The Major Energy Marketers Association of Nigeria (MEMAN) has said that the removal of fuel subsidy has opened new opportunities for innovation, investment, and digital transformation in Nigeria’s downstream oil and gas industry.
Speaking at the OTL Africa Downstream Week 2025 in Lagos on Wednesday, MEMAN Chairman, Mr. Huub Stokman, said deregulation has redefined market dynamics, enabling competition and private sector-led growth across the energy value chain.
Stokman made the remarks during a panel discussion titled “Navigating the New Frontier: Competition and Market Access in the Downstream Oil & Gas Industry.”
He explained that the end of subsidy, announced by President Bola Ahmed Tinubu during his Independence Day broadcast to mark Nigeria’s 65th anniversary, has set the stage for new business models such as Energy-as-a-Service, Virtual Power Plants (VPPs), and peer-to-peer energy trading. According to him, these innovations are already driving efficiency, expanding access, and reshaping the downstream market.
“The downstream environment is evolving rapidly. With the Dangote Refinery coming onstream, dependence on imported petroleum products is reducing, and the local supply chain is being restructured,” Stokman said.
He added that the sector is increasingly embracing sustainable and digital technologies such as solar energy, biofuels, and advanced monitoring systems to improve operational efficiency and reduce carbon emissions.
According to the MEMAN Chairman, policymakers and industry stakeholders now view natural gas as a crucial transition fuel for Nigeria’s energy future. He noted that demand for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) is rising across transportation, power generation, and industrial applications.
Stokman stated that this shift reflects the global trend towards cleaner and more efficient energy systems, adding that Nigeria’s downstream players are strategically repositioning to take advantage of it.
However, he cautioned that regulatory clarity and policy stability remain critical for attracting and sustaining investment in the sector.
“Significant investment is still required in refining, storage, distribution, and low-carbon infrastructure to achieve Nigeria’s energy transition goals,” he said.
He described Africa’s energy landscape as one defined by a “dual reality” — the challenge of addressing energy poverty while responding to the global call for decarbonisation.
“Natural gas, whether LNG, LPG, or CNG, remains essential for Africa’s transition. It offers a cleaner alternative to traditional fuels while driving industrialisation and expanding energy access,” he added.
Stokman emphasised that decentralisation and digitalisation are reshaping how energy is produced, distributed, and consumed across the continent. He said the deployment of renewable technologies and distributed power systems in underserved communities represents one of the biggest opportunities for Africa’s energy sector.
“The biggest frontier remains the 600 million Africans without access to energy. This is a vast opportunity for decentralised renewable solutions,” he said.
To ensure long-term sustainability, Stokman called for stronger regional integration through cross-border gas pipelines and harmonised regulatory frameworks within ECOWAS and the Southern African Development Community (SADC).
He also encouraged African nations to diversify their investments beyond traditional oil and gas into Battery Energy Storage Systems (BESS), LPG bottling plants, and CNG compression facilities.
In his closing remarks, Stokman urged downstream operators to adopt pay-as-you-go energy models, establish local micro-depots, and leverage data-driven tools to reduce costs and improve efficiency.
“Companies must explore cross-border partnerships, strategic acquisitions, and collaborations with financiers and technology firms,” he said.
He also highlighted the importance of focusing on green hydrogen, decentralised solar systems, and energy storage solutions as critical components for achieving a more sustainable and resilient energy future.
Stokman’s comments come as the Nigerian government continues to push for full deregulation and market-led reforms aimed at improving transparency, efficiency, and private sector participation in the petroleum industry.
Industry observers say the momentum created by subsidy removal and the operational readiness of the Dangote Refinery are likely to accelerate digital and sustainable innovation across the downstream segment, positioning Nigeria as a regional energy hub in the coming years.
