Major Energies Marketers Association of Nigeria (MEMAN) has disclosed that amidst the global oil tension, Nigeria stands at a strategic crossroads, with potential to emerge as a reliable global energy partner if structural bottlenecks are addressed decisively.
MEMAN Chairman, Huub Stokman, stated this at a high-level webinar convened on Wednesday, hosted by MEMAN with S&P Global Energy.
The session examined Middle East tensions, supply security risks, and Nigeria’s transition to a deregulated downstream regime.
He described the crisis as a “double-edged reality” shaping opportunities for producers while intensifying pressure on downstream operators and consumers.
Stokman cited pipeline insecurity, regulatory opacity, and infrastructure deficits as key constraints limiting Nigeria’s ability to fully capitalise on current market dynamics.
He pointed out that domestic refining growth, especially the Dangote Refinery, were buffers against shocks, even as he warned of risks linked to supply concentration.
In spite of improvements, Stokman said domestic fuel prices remained tied to global trends, with adjustment delays often driven by inventory cycles and working capital pressures.
He disclosed that Nigeria maintained over 30 days of petrol supply, with NNPC Ltd. continuing to act as supplier of last resort.
While noting that West Africa’s downstream petroleum sector is proving resilient in spite of escalating geopolitical tensions, the forum acknowledged that the global oil market remains fragile, with disruptions to Iranian output and threats around the Strait of Hormuz unsettling supply chains and pricing stability.
Stokman noted rising volatility, surging shipping and insurance costs, and rapid shifts in sourcing as countries scrambled to secure alternative crude supplies.
From a global perspective, S&P Global’s Gary Clark warned that refined product markets are tightening amid rising margins for diesel and jet fuel.
Clark attributed the surge to supply disruptions and heightened risk premiums, alongside costly vessel diversions around the Cape of Good Hope.
He said these detours were tightening supply further and inflating freight costs, particularly across European markets already under strain.
Stanislas Drochon, Head of Fuels and Refining, S&P Global Energy, warned Sub-Saharan Africa remained highly vulnerable due to import dependence, weak refining capacity, and limited storage infrastructure.
On Nigeria’s deregulation path, Joe Nwakwue, CEO, Zera Advisory and Consulting Ltd., described the shift as necessary but turbulent, marked by price volatility and structural realignment, adding that expanding domestic refining would not shield prices from international benchmarks, stressing the need for a transparent and competitive market framework.
