Financial Energy Review
………..Highlights Industry Challenges and Opportunities……..
…………..by Ben Ndubuwa………
The Chairman of Major Energies marketers Association of Nigeria (MEMAN), Huub Stokman, has said that there is the need for oil and gas, downstream stakeholders to collaborate in order to deliver quality Services and products to Nigerian customers at affordable prices.
Stokman in his presentation, Monday, at the MEMAN webinar titled “Optimising the Nigerian Oil and Gas Industry” organized by the Association’s Competence Centre Series outlined key challenges and opportunities facing Nigeria’s energy sector. He emphasized the importance of collaboration among various stakeholders, including businesses, government entities, and regulatory bodies, to ensure the delivery of quality services and products to Nigerian customers at affordable prices.
“We’ve got the stakeholders, and I’m always very clear, I’ve come from a long line of experience. But at the end, we do this for our customers. We don’t do this for ourselves. Yes, we have our businesses to run organizations, to upheld and whatever, but at the end of the day, we always need to realize our sole responsibilities is to deliver goods and services” Stokman said.
According him, there is the need for a customer-centric approach, with a focus on energy security, efficient distribution, and competitive market practices.
Stokman, who is also the Chief Executive Officers (CEO) NNPC Retails outlined key points to include the need for improved infrastructure, particularly roads and pipelines, to enhance product distribution across Nigeria. He highlighted several ongoing issues, such as product hoarding, regulatory fragmentation, and high operating costs due to inflation and inadequate logistics, which hamper the industry’s efficiency.
He further underscored the significant role of technology and automation in streamlining operations, advocating for increased investment in these areas to foster a more seamless and efficient energy supply chain. The NNPC Retail CEO, praised Nigeria’s recent progress in increasing refining capacity, noting that it bolsters energy security and reduces reliance on imports.
He noted also that energy transition and environmental sustainability are also major issues evolving. The MEMAN Chairman stressed Nigeria’s commitment to achieving carbon neutrality by 2060, while simultaneously addressing energy poverty. Pointing out the potential of Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) as viable alternatives to traditional fuels, and the importance of expanding renewable energy solutions, such as solar power and electric vehicle (EV) charging infrastructure.
In addressing the industry’s future direction, he proposed the establishment of consultative committees similar to Nigeria’s Bankers Committee, aimed at fostering collaboration, innovation, and conflict resolution within the petroleum sector. These committees would provide strategic oversight and promote a unified approach to industry challenges, potentially enhancing regulatory compliance and operational efficiency.
He concluded with a call for industry stakeholders to work together, leveraging building approaches seen in other sectors, to navigate the ongoing energy transition and deliver optimal outcomes for Nigerian consumers.
