Reps oppose dollar charges on locally refined fuel, probe import licence allocations

The House of Representatives has begun moves to address concerns in Nigeria’s downstream petroleum sector, opposing the continued imposition of U.S. dollar-denominated charges on locally refined petroleum products and announcing plans to investigate alleged irregularities in the allocation of fuel import licences.

 

The House Committee on Petroleum Resources (Downstream) disclosed this during an interactive session with key industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and the Major Energies Marketers Association of Nigeria (MEMAN).

 

Chairman of the committee, Ikenga Ugochinyere, said the lawmakers would engage the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Ports Authority (NPA), the Central Bank of Nigeria (CBN), refiners and other agencies over issues raised by industry operators.

 

“We’ll be meeting with the NMDPRA, NUPRC, the refiners, the NPA, the CBN and other relevant agencies. These issues will form part of our downstream reforms, including proposed amendments to the Petroleum Industry Act,” Ugochinyere said.

 

He faulted the continued charging of port fees in U.S. dollars for petroleum products refined and transported within Nigeria, describing the practice as harmful to the economy.

 

“It is not good for the economy that people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit,” he said.

 

The committee also pledged to investigate allegations that fuel import licences for the first three quarters of 2026 were repeatedly allocated to the same group of marketers.

 

Presenting DAPPMAN’s position, Executive Secretary Olufemi Adewole said at least 72 of Nigeria’s 154 licensed petroleum depots recorded little or no trading activity over the past year due to what he described as an uneven operating environment.

 

He also warned against what he called an emerging near-monopoly in the supply of Premium Motor Spirit (PMS).

 

“Our experience has been one of mixed feelings, bordering on an almost total monopoly in the supply of PMS by the mega refinery,” Adewole said, while calling for greater transparency in the allocation of import permits.

 

DAPPMAN further urged lawmakers to enforce compliance with the presidential directive ending foreign currency billing for domestic transactions, alleging that marketers were still being invoiced in U.S. dollars for products moved entirely within Nigeria.

 

IPMAN National President, Abubakar Shettima, also called for policies that support domestic refining while preserving competition. He cited high financing costs, multiple taxation, foreign exchange volatility and limited access to refinery products as major challenges facing marketers.

 

Shettima proposed the establishment of a specialised Petroleum Bank to provide single-digit interest loans for operators and urged multinational oil companies to invest in local refining instead of relying mainly on fuel imports.

 

The committee said it would continue consultations with regulators, refiners, NNPC Limited and other stakeholders before proposing legislative measures aimed at creating a more competitive, transparent and sustainable downstream petroleum sector while strengthening Nigeria’s long-term energy security.