The Major Energies Marketers Association of Nigeria (MEMAN) has reaffirmed its commitment to a deregulated and competitive energy market at its Q1 2025 Press Training & Engagement. The event, themed “Refinery Basics, Gasoline Pricing & Trade Flows in Nigeria,” featured industry experts who provided insights into Nigeria’s evolving petroleum sector.
The engagement, which brought together key stakeholders and journalists, featured presentations by Engr. Mark Williams, FNSE, FNSChE, a petroleum refining expert, and James Gooder, Vice President, Crude Oil, Argus Media. Williams provided an in-depth overview of refining processes, while Gooder discussed gasoline pricing and trade flows, emphasizing the impact of global pricing mechanisms on Nigeria’s downstream sector.
MEMAN highlighted that the implementation of the Petroleum Industry Act (PIA) is progressing steadily, with ongoing discussions expected as part of the sector’s transition. The association stressed that the move from a state-controlled system to a market-driven one will enhance efficiency, transparency, and economic growth.
However, the transition comes with challenges, including resistance from those accustomed to price controls. MEMAN emphasized that the market must be allowed to determine product flows and pricing, noting that refining and importation should coexist for optimal efficiency.
“Blending products is normal. It ensures that fuel meets the right specifications. The market should dictate product flows to ensure efficiency,” said Clement Isong, CEO of MEMAN.
He further explained that while local refining is crucial, complete reliance on it is not advisable. Importing fuel, when necessary, helps maintain price stability and ensures supply adequacy.
“We cannot afford to shut out imports entirely, just as we cannot afford to neglect local production. A balanced approach will ensure that Nigerians benefit from fair prices and steady supply,” Isong added.
The discussions also touched on the quality of fuel products in the market, particularly the presence of sulfur in diesel. According to MEMAN, maintaining quality standards is critical, and regulatory agencies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) must ensure consumer protection and industry fairness.
Dangote Refinery was highlighted as the only facility in Nigeria currently equipped to produce ultra-low sulfur diesel (50ppm). However, concerns were raised about products with higher sulfur content being allowed in the market.
“Sulfur emissions are harmful to human health. As we upgrade our refining capabilities, regulatory oversight must be strict to protect consumers,” Isong stated.
The session also explored Nigeria’s role in the global oil market, emphasizing the need for flexibility in crude sourcing. Experts noted that Nigerian refineries should consider importing certain types of crude when economically viable, just as they export premium Nigerian crude to international markets.
“Nigerian crude is valuable globally. If we can sell it at a premium and import cheaper crude for refining, it makes economic sense,” Gooder explained.
He pointed out that refineries worldwide, including those in Africa and Europe, have adapted to market fluctuations by optimizing crude sourcing strategies.
MEMAN reiterated that Nigeria’s energy sector must continue adapting to market realities while ensuring robust regulatory oversight. The association dismissed calls for a return to fuel subsidies, stating that a deregulated market remains the best path forward.
“Subsidies are unsustainable. We must focus on making the market work efficiently while protecting consumers through strong regulation and competition,” Isong concluded.
With ongoing market reforms, MEMAN remains committed to supporting policies that promote efficiency, competition, and consumer welfare in Nigeria’s petroleum sector.