The House of Representatives Committee on Petroleum Resources (Downstream) has sought the support of key operators in the downstream petroleum industry to shape reforms aimed at guaranteeing stable fuel supply, promoting domestic refining and strengthening Nigeria’s energy security.

 

At a stakeholders’ engagement held on Tuesday at the National Assembly, the committee 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) as part of efforts to align legislative interventions with industry realities.

 

Chairman of the committee, Hon. Ikenga Imo Ugochinyere, said the meeting underscored the House’s commitment to engaging operators before introducing policies affecting the downstream petroleum sector.

 

“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 the committee had resolved that no policy affecting the downstream sector would be developed without first consulting those directly involved in petroleum distribution.

 

He noted that Nigeria was at a defining moment in its energy transition, with expanding domestic refining capacity, evolving import dynamics and renewed efforts to improve pipeline security.

“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 added.

 

The lawmaker assured stakeholders that their recommendations would be carefully reviewed as the committee works towards policies that encourage investment, strengthen the downstream petroleum industry and guarantee affordable, uninterrupted fuel supply.

 

He said the committee would continue to prioritise dialogue over confrontation in carrying out its oversight responsibilities and legislative reforms.

Presenting DAPPMAN’s position, its Executive Secretary, Olufemi Adewole, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to issue practical operating-stock guidelines under Section 182 of the Petroleum Industry Act (PIA), including clear standards for stock measurement, reporting, quality assurance and accessibility.

 

According to him, strategic stockholding should not be assessed merely by product volume but by the capacity to finance, transport and release products promptly during emergencies or supply disruptions.

 

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

 

The association further urged the Federal Government to prioritise investments in roads, rail, waterways, pipelines and depot infrastructure to reduce the industry’s heavy dependence on long-distance trucking from a limited number of coastal supply points.

 

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

 

In its submission, IPMAN described the downstream petroleum industry as one of Nigeria’s most strategic economic sectors, serving as the backbone of energy supply for households, industries, agriculture, healthcare, transportation and national security.

 

The association said the implementation of the Petroleum Industry Act, fuel price deregulation, rehabilitation of government-owned refineries and the emergence of large-scale private refineries had created an opportunity for Nigeria to evolve from a major importer of refined petroleum products into Africa’s leading refining and distribution hub.

 

However, it identified 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 as major constraints confronting the sector.

 

IPMAN urged the House committee to support policies that would improve logistics, deepen market competition, reduce distribution costs, encourage investment and ensure the sustainable availability and affordability of petroleum products nationwide.

 

Speaking for MEMAN, Executive Secretary Clement Isong said Nigeria now has the capacity to refine petroleum products locally, satisfy domestic demand and export refined products to international markets.

 

He, however, cautioned against restricting fuel imports, arguing that the Federal Government should retain the flexibility to approve imports whenever necessary to protect national energy security.

 

According to him, strategic imports remain essential during supply shortages or market disruptions to shield consumers from sharp price increases.

 

Isong recommended that Nigeria maintain a strategic petroleum reserve equivalent to at least 60 days of national consumption to cushion the country against global supply shocks and price volatility.

 

He cited the recent Liquefied Petroleum Gas (LPG) market, where increased imports helped bridge supply gaps and moderate prices, as evidence that timely regulatory intervention could stabilise the market.

 

While reaffirming support for local refining, Isong maintained that decisions on fuel imports should remain the exclusive responsibility of the Federal Government and the NMDPRA to ensure adequate supply, preserve competition and protect consumers.