Huub Stokamn, Chairman, MEMAN and Managing Director/CEO of Nigeria Retail Service
The Debate has moved from debating whether petroleum products have built financial capacity to private path or whether it is building ethical markets around that capacity.
Identified essential needs related to efficient logistics, transparent prices and data, common standards and regional regulatory ratings are equally important.
Though refining does not automatically guarantee affordability, it doesn’t guarantee export or market leadership. Those outcomes depend on competition, operational reliability, institutions that make trade predictable.
Speaking on the question of refining capacity and how Nigeria can competitively sell products, Huub Stokman, Chairman of MEMAN, said at the Nigeria Oil Refining Summit (NORS), in a panel session that refiners need products assurance.
According to Stokman, refiners and marketers need supply certainty. Refiners want assurance that the products they produce will be off-taken by marketers, while marketers want confidence that the volumes agreed with refiners will be made available as committed.
On the issue of quality assurance, both parties want products that consistently meet the required quality and specifications.
Stokman emphasized on pricing predictability and competitiveness that refiners and marketers need greater predictability in pricing while ensuring that prices remain competitive relative to other refineries and import alternatives.
Beyond these three priorities, transparency of market data is essential to effectively match supply with demand. There needs to be greater visibility on production, available stocks, imports and demand across products. This will help all market participants plan effectively and ensure that the market remains adequately supplied.
Nigeria will become a regional hub where buyers across Africa choose Nigeria products because the price is credible. The quality is trusted and delivery is acceptable.
Capacity may give Nigeria the opportunity for reliability, transparency, and market integration within the international division.
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