The House of Representatives Committee on Petroleum Resources (Downstream) has commenced moves to reposition Nigeria’s downstream petroleum sector through comprehensive stakeholder-driven reforms aimed at improving energy security, strengthening domestic refining capacity, and creating a more stable operating environment for industry players and consumers.
The Committee made this known during a strategic engagement with key stakeholders across the petroleum value chain, including regulators, refiners, independent petroleum marketers, major energy marketers, depot operators, transporters, and other critical players in the industry.
Chairman of the Committee, Hon. Ikenga Ugochinyere, said the engagement was convened to encourage dialogue and collaboration among stakeholders rather than confrontation, stressing that sustainable reforms in the downstream sector can only be achieved through collective efforts by lawmakers, government agencies, operators, and other industry participants.
He noted that the Committee is determined to pursue legislative interventions that will address existing challenges, promote domestic refining, enhance fair competition, improve energy security, remove unnecessary regulatory bottlenecks, and establish a predictable business environment capable of attracting investment.
According to him, the downstream petroleum sector remains a critical component of Nigeria’s economy, with its performance directly affecting transportation, agriculture, manufacturing, healthcare, telecommunications, power generation, and national development.
He stressed that as the country continues to implement reforms under the Petroleum Industry Act (PIA), sustained engagement between government and industry stakeholders remains essential to ensure policies achieve their intended objectives.
During the engagement, stakeholders identified several challenges affecting the downstream petroleum sector, including high financing costs, multiple taxation, inadequate storage infrastructure, logistics constraints, pipeline vandalism, foreign exchange volatility, and limited access to locally refined petroleum products.
The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Megandi Shettima, urged the Committee to recognize independent petroleum marketers as strategic partners in implementing reforms under the Petroleum Industry Act.
He noted that independent marketers play a significant role in petroleum products distribution nationwide through their extensive retail network and contribution to ensuring products reach consumers across the country.
Shettima called for improved access to locally refined petroleum products, affordable financing mechanisms, reduction of regulatory costs, modernization of petroleum transportation and storage infrastructure, establishment of strategic petroleum reserves, and stronger institutionalized consultation between government and industry operators.
He stressed that regular engagement with stakeholders would enable government to develop policies that reflect the realities of businesses operating within the downstream value chain.
Also presenting industry recommendations, the Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), Mr. Clement Isong, outlined measures aimed at improving petroleum distribution, reducing logistics challenges, and strengthening national energy security.
MEMAN recommended that government should prioritize rail freight for petroleum transportation, noting that greater use of rail infrastructure would reduce pressure on highways, lower logistics costs, and improve the efficiency of product movement across the country.
The association also called for the completion of dredging activities on critical waterways serving petroleum depots, explaining that functional waterways would provide additional transportation options and improve supply chain reliability.
It further advocated a review of the Cabotage policy to encourage greater indigenous participation in coastal petroleum transportation and promote investment in marine logistics.
A major recommendation from MEMAN was the urgent rehabilitation of Nigeria’s national pipeline network, which the association described as the most efficient and cost-effective means of transporting petroleum products.
The association urged government to restore pipelines as the primary channel for petroleum distribution and reposition existing NNPC depots as strategic petroleum reserves capable of supporting national supply security during periods of disruption.
MEMAN also called for the publication of transparent pipeline operational guidelines and improved coordination among government agencies, refiners, marketers, depot operators, and transporters to enhance efficiency across the petroleum supply chain.
The Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Mr. Olufemi Adewale, also contributed to the stakeholders’ submissions, highlighting the need for improved depot operations, stronger infrastructure support, and policies that will enhance efficiency within the petroleum products storage and distribution network.
Responding to the submissions, Hon. Ugochinyere reaffirmed that Nigeria’s pipeline infrastructure remains a strategic national asset requiring urgent rehabilitation and optimal utilization.
He explained that while strategic trade corridors remain important in sustaining petroleum distribution nationwide, restoring the country’s pipeline network remains a national priority.
The Committee Chairman reiterated the legislature’s support for domestic refining, noting that increased local production would reduce dependence on imported petroleum products, strengthen economic resilience, and create more stability in the downstream market.
However, he maintained that the Federal Government must retain the authority to regulate petroleum imports whenever necessary to protect national energy security, stabilize supply, and safeguard consumers.
He cited the recent increase in Liquefied Petroleum Gas (LPG) imports as an example of how strategic importation can complement domestic production when required.
According to him, increased LPG supply improved availability and contributed to a reduction in cooking gas prices nationwide, demonstrating that targeted interventions can support market stability.
Hon. Ugochinyere assured stakeholders that all recommendations presented during the engagement would receive careful consideration as the Committee reviews existing laws and develops legislative proposals to strengthen the downstream petroleum industry.
He expressed appreciation to all participants for their constructive contributions and commitment towards finding lasting solutions to the challenges affecting the sector.
The lawmaker reaffirmed the Committee’s determination to work with stakeholders to build a downstream petroleum industry that is transparent, efficient, competitive, and sustainable.
He emphasized that the ultimate goal of the reform process is to ensure reliable energy supply, encourage investment, support economic growth, and deliver better outcomes for Nigerians.
