The House of Representatives Committee on Petroleum Resources (Downstream) has committed to intervening in the ongoing dispute between the Dangote Group and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) to promote sector stability and ensure equitable treatment for all parties involved.
This decision emerged from a comprehensive three-day retreat held in Lagos, where legislators, industry stakeholders, and regulatory authorities convened to address critical challenges confronting Nigeria’s downstream petroleum industry.
Hon. Ikenga Imo Ugochinyere, the committee chairman, emphasized to the press that the panel is resolute in preventing conflicts between major investors and labor unions from disrupting operations or hindering the nation’s pursuit of energy security.
He further stated that the committee is actively working to facilitate dialogue between the disputing parties to prevent escalation.
“Our main objective is to implement meaningful reforms that enhance efficiency, fairness, and competitiveness throughout the sector. We will intervene to ensure that every stakeholder’s interests are acknowledged and protected,” Ugochinyere affirmed.
The retreat also focused on the persistent obstacles faced by domestic refineries, particularly their struggle to obtain consistent crude oil supplies.
Participants advocated for increased transparency in crude oil allocation and pricing mechanisms to support the sustainable operation of both government-owned and modular refineries.
Regarding the ongoing debate over the Nigerian National Petroleum Company Limited’s (NNPCL) takeover of OVH Energy’s downstream assets, Ugochinyere confirmed that the committee’s renewed investigation is progressing well. He clarified that this inquiry is separate from a previous probe that was dismissed by the House.
Despite some stakeholders’ failure to provide essential documentation, the committee has resolved to proceed, underscoring the importance of fulfilling the House’s mandate comprehensively.
The public is encouraged to submit relevant information to the committee clerk ahead of the final recommendations.
During the retreat, the committee praised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Dangote Refinery, modular refinery operators, and other significant contributors for their investments and efforts in strengthening the downstream sector.
Lawmakers also expressed support for NNPCL’s revitalization initiatives, particularly improvements at the Port Harcourt Refinery.
Reports from sub-committees are anticipated in the near future and will inform legislative measures concerning crude supply, refinery modernization, and regulatory frameworks.
Industry experts suggest that the retreat and ongoing investigations could pave the way for a more transparent, competitive downstream petroleum sector while alleviating tensions between labor unions and private enterprises.
