- MEMAN, World Bank, Transaharan Underscore the Role of Healthy Competition in Driving Growth
In a strategic convergence of thought leadership and policy advocacy, the Major Energies Marketers Association of Nigeria (MEMAN), alongside a senior economist of the World Bank and key industry stakeholders, has reiterated the necessity for a fair, transparent, and competitive market environment in Nigeria’s rapidly evolving energy sector.
At MEMAN’s Quarterly Press Webinar and Engagement held on June 19, 2025, the focus was clear: as Nigeria deepens its transition into a deregulated downstream petroleum market, maintaining a healthy balance between investment growth and market fairness is crucial for sustainable progress.
The virtual session, themed “Fair and Healthy Competition,” featured contributions from high-level speakers including Samer Matta, Senior Economist at the World Bank, and Francis Anatogu, CEO of Transaharan and former Executive Secretary of the AfCFTA National Office.
These experts, alongside contributions from MEMAN leadership, dissected how deregulation, if not matched with effective oversight and equitable access, could tip the scales of competition and undermine consumer interests.
Competition Framework and Regulatory Oversight
Delivering the welcome address, MEMAN Chairman, Mr. Huub Stokman, stressed the importance of balancing the opportunities presented by deregulation with robust oversight to prevent monopolistic behavior. He called on agencies such as the FCCPC and NMDPRA to step up their roles in preserving market integrity, ensuring fair access, and protecting consumer interests.
In his presentation titled “Catalysing Competition in Nigeria”, Samer Matta provided a critical economic lens to the conversation, stating that many Nigerian industries—energy included—remain overly concentrated, dampening innovation and inflating prices for end-users.
Matta affirmed that protectionist policies, regulatory instability, and weak enforcement deter competition and suppress investor confidence. Drawing comparisons with peer countries like South Africa and Indonesia, he urged Nigerian policymakers to implement clear, pro-competition policies and eliminate barriers that discourage market entry and innovation.
“Breaking down barriers to competition and fostering an environment responsive to market forces will be vital for Nigeria’s economic resilience,” Matta stated. “We need to reduce protectionist measures, support regulatory neutrality, and build institutional strength to enforce fair competition laws.”
Matta further noted that monopolies and market concentration remain pervasive in key Nigerian sectors; stating that historically, Nigeria’s industrial policy has created significant distortions to competition. These distortions revolve around:
- Unequal access to privatization favouring connected firms
- Trade and investment protectionism and import substitution policy
- Influence of large incumbent players over industrial policy and regulation
Innovation Welcome, But Oversight is Essential
Interestingly, Francis Anatogu, CEO of Transaharan and a key architect of Nigeria’s AfCFTA strategy, echoed these sentiments, drawing parallels from other sectors like telecommunications and aviation. He underlined the importance of transparent market entry rules, defined dominance thresholds, and protection mechanisms for SMEs, all of which are vital for healthy market dynamics.
Anatogu opined that competition remains the bedrock of any successful economic sector and should be encouraged. He however noted there remained gaps which have created challenges to effective and fair competition.
These include:
- Limited Enforcement Capacity: Insufficient resources to monitor large markets effectively.
- Low Public Awareness: Many consumers and MSMEs remain unaware of their rights and the FCCPC’s role.
- Jurisdictional Overlaps: Regulatory conflicts with sector-specific regulators (e.g., NCC, NERC).
- Data and Intelligence Gaps: Limited access to real-time market data to detect violations early.
- Slow Judicial Processes: Enforcement of sanctions often delayed due to legal system bottlenecks.
Regulatory Coordination
A key issue was the impact of large infrastructure projects, notably the Dangote Refinery, which, while promising improved supply chain efficiency, has raised concerns over potential market concentration.
In response, MEMAN announced plans to conduct an internal review of Dangote’s logistics operations to assess their effect on downstream competition.
The association also stressed that while Nigeria’s deregulation opens up opportunities for investment and innovation, it must not lead to dominance or marginalization of smaller players.
MEMAN CEO Clement Isong also spotlighted the growing use of Compressed Natural Gas (CNG) trucks in petroleum distribution—an innovation that could cut delivery costs by up to 40%. However, Isong warned that unequal access to CNG infrastructure could create unfair advantages for better-capitalized operators, ultimately distorting the competitive landscape.
“We’re not against innovation. But market fairness must remain the standard,” said Isong. “We need infrastructure expansion that allows all players to benefit—especially smaller marketers and entrepreneurs.”
Media Accountability
Crucially, the media was recognized as a key stakeholder in maintaining transparency.
Journalists were encouraged to monitor and report on market practices, ensuring public accountability in Nigeria’s energy transition.
They were also encouraged to ensure they expose abuse, and continually raise awareness around evolving industry dynamics.
Looking Forward
There was emphasis on the strategic role of regulatory synergy and transparency, with contributors calling on agencies such as FCCPC and NMDPRA to play more active, coordinated roles in enforcing fair market behavior.
As Nigeria positions itself for long-term energy independence and market-led growth, MEMAN and its partners have made it clear: competition must not be an afterthought. It is the foundation upon which investor confidence, consumer protection, and economic resilience will be built.
Three major areas of engagement were highlighted to drive fair competition:
- Opening markets through pro-competition sector regulation
- Competitive neutrality and promoting a level playing field
- Ensuring effective competition law enforcement
With deregulation firmly underway, the collective calls reaffirm a growing appreciation of the challenge and urgent need for policymakers as well as players themselves to foster a level playing field where innovation and equity can thrive together.
