By Suleiman Aremu | Solaremnews | Thursday 15, October, 2026
The Major Energies Marketers Association of Nigeria (MEMAN) and S&P Global Energy have called for a transparent, competitive and efficient petroleum market in Nigeria, emphasising the need for credible regional pricing benchmarks, coordinated supply arrangements and improved distribution infrastructure.
The organisations also stressed that government-imposed arbitrary price caps are not the solution to the challenges facing the downstream petroleum sector, advocating market-driven pricing mechanisms, reduced operating costs and measures to address supply bottlenecks.
The positions were highlighted during MEMAN’s Third Quarter Press Engagement, held virtually on Thursday, October 15, 2026, through the association’s Industry Competency Centre in partnership with S&P Global Energy.
The webinar, themed around building a reference market through pricing, market structure and distribution, featured presentations by Mr. Gary Clark, Associate Editorial Director, EMEA Clean Refined Products, S&P Global Energy; Mr. Matthew Tracey-Cook, Lead Specialist, Africa Refined Products Pricing, S&P Global Energy; and Mr. Clement Isong, Executive Secretary and Chief Executive Officer of MEMAN.
The session was moderated by Mrs. Ogechi Nkwoji, Head of Economic Intelligence, Research and Regulation at MEMAN.
During the presentations, S&P Global Energy examined developments in global and West African refined petroleum markets, including the effects of geopolitical tensions, disruptions to refining operations and changing global supply dynamics on petroleum product prices.
The presentations noted that these developments had contributed to price volatility, with middle distillates, particularly diesel and aviation fuel, experiencing significant pressure.
Against this background, the speakers emphasised the importance of developing credible regional pricing benchmarks that accurately reflect the realities of the West African petroleum market.
They explained that reliable pricing assessments, supported by transparent market information and wider industry participation, would help strengthen price discovery, improve market predictability and provide a more dependable basis for commercial transactions.
Two assessments highlighted in the discussions were the Free On Board West Africa (FOBWAF) and Ship-to-Ship (STS) Lome assessments, which provide reference points for domestically supplied and imported refined petroleum products, respectively.
The presentations stressed that building a credible West African reference market would require greater transparency, reliable market data and widespread adoption of the relevant pricing benchmarks by industry participants.
Such a framework, they noted, could improve understanding of market conditions, strengthen confidence in pricing decisions and support more efficient transactions across the regional petroleum value chain.
Speaking on Nigeria’s domestic petroleum distribution framework, Isong outlined key priorities for building a more efficient, competitive and resilient downstream market.
He identified effective supply coordination as a major requirement, stressing the importance of prioritising output from domestic refineries while using imports to bridge supply gaps and manage disruptions.
According to the framework presented, a balanced approach to domestic production and imports would help strengthen supply security, reduce the risk of disruptions and ensure that market demand is met more efficiently.
Isong also emphasised the need for greater pricing predictability, advocating transparent pricing mechanisms that would enable petroleum marketers to manage market volatility without relying on government-imposed price caps.
He maintained that the focus should be on market-driven pricing, efficient distribution and measures to address supply constraints and reduce operating costs rather than interventions that distort market prices.
On bulk supply arrangements, the MEMAN chief executive called for clearer terms governing product access, pricing, delivery schedules and contractual obligations.
He stressed that well-defined commercial arrangements would improve coordination between suppliers and marketers, reduce uncertainty and support smoother transactions within the downstream petroleum market.
The presentations further highlighted the need to improve distribution efficiency through better inventory visibility, increased storage capacity, coordinated transportation and effective contingency planning.
These measures, the speakers noted, would help industry participants manage stocks more effectively, respond to supply disruptions and reduce avoidable costs associated with the movement and storage of petroleum products.
Fair competition and effective regulation were also identified as essential to the development of a sustainable domestic market.
The framework called for transparent market data, non-discriminatory access to petroleum products and efficient regulatory processes to ensure that market participants operate under fair and predictable conditions.
The presentations further underscored the importance of product quality, accurate measurement, quantity assurance and customer service in strengthening consumer confidence in the downstream petroleum sector.
Marketers and other industry participants were urged to uphold product quality standards, ensure that customers receive the quantities they pay for and maintain high service standards.
These measures, according to the discussions, are necessary to improve accountability, protect consumer interests and build trust in the petroleum distribution system.
Isong commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for progress in promoting product quality, digitalising licensing processes, publishing useful market data and advancing measures aimed at fostering fair competition.
He acknowledged the importance of these regulatory initiatives in improving transparency and supporting the development of a more structured petroleum market.
However, MEMAN reiterated its position that arbitrary government-imposed price caps would not resolve the underlying challenges confronting the sector.
Instead, the association advocated transparent, market-driven pricing, more efficient distribution arrangements and practical measures to remove supply bottlenecks and lower operating costs.
The position reflects the need for a market structure in which prices respond to prevailing market conditions while improved operational efficiency helps reduce unnecessary costs across the supply chain.
According to the framework discussed, a properly structured market should encourage competition, strengthen supply security and deliver better outcomes for consumers without depending on government-imposed price controls or broad-based fuel subsidies.
The webinar also examined the role of technology and alternative energy in improving the efficiency of Nigeria’s petroleum distribution network.
Greater adoption of Compressed Natural Gas (CNG) was identified as an opportunity to reduce transportation costs, while automation across depots, petroleum tankers and filling stations was highlighted as a means of improving operational efficiency.
The discussions noted that automation could reduce product losses, improve measurement accuracy and strengthen accountability in the handling and delivery of petroleum products.
Improved transportation infrastructure was also identified as an important requirement for reducing distribution constraints and ensuring the timely movement of products from supply points to end users.
The speakers stressed that investment in infrastructure, technology and better operational practices would complement improvements in pricing transparency and supply coordination.
Overall, the engagement reinforced the importance of developing a transparent and competitive petroleum market supported by credible pricing benchmarks, coordinated supply arrangements, efficient distribution infrastructure and fair regulation.
For Nigeria, the development of a stronger domestic distribution framework alongside a credible West African reference market could improve supply resilience, support petroleum marketers and other market participants, and enhance consumer confidence.
The broader objective is to establish a more efficient, competitive and resilient downstream petroleum industry in which prices reflect market realities and operational improvements help minimise avoidable costs.
The discussions also underscored the need for collaboration among regulators, marketers, suppliers and other industry stakeholders to improve market transparency, strengthen supply security and create a more dependable petroleum distribution system for Nigerian consumers.
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