Nigeria’s House of Representatives is preparing a new piece of legislation aimed at strengthening the country’s local oil refining capacity and ensuring refineries get first access to crude oil supply before exports.
Chairman of the House Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, announced the plan during the inaugural Annual Downstream Week Summit in Abuja. He said the proposed Refinery Protection and Promotion Bill will classify all local refineries as national strategic assets and create policies that prevent operational disruptions while guaranteeing a steady flow of crude feedstock.
Ugochinyere explained that despite ongoing reforms, domestic refiners still face challenges such as inconsistent crude supply, pricing issues, and overlapping regulations. The bill, he said, is designed to fix those gaps, protect investors, and maintain Nigeria’s energy independence.
The proposed legislation builds on the existing Domestic Crude Oil Supply Obligation (DCSO), which requires producers to meet local refinery needs before exporting crude. The law, once enacted, would give Nigerian refineries—both modular and conventional—priority access to crude oil to enhance production and reduce reliance on imported fuel.
The lawmaker noted that such reforms are essential to attracting more investors, creating jobs, and improving Nigeria’s foreign exchange position. “This is how nations grow — by empowering domestic industries to produce, compete, and thrive,” he said, adding that progress in the sector must be matched by consistent government support.
Ugochinyere also addressed labour-related tensions in the downstream sector, including recent disputes involving the Dangote Refinery, urging both workers and operators to settle disagreements through dialogue rather than disruption.
He commended the Nigerian National Petroleum Company Limited (NNPCL), regulatory bodies like the NUPRC and NMDPRA, and key industry groups for keeping the supply chain stable despite economic challenges.
Highlighting Nigeria’s growing refining capacity, he pointed to ongoing expansions at the Waltersmith Modular Refinery in Imo State and the OPAC Refinery in Delta, as well as the 650,000 barrels-per-day Dangote Refinery, which he described as a game changer for both Nigeria and the African region.
According to him, over $13 billion in new upstream investments recorded in 2024 reflects renewed investor confidence in the country’s energy industry. He emphasized that the government’s role is to sustain this momentum through supportive legislation and effective implementation.
With the proposed bill, the House aims to solidify Nigeria’s transition from a heavy importer of refined products to a regional refining hub capable of meeting domestic demand and exporting surplus fuel.
