The Major Energies Marketers Association of Nigeria (MEMAN) has called for detailed clarification on the Dangote Refinery’s proposed nationwide offer of free logistics support for petrol and diesel distribution.
MEMAN’s Chief Executive Officer, Mr Clement Isong, made the call on Thursday during the association’s quarterly online media briefing themed ‘Fair and Healthy Competition in the Nigerian Market.’
He explained that while Dangote’s plan to offer free logistics support—targeting marketers, manufacturers, telecom firms, aviation companies and other large-scale fuel users—was innovative, transparency was essential.
“We’ve heard reports about free logistics from August 15, but we need clarification on scope, regions covered, and operational details,” Isong stated.
He stressed the importance of dialogue among Dangote, regulators, stakeholders, and the media to ensure the logistics initiative aligns with national interest and market integrity.
While some have suggested the move could introduce standardised pricing nationwide, Isong cautioned against premature conclusions, insisting on a clearer picture of the proposal’s operational framework.
He lauded innovations like Compressed Natural Gas (CNG) trucks being introduced to the Nigerian energy landscape and noted that some MEMAN members had already begun incorporating solar energy and collaborative logistics to cut costs and enhance efficiency.
Describing Dangote’s planned rollout of 4,000 CNG trucks as “brilliant,” Isong expressed concern about possible market dominance and urged regulators such as the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure fair competition.
He acknowledged Dangote’s prior experience with CNG through its cement operations, which gives it a competitive edge, but said clear guidelines must be in place to safeguard a level playing field.
“CNG is still developing. Infrastructure remains limited, so careful planning is essential,” he said.
Isong affirmed MEMAN’s support for market deregulation, sustainability, and innovation, but noted that attention must be paid to market structure and consumer impact.
“We support innovation, but before adopting firm positions, we must assess the full implications,” he said.
He called for reforms that prioritise consumer welfare, particularly in a deregulated environment where rising fuel prices could impact national growth.
He also stressed the need for collaboration among energy sector players, noting that many MEMAN members currently procure fuel from Dangote and share logistics resources to improve efficiency and reduce costs.
Meanwhile, the World Bank has described Nigeria’s policy environment as one that discourages competition. In a presentation titled ‘Catalysing Competition in Nigeria’, Senior Economist Mr Samer Matta said monopolies and market dominance continue to stifle economic dynamism.
In a 2024 index on market-based competition (0 as lowest, 20 highest), Nigeria ranked last compared to peers such as Egypt, Ghana and India.
Matta argued that shielding domestic refiners from import competition contradicts Section 317(9) of the Petroleum Industry Act, which calls for open and competitive markets.
MEMAN concluded that it would continue monitoring market developments and engage constructively once Dangote’s plans are fully clarified.
(NAN)