By Oluwatobi Odeyinka, Senior Reporter
The Major Energies Marketers Association of Nigeria (MEMAN) has cautioned against anti-competitive behaviour in Nigeria’s energy market, warning of the risks it poses for the growth of the market and the economic growth of the country.
MEMAN is an influential downstream energy (principally petroleum products) industry association.
Clement Isong, the organisation’s Executive Secretary, addressed journalists on recent events in Nigeria’s petroleum market, after two facilitators made their presentations at a MEMAN –sponsored virtual press webinar/engagement. The speakers were Samer Matta, Senior Economist at the World Bank, and Francis Anatogu, the CEO of Transaharan, who was the inaugural Executive Secretary of the African Continental Free Trade Area AfCFTA.
The webinar, entitled “Fair and Healthy Competition”, was anchored by Ogechi Nkwoji, a chartered accountant and head of MEMAN’s Economic Intelligence Research Regulation.
The World Bank’s Matta noted that many Nigerian sectors remain highly concentrated and urged regulators to strengthen enforcement frameworks and build internal capacity for competitive assessments.
Anatogu stressed the importance of clear dominance thresholds, transparent market access, and SME protection, urging regulatory agencies to improve coordination and provide accessible complaint channels with timely resolution mechanisms.
Journalists at the event sought to address what was, until then, the elephant in the room, pointedly asking Mr. Isong for MEMAN’s reaction to a recent policy announcement by the Dangote Refinery, which plans to distribute petroleum products, free of transportation and logistics charges, to wholesalers, retailers and end-users across the country with CNG-powered trucks.
“The session examined the implications of large-scale infrastructure such as the Dangote Refinery”, according to MEMAN’s summary of the proceedings, which could also be read as the communiqué. “While such investments promise supply chain efficiency, participants cautioned against unchecked dominance. The MEMAN Secretariat committed to conducting a thorough internal review of Dangote’s logistics initiative to assess its effect on downstream competition. Stakeholders stressed the need for regulators like the Federal Competition and Consumer Protection Commission (FCCPC) to continue monitoring developments and ensure a level playing field”.
While the foregoing is a succinct summary, the following is what essentially happened.
Ms. Nkwoji sought to side step the question of MEMAN’s response to the Dangote announcement, but Success Nwogu, a Correspondent at The Punch Newspapers, insisted on getting a response from the Executive Secretary.
Isong then agreed to speak and in his response, acknowledged the initiative by the Dangote Petroleum Refinery to carry out nationwide distribution with CNG-powered trucks as a “huge and brilliant initiative”, adding that promotion of CNG for people and business mobility was a policy of the Nigerian government.
“CNG trucks, as a means of distribution, whether it is petroleum products or any products, will reduce your operational cost by 30-40%. That is huge and that is brilliant”, Isong said.
He then noted that MEMAN would meet the management of the Dangote Refinery to better understand the company’s implementation plan, as well as engage with regulators and other stakeholders in the industry to safeguard open market competition.
“Now, it is the job of the FCCPC to consistently measure and the Nigerian midstream and downstream authority to find where to place the cursor between what is innovation, what is efficiency, what is for the ultimate benefit of the consumer, and where the risk of dominance begins to play a negative role.
“We have read, like you have read in the news, this initiative, We need to understand exactly where it impacts, what it impacts, before we can have some clarity as to how far it will go in terms of impact. And that requires a lot of discussion – discussion with Dangote himself, discussion with the authorities, discussion with other stakeholders, and discussion with you (the media). At some point in time, we shall engage and do what is necessary to protect the market should we have to do so,” he added.
Dangote’s Distribution Offer (Free of Transportation Cost)
The Dangote Petroleum Refinery announced in the week of June 9, 2025, that it would distribute petroleum products to any willing buyer across the country at no cost.
The company stated that this initiative is designed to enhance fuel accessibility and affordability nationwide, while also supporting key sectors, including manufacturing, telecommunications, and aviation.
The refinery revealed in a statement that it has procured 4,000 Compressed Natural Gas (CNG)-powered tankers to support the free nationwide distribution of PMS and diesel to marketers, petrol dealers, and major users.
“Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support,” the statement noted.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) immediately condemned the move by the refinery, arguing that Alhaji Aliko Dangote might be planning to monopolise the petroleum market.
“...participants cautioned against unchecked dominance. The MEMAN Secretariat committed to conducting a thorough internal review of Dangote’s logistics initiative to assess its effect on downstream competition. Stakeholders stressed the need for regulators like the Federal Competition and Consumer Protection Commission (FCCPC) to continue monitoring developments and ensure a level playing field.”
