By Tracy Moses
The House of Representatives has intensified efforts to build industry-wide consensus on Nigeria’s fuel import policy and ongoing downstream petroleum reforms, convening key stakeholders to harmonise divergent positions on domestic refining, energy security and the long-term sustainability of petroleum product supply.
The initiative comes amid growing debate over the future of petroleum product imports as Nigeria’s domestic refining capacity expands. While some operators have called for greater protection for local refiners through reduced dependence on imports, others insist that strategic imports remain critical to maintaining market stability and guaranteeing uninterrupted fuel supply.
Against this backdrop, the House Committee on Petroleum Resources (Downstream) on Tuesday held an interactive session 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) to gather industry input for legislative reforms aimed at strengthening the downstream petroleum sector.
Addressing participants, Chairman of the committee, Hon. Ikenga Imo Ugochinyere, said the House was committed to an inclusive legislative process that gives all stakeholders an opportunity to shape reforms affecting the industry.
“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 broad consultations with industry operators were essential to ensuring that policy reforms achieve their objectives without creating unintended consequences for investors or consumers.
He assured stakeholders that no policy affecting the downstream petroleum industry would be formulated without adequate engagement with operators whose investments sustain Nigeria’s petroleum distribution network.
The lawmaker noted that Nigeria is at a critical stage in its energy transition, marked by increasing domestic refining capacity, evolving import dynamics and renewed efforts to strengthen pipeline security and improve distribution efficiency.
“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 said.
According to him, the committee would carefully consider stakeholders’ submissions in developing legislative measures to encourage investment, strengthen domestic refining, deepen market competition and guarantee the availability and affordability of petroleum products across the country.
He added that the committee would continue to prioritise dialogue and constructive engagement in the discharge of its oversight and legislative responsibilities.
DAPPMAN advocates stronger regulatory framework
Presenting DAPPMAN’s position, the association’s Executive Secretary, Olufemi Adewole, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop practical operating-stock guidelines pursuant to Section 182 of the Petroleum Industry Act (PIA).
He said the guidelines should establish clear standards for stock measurement, reporting, quality assurance and accessibility, noting that strategic stockholding should be assessed not only by product volume but also by the industry’s ability to finance, transport and deploy products quickly during emergencies or supply disruptions.
Adewole also proposed 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.
He further urged the Federal Government to accelerate investment in critical infrastructure—including roads, railways, inland waterways, pipelines and petroleum depots—to reduce the sector’s heavy reliance on long-distance trucking from a limited number of coastal supply hubs.
DAPPMAN also called for the establishment of a permanent government-industry consultative platform comprising regulators, marketers, refiners, NNPC Limited, transport agencies and security institutions to periodically review supply conditions, infrastructure gaps and emerging risks.
IPMAN identifies structural constraints
Presenting IPMAN’s position, the association’s National President, Abubakar Maigandi Shettima, described the downstream petroleum industry as one of Nigeria’s most strategic sectors, noting that it remains central to powering households, industries, agriculture, transportation, healthcare and national security.
He said the implementation of the Petroleum Industry Act, fuel price deregulation, the rehabilitation of government-owned refineries and the emergence of large-scale private refineries have positioned Nigeria to transition from a major importer of refined petroleum products to a leading refining and distribution hub in Africa.
However, Shettima 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 National Transportation Allowance (NTA) claims, as well as inadequate stakeholder engagement, as major obstacles to the sector’s growth.
He urged the House committee to support reforms that would improve logistics, deepen competition, reduce distribution costs, attract investment and ensure the sustainable availability and affordability of petroleum products nationwide.
MEMAN cautions against blanket import restrictions
Speaking on behalf of MEMAN, its Executive Secretary, Clement Isong, acknowledged that Nigeria now has the capacity to refine petroleum products locally, satisfy domestic demand and export refined products to international markets.
He, however, cautioned against imposing blanket restrictions on petroleum product imports, arguing that the Federal Government must retain the flexibility to approve imports whenever necessary to safeguard national energy security.
According to him, strategic imports remain indispensable during supply shortages or unexpected market disruptions, helping to protect consumers from supply crises and sharp increases in pump prices.
Isong recommended the establishment of 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.
He cited the 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 markets without undermining local production.
While reaffirming MEMAN’s support for the Federal Government’s drive to strengthen domestic refining, Isong maintained that decisions on petroleum product imports should remain the responsibility of the Federal Government and the NMDPRA to ensure adequate supply, preserve healthy competition and protect consumers.
Despite expressing differing views on the future of petroleum imports in an era of expanding domestic refining, stakeholders were unanimous in calling for policy consistency, improved infrastructure, stronger regulatory coordination and sustained engagement between government and industry players.
The consultations form part of the House of Representatives’ ongoing oversight of the implementation of the Petroleum Industry Act and broader reforms in the downstream petroleum sector. As Nigeria expands its refining capacity and advances a more liberalised petroleum market, lawmakers are seeking to strike a balance between supporting domestic production, preserving competition and ensuring that Nigerians continue to enjoy affordable and uninterrupted fuel supply.