Marketers demand regulatory clarity, stability in downstream sector

The Major Energy Marketers Association of Nigeria (MEMAN) yesterday stated that the removal of fuel subsidy has ushered in a new era of deregulation in the downstream sector. According to the group, this has paved the way for innovative business models such as Energy-as-a-Service (EaaS), integrated multi-energy hubs, Virtual Power Plants (VPPs), and peer-to-peer (P2P) […]

The Major Energy Marketers Association of Nigeria (MEMAN) yesterday stated that the removal of fuel subsidy has ushered in a new era of deregulation in the downstream sector.

According to the group, this has paved the way for innovative business models such as Energy-as-a-Service (EaaS), integrated multi-energy hubs, Virtual Power Plants (VPPs), and peer-to-peer (P2P) energy trading.

Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), Mr. Huub Stokman, stated this at the OTL Downstream Week 2025 during a panel session themed: “Navigating the New Frontier: Competition and Market Access in the Downstream Oil & Gas Industry.”

He stated that the entry of the Dangote Refinery is reducing Nigeria’s import dependence and reshaping local supply dynamics.

However, he stressed that “greater regulatory clarity and stability” are still required to reduce “investment risks” and drive long-term growth.

According to him, significant capital is needed across refining, storage, distribution, and low-carbon infrastructure to support Nigeria’s energy goals.

The association urged industry leaders to adopt strategic investments, partnerships, and digital solutions to enhance competitiveness, improve efficiency, and support Nigeria’s drive toward a balanced and sustainable energy future.

Stokman stated that the current downstream landscape has significantly evolved, adding, “We are witnessing a redefined downstream environment. Policymakers are now recognising gas as a cleaner transition fuel, with rising demand for CNG and LNG.

“At the same time, the industry is adopting sustainable and digital technologies — including solar, biofuels, and advanced monitoring tools, to improve efficiency and enhance service delivery,” he said.

Stokman described Africa’s evolving energy landscape as a “dual reality,” one that must simultaneously tackle energy poverty, affecting over 600 million people—and the global energy transition.

“We must manage both traditional fossil fuels and the accelerated adoption of renewables. Natural gas—whether LNG, LPG, or CNG—remains a critical transition fuel for Africa, providing a cleaner alternative to heavy fuels and biomass, and supporting industrialisation and access to energy,” he explained.

He added that decentralisation and digitalisation are reshaping the market, with renewable energy technologies driving distributed energy systems that can reach underserved populations.

“The biggest frontier is addressing the 600 million people without access to energy. This represents a massive high-growth market for decentralised renewable energy solutions,” Stokman said.

Stokman also called for regional energy integration through cross-border gas pipelines and harmonised regulatory frameworks within ECOWAS and SADC, to overcome single-country supply vulnerabilities and achieve economies of scale.

Stokman further encouraged industry players to adopt pay-as-you-go distribution channels, local micro-depots, and data-driven maintenance and monitoring tools to cut operational costs and boost efficiency.

“Companies must pursue cross-border joint ventures, strategic acquisitions, and partnerships with financiers and technology providers.

“The priority should be green hydrogen, decentralised solar in resource-endowed countries, and expansion into BESS as a service—offering bundled LPG, CNG, and hydrogen solutions that increase customer lifetime value,” the MEMAN Chairman said.