MEMAN: Fuel Subsidy Removal Heralds New Era of Innovation in Nigeria’s Downstream Sector

• Emphasizes The Downstream Sector Has Entered New Era of Digital and Clean Energy Innovation

 

The Major Energy Marketers Association of Nigeria (MEMAN) says the removal of fuel subsidy has opened a new chapter of deregulation in Nigeria’s downstream oil and gas sector, creating fertile ground for innovative business models such as Energy-as-a-Service (EaaS), integrated multi-energy hubs, Virtual Power Plants (VPPs), and peer-to-peer (P2P) energy trading.

The association urged industry stakeholders to embrace strategic investments, partnerships, and digital transformation to boost efficiency, enhance competitiveness, and accelerate Nigeria’s transition toward a sustainable and balanced energy future.

Speaking during the OTL Africa Downstream Week 2025 in Lagos, Mr. Huub Stokman, Chairman of MEMAN, made these remarks while featuring on a panel themed “Navigating the New Frontier: Competition and Market Access in the Downstream Oil & Gas Industry.”

Stokman noted that the downstream sector has evolved rapidly following the entry of the Dangote Refinery, which is already reducing Nigeria’s import dependence and transforming domestic supply dynamics.

“We are witnessing a redefined downstream environment,” he said. “Policymakers are now recognising gas as a cleaner transition fuel, and demand for CNG and LNG continues to rise. At the same time, the industry is embracing digital and sustainable solutions—solar, biofuels, and advanced monitoring systems—to drive efficiency and improve service delivery.”

While commending the progress made, Stokman emphasized that greater regulatory clarity and policy stability are essential to mitigate investment risks and attract long-term financing.

According to him, the country requires significant capital mobilisation across refining, storage, distribution, and low-carbon infrastructure to achieve its energy diversification goals.

Describing Africa’s energy outlook as a “dual reality,” Stokman said the continent faces the twin challenge of addressing **energy poverty—impacting over 600 million people—**while advancing the global energy transition.

“We must manage both traditional fossil fuels and the rapid expansion of renewables,” he stated. “Natural gas—whether LNG, LPG, or CNG—remains a vital transition fuel, offering a cleaner substitute for heavy fuels and biomass, and enabling industrialisation and energy access across Africa.”

He added that decentralisation and digitalisation are transforming market structures, with renewable technologies powering distributed energy systems capable of reaching underserved populations.

“The biggest frontier lies in delivering energy access to the 600 million Africans currently without it. That represents a massive growth market for decentralised renewable solutions,” Stokman said.

Stokman also called for stronger regional energy integration through cross-border gas pipelines and harmonised regulatory frameworks within ECOWAS and SADC, to reduce supply vulnerabilities and leverage economies of scale.

He urged operators to look beyond oil and gas, investing in Battery Energy Storage Systems (BESS), alternative fuel infrastructure, and facilities such as specialised LPG bottling plants and CNG compression stations.

“Industry players should adopt pay-as-you-go models, develop local micro-depots, and deploy data-driven monitoring tools to reduce costs and improve operational efficiency,” he advised.

The MEMAN Chairman further encouraged companies to pursue cross-border joint ventures, strategic acquisitions, and partnerships with financiers and technology providers.

“The priority should be green hydrogen, decentralised solar projects, and expansion into BESS-as-a-Service, offering bundled LPG, CNG, and hydrogen solutions that deliver long-term customer value,” Stokman concluded.