PIA Implementation on Track, Says MEMAN
The Major Energies Marketers Association of Nigeria (MEMAN) has reaffirmed that the implementation of the Petroleum Industry Act (PIA) remains on course, despite ongoing discussions about its impact on the energy sector.
Speaking at MEMAN’s 2025 first-quarter media training and engagement in Lagos, Executive Secretary Mr. Clement Isong noted that while debates over the PIA were expected in any major industry transformation, they should be embraced as part of Nigeria’s transition toward a market-driven energy sector.
He stressed that shifting from a state-controlled system to a competitive, deregulated market was crucial for driving efficiency, transparency, and long-term economic growth.
“Such a transition requires patience, adaptation, and trust,” Isong stated. “As the market stabilizes, challenges will inevitably arise, and resistance from those accustomed to price controls is to be expected. However, with strong regulation, industry collaboration, and public transparency, Nigeria can fully realize the benefits of this transformation.”
He highlighted the role of regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) in ensuring market fairness and transparency. He urged them to focus on consumer protection and building public confidence in the reform process.
The event, themed “Refinery Basics, Gasoline Pricing, and Trade Flows in Nigeria”, brought together energy correspondents to discuss the evolution of Nigeria’s energy sector.
Dangote Refinery’s Impact and Fuel Importation
Speaking at the event, Mr. James Gooder, Vice President of Crude Oil at Argus Media, addressed the impact of local refining on Nigeria’s fuel market. While acknowledging Dangote Refinery as a major development, he pointed out that it does not dominate the West African market, as fuel importation remains active.
“It would not be beneficial for Nigeria to shift from an NNPC monopoly to a Dangote monopoly under a fully deregulated market framework,” Gooder noted.
Despite local refining efforts, imported fuel continues to play a significant role in meeting Nigeria’s demand. He explained that while Dangote Refinery has reshaped market dynamics and reduced fuel smuggling to neighboring countries, its production has not yet reached full capacity.
“By combining deregulation with local refining, Nigeria’s fuel market has become more transparent, cutting down illegal petrol exports to Cameroon and Niger,” he said.
He added that competition between Dangote and fuel importers has led to a gradual decline in petrol prices, with rates in Lagos now hovering around N868 to N870 per litre.
Gooder also noted a decline in Nigeria’s petrol demand, leading to more efficient consumption and reduced reliance on imports. He highlighted that Nigeria has begun exporting Premium Motor Spirit (PMS) to the global market, a development that would have been unthinkable just a few years ago.
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Call for Strict Refinery Regulations
Mr. Mark Williams, a petroleum refining expert, called on the NMDPRA to restrict the circulation of petroleum products from topping refineries, which he described as outdated facilities unable to meet modern fuel specifications for lead and sulfur content.
“Topping refineries produce products that are no longer viable for the market,” Williams stated. “These refineries lack basic support operations and cannot meet the required specifications needed by both regulatory authorities in Nigeria and globally.”
He warned of the health risks associated with sulfur in fuel, which contributes to harmful emissions. Williams commended NNPC for upgrading its plants to meet the AFRI-5 standard, which limits sulfur content to a maximum of 50 parts per million (ppm), a significant improvement from the 5,000 ppm levels of the 1970s and 1980s.
As the PIA continues to take shape, MEMAN expressed confidence that the reforms would ultimately lead to a more efficient, transparent, and competitive energy sector, benefiting both businesses and consumers across Nigeria.
