PIA implementation is on track — MEMAN
The Major Energy Marketers Association of Nigeria (MEMAN) has affirmed that the implementation of the Petroleum Industry Act (PIA) remains on course, despite ongoing discussions regarding its impact on the sector.
The Executive Secretary of MEMAN, Mr Clement Isong, made this known during the association’s first-quarter media training and engagement session in Lagos on Thursday.
The event, themed “Refinery Basics, Gasoline Pricing, and Trade Flows in Nigeria,” brought together energy correspondents to examine the ongoing transformation of the nation’s energy landscape.
Isong underscored that while debates over the PIA were inevitable in any major industry shift, they should be embraced as part of the natural progression towards a market-driven energy sector.
He emphasised that the transition from a state-controlled framework to a competitive, deregulated market was essential for enhancing efficiency, ensuring transparency, and fostering long-term economic growth.
“Such a shift demands patience, adaptability, and trust.
“As the market stabilises, challenges will undoubtedly arise, and resistance from those accustomed to price controls is to be expected.
“However, with robust regulation, industry cooperation, and public accountability, Nigeria stands to gain immensely from this transformation,” Isong stated.
He went on to explain that a well-regulated, open market would attract increased investment, improve operational efficiency, and create a more competitive environment that ultimately benefits both businesses and consumers.
Isong also underscored the vital role of regulatory bodies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) in ensuring fairness and transparency within the industry.
He urged these agencies to prioritise market stability, safeguard consumer interests, and build public trust in the reform process.
“Engagements like this, which encourage industry dialogue and thought leadership, are crucial for market expansion and sectoral development.
“MEMAN firmly believes that these conversations are fundamental to the continued advancement of Nigeria’s energy sector,” he added.
During the session, Mr James Gooder, Vice President of Crude Oil at Argus Media, examined the effects of local refining on Nigeria’s fuel market.
He acknowledged that while Dangote’s refinery represents a significant milestone, it does not dominate the West African market, as alternative import options remain viable.
“It would not be in Nigeria’s best interest to transition from an NNPC monopoly to a Dangote monopoly under a fully deregulated market structure,” Gooder stated.
He further noted that despite an increase in domestic refining, petroleum imports into Nigeria have continued.
While recognising the refinery’s influence, he pointed out that its production capacity had not yet reached its full potential.
As a result, he stated that imported fuel would continue to play a crucial role in meeting national demand.
Gooder also noted that the commencement of crude oil refining at Dangote Refinery in November 2023 (or 2024, if that is the accurate timeframe) has altered market dynamics and helped curb fuel smuggling to neighbouring countries.
“By combining deregulation with local refining, Nigeria’s fuel market has become more transparent, significantly reducing the illicit export of petrol to Cameroon and Niger.
“The competition between Dangote and fuel importers has contributed to a gradual decrease in petrol prices, with current rates in Lagos ranging between N868 and N870 per litre,” Gooder explained.
He further highlighted a decline in Nigeria’s petrol consumption, leading to more efficient usage and a reduced dependency on imports.
“Notably, Nigeria has now begun exporting substantial volumes of Premium Motor Spirit (PMS) to the global market—a development that would have seemed implausible just a few years ago,” he added.
Mr Mark Williams, a petroleum refining expert, also delivered a presentation on refining fundamentals.
He urged the NMDPRA to regulate the circulation of petroleum products from “topping refineries”—basic facilities that lack the technological sophistication required to meet modern standards for lead and sulphur content in fuels.
“Topping refineries produce substandard fuel products that are no longer viable in the market.
“These facilities lack the necessary support operations and fail to meet both domestic and international regulatory specifications,” Williams explained.
Williams drew attention to the health risks associated with sulphur emissions in fuels, which can result in the release of harmful sulphur oxides.
He highlighted the progress made in reducing sulphur content in diesel over the years, from levels as high as 5,000 parts per million (ppm) in the 1970s and 1980s to just 10 ppm today.
Commending NNPC for upgrading its refineries to meet the AFRI-5 standard— which limits sulphur content to a maximum of 50 ppm—he emphasised the importance of aligning with global best practices.
He concluded that as the PIA continues to take shape, MEMAN remains optimistic that the reforms will ultimately create a more efficient, transparent, and competitive energy sector, benefiting businesses and consumers alike across Nigeria.
