…Lawmakers move to strengthen laws protecting local refineries

The House of Representatives has launched a preliminary investigation into a petition accusing the Executive Vice President, Downstream, of NNPC Limited, Dr Mumuni Dagazau, of money laundering and abuse of office.

The House Committee on Petroleum Resources (Downstream) has given a sub-committee seven days to investigate the allegations and report back, as lawmakers move to tighten legislation on crude oil supply and strengthen protections for domestic refineries.

The committee chairman, Ikenga Imo Ugochinyere, announced the decisions on Monday during a technical briefing marking the end of Downstream Week 2026 in Abuja.

The panel investigating the petition is chaired by Aliyu Ibrahim Al-Mustapha, with Cyril Hart serving as deputy chairman.

Ugochinyere stressed that the committee had not reached any conclusion on the allegations against Dagazau, adding that all parties would have an opportunity to present their positions.

“These are allegations, and the Committee has reached no conclusion on them. All parties will be given a full and fair opportunity to be heard,” he said.

He said the committee would treat complaints affecting the integrity of the downstream petroleum sector seriously and communicate the outcome of its investigation to Nigerians.

The petition against Dagazau is one of two complaints the committee referred to sub-committees for preliminary investigations.

The other seeks the investigation, suspension and cancellation of gas distribution licences issued to NIPCO Plc for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

The committee appointed a separate panel, chaired by Mathew Nwogu and assisted by Shehu Dalhatu, to examine the NIPCO petition and report its findings to the main committee.

Beyond the petitions, the lawmakers said they were pursuing legislative measures to address concerns over crude oil supply to domestic refineries, warning that inadequate feedstock could undermine investments in local refining.

Ugochinyere said the committee was working to advance amendments to the Petroleum Industry Act to strengthen provisions on crude supply obligations, licensing, protection of domestic refiners and the regulation of petroleum imports.

“A refinery without reliable crude is an investment at risk,” he said.

The committee maintained that domestic refineries needed a dependable supply of crude oil to sustain production and reduce the country’s reliance on imported petroleum products.

It also called for a regulated import market that would allow imports to supplement verified supply shortfalls without undermining local refining capacity.

Ugochinyere said the committee’s position was to ensure that Nigeria maintained adequate supplies while creating a stable environment for domestic refiners to operate.

“Our goal is balance; security of supply today, and a strong domestic refining industry for tomorrow,” he said.

The lawmakers also urged the Federal Government to increase funding for pipeline surveillance, linking improved security around oil infrastructure to the recent rise in crude oil production.

According to the committee chairman, fewer pipeline breaches would reduce crude losses, increase the volume available to domestic refineries and improve government revenue.

He called for the timely release of funds and logistics to surveillance operators, warning that delays could weaken efforts to protect pipelines.

The committee expressed confidence that Nigeria could achieve its target of producing three million barrels of crude oil daily if the government sustained support for pipeline security.

At the briefing, the committee also passed votes of confidence in President Bola Tinubu, the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Aliko Dangote.

It attributed recent improvements in domestic petrol supply to increased contributions from local refineries, reporting a rise of more than 75 per cent in their share of national supply.

The committee also cited the commissioning of the Port Harcourt petroleum product laboratory and the development of a framework for a national strategic petroleum reserve.

However, Ugochinyere said the gains would depend on consistent crude supply, effective pipeline security and legislation that supports domestic refining while maintaining fair competition.

The committee said it would continue its inquiries into the petitions and other concerns in the downstream sector as it pursued reforms aimed at strengthening Nigeria’s energy security.