As Nigeria’s petroleum downstream sector continues to undergo critical transformation, stakeholders have raised alarms over the growing threat of monopoly and called on regulatory agencies to urgently step in to ensure a competitive and consumer-friendly market environment.
This call was made during the second-quarter webinar and stakeholder engagement session organised by the Major Energies Marketers Association of Nigeria (MEMAN), which gathered journalists, industry experts, and players to assess the evolving structure of Nigeria’s oil and gas market, especially in the wake of large-scale private investments such as the Dangote Refinery.
At the core of the deliberations was the concern that unchecked dominance by a single player in the downstream space could stifle fair competition, weaken consumer protections, and destabilise price equilibrium—particularly in a deregulated market environment.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) were called upon to enhance their oversight frameworks and prevent market concentration that could undermine fair competition.
Samer Matta, Senior Economist at the World Bank, highlighted that competition has proven to be a vital driver of consumer welfare, improved service delivery, and innovation. Citing experiences from other sectors, he noted that market concentration remains a problem in Nigeria, and urged regulatory bodies to deploy competitive assessments as a core function.
“Healthy competition benefits both firms and households by lowering costs and encouraging innovation,” Matta said. “In deregulated environments like the downstream petroleum sector, strong governance is essential to guard against market abuse and ensure inclusivity.”
With the Dangote Refinery now positioned as a dominant player in the sector, participants agreed that while its operation could improve efficiency and reduce dependence on imports, the absence of regulatory guardrails could result in supply chain dominance and anti-competitive behavior.
Huub Stokman, MEMAN Chairman, stated that deregulation presents opportunities for innovation, efficiency, and expansion, but warned that unchecked dominance can reverse those gains.
“Regulators like FCCPC and NMDPRA must remain vigilant and proactive to ensure a level playing field,” he said. “Without fair competition, consumers will bear the brunt through pricing distortions and limited choices.”
Drawing parallels from telecoms, banking, and aviation, Francis Anatogu, CEO of Transaharan and the inaugural Executive Secretary of the AfCFTA National Office, stressed the importance of market competitiveness in driving service delivery and consumer options.
He urged regulators to improve their coordination mechanisms, establish clear dispute resolution channels, and ensure transparency in operations, especially for new and smaller players entering the market.
Clement Isong, CEO of MEMAN, brought attention to infrastructure disparities, particularly in the Compressed Natural Gas (CNG) distribution segment. While he praised the adoption of CNG trucks for reducing fuel transport costs by up to 40%, he warned that limited access to CNG infrastructure could skew the competitive balance in favour of better-positioned firms.
Isong advocated for inclusive access to critical infrastructure, such as refuelling stations and logistics hubs, and urged member companies to adopt sustainability models like solar-powered stations and shared logistics systems to reduce operational costs while maintaining market equity.
The general consensus among stakeholders was clear: Nigeria’s downstream oil sector must not fall into the hands of a single dominant player, no matter how efficient or well-capitalised. The future of the industry, they argued, hinges on competitive fairness, innovation, and consumer protection—all of which require robust and responsive regulation.
The event closed with a resounding call to regulators to anticipate emerging market dynamics and align policy interventions accordingly. With Nigeria’s energy transition strategy and private sector involvement intensifying, stakeholders insist that only a balanced and inclusive market framework can deliver on the promises of deregulation.