October 31, 2024 — The House of Representatives has urged the Federal Government to create a comprehensive plan to incorporate indigenous refiners into Nigeria’s petroleum production value chain. This resolution came after a motion was adopted to reform and regulate the country’s petroleum industry, emphasizing the need to integrate artisanal refiners.
Deputy Minority Whip Mr. George Ozodinobi, who moved the motion, highlighted the constitutional obligation to harness national resources for prosperity. He pointed out that the government’s failure to recognize and regulate artisanal refining has led to significant loss of lives and revenue, particularly in the Niger Delta region where this practice has been prevalent for decades.
In 2016, the Federal Government proposed a plan to integrate artisanal refiners into mainstream oil operations to enhance local content and promote home-grown technology in petroleum refining. However, Ozodinobi criticized the continued neglect and stigmatization of these local refiners, often labeled as “oil thieves,” and expressed concern over the environmental degradation caused by security operations aimed at destroying artisanal refineries.
He noted that Nigeria has struggled with outdated refineries, relying heavily on crude oil exports while importing refined products, exacerbating ongoing fuel crises. He urged the adoption of indigenous technology, drawing parallels with advancements in countries like Japan, the U.S., and China.
The motion received unanimous support from members during a voice vote. Deputy Speaker Benjamin Kalu called on the Nigerian Upstream Petroleum Regulatory Commission to develop a framework for formally integrating artisanal refiners into the oil production process. The House has also tasked its relevant committees to ensure compliance and report back within four weeks for further legislative action.
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