The Major Energies Marketers Association of Nigeria (MEMAN) has announced its intention to engage directly with the Dangote Petroleum Refinery to gain a comprehensive understanding of its recently unveiled plan to supply petroleum products directly to filling stations nationwide. This development was shared by Clement Isong, the Executive Secretary of MEMAN, during a webinar hosted by the association on Thursday, June 19, 2025.
Understanding the New Scheme
Isong stated that MEMAN would also engage with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant stakeholders. The goal is to fully grasp the implications of the new distribution model from the Dangote refinery, which is set to commence on August 15 with a fleet of 4,000 new Compressed Natural Gas (CNG) trucks.
"At this point, we are watching the market, trying to understand it. We have read it in the news. We need to understand exactly where it impacts and what it impacts before we can have some clarity as to how far it will go in terms of impact," Isong explained. He emphasized that gaining this clarity would require extensive discussions with Dangote, regulatory bodies, and other stakeholders.
Isong stressed the need for a thorough understanding before MEMAN can comment definitively or take any protective measures for the market. "It would be irresponsible of us to say anything before being clear as to exactly what it means. We are not clear, for instance, whether it means that there is an equalisation policy, whether it means the same price everywhere in the country, we don’t know. Until we have clarity as to exactly what the initiative is, before we can engage," he added.
The Role of CNG in Distribution
Despite the ongoing need for clarification on the overall scheme, Isong acknowledged Dangote's plan to distribute fuel using CNG-powered trucks as a positive development. However, he noted the current limitations in CNG infrastructure within the country.
"CNG is a policy of the government. It’s a policy still in implementation. We do not have enough CNG infrastructure in place. So, a lot of planning has to be done to be able to implement it," Isong stated. He encouraged companies to leverage such opportunities, calling distribution by CNG trucks an "available opportunity, so far as you’re able to make it work for you."
Addressing Market Dominance Concerns
When questioned about potential issues of market dominance and anti-competitive practices within the sector, Isong clarified that it falls under the purview of regulators to continually assess what constitutes innovation, what ultimately benefits the consumer, and at what point the risk of dominance begins to have a negative impact.
"It is a continuous debate, a continuous engagement that we all have to help them to find the balance, the equilibrium, and what is best for the market," he said. Isong reiterated MEMAN's consistent call for deregulation and open market competition, believing these would foster innovation. He cited transportation by CNG as one such innovation that MEMAN has identified and encouraged its members to adopt.