Press Releases

FOR IMMEDIATE RELEASE

[30th October 2024]

Press Statement

In light of several inquiries from the press regarding a perceived tightness in the petroleum supply market, the Major Energies Marketers Association of Nigeria (MEMAN) wishes to assure the general public and all stakeholders that we have a significant stock of products in our tanks and/or access to significant stock of products in the tanks of our suppliers (including Dangote Refinery and NNPC Trading Limited), and a clear line of sight on future supplies for all petroleum products.

The benefit of diversification of supply and deregulation is that diligent marketers can plan and book their supply needs in advance and make adequate adjustments and alternative arrangements to avoid product outages. MEMAN does not envisage any outages of petroleum products in the immediate future or the near term.

We urge the public not to panic-buy petroleum products as our supply efficiency continues to improve and logistics optimization begins to set in.

MEMAN members shall continue to do all within their power to optimize their supply and logistics costs and efficiency to ensure the highest level of availability, accessibility and affordability for their customers in the increasingly competitive environment.

 

Clement Isong

CEO, MEMAN

The Major Energies Marketers Association of Nigeria (MEMAN) is pleased to share insights from our latest industry engagement, held to discuss Nigeria’s energy future, with a particular focus on energy diversity, electric vehicles (EVs), and refining capabilities. As an association, we remain guided by our foundational principles, market philosophy, and values, which have steered our advocacy and strategic initiatives aimed at advancing the energy sector.

Guiding Principles and Values
MEMAN’s core values are at the heart of everything we do, and these include:

• Health, Safety, Security, Environment, and Quality (HSSEQ)
• A free and market-driven industry
• Energy affordability and accessibility
• Operational, logistics, and cost efficiencies
• A value-added petroleum industry
• Innovation, professionalism, and integrity
• Fair practices and competition
• Transparency
• Compliance with international best practices

Our underlying philosophy is to serve the best interests of the Nigerian consumer and citizen. MEMAN’s mission aligns with the Federal Government of Nigeria’s National Petroleum Policy 2017 and the Petroleum Industry Act 2021, both of which emphasize energy accessibility and sustainability.

Discussion on Electric Vehicles (EVs)
During the forum, the future of Electric Vehicles (EVs) was a key focus, particularly as part of Nigeria’s broader energy transition. EVs are critical to addressing climate change, reducing emissions, and enhancing energy security. The forum covered the different types of EVs—Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs)—and their potential role in Nigeria’s energy landscape.

While challenges remain, such as high initial costs and limited charging infrastructure, ongoing technological innovations in the EV space, including solid-state batteries, wireless charging, and vehicle-to-grid (V2G) technology, are expected to ease adoption. The transition to EVs is essential for sustainability, and MEMAN remains committed to promoting this transformation alongside traditional energy sources.

Strategic Industry Recommendations
In addition to EVs, MEMAN continues to advocate for a diverse energy mix that includes traditional fuels, renewables, and innovative technologies. As part of our recommendations, we are calling for:

• Formation of Petroleum Industry Consultative Committees to guide the industry, resolve potential conflicts, and enhance collaboration.
• Promotion of private sector participation to drive innovation and efficiency.
• Investing in infrastructure to support energy expansion and sustainability.
• Growing local refining to reduce Nigeria’s reliance on imports and enhance energy security.
• Enhancing human capital through education and skill development to meet the needs of an evolving energy sector.
• Facilitating open access procedures to encourage inclusivity and fair competition in the energy market.

In today’s challenging environment, we must always prepare for multiple scenarios to cope with the many uncertainties that can arise. It is through this proactive approach that we can anticipate and navigate risks to ensure the stability and growth of Nigeria’s energy sector.

Achievements in Nigeria’s Refining Sector
As Nigeria transforms into an African refining powerhouse, MEMAN celebrates the significant strides made by public and private entities alike. The opening of Dangote Refinery and the development of modular refineries represent critical steps toward securing Nigeria’s energy future. Our chairman noted that while initial start-up challenges are inevitable, these refineries will shape the country’s energy landscape for decades to come.

Fostering Competition and Collaboration
MEMAN remains steadfast in its commitment to ensuring the delivery of affordable, high-quality energy products in a safe, sustainable, and competitive environment. Fair competition is critical to driving progress and innovation within the industry. Our chairman emphasized the importance of maintaining an environment where competition can thrive, as it encourages efficiency, reduces costs, and ensures consumers have access to the best possible energy solutions.

The complex nature of the energy supply chain, especially during this period of energy transition, requires all stakeholders—public and private—to work together to drive progress. By fostering cooperation, the industry can address challenges more effectively and deliver the best possible outcomes for consumers and the nation.

Through a focus on energy diversity—including traditional fuels, renewable sources like solar, and electric vehicles—we aim to meet Nigeria’s growing energy demands while reducing environmental impact. Together, we can build a more resilient, sustainable, and innovative energy future for Nigeria.

We look forward to continued collaboration with all industry players, as working together is key to ensuring a thriving and prosperous energy sector.

Reducing Queues at Retail Outlets

The Major Energies Marketers Association of Nigeria (MEMAN) deeply empathizes with Nigerians facing the challenges occasioned by the current availability of Premium Motor Spirit (PMS) and the resulting queues at many retail outlets. We can see the frustration and difficulties this situation is creating.

The Downstream Regulator, NMDPRA and other key stakeholders across the supply chain are fully engaged and supportive to eliminate the queues as swiftly as possible.

Our top priority is to restore stability and ensure that fuel supplies reach all depots and retail outlets across Nigeria promptly. While the current situation has been challenging, we want to reassure the public that there is an adequate supply of PMS available. Our members in Apapa and other locations in Lagos are taking product from 8 vessels this week with over 300 million litres of PMS, well above our normal levels. We are actively coordinating with our member companies through swaps and other supply arrangements to ensure member stations remain stocked. Our depots will extend their loading times to ensure we load out as much as we can including tomorrow the 1st of May 2024.

Our partners in NARTO & PTD have assured us of their support in ensuring the product gets to the retail outlets safely and quickly. We also will extend the opening times of selected retail outlets to ensure we can service our customers as long and as safely as possible. Independent marketers (depots & stations) are being allocated additional PMS to alleviate the situation.

We expect the situation to improve in the coming days as supply chains adjust and stabilize.

MEMAN remains committed to keeping you informed and providing timely updates. Should you have any questions or concerns, please feel free to reach out to us through our official channels.

Thank you for your continued support.

MEMAN

The Major Energies Marketers Association of Nigeria (MEMAN) notes with concern the strike initiated by the National Association of Road Transport Owners (NARTO) and the Petroleum Tanker Drivers (PTD) which started today, February 19, 2024.

MEMAN clarifies that there’s no conflict between its members and the transport unions. Individual marketers are in discussions with their transporters for fair rates, adhering to the Petroleum Industry Act and FCCPC Act, which prohibits jointly setting rates.

Pump price deregulation promotes healthy competition, encouraging cost-reduction measures for better customer value. It’s a gradual process that requires time for full price recovery and market competition.

All stakeholders, including operators and MDAs, must collaborate to optimize the supply chain for affordability amid the challenging environment. MEMAN and its members recognize the industry’s complexities and commit to sustainable solutions in cooperation with relevant stakeholders.

Major Energies Marketers Association of Nigeria (MEMAN)

MOMAN Announces Change of Leadership: Olumide Adeosun Hands Over
Chairmanship of MOMAN to Huub Stokman

[Lagos, Nigeria] – The Major Oil Marketers Association of Nigeria (MOMAN) today officially announced the conclusion of Olumide Adeosun’s tenure as the Chairman. Olumide Adeosun, the esteemed CEO of Ardova Plc and the outgoing Chairman of MOMAN, completed his term on August 31, 2023. Assuming the leadership role for the next 2 years effective September 1, 2023, will be Huub Stokman, the Managing Director of NNPC Retail Limited (NRL).

Under the guidance of Olumide Adeosun, MOMAN has thrived as a cornerstone of the Nigerian energy landscape, fostering growth, innovation, and collaboration within the petroleum marketing sector. MOMAN achieved remarkable milestones during his tenure, advocating for industry excellence, sustainability, and regulatory advancements.

Olumide Adeosun’s visionary leadership has been instrumental in steering MOMAN through a dynamic period marked by transformative changes in the energy sector. His commitment to driving operational excellence, regulatory adherence, and community engagement has set a solid foundation for the association’s future endeavours.

The incoming Chairman, Huub Stokman, brings a wealth of experience to the role. As the Managing Director of NNPC Retail Limited, he has demonstrated exceptional leadership in managing complex operations, optimizing business strategies, and fostering strategic partnerships. His deep understanding of the petroleum retail landscape uniquely positions him to lead MOMAN into the next phase of its journey.

MOMAN expresses its profound gratitude to Olumide Adeosun for his dedicated service and outstanding contributions during his tenure as Chairman. His legacy will continue to inspire and guide us as we navigate the evolving energy landscape and pursue new horizons.

Huub Stokman’s appointment as Chairman ushers in an exciting chapter for MOMAN. His expertise, vision and commitment to industry excellence align seamlessly with the association’s mission to drive sustainable growth, advocate for regulatory advancements, and champion the interests of its members.

The Executive Secretary/Chief Executive Officer of MOMAN, Mr. Clement Isong, was reappointed ES/CEO for a second term of five years.

MOMAN looks forward to a seamless transition and a new era of innovation and growth under Huub Stokman’s leadership. The association remains dedicated to promoting the highest standards of business practices, fostering collaboration, and contributing positively to Nigeria’s energy sector and economy.

[Lagos, Nigeria] – The Major Oil Marketers Association of Nigeria (MOMAN) reiterates our support for the policy of deregulation in the petroleum industry. We also acknowledge the challenges faced by the Nigerian public and extend our deepest empathy to all citizens during this time.

The international price of crude oil and the exchange rate constitute the largest components of the cost build-up for Premium Motor Spirit (PMS), accounting for over 80%. The remaining 20% includes statutory dues, distribution costs, and margins. Deregulation promises a transparent and level playing field where cost-reflective prices are evident at fuel stations.

It follows, therefore that in a liberalized market, the pump price of PMS should accurately reflect the current economic realities.

In recent months, the price of PMS has remained relatively stable. On 30 May 2023, Platts reported a price of $827 per metric ton (MT), and on 14 July 2023, it was $859.25 per MT. However, there has been a significant increase in the foreign exchange rate. We can infer from our calculations in May that the Nigerian National Petroleum Company Limited (NNPCL) determined its pump price using an exchange rate of about N630 to the US Dollar, while banks reported an exchange rate of approximately N650 on the Investors and Exporters (I&E) window.

As of today, the liquid exchange rate is close to N825 to the Dollar. This devaluation adds N100 to the cost of importing a single litre of PMS into the country. Consequently, an increase in the pump prices of petrol should be expected.

In the spirit of transparency, MOMAN advocates for federal, state, and local governments, as well as employers of labour, to implement palliative measures to support less privileged individuals in society currently facing hardships. It is essential that rapidly executed palliative measures receive wide publicity to alleviate the already agitated public sentiments.

At MOMAN, we have always anticipated that the removal of subsidies and the stabilization of the downstream market would be a gradual process. This process necessitates operators and regulators to engage the public transparently, earn public trust, and foster fair competition that ensures full value for customers at the fuel pumps. We commend the authorities for their urgent efforts in opening the market, allowing various players to import petroleum products into the country. This market liberalization and the commitment to a level playing field should enhance operators’ efficiency, enabling them to offer competitive pricing choices to the public.

Some operators have successfully imported PMS into the country, marking the first practical step towards a liberalized market. However, the major challenges still lie in accessing foreign exchange for imports and ensuring a level playing field regarding pump prices. If marketers are undertaking the financial risk of importing petrol, measures must be in place, in line with the Petroleum Industry Act, to ensure that no one player has an unfair advantage.

Furthermore, it is important to note that a crucial aspect of the program’s success lies in three key areas:
1. Effective & sustainable implementation of the gains from subsidy removal. These gains should be invested in the promised palliatives, including subsidized transportation, as well as social investment programs for healthcare, education, and infrastructure development (such as roads, railways, and power). MOMAN urges that these initiatives be rolled out in a visible, transparent, and timely manner.
2. Focused and sustained increase in our national production of crude oil from the current 1.2 million barrels per day to closer to 2m barrels per day – this will bring the much-needed foreign exchange.
3. Ongoing engagement and accountability to Nigerians with respect to the first two points. We firmly believe that transparency & engagement are essential for building public trust and understanding. The reality is that downstream deregulation has brought about structural changes and opportunities for Nigeria and PMS now stands as the most expensive product in the energy mix for consumers. So in conclusion, MOMAN would like to offer pragmatic advice to combat the current situation faced by all Nigerians and minimize the financial impact on households.

Nigeria is blessed with one of the largest gas reserves in Africa and an abundance of solar resources so we encourage end-users to analyze and adjust their individual energy consumption mix.

Households that can afford to, should consider switching from PMS and AGO to gas or solar power for their homes. However, we emphasize the need for special precautions to ensure the safety of lives and assets when dealing with gas.

Additionally, the government and businesses can promote the use of LPG and CNG for intercity buses, tricycles (kekes), minibuses, and taxis to power their vehicles.

In any event, the country will need to explore and deploy different energy options to develop a sustainable, affordable and long-term energy mix for powering homes businesses and mobility. MOMAN remains committed to its mission of fostering transparency, competitiveness, and best practices in the Nigerian downstream petroleum sector.

We believe that effective communication among all stakeholders is vital in addressing the challenges and ensuring a brighter future for the Nigerian people.

The Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Marketers Association of Nigeria (DAPPMAN) applaud and endorse the pronouncement by President Bola Ahmed Tinubu, GCFR, on the phase-out of the petrol subsidy regime. We appreciate the clarity of policy from the Tinubu administration, a direction that signals a courageous and pragmatic shift in our nation’s economic trajectory.

In light of the assurances given by the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), we wish to reiterate that there is no cause for alarm. We strongly urge Nigerians to avoid panic buying or stockpiling of petrol. This behaviour not only creates artificial scarcity but also poses a significant safety hazard.

The NNPCL has assured Nigerians of adequate fuel supply and the NMDPRA is working closely with stakeholders to ensure a seamless transition. They are ensuring distribution channels remain uninterrupted, thereby making fuel readily available at all filling stations across the country.

The decision to phase out this fuel subsidy regime is not merely a fiscal reform; it is a significant stride toward social justice. We are heartened that the administration plans to redirect these substantial funds towards essential public goods such as infrastructure, education, and healthcare. These investments symbolize our shared future, promising considerable, long-term benefits for all Nigerians.

We understand the concerns regarding potential price increases. However, we expect marketers to maintain reasonable pricing, as NNPCL remains the sole supplier of the product currently. We anticipate minimal changes regarding distribution costs, considering the cost of the product constitutes 80% of the pump price.

We pledge, in collaboration with the Nigerian Association of Road Transport Owners (NARTO) and other crucial stakeholders, to manage these distribution costs diligently to minimize their impact on the pump price. Considering this clarity of policy, we ask our suppliers to continue supplying products to all legitimate marketers. We also urge all stations to remain open and avoid hoarding products. We eagerly await the day when the Dangote Petroleum Refinery, as well as other licensed importers, join the current supplier in a bid to diversify the source of petroleum products and enhance market competition.

MOMAN and DAPPMAN will maintain an open dialogue with the Federal Government, advocating for stability in the oil sector during this transitional period. We are prepared to support any measures from the Government that would help cushion the impact on the populace.

We once again laud President Tinubu for his bold vision and stand ready to collaborate with his administration in its effort to promote greater economic equality and prosperity for all Nigerians.

Signed:

DAPPMAN & MOMAN

The Major Oil Marketers Association of Nigeria (MOMAN) sympathizes with our customers and Nigerians over the challenges we are facing in the purchase of petrol at filling stations across the country.

These queues are caused by exceptionally high demand and bottlenecks in the fuel distribution chain. The major cause is the shortage and high (US Dollar) costs of daughter vessels for ferrying products from mother vessels to depots along the coast. Next is the inadequate number of trucks to meet the demand to deliver products from depots to filling stations nationwide.

These high logistics and exchange rate costs continue to put pressure on prices at the pump. Over the past three months, staff & management of MOMAN companies have worked diligently at depots and filling stations to relieve the stress faced by customers through the Christmas and New Year period. Our members have again agreed to extend depot loading hours as well as keep strategically situated service stations open for longer hours to ease access to fuels for our customers.

MOMAN shall continue to use its best endeavours to ensure that product is sold at the pump at prices currently approved by the Regulatory Authorities, despite pressure on price by demand and costs in our immediate operating environment.

A final resolution to these challenges will be the full deregulation of the petroleum downstream sector to encourage liberalization of supply and long-term investments in distribution assets. We urge the government to work towards this end goal.

Major Oil Marketers Association of Nigeria

Following our commitment to improving the energy correspondents understanding of how the petroleum. downstream sector operates, we are organizing our last press training/workshop for the year. We would. use this opportunity to address some issues that have been lingering in the industry for a few weeks now and answer questions from energy correspondents present.

Having subsidized PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis. A disruption in any part of the supply chain causes ripple effects and results in queues at stations.

As a country, we must begin the process of price deregulation to reduce this inefficient subsidy. If the country wishes to implement a subsidy, it must be in areas targeted to help those it should help such as in agriculture and transportation to reduce food price inflation and generate more jobs for Nigerians.

In tandem, we must find a way to liberalize supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices. Imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost-recovered prices for Nigerians for sustainability.

The dialogue with the Nigerian people needs to begin to identify, negotiate and agree on these areas and begin implementation to save the downstream industry which has been in degradation freefall due to a lack of investment to maintain, renew and grow assets and facilities such as refineries, pipelines, depots, trucks, and modern filling stations. This lack of investments contributes in no small measure to fuel distribution inefficiencies and high costs. Neither the new refineries nor the refurbished refineries will survive with the refining margins at current pump prices.

The exploration, production, and refining of crude oil and the distribution of refined products is an international business with ebbs and flows and has specific models, guidelines, rules, and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain. The Government and the industry in Nigeria must demonstrably apply this accepted health, safety, environmental protection, and quality norms to be seen to care for its local populations. To cut corners would be irresponsible, unaccountable, and unsustainable.

MOMAN continues to work with other key stakeholders to ensure that we ramp up supplies to our retail sites and return to normalcy as soon as possible. We envisage a rise in demand during the yuletide season and are prepared to work round the clock to keep our stations running.

As always, MOMAN is a full deregulation of the petroleum downstream sector in phases to cushion the effects of the impact of a sharp rise in PMS prices on the long-suffering, hardworking citizens of Nigeria.

Major Oil Marketers Association of Nigeria.