Nigeia’s House of Representatives has announced plans to introduce a new law aimed at protecting and boosting operations of local oil refineries, and guaranteeing them priority access to crude supply.

Ikenga Ugochinyere, chairman of the House Committee on Petroleum Resources (Downstream), disclosed this on Monday at the inaugural Annual Downstream Week Summit 2025 in Abuja.

He said the proposed ‘Refinery Protection and Promotion Bill’ will ensure local refineries receive priority protection and support, and introduce measures that guarantee unhindered access to crude feedstock and promote non-disruption of refinery operations across the country.

He added that the proposed law which will classify refineries as strategic national assets, will streamline regulations to remove all unnecessary delays.

The chairman explained that the proposed measures were in response to ongoing challenges faced by local refineries, despite ongoing reforms in the oil sector, such as the enforcement of enforcement of the Domestic Crude Oil Supply Obligation (DCSO) by the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC on all producers. The policy ensures that local refineries, including modular and conventional operators have guaranteed access to crude feedstock before export allocations are made.

“We still face challenges, from feedstock shortages and pricing uncertainty to regulatory overlaps. To address these, the House Committee on petroleum resources (downstream) intends to pursue new legislative measures,” Ugochinyere said.

According to him, these steps are vital to sustaining investor confidence, creating jobs, and strengthening our energy independence.

He added that the measure also aligns with the House legislative vision to prioritise domestic refining capacity, enhance supply security, and strengthen the naira through reduced import dependence.

“This is how nations grow by empowering their local industries to produce, compete, and thrive which is in line with the Renewed Hope Agenda of this Administration. However, progress must be matched with persistence,” he added.

On labour issues, particularly the recent labour concerns involving Dangote Refinery and sector unions, the chairman noted that no reform can succeed without industrial harmony, and urged labour unions and industry operators to always pursue dialogue over disruptions at all times.

“Our shared goal must be to protect jobs, sustain businesses, and promote Nigeria’s economic sovereignty. To all operators in the downstream sector, let me emphasise that responsibility stands equal to profitability. Compliance with tax, safety, and environmental standards is not optional, it is a patriotic duty and a mark of true partnership in national development”, he said.

He also commended the NMDPRA, the NUPRC, marketers including other critical bodies such as PETROAN, NOGASA, MEMAN, NARTO, IPMAN,NGA, DAPPMAN and other depot owners for sustaining energy supply chain often under challenging conditions. “Your resilience and commitment sustain the lifeblood of our economy and strengthen public confidence in the sector”, the chairman said.

Ugochinyere further applauded the ongoing reforms at the Nigerian National Petroleum Company Limited (NNPCL), noting that Nigeria now boasts growing capacity across the energy value chain.

He cited the Indorama Petrochemical complex, which has expanded its urea and fertilizer production to 2.8 million metric tonnes per annum; Waltersmith Modular Refinery in Imo State, which is increasing its capacity from 5,000 to 50,000 barrels per day; and OPAC Refinery in Delta State, alongside other ongoing projects in Edo and Rivers States.

He also lauded the Dangote Refinery, describing it as “Africa’s largest refinery,” with a capacity of 650,000 barrels per day, a development that he said is redefining Nigeria’s refining landscape and boosting regional energy stability.

Ugochinyere noted that these achievements, supported by more than $13 billion in new upstream investments in 2024 alone, are clear evidence of renewed investor confidence in Nigeria’s energy sector.

“Today, Nigeria proudly boasts of expanding refining capacity and industrial growth across the energy value chain. The results are already visible. Our responsibility in government is to ensure this momentum is sustained through the right policies, legislative support, and effective implementation”, he said. (BusinessDay)