WEST AFRICA’S DOWNSTREAM SECTOR: VOLATILITY AND OPPORTUNITY IN A TURBULENT MARKET–MEMAN
GREATRIBUNETVNEWS–THE Major Energies Marketers Association of Nigeria (MEMAN) and S&P Global Energy have highlighted the challenges and opportunities facing West Africa’s downstream petroleum sector amidst global tensions
Key Issues:
– _”For the oil industry, this creates a double-edged reality—opportunities for producers but increased pressure on downstream operators and consumers.”_ – Huub Stokman, MEMAN Chairman
– Geopolitical Tensions: Disruptions to Iranian crude output and risks around the Strait of Hormuz have triggered volatility in oil prices and rising shipping costs.
– _”West Africa, particularly Nigeria, stands at a strategic crossroads, with the potential to position itself as a reliable global energy partner.”_ – Huub Stokman
– Regional Energy Security: Sub-Saharan Africa’s dependence on imports, limited refining capacity, and inadequate storage infrastructure make it vulnerable to global shocks.
– _”Achieving long-term energy security will require sustained investment across refining, storage, and supply chain systems.”_ – Stanislas Drochon, S&P Global Energy
He emphasised the need for a competitive and well-regulated market framework, supported by policy clarity and access to diverse supply sources.
Offering an industry perspective, Stokman said Nigeria’s growing domestic refining capacity, including the Dangote Refinery, provides some buffer against global supply disruptions but also introduces concentration risks.
He explained that domestic fuel prices continue to reflect global market trends and that perceived delays in price reductions are largely due to inventory cycles and working capital requirements.
Stokman further disclosed that Nigeria currently maintains over 30 days of petrol (PMS) supply coverage, with NNPC Limited continuing to act as the supplier of last resort.
The webinar, moderated by MEMAN Executive Secretary Clement Isong, underscored that while Nigeria is relatively better positioned than many regional peers, it remains deeply integrated into global energy markets.
Participants agreed that building resilience in West Africa’s downstream sector will depend on sustained policy consistency, infrastructure development, effective regulation, and competitive market structures.
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