By Our Correspondent<\/p>\n
The House of Representatives Committee on Petroleum Resources (Downstream) has initiated efforts to reduce clash of interest between petroleum importers and domestic refiners, as it engaged key stakeholders in the downstream oil and gas sector to chart a common path towards energy security, stable fuel supply and sustainable industry reforms.<\/p>\n
At a highly interactive session held on Tuesday at House wing of the National Assembly, the Committee met with executives of 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), with discussions centred on balancing support for local refining while ensuring uninterrupted fuel availability across the country.<\/p>\n
Chairman of the House Committee Hon. Ikenga Imo Ugochinyere, said the engagement reflected the House\u2019s commitment to inclusive lawmaking, stressing that reforms in the downstream petroleum sector would be driven by dialogue rather than confrontation.<\/p>\n
\u201cWe 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,\u201d he said.<\/p>\n
Ugochinyere assured these stakeholders that no policy affecting the downstream sector would be formulated without broad consultations with operators whose investments sustain Nigeria\u2019s petroleum distribution network.<\/p>\n
According to him, Nigeria is at a defining stage in its energy transition, with increasing domestic refining capacity, evolving import dynamics and renewed efforts to improve pipeline security and distribution efficiency.<\/p>\n
\u201cThe 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,\u201d he stated.<\/p>\n
He said the Committee would carefully consider the submissions of all stakeholders in developing legislative interventions that would encourage investment, strengthen domestic refining, deepen competition and guarantee affordable and uninterrupted petroleum product supply.<\/p>\n
The lawmaker further assured industry operators that the committee would continue to prioritise constructive engagement over confrontation in carrying out its oversight and legislative responsibilities.<\/p>\n
Presenting DAPPMAN\u2019s position, the association\u2019s Executive Secretary, Olufemi Adewole, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop practical operating-stock guidelines under Section 182 of the Petroleum Industry Act (PIA).<\/p>\n
He said the guidelines should clearly define standards for stock measurement, reporting, quality assurance and accessibility, adding that strategic stockholding should not be measured merely by product volume but also by the industry\u2019s capacity to finance, transport and release products quickly during emergencies or supply disruptions.<\/p>\n
DAPPMAN also proposed the establishment of a joint market-monitoring framework involving the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) to monitor supply concentration, product availability, transparent allocation, fair treatment of operators and early warning indicators of market stress.<\/p>\n
The association further called on the Federal Government to prioritize investments in critical infrastructure, including roads, railways, inland waterways, pipelines and petroleum depots, to reduce the sector\u2019s heavy dependence on long-distance trucking from a few coastal supply hubs.<\/p>\n
It also advocated a permanent government-industry consultative platform bringing together regulators, marketers, refiners, NNPC Limited, transport agencies and security institutions to periodically review supply conditions, infrastructure gaps and emerging risks.<\/p>\n
In a presentation the National President Independent Petroleum Marketers Association of Nigeria IPMAN Alhaji Abubakar Shettima described the downstream petroleum industry as one of Nigeria\u2019s most strategic sectors, noting that it remains central to powering households, industries, agriculture, transportation, healthcare and national security.<\/p>\n
The association observed that the implementation of the Petroleum Industry Act, deregulation of fuel prices, rehabilitation of government-owned refineries and the emergence of large-scale private refineries have positioned Nigeria to evolve from a major importer of refined petroleum products into Africa\u2019s leading refining and distribution hub.<\/p>\n
Despite these opportunities, IPMAN identified several challenges slowing the sector\u2019s growth, including 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 insufficient stakeholder engagement.<\/p>\n
The association urged the House committee to support reforms that would improve logistics, deepen market competition, reduce distribution costs, encourage investment and guarantee the sustainable availability and affordability of petroleum products nationwide.<\/p>\n
Speaking on behalf of MEMAN, Executive Secretary Clement Isong acknowledged that Nigeria now possesses the capacity to refine petroleum products locally, meet domestic demand and export refined products to international markets.<\/p>\n
However, he cautioned against imposing blanket restrictions on fuel imports, arguing that government must retain the flexibility to approve imports whenever necessary to safeguard national energy security.<\/p>\n
According to him, strategic imports remain indispensable during supply shortages or unexpected market disruptions, helping to protect consumers from sharp price increases and supply crises.<\/p>\n
Isong recommended that Nigeria establish a strategic petroleum reserve capable of sustaining at least 60 days of national consumption to cushion the country against global supply shocks and price volatility.<\/p>\n
He cited the recent Liquefied Petroleum Gas (LPG) market as an example where increased imports successfully bridged supply shortages and moderated prices, demonstrating how timely regulatory intervention can stabilise the market.<\/p>\n
While reaffirming MEMAN\u2019s support for the Federal Government\u2019s drive to strengthen domestic refining, Isong maintained that decisions on petroleum product imports should remain the exclusive responsibility of the Federal Government and the NMDPRA to ensure adequate supply, preserve healthy competition and protect consumers.<\/p>\n
The engagement highlighted the differing perspectives among downstream operators on the future of petroleum imports and domestic refining. <\/p>\n
These stakeholders were united in calling for policy consistency, improved infrastructure, stronger regulatory collaboration and continuous dialogue with government to ensure Nigeria\u2019s downstream petroleum industry remains competitive, resilient and capable of guaranteeing long-term national energy security.<\/p>\n
End<\/p>\n","protected":false},"excerpt":{"rendered":"
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