The Major Energy Marketers Association of Nigeria (MEMAN) says the removal of fuel subsidy has paved the way for deregulation, driving innovation and digital transformation across Nigeria’s downstream oil and gas sector.
According to PUNCH Online, President Bola Tinubu, in his Independence Day address marking Nigeria’s 65th anniversary, had acknowledged that ending the fuel subsidy was a tough but necessary step to stabilise the economy and ensure equitable wealth distribution.
Speaking at the OTL Africa Downstream Week 2025 in Lagos on Wednesday, MEMAN Chairman, Mr. Huub Stokman, said deregulation is reshaping the market, fostering competition, and enabling private players to explore new business models such as Energy-as-a-Service, Virtual Power Plants, and peer-to-peer energy trading.
“The downstream environment is evolving rapidly. With the Dangote Refinery coming onstream, dependence on imported products is falling, reshaping local supply,” he said.
Stokman highlighted that natural gas is increasingly being recognised as a cleaner transition fuel, with rising demand for Compressed and Liquefied Natural Gas across various sectors. He added that the industry is embracing sustainable and digital solutions — including solar, biofuels, and advanced monitoring systems — to enhance efficiency.
However, he noted that investor confidence and long-term sectoral growth depend on regulatory clarity and stability.
“Significant investment is still required in refining, storage, distribution, and low-carbon infrastructure to meet Nigeria’s energy transition goals,” he stated.
Describing Africa’s energy landscape as facing a “dual reality,” Stokman said the continent must tackle energy poverty while adapting to cleaner global standards.
“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 further noted that decentralisation and digitalisation are transforming the energy ecosystem, with renewables expanding access in underserved areas.
“The biggest frontier remains the 600 million Africans without energy access. This is a vast opportunity for decentralised renewable solutions,” he added.
To ensure sustainability, Stokman urged African nations to integrate regionally through cross-border gas pipelines and harmonised regulations within ECOWAS and SADC. He also called for diversification into Battery Energy Storage Systems, LPG bottling, and CNG facilities.
He advised downstream operators to adFuel subsidy removal boosts energy innovation, says MEMANopt pay-as-you-go models, micro-depots, and data-driven operations to cut costs and boost efficiency, while encouraging strategic partnerships with financiers and tech innovators.
Stokman stressed the importance of investing in green hydrogen, decentralised solar, and energy storage systems to enhance customer value and ensure a sustainable energy future.
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