Experts and industry stakeholders have renewed calls for deepened regulatory reforms and effective implementation of competition policies to improve Nigeria’s economic performance, address inflationary pressures and foster industrial efficiency.
At the quarterly press engagement organised by the Major Energies Marketers Association of Nigeria (MEMAN), yesterday, the association raised concerns over potential unfair standards in Nigeria’s deregulated downstream sector, warning that innovations such as the compressed natural gas (CNG) trucks must be supported with inclusive infrastructure development to ensure fairness.
MEMAN’s Chief Executive Officer, Clement Isong, said CNG adoption in fuel distribution could reduce logistics costs by as much as 40 per cent. However, he cautioned that the uneven spread of CNG refilling infrastructure may create distortions, favouring a few dominant players and undermining healthy competition.
He urged regulators to accelerate infrastructure rollout and encouraged MEMAN members to explore additional efficiency models such as solar-powered stations and logistics pooling to reduce operating costs.
The stakeholders also raised concerns about market concentration with the Dangote Refinery’s entry into fuel distribution. While acknowledging the facility’s potential to enhance supply chain efficiency, they warned of dominance risks.
MEMAN’s Secretariat pledged to conduct a review of the refinery’s logistics framework to assess its competitive implications. Setting the tone for discussion, MEMAN Chairman, Huub Stokman, underscored the need for fair and open competition in the new market environment, calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to enforce consistent oversight and protect consumers.
Speaking on the theme titled “Fair and Healthy Competition,” Samer Matta, a senior economist at the World Bank, emphasised that competition was a critical driver of innovation, productivity and job creation, particularly in economies grappling with high inflation and sluggish growth.
Highlighting international benchmarks, Matta explained that Nigeria performs poorly on global competition indices compared to peers such as South Africa, India and Indonesia. He attributed this to outdated policies, inconsistent trade regulations and barriers to entry that stifle market-based competition.
