Uche Cecil Izuora
The Major Energies Marketers Association of Nigeria (MEMAN) has acknowledged short-term market disruptions in the petroleum sector but expressed optimism that a fully deregulated market will ultimately attract more investment, enhance efficiency, and foster competition benefiting both businesses and consumers
The Association therefore reaffirmed belief that the implementation of the Petroleum Industry Act (PIA) remains firmly on track, despite ongoing debates and adjustments in the sector.
Speaking at a media event on Wednesday in Lagos. Clement Isong, chief executive officer of MEMAN, stated that while challenges persist, the shift from a state-controlled petroleum market to a competitive, deregulated system is crucial for long-term efficiency, transparency, and economic growth.
Isong, also argued that nothing is wrong with supporting in-country refining with import substitution as that will guarantee efficiency in the system.
He emphasised that such discussions are a natural part of transitioning to a deregulated, market-driven energy sector.
“The transition requires patience, adaptation, and trust,” Isong said. “As the market stabilizes, we expect resistance from those accustomed to price controls, but these are necessary growing pains for a more sustainable energy sector.”
Mark Williams, a petroleum refining expert, delivered an in-depth presentation on the fundamentals of refining crude oil, the types of refineries, and the key processes involved.
James Gooder, vice president, crude oil, Argus Media, led a session on gasoline pricing and the benefits of adopting trade and product flows, highlighting how global pricing mechanisms influence Nigeria’s downstream market.
The PIA, signed into law in 2021, aims to overhaul Nigeria’s oil and gas industry by encouraging private investment, improving regulation, and phasing out fuel subsidies. However, the shift has faced resistance from some stakeholders and consumers wary of fluctuating fuel prices.
MEMAN acknowledged that short-term disruptions are inevitable but stressed that a fully deregulated market will ultimately attract more investment, enhance efficiency, and foster competition benefiting both businesses and consumers.
The association expressed strong support for regulatory bodies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC), urging them to maintain focus on market stability and consumer protection.
“A fair and well-regulated marketplace is essential for building public confidence in these reforms,” Isong noted. “Regulators must remain vigilant against anti-competitive practices while ensuring a smooth transition.”
MEMAN called for continued collaboration between the government, private sector, and consumers to ensure the PIA’s success. The association also highlighted the need for public awareness campaigns to educate Nigerians on the long-term benefits of deregulation.
As Nigeria navigates this critical phase of energy sector reform, MEMAN remains optimistic that the PIA will deliver its promised advantages—including increased investment, better infrastructure, and a more competitive market.
“With robust regulation and industry cooperation, Nigeria can fully realize the potential of this transformation,” Isong added.