FUEL SUBSIDY REMOVAL DRIVING ENERGY INNOVATION — MEMAN
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The Major Energies Marketers Association of Nigeria (MEMAN) says the removal of fuel subsidy is spurring innovation and investment in Nigeria’s downstream energy sector.
In a policy briefing on the state of the petroleum industry, MEMAN Chairman, Huub Stokman, said deregulation has opened up opportunities for marketers to invest in new technologies, refining capacity, and alternative energy solutions.
He noted that while the short-term impact of subsidy removal has led to price fluctuations and inflationary pressures, the long-term benefits include increased private sector investment, reduced smuggling, and improved energy security.
“Deregulation opens new opportunities and should be sustained through proactive measures of policy clarity and innovation,” Stokman said.
The MEMAN chairman urged regulators such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure fair competition and transparency across the value chain. He added that maintaining consistent policies will attract more investors and enhance consumer confidence in the market.
Since the removal of the subsidy, Nigeria’s monthly revenue allocation to the three tiers of government has reportedly risen above ₦2 trillion, giving room for more fiscal flexibility in infrastructure and social investments.
Stokman further stressed that the focus should now shift to developing sustainable alternatives like Compressed Natural Gas (CNG), local refining, and expansion of downstream infrastructure to meet growing energy demand.
He, however, cautioned that success in the deregulated environment would depend on regulatory stability, improved access to foreign exchange, and policies to mitigate inflationary effects.
According to MEMAN, although subsidy removal has brought short-term challenges, it is laying the foundation for a more competitive, transparent, and innovation-driven energy sector in Nigeria.
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