Senate moves to address lingering crisis in downstream oil sector

• Plans investigative hearing on refineries, labour disputes, regulatory lapses
• Reps propose rent increase of not more than 20%

The Senate has expressed concern over the persistent challenges in the downstream petroleum sector and has resolved to undertake a comprehensive investigation to restore efficiency, transparency and industrial harmony.

This was as the House of Representatives decried the arbitrary rent increases in Nigeria, calling for no more than 20 per cent of the existing rent, irrespective of infrastructure improvements or other factors.

In a statement yesterday, Chairman of the Senate Committee on Petroleum (Downstream), Kawu Sumaila (Kano South), disclosed that the proposed hearing followed resolutions reached at the committee’s recent retreat and forms part of its Strategic Action Work Plan (Q4 2025 – Q4 2026). He said the hearing would examine operational inefficiencies, policy inconsistencies, and industrial disputes that are undermining the sector’s performance.

He listed key focus areas of the hearing to include: the state of private and government-owned refineries; disputes involving the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the National Union of Petroleum and Natural Gas Workers (NUPENG), and other labour groups; allegations of crude supply shortfalls, regulatory overlaps, and transparency gaps in the sector.

Sumaila added that the findings would help the Senate redefine the roles of key regulatory bodies under the Petroleum Industry Act (PIA), address systemic bottlenecks and strengthen oversight mechanisms.

“Our goal is to safeguard workers’ rights, promote industrial harmony, and enhance Nigeria’s energy security, transparency, and competitiveness,” he said.

THE House deliberation followed a motion by the member representing Calabar Municipality/Odukpani Federal Constituency, Bassey Akiba, on the Need to Regulate Arbitrary Rent Increase and Protect Tenants from Exploitation.

The House is urging the Federal Government to prioritise investing in affordable housing initiatives, ensure access to low-cost housing for citizens, and reduce pressure on the rental market.

Meanwhile, the House has passed a resolution asking the Inspector-General of Police (IGP) and the Controller-General of the Nigeria Security and Civil Defence Corps (NSCDC) to direct policemen operating at checkpoints in plain clothes to be fully equipped with proper identification.

The lawmakers expressed concern that the lack of identification for security officials was not in line with international best practices and did not facilitate officer accountability.

Worried by the arbitrary rent increases in Lagos State, the Lagos State House of Assembly in April called on the Attorney-General and Commissioner for Justice to enforce the full implementation of the Tenancy Law of Lagos State 2015.

It also urged the Commissioner for Information and Strategy, Gbenga Omotoso, to intensify public awareness campaigns to educate residents on the provisions of the Tenancy Law.

According to the Lagos lawmakers, the reason was part of efforts to address the persistent issue of arbitrary rent increases by landlords across the state.

The resolutions followed a motion moved by Sa’ad Olumoh, who stressed the need to curb excessive rent increments that are worsening the housing crisis in the state.

He cited Section 37 of the Tenancy Law, which prohibits unreasonable rent hikes and provides legal recourse for tenants subjected to such increments.

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