The House of Representatives Committee on Petroleum Resources (Downstream) has opened investigations into petitions seeking the cancellation of gas distribution licences held by NIPCO Plc in several locations, alongside allegations of money laundering and abuse of office against the Nigerian National Petroleum Company Limited’s Executive Vice President (Downstream), Dr Mumuni Dagazau.
The committee announced the investigations on Monday in Abuja during a technical briefing marking the end of Downstream Week 2026. It constituted two sub-committees to conduct preliminary investigations into the separate petitions, stressing that the allegations had not been established.
The sub-committee investigating the allegations against Dagazau will be chaired by Aliyu Al-Mustapha, with Amobi Ogah as deputy chairman. It has seven days to complete its preliminary investigation and submit its findings to the main committee.
The second sub-committee, chaired by Peter Aniekwe, with Shehu Dalhatu as deputy chairman, will examine the petition against NIPCO. The petition seeks an investigation, suspension and cancellation of gas distribution licences issued to the company by the Nigerian Midstream and Downstream Petroleum Regulatory Authority for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.
Committee chairman Ikenga Ugochinyere said the panel had reached no conclusions on either matter and assured the parties of a fair hearing. He said the committee would investigate the complaints and communicate its findings to Nigerians.
Neither NIPCO Plc nor Dagazau had publicly responded to the petitions as of the briefing, according to the report.
Beyond the investigations, the committee reviewed developments in the downstream petroleum sector and passed votes of confidence in President Bola Tinubu, the leadership of the NMDPRA and Alhaji Aliko Dangote. It said reforms were yielding results but identified pipeline security, reliable crude supply to domestic refineries and effective regulation of petroleum imports as priorities requiring sustained government attention.
Figures presented at the briefing indicated that domestic refineries had increased their contribution to national petrol supply by more than 75 per cent, with no recorded supply shortfalls and more than 25 days of national sufficiency maintained.
The committee also highlighted the commissioning of the Port Harcourt Petroleum Product Laboratory, the licensing of a petroleum liquid trading exchange and the finalisation of a framework for a national strategic stock of up to 20 days. Plans are in place to increase the reserve to 90 days in 2027, it said.
Ugochinyere stressed that Nigeria’s energy security depended on protecting pipelines and ensuring adequate crude supplies to local refineries. He called for strict enforcement of the Domestic Crude Supply Obligation, arguing that domestic refiners required reliable access to feedstock to sustain operations.
The committee also disclosed that it had opened an inquiry into alleged underpayment for crude oil by some companies and questioned NNPCL over legacy transactions and refinery rehabilitation.
It urged the Federal Government to increase funding for pipeline surveillance and provide operators with timely logistics support, noting that improved security had contributed to higher crude oil production. The committee expressed confidence that Nigeria could reach its target of producing three million barrels of crude oil per day with sustained government support.
It further said it would pursue amendments to the Petroleum Industry Act to strengthen provisions covering crude supply to domestic refineries, licensing and the protection of local refining investments, while maintaining a regulated import market.
The committee said its objective was to balance immediate supply security with the long-term development of Nigeria’s domestic refining capacity, arguing that imports should supplement verified shortfalls rather than become a permanent substitute for domestic production.