MEMAN, S&P Global Energy seek transparent pricing, efficient fuel distribution in Nigeria
Industry leaders reject arbitrary price caps, advocate credible West African benchmarks, coordinated supply and lower operating costs
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 arbitrary government-imposed price caps would not address the structural challenges confronting the downstream petroleum sector, advocating instead market-driven pricing, lower operating costs and measures to eliminate supply bottlenecks.
The positions were highlighted at 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 Gary Clark, Associate Editorial Director, EMEA Clean Refined Products, S&P Global Energy; Matthew Tracey-Cook, Lead Specialist, Africa Refined Products Pricing, S&P Global Energy; and Clement Isong, Executive Secretary and Chief Executive Officer of MEMAN.
The session was moderated by Ogechi Nkwoji, MEMAN’s Head of Economic Intelligence, Research and Regulation.
During the engagement, S&P Global Energy examined developments in global and West African refined petroleum markets, including the impact of geopolitical tensions, refinery disruptions and changing supply dynamics on petroleum product prices.
The presentations highlighted significant volatility in international markets, particularly in middle distillates such as diesel and aviation fuel, underscoring the need for reliable regional pricing assessments that reflect actual market conditions in West Africa.
The speakers said transparent pricing information and broader industry participation would strengthen price discovery, improve predictability and provide a more dependable basis for commercial transactions.
Two assessments highlighted were the Free On Board West Africa (FOBWAF) and Ship-to-Ship (STS) Lomé assessments, which serve as reference points for different refined petroleum product supply arrangements in the region.
They stressed that developing a credible West African reference market would require reliable market data, transparency and wider adoption of relevant pricing benchmarks by industry participants.
According to the presentations, a more dependable regional pricing framework could improve market understanding, strengthen confidence in pricing decisions and facilitate efficient transactions across the petroleum value chain.
MEMAN outlines priorities for domestic market
Speaking on Nigeria’s domestic petroleum distribution framework, Isong outlined priorities for building a more efficient, competitive and resilient downstream market.
He identified effective supply coordination as a critical requirement, stressing the importance of prioritising domestic refinery output while using imports to bridge supply gaps and manage disruptions where necessary.
A balanced approach to domestic production and imports, he explained, would strengthen supply security, reduce disruption risks and enable the market to respond more efficiently to demand.
Isong also emphasised the need for greater pricing predictability, advocating transparent mechanisms that would enable marketers to manage market volatility without arbitrary government-imposed price controls.
He maintained that efforts should focus on market-driven pricing, efficient distribution, removal of supply bottlenecks and reduction of avoidable operating costs rather than interventions that distort market signals.
Calls for clearer bulk supply agreements
On bulk supply arrangements, the MEMAN chief executive stressed the need for clear contractual terms covering product access, pricing, delivery schedules and the obligations of suppliers and buyers.
He said well-defined commercial agreements would improve coordination between suppliers and marketers, reduce uncertainty and facilitate smoother transactions across the downstream market.
The discussions also highlighted the importance of improved inventory visibility, expanded storage capacity, coordinated transportation and effective contingency planning.
These measures, the speakers noted, would enable operators to manage stocks more efficiently, respond promptly to supply disruptions and reduce unnecessary costs associated with storing and transporting petroleum products.
They added that investment in infrastructure and better distribution systems would be essential to complement improvements in pricing transparency and supply coordination.
Fair competition, regulation critical to market growth
The engagement identified fair competition and effective regulation as essential foundations for a sustainable domestic petroleum market.
The presentations called for transparent market data, non-discriminatory access to petroleum products and efficient regulatory processes to ensure that operators compete under fair and predictable conditions.
They also underscored the importance of product quality, accurate measurement, quantity assurance and customer service in strengthening consumer confidence.
Marketers and other industry participants were urged to maintain product quality standards, ensure that customers receive the quantities they pay for and uphold high service standards.
According to the discussions, these measures would strengthen accountability, protect consumers and build trust in Nigeria’s petroleum distribution system.
Isong commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for progress in promoting product quality, digitising licensing processes, publishing market information and advancing initiatives aimed at encouraging fair competition.
He acknowledged the importance of such measures in improving transparency and supporting the development of a more structured downstream market.
However, MEMAN reiterated its position that arbitrary government-imposed price caps would not resolve the sector’s underlying challenges.
Instead, the association advocated transparent, market-driven pricing, more efficient distribution arrangements and practical measures to reduce operating costs and remove supply constraints.
The position reflects the association’s view that prices should respond to prevailing market conditions, while operational improvements help minimise avoidable costs throughout the supply chain.
Technology, CNG to improve distribution efficiency
The webinar also examined the role of technology and alternative fuels 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 speakers noted that automation could reduce product losses, improve measurement accuracy and strengthen accountability in the handling and delivery of petroleum products.
They also identified improved transportation infrastructure as essential to easing distribution constraints and ensuring timely movement of products from supply points to end users.
Investment in infrastructure, technology and improved operational practices, they said, would complement transparent pricing and coordinated supply arrangements in building a more resilient petroleum market.
Towards a stronger West African petroleum market
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 marketers and other industry participants, and strengthen consumer confidence.
The broader objective, the discussions indicated, is to establish a more efficient and resilient downstream petroleum industry in which pricing reflects market realities, competition is fair and operational improvements help minimise unnecessary costs.
The speakers also emphasised the need for sustained collaboration among regulators, marketers, suppliers and other industry stakeholders to improve market transparency, strengthen supply security and build a more dependable petroleum distribution system for Nigerian consumers.
