The adoption of Compressed Natural Gas (CNG) as a fuel alternative for petroleum tanker trucks could reduce operational costs by as much as 40 percent, according to the Major Energies Marketers Association of Nigeria (MEMAN).
The statement was made during MEMAN’s second quarter 2025 Quarterly Press Webinar and Engagement, where stakeholders from across the energy value chain gathered to discuss the future of fair and healthy competition in Nigeria’s downstream petroleum market.
Speaking at the event, Clement Isong, CEO of MEMAN, emphasised the financial and environmental benefits of switching from diesel to CNG-powered vehicles in the fuel logistics sector.
“CNG will reduce operational costs by 40 percent. That’s huge, and that’s brilliant,” Isong said, highlighting how cost savings could improve competitiveness, especially for marketers who quickly embrace the transition.
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“Most marketers are already planning on moving from diesel-powered trucks to CNG-powered trucks. Bold companies will take advantage of opportunities that are available.”
The discussion came amid increased attention on the logistics landscape following the announcement that Dangote Petroleum Refinery is deploying 4,000 trucks across the country to boost fuel distribution.
MEMAN noted that it is closely monitoring the rollout to fully assess its impact on the downstream sector.
“We are watching the market and studying the deployment of 4,000 trucks by the Dangote Petroleum Refinery to enhance fuel distribution across Nigeria before we can have clarity on the impacts,” Isong added.
Focus on fair competition
The event, moderated by Ogechi Nkwoji, head of economic intelligence, research and regulations, MEMAN, also featured key industry leaders and economists who shared insights on regulatory oversight, competition policy, and infrastructure equity in the face of market liberalisation.
In his opening remarks, Huub Stokman, chairman of MEMAN, reaffirmed the association’s commitment to innovation and deregulation while stressing the need for a level playing field.
“While deregulation opens up new opportunities, maintaining fair and open competition is critical,” he said.
He called on regulatory bodies such as the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure consistent oversight and consumer protection in this evolving landscape.
Economic and Regulatory Perspectives
Samer Matta, senior economist at the World Bank, spoke on the broader economic case for competition, noting that competitive markets enhance service quality and drive down prices for both firms and consumers.
He emphasised that Nigeria still faces significant market concentration in various sectors and encouraged regulators to build capacity for more effective competition policy.
Francis Anatogu, CEO of Transaharan and former executive secretary of the AfCFTA Secretariat, drew from examples in telecoms and aviation to advocate for robust market access rules and protection for smaller players.
“Clear dominance thresholds and timely dispute resolution are essential in sustaining market health,” Anatogu said, while also calling for better coordination among regulatory bodies.
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CNG: A Competitive Edge?
The highlight of the session was MEMAN’s enthusiastic support for the adoption of CNG technology, not just for cost-saving, but also for its potential to level the playing field — if deployed equitably.
While MEMAN estimates the cost savings at 30 percent, some industry players suggest reductions could go as high as 40 percent in certain scenarios.
Isong, however, warned that infrastructure access could become a bottleneck, disproportionately favouring early adopters or larger players. He urged regulators to ensure the wide availability of CNG fueling infrastructure so that the benefits of innovation are not concentrated in the hands of a few.
MEMAN also encouraged its members to explore other energy-efficient practices, such as solar-powered service stations and shared logistics solutions to further cut costs and reduce environmental impacts.
Balancing Investment and Equity
The ongoing expansion of the Dangote Refinery and its massive logistics fleet has raised questions about market dominance. MEMAN acknowledged the positive potential of such investments in boosting national fuel supply and efficiency but cautioned against unchecked market concentration.
To that end, the association committed to a detailed internal review of Dangote’s distribution strategy to evaluate its competitive implications. “It’s up to FCCPC and NMDPRA to find out the equilibrium and what is best for the market,” Isong stated.
