The House of Representatives Committee on Petroleum Resources (Downstream) has commenced a wide-ranging investigation into Nigeria’s troubled downstream oil sector, with particular focus on the colossal investments made over the years in the turnaround maintenance of the country’s key refineries — and the reasons those efforts have continued to yield little or no results.
Chairman of the committee, Hon. Ikenga Imo Ugochinyere, made this known during a press briefing on Wednesday.
He expressed deep concern over the non-functionality of the Port Harcourt and Warri refineries, which reportedly shut down shortly after being declared operational despite substantial maintenance investments.
He further pointed out that the maintenance was handled by a highly reputable company, raising serious questions about what went wrong and who should be held accountable.
According to Ugochinyere, the committee is investigating not only the failure of the turnaround projects but also the operational challenges affecting both local and modular refineries.
Of particular concern is the reported difficulty these refineries face in accessing crude oil, with some operators allegedly being forced to travel to Switzerland to negotiate deals for crude oil that is sourced domestically within Nigeria. This paradox has prompted alarm over inefficiencies and possible exploitation within the crude oil allocation system.
The House Committee has reportedly received multiple petitions from stakeholders, including oil marketers, retailers, and refinery operators.
These petitions detail persistent bottlenecks in refinery operations and express fears that recent government policies may be enabling monopolistic tendencies.
Specifically, concerns were raised regarding preferential treatment allegedly given to the Dangote Refinery, especially in the areas of petroleum product transportation and retail, which stakeholders fear may threaten competition, discourage private investment, and eventually create a monopolized market structure.
In light of these developments, the committee also announced plans to revisit the controversial acquisition of OVH Energy by NNPC Retail.
This decision comes after the House of Representatives previously rejected a report on the matter, citing unresolved complaints and allegations from within the Nigerian National Petroleum Company (NNPC) itself, particularly from its staff.
Furthermore, Hon. Ugochinyere disclosed that the committee is considering amendments to the Petroleum Industry Act (PIA).
These proposed revisions are intended to address emerging issues not adequately covered by the current legislation and to reinforce the regulatory framework for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The committee aims to ensure the NMDPRA becomes more effective in fostering fairness, competitiveness, and accountability in the sector.
On the subject of governance, Ugochinyere confirmed that the committee had dismissed a petition seeking the dissolution of the NMDPRA. He clarified that, under the provisions of the PIA, the authority to appoint or remove the leadership of the regulatory agency rests solely with the President of the Federal Republic of Nigeria.
“We are not here to shield anyone,” he emphasized. “Any individual found to have engaged in corrupt practices must face the full weight of the law.”
The committee also intends to probe several other issues affecting the downstream sector. These include:
The alleged abandonment of the Biomas Ethane Project;
Contentions surrounding the continued importation of refined petroleum products despite local refining capacity;
Concerns about legislative protection of indigenous refiners;
The incorporation of artisanal refiners into the formal petroleum refining value chain — with Ugochinyere noting that sidelining their expertise would be a grave disservice to the industry.
As part of broader engagement and oversight activities, the committee announced plans to host the inaugural edition of the “Downstream Petroleum Week” — a new annual event aimed at fostering dialogue, innovation, and transparency across the downstream oil sector. The first edition is scheduled to commence on October 2, 2025.
In conclusion, Hon. Ugochinyere reiterated the committee’s commitment to protecting the integrity of Nigeria’s oil sector. He assured the public that the House of Representatives would not tolerate any form of monopoly or policy manipulation in the downstream petroleum industry.
He added that various sub-committees have been tasked with expediting investigations into all pending matters and ensuring that all legislative measures required to strengthen the sector are enacted without delay.