Honorable Ikenga Ugochinyere, Chairman of the House Committee on Petroleum Resources (Downstream), has announced the initiation of a renewed inquiry into NNPC Ltd’s acquisition of OVH Energy Marketing’s downstream assets and the associated refinery modernization project.
He highlighted the ongoing conflicts involving Dangote Refinery, petroleum-marketers-claim-68-percent-national-supply-reject-dangote-capacity/” title=”… Marketers Assert They Supply 68% of Nation…s Fuel, Challenge Dangote…s Capacity Claims”>petroleum marketers, and labor unions-especially tanker operators under the National Union of Petroleum and Natural Gas Workers (NUPENG)-stressing that these challenges must be resolved without deterring investment in Nigeria’s oil and gas sector.
Addressing stakeholders at the conclusion of a three-day retreat in Lagos, Chairman Ugochinyere revealed that the committee has gathered extensive insights from refinery personnel, workers, and regulatory bodies such as NETCO and the Petroleum Training Institute (PTI), alongside contributions from private sector participants and refining industry stakeholders.
Regarding the disputes between Dangote Refinery and labor organizations, he remarked, “If these conflicts remain unresolved, they risk destabilizing the downstream petroleum sector.”
While acknowledging the seriousness of these issues, the lawmaker underscored the necessity of managing them in a way that maintains Nigeria’s reputation as a favorable environment for energy investments.
“Our goal is to strike a balance between labor concerns and competitive business interests, ensuring that potential investors are not discouraged by perceptions of risk to their capital,” he explained.
In parallel, the committee is reviewing submissions related to the Petroleum Industry Act (PIA), focusing on clarifying the integration of operations and minimizing regulatory overlaps between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Chairman Ugochinyere emphasized that clearly delineating the responsibilities of these regulatory bodies is essential for fostering investor confidence and ensuring stable, long-term policy frameworks.
He elaborated, “Currently, we are considering the removal of NMDPRA’s statutory role in exploration, development, and production, while preserving its critical function in wholesale supply to strengthen national energy security. Meanwhile, NUPRC will oversee the allocation of resources to local refineries, with NMDPRA monitoring their utilization.”
“This approach aims to empower distinct regulatory licenses for petroleum liquid and gas wholesalers, ensuring their activities are properly reflected in refinery revenue streams and company income tax payments, in accordance with existing laws,” he added.
“By eliminating regulatory ambiguities, we intend to stimulate investment in gas monetization, local refining capacity, and other petroleum-related enterprises operating within Nigeria, aligning with directives from the Presidency,” he noted.
Among the committee’s key recommendations are the simplification of licensing procedures for liquid and gas wholesalers, improved supervision of land terminals, and the promotion of open-access facilities to foster equitable participation and enhance revenue generation.
The chairman also indicated that public disclosures will soon follow technical evaluations of input from refinery operators and major stakeholders concerning petroleum product supply and utilization, as well as the submission of Product Supply and Trading Operations Certificates (PSTOC).
“These initiatives are designed to establish preliminary clarity on integrated operations, thereby encouraging investment throughout the regional petroleum industry,” he stated.
He further noted that well-defined regulatory mandates could unlock investment opportunities worth up to $500 million annually, while improving financial transparency, infrastructure management, and tax compliance.
“Addressing losses in the oil and gas sector through NMDPRA’s enhanced role could facilitate approximately $500 million per year in tariff-related investments by enabling exporters and importers to expand their operations within Nigeria,” he concluded.
