned refineries, while private investments, particularly the commencement of operations by large domestic refineries, have raised expectations that Nigeria could gradually reduce its dependence on imported petroleum products.
However, despite the increase in domestic refining capacity, industry experts say supply stability remains a major concern due to infrastructure gaps, financing challenges and distribution difficulties.
Presenting DAPPMAN’s position, the association’s Executive Secretary, Olufemi Adewole, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop practical operating-stock guidelines in line with Section 182 of the Petroleum Industry Act.
He said the proposed guidelines should clearly define standards for stock measurement, reporting, product quality assurance and accessibility.
Adewole argued that strategic petroleum reserves should not be judged only by the volume of fuel stored but also by how quickly the products can be financed, transported and delivered during emergencies or supply disruptions.
DAPPMAN also proposed the creation of a joint market-monitoring framework involving the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC).
According to the association, such a framework would monitor fuel availability, market concentration, allocation transparency, competition and early warning signs of supply shortages.
The association further called on the Federal Government to speed up investment in transport and logistics infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots.
It said improved infrastructure would reduce dependence on long-distance trucking from a few coastal supply locations and lower distribution costs across the country.
DAPPMAN also recommended the establishment of a permanent government-industry consultative platform involving regulators, refiners, marketers, the Nigerian National Petroleum Company (NNPC) Limited, transport agencies and security institutions.
The platform, it said, would regularly review supply conditions, identify infrastructure gaps and address operational risks before they develop into major disruptions.
For its part, IPMAN described the downstream petroleum sector as one of Nigeria’s most important economic sectors because of its direct impact on transportation, manufacturing, agriculture, healthcare, electricity generation and national security.
IPMAN National Chairman, Abubakar Shettima, said recent reforms have positioned Nigeria to move from being one of the world’s major importers of refined petroleum products to becoming a leading refining and distribution hub in Africa.
Despite this progress, he said the sector continues to face serious structural challenges.
According to him, operators still struggle with high financing costs, multiple taxes, foreign exchange volatility, poor storage facilities, weak transportation infrastructure, pipeline vandalism and limited access by independent marketers to products from local refineries.
He urged the House committee to support reforms that would strengthen logistics, promote healthy market competition, reduce distribution costs, attract fresh investment and ensure that petroleum products remain available and affordable throughout Nigeria.
MEMAN also supported continued expansion of domestic refining but cautioned against introducing blanket restrictions on fuel imports.
Its Executive Secretary, Clement Isong, said Nigeria now has enough refining capacity to satisfy local demand and even compete in export markets.
However, he warned that strategic imports should remain an option whenever domestic production falls below national demand.
According to him, allowing carefully managed imports would help prevent supply shortages and sharp increases in fuel prices during periods of disruption.
Isong proposed the creation of a national strategic petroleum reserve capable of supplying the country for at least 60 days during emergencies.
He pointed to developments in the Liquefied Petroleum Gas (LPG) market, where imports helped bridge supply gaps and stabilise prices, as evidence that imports can complement local production without discouraging domestic investment.
He maintained that decisions on petroleum imports should remain with the Federal Government and the NMDPRA, saying regulatory flexibility is necessary to guarantee adequate supply, promote healthy competition and protect consumers.
Although stakeholders expressed different opinions on the future role of imported petroleum products as local refining expands, they agreed on several key issues.
These include the need for consistent government policies, stronger investment in infrastructure, closer coordination among regulators and sustained dialogue between government and private sector operators.
At the end of the meeting, the House committee assured stakeholders that all recommendations submitted during the consultations would be carefully studied.