Mohammed Shosanya
The House of Representatives has implored the Federal Government to create a comprehensive blueprint to integrate indigenous refiners into Nigeria’s petroleum production value chain.
The call highlights the need to leverage local expertise in the oil and gas industry to stimulate economic growth, enhance job creation, and reduce dependence on foreign refining
At a recent plenary session,the House has resolved to push for reforms in Nigeria’s petroleum production, aiming to integrate artisanal refiners into the industry’s value chain.
The decision was sequel to the adoption of a motion presented by Deputy Minority Whip, Hon. George Ozodinobi, who called for a structured approach to harnessing the nation’s resources for economic growth.
Presenting the motion,Ozodinobi stressed the constitutional responsibility to maximize Nigeria’s resources to boost national prosperity.
He noted that, over the years, the government’s failure to formally recognize and regulate artisanal refining in the Niger Delta has led to significant revenue losses and endangerment of lives.
He urged the House to take decisive action to address this long-standing issue and bring informal refiners under regulated operations for the benefit of both the region and the nation.
He recalled that in 2016, “the Federal Government proposed integrating artisanal refiners into mainstream oil and gas operations.
“The initiative aimed to boost local content in the industry and support the use of homegrown technology in petroleum refining within the region.”
He expressed concern that, despite over seven decades of severe environmental degradation in the Niger Delta, policymakers remain largely unaware of the urgent need to encourage artisanal refining.
He emphasized that fostering local technological solutions is critical to lifting Nigeria out of energy poverty and creating a sustainable path forward for the nation’s energy sector.
He expressed concern over the labeling of indigenous artisanal refiners as “oil thieves,” emphasizing that, “the unprofessional destruction of artisanal refineries by the Nigerian Navy and other security agencies further degrades the environment, which serves as the energy source for communities in the Niger Delta.”
He emphasized that the neglect of local refiners has left Nigeria dependent on its four failing refineries. “For decades,” he noted, “Nigeria, despite being a top crude oil exporter, has become a chronic importer of refined petroleum products.”
He added that,this situation is compounded by the ongoing fuel crisis and allegations of conspiracy surrounding the Dangote Refinery.
He further called on Nigeria to prioritize the promotion of indigenous technology, taking inspiration from the advanced technological strides of nations like Japan, the United States, and China.
The motion received unanimous support from the members of the House when it was put to a voice vote.
Deputy Speaker Benjamin Kalu,who presided over the session,urged the Nigerian Upstream Petroleum Regulatory Commission, on behalf of the House, to develop a regulatory framework that would formally integrate artisanal refiners into the nation’s crude oil production value chain.
The House also mandated its Committees on Petroleum Resources, Downstream, Upstream, and Midstream, as well as Local Content to oversee compliance and report back within four weeks to enable further legislative action.
