The House of Representatives has begun efforts to tackle concerns in Nigeria’s downstream oil sector, including the continued use of U.S. dollar charges for petroleum products refined and sold within the country and complaints over the allocation of fuel import licences.
The issues were discussed on Tuesday during a meeting between the House Committee on Petroleum Resources (Downstream) and major industry groups, including the Independent Petroleum Marketers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, and the Major Energies Marketers Association of Nigeria.
The consultation is part of the committee’s review of the Petroleum Industry Act and wider reforms aimed at improving domestic refining, strengthening energy security and creating a more competitive downstream market.
Committee Chairman Ikenga Ugochinyere said lawmakers would invite the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Ports Authority, the Central Bank of Nigeria, refiners and other agencies to respond to the concerns raised by marketers.
“We’ll be meeting with the NMDPRA, NUPRC, the refiners—both modular refinery owners and the large refinery operators—as well as the NPA, the CBN and other relevant agencies on the issues that have been raised. These will form part of our downstream reforms, including proposed amendments to the Petroleum Industry Act and legislative motions to correct identified gaps,” Ugochinyere said.
He criticised the practice of charging port fees in U.S. dollars for petroleum products refined and transported within Nigeria, saying it increases the cost of fuel for consumers.
“We have taken special note of the issue of dollar-denominated charges by the Nigerian Ports Authority. It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit,” he said.
Ugochinyere also promised to investigate allegations that the same group of marketers repeatedly received import licences during the first three quarters of 2026.
“We have also taken note of what you said about the lopsidedness in the issuance of import licences, where allocations for the first, second and third quarters went to the same set of operators. We will raise these questions when the NMDPRA appears before the committee to explain the criteria used in issuing those licences,” he added.
The lawmaker said reforms must support local refineries while also protecting the investments made by fuel marketers over the years.
“How do we encourage and protect owners of domestic refineries while also protecting the investments of marketers? We cannot continue importing the same volume of petroleum products as before, given that more refineries are coming on stream. At the same time, we must guarantee national energy security in case local refineries experience disruptions.
“We need a balanced framework that supports domestic refining, preserves healthy competition and ensures the country always has a reliable fuel supply. That is the direction this committee is pursuing,” he said.
Presenting DAPPMAN’s position, Executive Secretary Olufemi Adewole said many petroleum depots have remained inactive because of an uneven operating environment.
“From the records of the NMDPRA, not fewer than 72 of the 154 depots nationwide had no regular or consistent trading activity in the last one year. They are merely paying salaries without engaging in meaningful business. This is largely due to an uneven playing field, persistent trading losses and the inability to access alternative sources of supply,” he said.
He welcomed the start of operations at the Dangote Refinery but warned that the supply of petrol should not be dominated by a single operator.
DAPPMAN also alleged that import permits were repeatedly allocated to the same marketers and urged lawmakers to ensure greater transparency in the process.
The association further called for the removal of dollar-denominated charges on domestic petroleum transactions, improved transport infrastructure, rehabilitation of pipelines and depots, and policies that would strengthen fuel distribution across the country.
IPMAN President Abubakar Shettima said marketers are still facing challenges such as expensive loans, multiple taxes, exchange rate volatility and limited access to locally refined products. He proposed the creation of a Petroleum Bank to provide low-interest loans and also urged multinational oil firms to invest in local refining.
He added that independent marketers should be allowed to participate in the management of Nigeria’s state-owned refineries to help improve their operations.
The committee is expected to continue consultations with regulators, refiners, NNPC Limited and other stakeholders before recommending legislative measures to improve competition, transparency and long-term energy security in the downstream petroleum sector.
