World Bank, AfCFTA, Others Task Regulatory Agencies on Protection of Consumers in Nigeria’s Downstream Oil Sector

Peter Uzoho

As Nigeria’s downstream oil and gas sector matures with deregulation of pricing and open competition, some senior officials from the World Bank, African Continental Free Trade Area (AfCFTA), and petroleum marketers have charged regulatory authorities in the sector to ensure the protection of consumers from anti-market practices.

They spoke yesterday during the 2025 Second Quarterly Press Webinar and Engagement, hosted by Major Energies Marketers Association of Nigeria (MEMAN), with the theme, “Fair and Healthy Competition in the Nigerian Market.”

Essentially, the session examined the role of competition in shaping market dynamics and protecting consumers, especially amid growing private investments and infrastructure shifts in the industry.

In his presentation, Senior Economist for Nigeria, World Bank, Mr. Samer Matta, outlined how competition benefitted both households and firms by improving pricing, service delivery, and innovation.

Matta stated that many sectors in the country were highly concentrated, and urged regulators to strengthen enforcement frameworks and build internal capacity for competitive assessments.

Similarly, Inaugural Executive Secretary of AfCFTA and Chief Executive Officer of Transaharan, Francis Anatogu, who drew lessons from the telecoms, banking, and aviation sectors, emphasised how competition drove innovation and consumer choice.

Anatogu stressed the importance of clear dominance thresholds, transparent market access, and Small and Medium Enterprises (SMEs) protection.

He urged regulatory agencies to improve coordination and provide accessible complaint channels with timely resolution mechanisms.

In his opening remarks, Chairman of MEMAN and Managing Director of NNPC Retail Limited, Mr. Huub Stokman, emphasised that while deregulation opened new opportunities, maintaining fair and open competition was critical.

Stokman called on regulatory agencies, such as Federal Competition and Consumer Protection Commission (FCCPC), and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to ensure consistent oversight, promote innovation, and protect consumers in this new market reality.

They stressed the need for the regulators to continue monitoring developments and ensuring a level playing field for all players in the downstream sector.

The speakers highlighted that competition, if well regulated, naturally protected consumers and drove job creation.

In his intervention, MEMAN CEO, Mr. Clement Isong, discussed the increasing adoption of Compressed Natural Gas (CNG) trucks for fuel distribution, citing potential cost reduction of up to 40 per cent.

While recognising the innovation, Isong warned that uneven infrastructure availability could give certain players an outsized advantage.

He urged regulators to ensure broad-based access to CNG infrastructure and encouraged MEMAN members to adopt additional efficiency models, such as solar-powered stations and logistics pooling, to drive down costs without compromising competitive fairness.

Speakers agreed that well-defined roles for stakeholders – government, private sector, and regulators – must be complemented by effective enforcement and transparency.

They stated that strong governance was needed to prevent market failures, particularly in a transitioning and deregulated environment.

As deregulation took firm root in Nigeria’s energy landscape, the stakeholders underscored the need for sustained collaboration, policy clarity, and innovation to ensure that the benefits of competition reached consumers, businesses, and the broader economy.

The session examined the implications of large-scale infrastructure, such as Dangote Refinery.

However, while observing that such investments promised supply chain efficiency, the participants cautioned against unchecked dominance.