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Home Economy

Reps seek fuel supply stability amid import debate

Victory Emmanuel by Victory Emmanuel
July 28, 2026
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Lawmakers consult DAPPMAN, IPMAN and MEMAN as Nigeria weighs domestic refining against supply security and price stability

On Tuesday in Abuja, House of Representatives Committee on Petroleum Resources (Downstream) Chairman Ikenga Ugochinyere opened a crucial consultation with DAPPMAN, IPMAN and MEMAN to build a fuel import consensus that can balance Nigeria’s growing refining capacity with reliable supply, competitive prices and long-term energy security.

Also read: Marketers halt fuel loading as FG, Dangote hold talks

The engagement at the National Assembly brought together the Depot and Petroleum Products Marketers Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria and the Major Energies Marketers Association of Nigeria as lawmakers sought common ground on one of the most consequential questions facing the downstream petroleum sector.

At the heart of the discussion was a delicate transition. Nigeria is gradually expanding its domestic refining capacity, yet recent supply pressures have again brought petroleum imports into the spotlight, reviving debate over whether imports should be restricted, retained as a strategic option or deployed only when local production falls short.

Ugochinyere said the committee’s approach was to listen to industry operators before shaping policies that could have far-reaching consequences for businesses and consumers.

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“We are here not to interrogate, not to accuse and not to put anyone on trial. We are here to listen.

We are here to talk to one another as partners who share one common destiny, a Nigeria where energy is affordable, supply is stable and no citizen suffers because petroleum products are out of reach,” he said.

The Imo lawmaker described marketers, depot operators and other downstream businesses as the essential connection between government policy and consumers, noting that weaknesses anywhere along the distribution chain ultimately affect Nigerians at the pump.

The consultations come against the backdrop of significant changes in the sector following the Petroleum Industry Act, the removal of petrol subsidies, the deregulation of the market, efforts to revive state-owned refineries and the emergence of large-scale private refining.

The changing landscape has also produced competing pressures.

While domestic refining is expected to reduce Nigeria’s exposure to foreign exchange pressures and international supply disruptions, industry operators argue that temporary imports may still be necessary when local production or distribution capacity cannot meet demand.

Recent market developments have underscored that tension. Data reported from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that average daily petrol imports rose from 5.9 million litres in May 2026 to 18.1 million litres in June, while domestic petrol receipts fell from 41.5 million litres per day to 32.5 million litres over the same period. (Punch Newspapers)

The figures have strengthened arguments on both sides of the debate, particularly as the government continues to balance consumer protection with the need to sustain investment in domestic refining.

For DAPPMAN, the immediate priority is a stronger regulatory and logistical framework.

Executive Secretary Olufemi Adewole called for practical operating-stock guidelines under Section 182 of the Petroleum Industry Act, covering stock measurement, reporting, quality assurance and accessibility.

Adewole argued that petroleum security should not be judged solely by how much product is sitting in storage.

The country’s ability to finance, transport and rapidly deploy those products during emergencies, he suggested, should also form part of the assessment.

DAPPMAN further proposed closer market monitoring by the NMDPRA and the Federal Competition and Consumer Protection Commission to track supply concentration, product availability, allocation transparency, competition and early warning signs of market stress.

The association also called for faster investment in roads, railways, inland waterways, pipelines and petroleum depots, saying better logistics would reduce the industry’s heavy reliance on long-distance trucking from a relatively small number of coastal supply points.

IPMAN, meanwhile, highlighted the structural difficulties facing independent operators, including high financing costs, multiple taxes, foreign exchange volatility, inadequate storage, weak transportation infrastructure and pipeline vandalism.

National Chairman Abubakar Shettima said the reforms of recent years had created an opportunity for Nigeria to move from a major importer of refined products towards becoming a significant refining and distribution hub in Africa.

He nevertheless urged lawmakers to support measures that would improve logistics, deepen competition, reduce distribution costs and make petroleum products consistently available and affordable.

The most distinct position came from MEMAN, which cautioned against a blanket restriction on imports even as domestic refining capacity expands.

Executive Secretary Clement Isong acknowledged that Nigeria now has the refining capacity to meet domestic demand and compete in export markets, but argued that the Federal Government should retain the ability to authorise imports when local supply is disrupted.

Isong recommended a national strategic petroleum reserve capable of covering at least 60 days of domestic consumption, saying such a reserve would provide a vital buffer against global supply shocks and sudden price volatility.

The position reflects a wider concern that an abrupt end to imports could expose consumers to shortages if domestic refineries experience operational disruptions or if distribution networks cannot move products efficiently across the country.

The debate has become particularly relevant following fresh import approvals earlier in 2026 amid concerns over fuel inventories and domestic supply.

At the same time, IPMAN has recently called for the review or withdrawal of some import licences, arguing that imported petrol was becoming more expensive than locally refined products and could worsen pressure on the naira and fuel prices. (telegraph.ng)

That contrast illustrates the complexity confronting policymakers. Domestic refiners want a market that rewards local investment, while marketers and consumers need enough flexibility to prevent supply disruptions and excessive price increases.

The committee’s consultation therefore represents more than another industry meeting.

It is part of a broader effort to determine how Nigeria can use its emerging refining strength without sacrificing the resilience that strategic imports can provide during periods of uncertainty.

Ugochinyere said the submissions from the stakeholders would inform future legislative and oversight measures aimed at strengthening local refining, encouraging investment and ensuring that Nigerians have access to reliable and affordable petroleum products.

For consumers, the outcome of the discussions could have consequences well beyond the National Assembly.

The eventual policy direction may influence fuel availability, pump prices, private investment and the country’s ability to withstand future disruptions in global energy markets.

For lawmakers and industry operators, the challenge now is to find a workable middle ground.

A resilient downstream sector may require stronger domestic refining, better infrastructure, tighter regulation and, where necessary, carefully managed imports rather than a rigid approach that overlooks the realities of a changing market.

Also read: Dangote pricing squeezes fuel importers as costs rise

The House committee’s search for a fuel import consensus is therefore likely to remain central to Nigeria’s energy conversation as the country seeks to turn its expanding refining capacity into a sustainable advantage for businesses and households alike.

Victory Emmanuel
Victory Emmanuel

Victory Emmanuel is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.

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