Lawmakers oppose dollar billing for local petrol sales

Nigeria's House of Representatives is initiating moves to address critical issues in the downstream petroleum sector, notably opposing the continued imposition of U.S. dollar charges on locally refined petroleum products. The House Committee on Petroleum Resources (Downstream) announced plans to investigate alleged irregularities in fuel import license allocations during an interactive session with industry stakeholders.

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We'll be meeting with the NMDPRA, NUPRC, the refiners, both modular refinery owners and the large refinery operators, as well as the NPA, the CBN and other relevant agencies on the issues that have been raised.

Committee Chairman Ikenga Ugochinyere expressed concern over the practice of charging port fees in U.S. dollars for products refined and transported within Nigeria. He stated, "It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit." The committee intends to invite key agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Ports Authority (NPA), and the Central Bank of Nigeria (CBN), to address these and other industry concerns.

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It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit.

Furthermore, Ugochinyere pledged to investigate allegations that fuel import licenses for the first three quarters of 2026 were disproportionately issued to the same group of marketers. "We have also taken note of what you said about the lopsidedness in the issuance of import licences, where allocations for the first, second and third quarters went to the same set of operators," he said. These consultations are part of broader reforms aimed at strengthening domestic refining capacity, guaranteeing national energy security, and fostering a competitive downstream petroleum market, including proposed amendments to the Petroleum Industry Act.

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We have also taken note of what you said about the lopsidedness in the issuance of import licences, where allocations for the first, second and third quarters went to the same set of operators. We will raise these questions when the NMDPRA appears before the committee to explain the criteria used in issuing those licences.