Financial Energy Review
……by Ben Ndubuwa…..
The Chief Executive Officer of NNPC Retail Ltd. and Chairman of the Major Energy Marketers Association of Nigeria (MEMAM), Huub Stokman, has emphasized the need for a diversified energy mix to drive Nigeria’s economic development. Speaking at the Nigeria International Energy Summit (NIES) during a panel session on the downstream sector, Stokman explained the importance of incorporating multiple energy sources beyond hydrocarbons to ensure sustainable growth.
“It will not just be hydrocarbons,” Stokman stated. “We have to bring in solar, hydrocarbons, and potentially wind. Additionally, we must consider ethanol to expand the reach of Premium Motor Spirit (PMS). It’s a multiple set of energies that will ultimately have to serve the consumer.”
Stokman acknowledged the challenges of fuel distribution in Nigeria, particularly the reliance on road transportation. He stressed the need to revamp the country’s pipeline network to improve efficiency and safety.
“Yes, it’s good to have hydrocarbons at the port, but it is expensive to do everything by road,” he noted. “The pipeline system has to be refurbished because it is inefficient and unsafe. However, we cannot do it all at once, and it may be limited to PMS and Automotive Gas Oil (AGO).”
He pointed out that Liquefied Petroleum Gas (LPG) remains largely inaccessible in northern Nigeria, where many rely on charcoal and firewood for cooking. “It’s all well and good to have LPG on the coast, but how do we bring it up north at a cost that competes with firewood? One billion people in Africa lack access to clean cooking fuels, and we need to address this issue,” Stokman said.
Compressed Natural Gas (CNG), according to Stokman, offers a viable solution to reduce fuel transportation costs. “CNG will play a major role in transport. It is a cheaper way to move goods across the country, but we must also ensure safety,” he said.
Stokman emphasized the need for better trucks equipped with modern safety technologies. “We must invest in trucks with anti-slip, anti-spill features, onboard cameras, speed limiters, and electronic seals that can only be unlocked at the destination with a one-time password (OTP). This will enhance safety and transparency in fuel distribution.”
With Nigeria’s refineries coming back on stream, Stokman urged industry stakeholders to maximize the value chain from crude oil processing. “The beauty of Nigeria is that our refineries are coming to the fore. The key question is how to preserve the value created when crude is refined and ensure it benefits the entire country,” he said.
He also underscored the importance of optimizing transport options, including pipelines and waterways. “For instance, if we dredge the Escravos channel, we could accommodate 20,000-tonne vessels instead of 15,000-tonne ones. While this may not seem like much, it has significant cost advantages,” he explained.
Stokman concluded by reiterating that energy affordability is critical for consumers and industrialization. “At the end of the day, energy must be affordable for Nigerians. This is the only way we can drive sustainable economic development.”
Reacting to Stokman’s remarks, industry stakeholders praised the call for a diversified energy mix and improved infrastructure. A senior official from the Ministry of Petroleum Resources, who spoke anonymously, said, “Nigeria must embrace multiple energy sources. Solar, wind, and ethanol must be part of our strategy.”
Similarly, an energy consultant, Tunde Alabi, noted, “The emphasis on CNG-powered trucks and better infrastructure is a step in the right direction. We need a holistic approach to energy distribution.”
As Nigeria navigates its energy transition, Stokman’s insights reinforce the urgent need for strategic investments in infrastructure, alternative energy, and efficient fuel distribution systems.
