The Major Energies Marketers Association of Nigeria (MEMAN) has stated that downstream operators are under significant pressure because of the global oil crisis, even though the situation presents market opportunities.

MEMAN shared this information during a webinar convened on Wednesday. The forum, hosted by MEMAN in collaboration with S&P Global Energy, examined Middle East tensions, supply security risks, and Nigeria’s transition to a deregulated downstream regime.

MEMAN noted that West Africa’s downstream petroleum sector is demonstrating resilience despite escalating geopolitical tensions.

MEMAN Chairman, Huub Stokman, described the crisis as a “double-edged reality” that creates opportunities for producers while intensifying pressure on downstream operators and consumers.

He explained that rising volatility, surging shipping and insurance costs, and rapid shifts in sourcing are occurring as countries seek alternative crude supplies.

Stokman indicated that Nigeria is at a strategic crossroads, with the potential to become a reliable global energy partner if structural bottlenecks are addressed decisively.

He identified pipeline insecurity, regulatory opacity, and infrastructure deficits as major constraints hindering Nigeria’s ability to fully leverage current market dynamics.

Stokman also highlighted the growth in domestic refining, particularly the Dangote Refinery, as a buffer against shocks, while cautioning about risks associated with supply concentration.

Despite improvements, Stokman stated that domestic fuel prices remain linked to global trends, with delays in adjustments often attributed to inventory cycles and working capital pressures.

He disclosed that Nigeria currently maintains over 30 days of petrol supply, with NNPC Ltd. continuing to serve as the supplier of last resort.

From a global perspective, S&P Global’s Gary Clark warned that refined product markets are tightening, with rising margins for diesel and jet fuel.

Clark attributed this surge to supply disruptions and heightened risk premiums, in addition to costly vessel diversions around the Cape of Good Hope.

He added that these detours are further tightening supply and inflating freight costs, particularly in European markets already facing strain.

Stanislas Drochon cautioned that Sub-Saharan Africa remains highly vulnerable due to its dependence on imports, weak refining capacity, and limited storage infrastructure.

Drochon stated, “Energy security is not just about supply. It is about reliability, affordability, and accessibility, requiring sustained investment across the entire value chain.”

According to the speakers, the global oil market remains fragile, with disruptions to Iranian output and threats around the Strait of Hormuz impacting supply chains and pricing stability.

Participants agreed that while short-term volatility is inevitable, Nigeria’s reforms could help it navigate these challenges.