By Kayode Araba
Thus, 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.
However, the Committee reveled this in 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 at National Assembly Complex.
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 said “
The chairman 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 in the country.
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.
Moreso, 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.
Therefore, 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.
