The removal of Nigeria’s long-standing fuel subsidy has ushered in a new era of deregulation, paving the way for significant innovation and digital transformation within the downstream energy sector, according to the Major Energy Marketers Association of Nigeria (MEMAN).
Speaking at the OTL Africa Downstream Week 2025 in Lagos, MEMAN Chairman, Mr. Huub Stokman, stated that the policy shift has redefined the market. He explained that it enables private players to compete, invest, and innovate across the entire energy value chain.
During a panel on market access, Stokman highlighted that this new competitive landscape is already driving new, efficient models such as Energy-as-a-Service, Virtual Power Plants, and peer-to-peer energy trading.
A Market in Transition
The MEMAN chairman noted that the downstream environment is evolving rapidly on multiple fronts:
- Local Supply: With the Dangote Refinery coming onstream, Nigeria’s dependency on imported petroleum products is falling, which is reshaping local supply dynamics.
- Cleaner Fuels: Policymakers are increasingly viewing natural gas as a key transition fuel, leading to rising demand for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) across various sectors.
- New Technology: The industry is actively adopting sustainable and digital technologies, including solar power, biofuels, and advanced monitoring systems, to enhance operational efficiency.
Navigating Africa’s “Dual Reality”
Stokman described the continent’s energy sector as facing a “dual reality”: the critical need to fight energy poverty while simultaneously adapting to the global shift toward cleaner energy sources.
“Natural gas, whether LNG, LPG, or CNG, remains crucial for Africa’s transition, offering a cleaner option while driving industrialisation and energy access,” he said.
He pointed out that decentralisation and digitalisation are reshaping energy systems, with renewable technologies enabling distributed power in underserved areas. “The biggest frontier remains the 600 million Africans without energy access,” Stokman stated. “This is a vast opportunity for decentralised renewable solutions.”
The Path Forward: Investment and Integration
While the new policies are promising, Stokman stressed that regulatory clarity and stability are vital to maintain investor confidence and ensure long-term growth.
He called for significant new investment in refining, storage, distribution, and low-carbon infrastructure to meet Nigeria’s energy transition goals.
To achieve a sustainable energy future, the MEMAN chairman offered several key recommendations:
- Regional Integration: He called for harmonised regulatory frameworks within ECOWAS and SADC, supported by cross-border gas pipelines.
- Diversify Investments: Stokman urged nations to look beyond oil and gas and invest in Battery Energy Storage Systems (BESS), LPG bottling plants, and CNG compression facilities.
- Adopt New Models: He encouraged downstream firms to use pay-as-you-go models, establish local micro-depots, and leverage data-driven tools to cut costs.
- Strategic Partnerships: Companies were advised to explore cross-border collaborations, acquisitions, and partnerships with financiers and technology firms.
- Prioritise New Tech: Finally, he stressed that priority should be given to high-potential solutions like green hydrogen, decentralised solar, and energy storage to enhance customer value and sustainability.
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