…hint on Petroleum Industry Act amendment, 90 days National Strategic Stock by 2027
The House of Representatives on Monday tasked the Federal Government with increasing funding for pipeline surveillance as part of ongoing efforts to achieve crude oil production of three million barrels per day.
The Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, gave the charge at the technical briefing of Downstream Week 2026 in Abuja, where he attributed the significant increase in crude oil production and supply this year largely to improved pipeline surveillance and enhanced security.
According to him, sustained investment in pipeline protection would reduce crude oil theft, improve feedstock availability for domestic refineries and increase government revenue. He stressed that the gains recorded so far should encourage the government to strengthen existing surveillance arrangements.
While noting that “fewer breaches mean less crude lost, more product for our refineries, and more revenue for the Federation”, Ugochinyere underscored the need for the present administration to match its efforts with increased funding, adequate logistics and timely payments to sustain operations and prevent security lapses.
He warned that delays in releasing funds and providing operational support could weaken the vigilance of personnel working to protect critical oil infrastructure, insisting that the country could achieve its three-million-barrel-per-day production target with consistent government backing.
The Imo State lawmaker, who expressed grave concern over the availability of crude oil for domestic refineries, disclosed that the House was working on stronger legal provisions to guarantee crude supply, fair market access and policy stability for domestic refining operations.
Ugochinyere further disclosed that the committee, in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), had overseen the development of a framework for regulating petroleum product imports, including defining eligible importers and the conditions under which importation would be permitted.
He maintained that imported petroleum products remained necessary to address genuine supply gaps but should not undermine domestic production, declaring, “Our goal is balance: security of supply today, and a strong domestic refining industry for tomorrow.”
Figures presented at the briefing, according to Ugochinyere, showed that domestic refineries’ contributions to national petrol supply had increased by more than 75 per cent, with no supply shortfalls recorded and national sufficiency maintained for more than 25 days.
He also highlighted the commissioning of the Port Harcourt petroleum product laboratory, the licensing of what he described as Africa’s first petroleum liquid trading exchange, and the finalisation of a framework for a National Strategic Stock capable of covering up to 20 days, with plans to extend the reserve to 90 days in 2027.
He further disclosed that the committee had rejected a World Bank recommendation on import licences, insisting that Nigeria must retain control over decisions affecting its energy sector. He stressed that “Nigeria’s energy policy must be written in Nigeria”.
He also revealed that an inquiry had been opened into allegations that some companies underpaid for crude oil, while NNPC Limited had been questioned over legacy transactions and refinery rehabilitation.
He warned that the committee would not tolerate evasive responses, saying, “We will not accept silence as an answer.”
On private-sector participation, Ugochinyere commended Alhaji Aliko Dangote over the ongoing initial public offering of the Dangote Petroleum Refinery, describing the development as a source of “fresh momentum” for the downstream sector. He described the refinery as an investment of approximately $20 billion with strategic national importance, pledging that the committee would protect it while promoting fair competition.
He also praised the Major Oil Marketers Association of Nigeria (MOMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) for investing in depots, jetties, trucks and filling stations. According to him, their members had “stepped in to close the gap” whenever domestic production fell short.
He therefore pledged the committee’s commitment to advancing the Petroleum Industry Act (Amendment) Bill, which would strengthen provisions on crude oil feedstock, licensing, the protection of local refiners and the regulation of petroleum product imports.
Meanwhile, the committee has established two subcommittees to conduct preliminary investigations into two petitions concerning the downstream petroleum sector. One seeks the investigation, suspension and cancellation of gas distribution licences issued to NIPCO Plc by the NMDPRA for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.
The subcommittee handling the NIPCO petition, chaired by Hon. Mathew Nwogu, with Hon. Shehu Dalhatu as deputy, was mandated to examine the issues raised and report its findings to the main committee. The petitioners have also requested a public hearing.
The second subcommittee, chaired by Hon. Aliyu Al-Mustapha and assisted by Hon. Cyril Hart, has been given seven days to conduct a preliminary investigation into allegations of money laundering and abuse of office against Dr Mumuni Dagazau, Executive Vice President, Downstream, of NNPC Limited, and submit its report to the main committee.
Ugochinyere, who stressed that the committee had not reached any conclusion on either petition, assured that all parties would be given a fair opportunity to present their positions.
He added that the committee would “not look away from any complaint that touches on the integrity of our downstream sector”, promising to inform Nigerians of the outcome of the investigations.
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