By Ejekwu Chidiebere
- Competition drives innovation and in turn drives the market
- The more the competition the more the productivity
- Lack of competition is an opportunity for quality reduction and price increase of market commodity
- Monopoly encourages laziness among firms
- Importation limits competition
- Economies of scale is fundamental to a fair and healthy competition
- CNG lowers transportation cost
- MEMAN seeks clarification on Dangote’s Refinery nationwide products distribution strategy
These and many more were among the highlights of a quarterly media briefing called at the behest of the Major Energy Marketers of Nigeria (MEMAN) on June 19 2025. Its theme was, “Fair and Healthy Competition.”
“…But why competition and how is it recognized, and why is it necessary that one identifies it when it is seen,” queries Francis Anatogu, Chief Executive Officer – Transaharan rhetorically.
First he had drawn an analogy of a player in a football match whose only aim is to win and grab a trophy hence popularity. “No player plays to loose; every player plays to win and make more money. It’s all about competing to win and by winning the payer makes more money and becomes everybody’s choice and fan. This is what competition is all about” he said. “Competition enables a lot but effective regulation is key. Appropriate policy framework, economies of scale which also means that a firm shouldn’t only have to be independent, it also have to be consistent because the customer who is the king in the market all the time will always ask to know which of the products from two companies on the same production line is better and cheaper. Yes the independence of the regulator also cannot be done without, it is critical,” Francis said. Adding that corruption which is detrimental to the course for effectiveness in market competition is just but a chicken and egg situation, as he has also called on government, MEMAN and the media to put all hands on deck to ensure that Nigeria’s current downstream oil and gas sector disruptions were reduced to the barest minimum.
“The consumer is best with competition. This is why MEMAN is advocating for free and fair competition. MEMAN is always against unfair competition. For an unfair competition is an enabler of single market operation and creates room for monopoly which is also detrimental to a free market environment,” Sarmer Matta, Senior Economist, World Bank said.
On the question about Dangote Refinery and its strategy for products distribution, MEMAN said it has earlier requested for clarification on the Company’s announcement that it would commence a nationwide distribution of petrol and diesel with free logistics support to various industries.
Speaking, MEMAN CEO Clement Isong who eventually emerged from his hide-out like the big male masquerade fleeing the presence of a bigger male masquerade in the room said he had earlier put calls across to the Company so as to be informed and guided on the modalities and methodologies for operation. “We understand the potential impact of the initiative on Nigeria’s energy sector and existing market dynamics, for that’s why we have been holding discussions for some time now.”
Isong welcomed the innovation in the sector but noted that major marketers were seeking more detailed information about the proposed fuel distribution plan by Dangote Refinery, especially the logistics and pricing implications.
“We have read, like you have, that Dangote Refinery will begin fuel distribution with free logistics from August 15. But we need to understand what this means in practical terms—what areas it impacts and how. That requires discussions with Dangote, regulators, other stakeholders, and the media,” Isong stated.
Adding he said: “It would be premature and irresponsible for us to make any definitive statements until we have clarity. For example, there are claims that prices will be equalized across the country. Is that true? We don’t know yet. We need clarity before we can engage.”
Isong reiterated MEMAN’s support for open-market competition, noting that innovation—such as the use of Compressed Natural Gas (CNG) trucks—is welcome. He highlighted that many MEMAN members are already adopting similar solutions, including solar-powered filling stations and logistics pooling, to reduce operational costs and improve efficiency.
“We’ve always advocated for innovation and competition. CNG-powered trucks are a good example. Some of our members are already using them. Others are investing in solar to cut the cost of operations. We support anything that helps reduce costs fairly,” he said.
He however cautioned that uneven access to infrastructure, such as CNG filling stations, could lead to some kind of disequilibrium in market competitiveness if it is not properly handled by regulators.
Meanwhile, Dangote Industries had earlier disclosed that, starting August 15, 2025, its refinery would commence fuel and diesel distribution across Nigeria. Energy Window International (Media) gathered that the company has secured about 2, 000 brand-new CNG-powered trucks to support the logistics initiative.
In his response MEMAN Chairman said they as industry stakeholders were already and carefully observing market developments with the aim of engaging constructively to be able also to take firm grip of the operational methodology and policy implications of the Company’s distribution plan.