By Obiabin Onukwugha
Nigeria’s House of Representatives says it will introduce a new bill aimed at protecting and boosting the operations of local oil refineries in the country.
The bill, when passed into law, will classify refineries as strategic national assets, and streamline regulations to remove all unnecessary delays.
Chairman, House Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, disclosed this at the ongoing Annual Downstream Week Summit 2025 organized by the lower chamber, in Abuja on Monday.
He said the proposed bill tagged “Refinery Protection and Promotion Bill” will ensure local refineries receive priority protection and support, and also introduce measures that guarantee unhindered access to crude feedstock and promote non-disruption of refinery operations across the country.
Ugochinyere said the proposed bill in response to ongoing challenges faced by local refineries, despite ongoing reforms in the oil sector, such as the enforcement of the Domestic Crude Oil Supply Obligation (DCSO) by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC on all producers.
He described the step as vital to sustaining investor confidence, creating jobs, and strengthening Nigeria’s energy independence.
“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,” he said.
The committee chairman mentioned that the decision 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 stated.
The House Committee on Petroleum Resources (Downstream) 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.
Ugochinyere noted the ongoing reforms at the Nigerian National Petroleum Company Limited (NNPCL), stating that Nigeria now boasts growing capacity across the energy value chain.
He also noted 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, saying it 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, saying it is redefining Nigeria’s refining landscape and boosting regional energy stability.
“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 stated.