Reps consider Dangote refinery, others for right of first refusal on crude allocations

The House of Representatives has indicated plans to introduce new legislative measures aimed at protecting and promoting Nigeria’s local refineries.

The lower chamber said the proposed legislation would also include granting Dangote Refinery and other local refineries the right of first refusal on crude oil allocations.

The lawmakers also said a Refinery Protection and Promotion Bill is underway to classify refineries as strategic national assets and ensure they receive priority protection and support.

Chairman, House Committee on Petroleum Resources (Downstream), Hon. Ikenga Imo Ugochinyere, disclosed this on Monday at the inaugural Annual Downstream Week Summit 2025 held at the National Assembly Complex, Abuja.

The summit has the theme “Celebrating Our Successes, Confronting Our Challenges and Finding Solutions for the Petroleum Downstream Sector”.

Ugochinyere said the proposed laws would prioritise domestic refining capacity, reduce dependence on fuel imports, and ensure the stability of local operators within the sector.

He said the committee would soon initiate the Refinery Protection and Promotion Bill, which will classify refineries as strategic national assets deserving of priority support and protection from disruptions.

The lawmaker commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for enforcing the Domestic Crude Oil Supply Obligation (DCSO), which ensures that local refineries receive crude oil before export allocations are made.

He described the policy as a decisive shift from rhetoric to practical support for local value addition, job creation, and energy independence.

The lawmaker cited recent milestones across the energy value chain, including the expansion of Indorama Petrochemicals’ urea and fertilizer production, the growth of Waltersmith Modular Refinery in Imo State from 5,000 to 50,000 barrels per day, and the full commencement of operations at the 650,000 barrels per day Dangote Refinery.

He said: “The House Committee on Downstream Petroleum Resources fully supports this policy, which aligns with our legislative vision to prioritize domestic refining capacity, enhance supply security, and strengthen the naira through reduced import dependence.

“This is how nations grow by empowering their local industries to produce, compete, and thrive which is in line with the Renewed Hope Agenda of this Administration. However, progress must be matched with persistence. We still face challenges, from feedstock shortages and pricing uncertainty to regulatory overlaps.

“To address these, the House Committee on petroleum resources (downstream) intends to pursue new legislative measures to: Grant local refineries first right of refusal on crude allocations. Streamline regulations to remove all unnecessary delays.

“Assist the House to Develop a Refinery Protection and Promotion Bill to classify refineries as strategic national assets, ensuring they receive priority protection and support and Introduce measures that guarantee unhindered access to crude feedstock and promote non-disruption of refinery operations across the country.

“These steps are vital to sustaining investor confidence, creating jobs, and strengthening our energy independence.”

Declaring the summit open, Speaker of the House of Representatives, Abbas Tajudeen, said the conference marked a defining moment in the evolution of Nigeria’s downstream petroleum sector.

Abbas commended Ugochinyere and members of the House Committee for convening the event in collaboration with the Federal Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), noting that such engagements would deepen reform and transparency.

He described the summit as a timely reminder of the need for collaboration and innovation to reposition the industry.

“The oil and gas industry, especially the downstream sector, is witnessing an unprecedented revival under the progressive leadership of President Bola Ahmed Tinubu, whose Renewed Hope Agenda is reforming and revitalising key sectors of the economy,” Abbas said.

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