The Major Energy Marketers Association of Nigeria (MEMAN) has said that the recently introduced 4,000 compressed natural gas (CNG) trucks into Nigeria’s fuel distribution system by Dangote Refinery raises critical questions about fairness, competition, and regulation in the downstream oil and gas sector.
The Executive Secretary of MEMAN, Mr. Clement Isong, who made the submission at the group’s Quarterly Press Webinar & Engagement on Thursday, June 19, 2025, however described the development as a brilliant idea.
While emphasising on energy innovation and market dynamics at the webinar, themed “Fair and Healthy Competition”, Isong said the move represents a significant leap in logistics and environmental sustainability. But he cautioned that it also raises concerns among other energy marketers who are concerned over the potential for market dominance and unfair competition.
“That is huge. That is brilliant,” Isong stated in reference to the Dangote Refinery’s CNG truck announcement. “In our Association (MEMAN) you heard my chairman say that our members are also already moving in that direction, converting from diesel-powered trucks to CNG-powered trucks.”
He explained that the adoption of CNG is not just an individual company’s initiative but part of a broader national policy being driven by the federal government to reduce Nigeria’s dependence on fossil fuels and promote cleaner energy alternatives. However, he stressed that the policy is still in its early stages, with infrastructure gaps that must be addressed.
“CNG is a policy of the government. It is still in implementation. We do not have enough CNG infrastructures in place. So, a lot of planning has to be done,” he noted, adding that bold and innovative companies that act early can take advantage of emerging opportunities.
Mr. Isong acknowledged that Dangote Industries had already tested CNG in other parts of its operations, notably in its cement business, where about 2,000 trucks have been converted and deployed. This experience, he noted, gives the group a head start in the fuel logistics transformation.
However, he emphasised that while innovation is welcome, there must be a regulatory framework that prevents anti-competitive behaviour and ensures that innovation does not translate into market capture at the expense of other players and consumers.
“It is the job of the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to find the balance between innovation and the risk of dominance,” Isong said. “This is a continuous debate, a continuous engagement that we must have with the regulators to help them work and find what is best for the market.”
He reiterated MEMAN’s longstanding advocacy for deregulation, open market competition, and private-sector-led innovation. “We cannot now turn around and say we are against, for instance, CNG-powered trucks. This is innovation, and innovation is necessary.”
Nevertheless, he pointed out that the industry is still trying to understand the full scope and implications of the Dangote initiative and will engage with the company and regulatory agencies to evaluate its impact.
“We are at this point in time watching the market, trying to understand. We have read this initiative like everyone else. We need to understand exactly what it impacts and how far-reaching it will be before we can say anything definitive,” he said.
According to him, further discussions with Dangote, regulators, and other stakeholders are necessary before MEMAN takes a firm position. He stressed the importance of dialogue in ensuring that market innovation is aligned with national interest and consumer welfare.
“It would be irresponsible for us to make hasty statements. We need to continuously ask ourselves: what is in the best interest of the country, of the citizens of Nigeria, of the consumer?” Isong asked. “This is not a simple issue. There are many sides. That’s why we planned this dialogue – to continue the conversation.”
He acknowledged the risks inherent in a deregulated market, including the potential for monopolies, even while recognizing the gains such a market could bring in terms of efficiency and sustainability.
“Free market competition is crucial for innovation, but it comes with risks—risks of capture and market dominance. That’s why we need regulators and why the press must play a key role to ensure the right decisions are made for the benefit of the ordinary Nigerian,” he said.
The Executive Secretary stressed that energy is a fundamental development issue, and as such, should be priced and distributed in ways that do not inhibit growth or disproportionately burden the public.
“If we price energy too high, the ordinary person suffers and our national development slows. So, this conversation on energy distribution, pricing, and logistics must continue,” he concluded.
Mr. Isong also addressed the issue of logistics collaboration in the downstream sector, noting that the industry has traditionally pooled logistics resources to lower costs. He said many MEMAN members already partner with Dangote for product supply and that collaboration remains key to sustaining efficiencies.
“My members all buy from Dangote. We pool logistics resources to optimise costs. Worldwide, the oil industry does this – pooling assets from rigs to transportation to logistics,” he explained. “Competition typically happens at the retail level, but cooperation happens along the supply chain to ensure affordability and efficiency.”
He maintained that while competition exists, especially at the pump, the industry must continue to find ways to balance collaboration with fair competition in order to maintain market stability and consumer confidence.