The Chairman of the Major Energies Marketers Association of Nigeria (MEMAN), Mr Huub Stokman has sought collaboration among oil and gas downstream stakeholders for quality services and affordable prices.
The position was canvassed by Stokman during a webinar Zoom meeting with stakeholders on Tuesday in Lagos.
The title of the MEMAN webinar is “Optimising the Nigerian Oil and Gas Industry”.
Stokman, who outlined the key challenges and opportunities in Nigeria’s energy sector, stressed the importance of unity among businesses, government agencies, and regulatory bodies.
He noted that this unity would help to ensure that services and products remained affordable.
The chairman said, “Our primary focus should be on our customers.
“While running our organisations is important, our ultimate responsibility is to deliver quality goods and services.”
He highlighted the necessity for a customer-centric approach, focusing on energy security, efficient distribution, and competitive market practices.
Stokman also noted the need for better infrastructure, such as roads and pipelines, to improve product distribution across Nigeria.
He pointed out ongoing issues like product hoarding, regulatory fragmentation, and high operating costs due to inflation and inadequate logistics, which hinder industry efficiency.
Stokman advocated for increased investment in technology and automation to streamline operations and enhance the energy supply chain.
He praised Nigeria’s progress in expanding refining capacity, which strengthens energy security and reduces import dependency.
He also addressed the importance of energy transition and environmental sustainability, urging a shift towards Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and renewable energy sources, including solar power and electric vehicle (EV) infrastructure.
To guide the sector’s future, Stokman proposed forming consultative committees similar to Nigeria’s Bankers Committee.
He said that the committees would provide strategic oversight and foster a collaborative approach to industry challenges, enhancing regulatory compliance and operational efficiency.
The CEO of Rainoil Ltd., Mr Gabriel Ogbechie discussed the “seismic shift” in the downstream sector due to recent fuel price increases.
He noted that the price of Premium Motor Spirit (PMS) has surged by 60 per cent to approximately N1,230 per litre, reflecting a move towards deregulation.
Ogbechie, however, cited discrepancies in pricing at Nigerian National Petroleum Corporation (NNPC) stations, adding that they were still below market rates.
Ogbechie also addressed the anticipated impact of the Dangote Refinery on market dynamics, emphasising the need for a level playing field.
With rising fuel prices, he called for increased investment in EV infrastructure, such as charging ports, to support the transition to alternative energy sources.
He expressed concern over Nigeria’s slow adoption of EVs compared to other markets and urged stakeholders to invest in supporting infrastructure.
Additionally, Ogbechie noted a shift in gas sector demand, with a significant increase in the demand for Liquefied Petroleum Gas (LPG).
He highlighted Rainoil Ltd.’s investment in LPG storage as an example of adapting to changing market demands.
The President of the Petroleum Retail Outlet of Nigeria, Dr Billy Gillis-Harry discussed the benefits of deregulation, including increased efficiency, government revenue, and regular availability of petroleum products.
He urged the industry to move away from regulation and fully embrace deregulation to achieve these benefits.
Also, Executive Secretary, African Refiners and Distributors Association (ARDA), Mr Anibor Kragha spoke on Nigerian energy security, while emphasising the need for value addition in the midstream and downstream sectors.
He highlighted infrastructure challenges in Africa, such as shallow drafts, congested berths, and reliance on road transport, which lead to higher consumer prices, stockouts and other issues.
Kragha referenced the 2024 Puma/CITAC White Paper, which analysed infrastructure realities and their impact on meeting Africa’s growing energy demand.