Nigeria’s House of Representatives has directed its committees on Petroleum Resources (Midstream and Downstream) to investigate the ongoing dispute between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote Refinery, aiming for a swift resolution.
The decision, on Tuesday, followed the adoption of a motion of urgent public importance sponsored by the Chairman of the House Committee on Rules and Business, Francis Waive (APC, Delta). The House emphasized that relevant stakeholders in the downstream petroleum sector should be involved to prevent a potential fuel supply crisis during and after the yuletide season.
In presenting the motion, Waive cited Sections 88(1) and (2) of the 1999 Constitution (as amended), which empower the National Assembly to investigate the activities of any authority executing laws enacted by the legislature. He also referenced Section 29(3) of the Petroleum Industry Act 2021, which mandates the NMDPRA to oversee the technical and commercial regulation of midstream and downstream petroleum operations.
Waive explained that the dispute between NMDPRA and Dangote Refinery centers on allegations of arbitrary importation license grants, claims of corruption against the NMDPRA Chief Executive, PMS pricing benchmarks, and other issues. He warned that if the conflict is not addressed promptly, it could escalate, potentially causing fuel supply disruptions during the yuletide season and beyond.
He described Dangote Refinery as a strategic national investment capable of ending Nigeria’s historical reliance on imported Petroleum Motor Spirit (PMS), conserving foreign exchange, stabilizing domestic supply, and moderating fuel prices in the long term. Waive stressed that unresolved regulatory disagreements between the statutory regulator and the country’s largest domestic refinery threaten supply chain stability, pricing consistency, policy coherence, and investor confidence in Nigeria’s petroleum sector.
The lawmaker highlighted that the absence of a transparent, consistently applied PMS pricing framework allows for arbitrary determinations and market distortions, to the detriment of Nigerian consumers. He noted that frequent PMS price fluctuations occur without adequate public disclosure of refinery gate prices, regulatory pricing assumptions, cost and margin components, and the comparative impact of local refining versus import-based pricing.
Waive concluded that an urgent legislative investigation is necessary to clarify regulatory boundaries, harmonize pricing expectations, and restore confidence in Nigeria’s downstream petroleum governance.
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