MEMAN Highlights Emerging Downstream Business Models Following Fuel Subsidy Removal
…Urges operators to invest in battery storage, LPG and CNG infrastructure
The Major Energy Marketers Association of Nigeria (MEMAN) has said that the removal of fuel subsidy has transformed Nigeria’s downstream sector, opening up opportunities for innovative business models such as Energy-as-a-Service (EaaS), integrated multi-energy hubs, Virtual Power Plants (VPPs), and peer-to-peer (P2P) energy trading.
Speaking at the OTL Downstream Week 2025 in Lagos during a panel session themed “Navigating the New Frontier: Competition and Market Access in the Downstream Oil & Gas Industry,” MEMAN Chairman, Mr. Huub Stokman, said the sector is undergoing a major shift driven by deregulation, competition, and technology.
He explained that the entry of the Dangote Refinery has redefined the downstream landscape by reducing import dependence and strengthening local supply networks. Stokman also pointed out that the growing adoption of gas as a transition fuel is changing the dynamics of energy consumption in the country.
“We are witnessing a redefined downstream environment. Policymakers are now recognising gas as a cleaner transition fuel, with rising demand for CNG and LNG,” he said.
Stokman emphasised that greater regulatory clarity and policy stability are essential to attract long-term investments and sustain sector growth. He called on operators to expand investments beyond traditional oil and gas into Battery Energy Storage Systems (BESS) and infrastructure for alternative fuels such as LPG and CNG.
He noted that decentralisation and digitalisation are reshaping the market, with renewable energy technologies enabling distributed energy systems that can reach underserved populations.
“The biggest frontier is addressing the 600 million people without access to energy. This represents a massive high-growth market for decentralised renewable energy solutions,” he said.
Stokman further urged stakeholders to pursue regional energy integration through cross-border gas pipelines, harmonised regulatory frameworks, and partnerships that enhance efficiency, reduce costs, and support Africa’s broader energy transition goals.
