The Major Energy Marketers Association of Nigeria (MEMAN) says the removal of fuel subsidy has ushered in a new era of deregulation, opening the downstream oil and gas sector to innovation, competition, and digital transformation.
Speaking at the OTL Africa Downstream Week 2025 in Lagos on Wednesday, MEMAN Chairman, Huub Stokman, said the policy shift is catalysing advanced business models such as Energy-as-a-Service, Virtual Power Plants (VPPs), and peer-to-peer energy trading, aimed at improving energy access and efficiency across Nigeria.
During his Independence Day broadcast marking Nigeria’s 65th anniversary, President Bola Tinubu acknowledged that removing the fuel subsidy was a difficult but necessary decision to rescue the economy and redirect public wealth toward the welfare of citizens.
Stokman noted that the subsidy removal has redefined Nigeria’s downstream landscape, empowering private investors to innovate, compete, and expand operations across the energy value chain.
“The downstream environment is evolving rapidly. With the Dangote Refinery coming onstream, dependence on imported fuel is declining, reshaping local supply and encouraging domestic refining,” he said.
He explained that policymakers now see natural gas as a viable transition fuel, with rising demand for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) across industries.
According to him, energy companies are increasingly adopting sustainable and digital technologies, including solar, biofuels, and smart monitoring systems, to enhance operational performance and reduce carbon emissions.
However, Stokman emphasized that regulatory clarity and policy stability remain critical to attracting investment and sustaining growth in the sector.
“Significant investments are still needed in refining, storage, distribution, and low-carbon infrastructure to achieve Nigeria’s energy transition goals,” he added.
He described Africa’s energy market as facing a “dual challenge” — bridging energy poverty while transitioning to cleaner and more sustainable sources.
“Natural gas — whether LNG, LPG, or CNG — is central to Africa’s industrialisation and energy access journey,” Stokman stated. “Decentralisation and digitalisation are also transforming energy systems, particularly through renewables that bring power to underserved areas.”
Highlighting that over 600 million Africans still lack electricity, he called this gap a massive opportunity for decentralised renewable energy and off-grid solutions.
Stokman urged African governments to enhance regional integration through cross-border gas pipelines and harmonised regulatory frameworks within ECOWAS and SADC, to enable energy trade and investment.
He also encouraged diversification into Battery Energy Storage Systems (BESS), LPG bottling, and CNG compression facilities, while promoting pay-as-you-go models, micro-depots, and data-driven operations to cut costs and improve efficiency.
“Companies must explore strategic acquisitions, partnerships, and collaborations with financiers and tech innovators,” he said, adding that the sector must prioritize green hydrogen, solar energy, and storage technologies to drive sustainability and long-term value.
