The House of Representatives has stepped in to curb compounding cost pressures in Nigeria’s downstream petroleum sector. The House Committee on Petroleum Resources (Downstream) has declared firm opposition to the continued charging of U.S. dollar-denominated port fees on locally refined fuel and ordered a full-scale probe into alleged lopsidedness in the issuance of fuel import licences.
Speaking during an interactive session with major downstream stakeholders, including IPMAN, DAPPMAN, and MEMAN, Committee Chairman Hon. Ikenga Ugochinyere expressed deep concern over persistent billing practices that inflate local pump prices.
"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," Ugochinyere stated.
The lawmaker revealed that the committee will summon key regulatory and financial institutions, including the NMDPRA, NUPRC, NPA, Central Bank of Nigeria, and refiners, to address these structural bottlenecks.
Ugochinyere also pledged a thorough investigation into complaints that the NMDPRA repeatedly allocated fuel import permits to the same select group of marketers across the first three quarters of 2026, bypassing other qualified operators.
The committee's intervention follows severe grievances voiced by petroleum marketers. Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, disclosed that at least 72 out of Nigeria’s 154 licensed depots have been rendered virtually inactive over the past year due to an uneven playing field, persistent trading losses, and restricted access to supply.
Adewole warned against an emerging single-refinery monopoly in PMS supply, arguing that retaining a regulated import contingency mechanism under the Petroleum Industry Act (PIA) remains vital to preventing nationwide fuel queues during maintenance or operational downtime.
Concurrently, the National President of IPMAN, Abubakar Shettima, highlighted the crushing weight of high financing costs on independent marketers, who currently borrow from commercial banks at interest rates reaching 32 percent. Shettima advocated for the creation of a specialized Petroleum Bank offering single-digit interest loans to alleviate operational pressures and ultimately lower retail fuel prices for consumers. IPMAN further urged the government to allow independent marketers to participate in operating state-owned refineries to aid their revival.
The House Committee reassured operators that upcoming legislative amendments to the PIA will aim for a balanced framework, one that safeguards growing domestic refining capacity while protecting decades of private investment made by local marketers and depot operators.
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