Why Nigerian Refineries Are Dead Again—Reps Raise Fresh Alarm

The House of Representatives Committee on Petroleum Resources (Downstream) has launched a probe into critical issues facing Nigeria’s downstream oil sector.

Chairman of the committee, Ikenga Ugochinyere, made this known during a press briefing in Abuja on Wednesday, July 23, 2025.

He confirmed that the investigation covers the failed turnaround maintenance of the country’s refineries, the acquisition of OVH Energy, and concerns about market dominance by the Dangote Refinery.

He expressed deep concern that, despite the hype surrounding the return of the Port Harcourt and Warri refineries to operation, both facilities had to shut down once again.

He emphasized that the committee would not shield anyone. Instead, it would ensure that those involved in corruption face legal consequences.

Moreover, he revealed that the committee has started looking into the challenges local and modular refineries face in accessing crude oil.

He questioned why these refiners must travel to Switzerland just to negotiate for locally sourced crude, calling the situation unacceptable and bizarre.

He stated that the House intends to uncover the real reasons behind the failure, especially since a globally respected company handled the turnaround maintenance.

In his words, the House wants to understand what went wrong before deciding whether to privatize or sell the refineries.

He also confirmed that the committee had received multiple petitions from stakeholders in the petroleum industry.

These include complaints from modular refinery owners, oil marketers, and retail operators.

All of them raised alarm over their heavy investments, which they said remain at risk due to unfair competition.

Ugochinyere disclosed that the Dangote Refinery plans to take over product transportation and retailing.

As a result, many oil retailers fear their businesses could collapse.

He explained that this looming threat has caused rising tension across the industry.

He stressed that the committee would reopen the investigation into the OVH Energy acquisition.

According to him, the House rejected a previous report on the matter.

Therefore, the lawmakers now demand a fresh, independent inquiry into complaints raised by NNPCL retail staff and other stakeholders.

In addition, he announced that the committee would push for amendments to the Petroleum Industry Act.

He explained that the current law fails to cover several emerging issues affecting the sector.

The committee plans to compile the necessary amendments and submit them for House approval.

Through this investigation, the lawmakers aim to protect investments, restore order, and strengthen the downstream oil sector.

They also want to ensure that smaller players can operate without fear of being driven out by monopolies.

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