The Major Energy Marketers Association of Nigeria (MEMAN) has said that the removal of fuel subsidy has ushered in a new era of deregulation, creating vast opportunities for innovation, investment, and digital transformation across the nation’s downstream energy sector.
During his Independence Day broadcast marking Nigeria’s 65th anniversary, President Bola Tinubu stated that ending the fuel subsidy was a difficult but essential decision aimed at rescuing the economy and ensuring that Nigeria’s wealth benefits ordinary citizens.
Speaking at the OTL Africa Downstream Week 2025 in Lagos on Wednesday, MEMAN Chairman, Mr Huub Stokman, explained that deregulation is driving the adoption of new business models such as Energy-as-a-Service, Virtual Power Plants, and peer-to-peer energy trading. These innovations, he said, are helping to boost efficiency, access, and competition within the sector.
“The downstream environment is evolving rapidly. With the Dangote Refinery coming onstream, dependence on imported products is falling, reshaping local supply,” Stokman said during a panel session titled ‘Navigating the New Frontier: Competition and Market Access in the Downstream Oil & Gas Industry’.
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He noted that policymakers increasingly view natural gas as a cleaner transition fuel, with growing demand for Compressed and Liquefied Natural Gas across multiple sectors. According to him, the industry is also embracing sustainable and digital technologies — including solar, biofuels, and advanced monitoring systems — to enhance operational efficiency and reduce emissions.
However, Stokman emphasised that regulatory clarity and stability remain vital to sustaining investor confidence and long-term growth. “Significant investment is still required in refining, storage, distribution, and low-carbon infrastructure to meet Nigeria’s energy transition goals,” he said.
Highlighting Africa’s “dual reality” of combating energy poverty while pursuing cleaner energy, Stokman urged regional cooperation through cross-border gas pipelines and harmonised regulatory frameworks under ECOWAS and SADC.
He also encouraged diversification into Battery Energy Storage Systems, LPG bottling, and CNG compression facilities, alongside exploring decentralised renewable solutions to reach the 600 million Africans currently without electricity.
“Companies must embrace digitalisation, local partnerships, and data-driven innovation to deliver affordable, sustainable energy for all,” he concluded.
