-Felix Douglas
The Major Energies Marketers Association of Nigeria (MEMAN) and S&P Global Energy have called for a transparent, competitive and resilient petroleum market in Nigeria, emphasising credible pricing benchmarks, efficient distribution and improved supply coordination.
The call was made during MEMAN’s Third Quarter Press Engagement, organised through its Industry Competency Centre in partnership with S&P Global Energy, to examine developments in global and West African refined petroleum markets and explore ways to strengthen Nigeria’s domestic petroleum distribution framework.
The webinar featured presentations by S&P Global Energy on global market trends and the importance of credible regional pricing benchmarks, alongside MEMAN’s recommendations for improving the structure, transparency and efficiency of the domestic downstream petroleum market.
Speaking during the engagement, MEMAN Executive Secretary and Chief Executive Officer, Clement Isong, outlined measures to improve supply security, pricing predictability and distribution efficiency while encouraging fair competition among market participants.
He said Nigeria’s petroleum market requires better coordination of domestic refinery output and imported with imported products serving as a buffer to address supply gaps and disruptions.
Isong also stressed the need for transparent pricing mechanisms that would help marketers manage market volatility without resorting to government-imposed price caps.
According to him, clearer bulk supply arrangements, including defined terms for product access, pricing, delivery schedules and contractual obligations would improve market efficiency and reduce uncertainties for operators.
He further highlighted the importance of better inventory visibility, adequate storage capacity, coordinated transportation and effective contingency planning in strengthening the resilience of the domestic petroleum distribution network.
The MEMAN chief executive also called for transparent market data, non-discriminatory access to products and efficient regulatory processes to promote fair competition and improve industry performance.
He emphasised that maintaining product quality, ensuring accurate measurement and delivering the quantities customers pay for are essential to building consumer confidence in the downstream petroleum market.
Isong commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its efforts in promoting product quality, digitalising licensing processes, publishing useful market data and advancing measures to encourage fair competition.
On pricing, MEMAN maintained that arbitrary government-imposed price caps are not the solution to Nigeria’s petroleum market challenges.
Instead, the association advocated market-driven pricing, efficient distribution systems and targeted measures to address supply bottlenecks and reduce operating costs.
It noted that a properly structured market should encourage competition, strengthen supply security and deliver better outcomes for consumers without relying on government-imposed price controls or broad-based fuel subsidies.
Earlier, representatives of S&P Global Energy, including Gary Clark, Associate Editorial Director, EMEA Clean Refined Products, and Matthew Tracey-Cook, Lead Specialist, Africa Refined Products Pricing, examined developments in global refined petroleum markets and the need for stronger regional pricing benchmarks.
Their presentations highlighted how geopolitical tensions, refining disruptions and changing global supply dynamics have contributed to price volatility, particularly in middle distillates such as diesel and aviation fuel.
The experts underscored the importance of developing pricing references that accurately reflect the realities of the West African market.
They highlighted the FOB West Africa (FOBWAF) and STS Lomé assessments as reference points for domestically supplied and imported refined petroleum products, respectively.
According to the discussions, building a credible West African reference market will require greater transparency, reliable market data and wider adoption of the benchmarks by industry participants.
The engagement also examined the role of technology and alternative energy in improving operational efficiency and reducing distribution costs.
Participants identified compressed natural gas (CNG) as an opportunity to reduce transportation costs, while greater automation across depots, trucks and filling stations could improve operational control and efficiency.
Improved transportation infrastructure and automated measurement systems were also identified as important tools for reducing product losses, enhancing measurement accuracy and strengthening consumer trust.
The session was moderated by Ogechi Nkwoji, Head of Economic Intelligence, Research and Regulation at MEMAN.
The discussions reinforced the need for a competitive petroleum market supported by credible pricing benchmarks, coordinated supply arrangements, efficient distribution infrastructure and fair regulation.
For Nigeria, developing a stronger domestic distribution framework alongside a credible West African reference market could improve supply resilience, support market participants and enhance consumer confidence.
The overarching objective, participants noted, is to build a more efficient and resilient downstream petroleum industry in which prices reflect market realities and improved operational efficiency helps eliminate avoidable costs.
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