Downstream deregulation will fail with out regulatory self-discipline –TotalEnergies

TotalEnergies Advertising and marketing Nigeria Plc has warned that Nigeria’s deregulated downstream petroleum market will fail to ship long-term worth until it’s backed by agency regulatory self-discipline, constant insurance policies and strict security enforcement.

The oil main said that the absence of those fundamentals, reasonably than an absence of capital, was accountable for the exit of most multinational oil corporations from Nigeria’s downstream sector over time.

The corporate made the place identified in an announcement issued on Thursday, after its participation in a high-level panel session titled “Driving Home Worth: Remodeling Downstream Markets and Refining” on the ongoing 2026 Nigeria Worldwide Power Summit in Abuja.

It additionally reaffirmed its long-term dedication to Nigeria’s downstream petroleum sector, citing coverage stability, deregulation, and bettering provide infrastructure as key elements that maintain its operations within the nation.

Talking via its Basic Supervisor, Retail and Playing cards, Abdullahi Umar, who represented the Managing Director, TotalEnergies, described it as the one remaining multinational in Nigeria’s downstream area, attributing this to its adherence to world-class operational, security and governance requirements.

“Capital alone doesn’t construct a sustainable downstream market. No critical investor needs to function in an atmosphere the place insurance policies are inconsistent and security requirements are weak,” the corporate stated.

Based on TotalEnergies, previous regulatory uncertainty and uneven enforcement of guidelines created an uneven enjoying area that discouraged long-term funding and compelled a number of worldwide operators to scale down or exit the market solely.

The corporate famous that whereas Nigeria’s transition from a subsidy-driven system to a non-public sector-led market was a welcome growth, deregulation with out self-discipline risked changing inefficiency with instability.

“Deregulation have to be matched with sturdy requirements enforcement. Wholesome competitors can solely exist when all gamers are held to the identical security, high quality and operational benchmarks,” the assertion added.

TotalEnergies stated its continued presence in Nigeria’s downstream sector was anchored on its dedication to international greatest practices, stressing that it has persistently launched improvements designed to enhance security, effectivity and shopper confidence throughout its operations.

The corporate presently operates over 500 retail service stations throughout Nigeria, making it one of many largest gas retail networks within the nation.

It stated the dimensions of its operations demonstrates Nigeria’s viability as a downstream market when the fitting insurance policies and requirements are in place.

“Our expertise reveals that Nigeria gives sturdy volumes and industrial margins, however just for operators ready to spend money on programs, security and self-discipline. World-class requirements usually are not optionally available; they’re what preserve the market practical and credible,” TotalEnergies said.

The oil main additionally welcomed the gradual implementation of provisions of the Petroleum Business Act, saying predictable regulation was crucial to restoring investor confidence and stabilising the market after years of distortion attributable to gas subsidies.

Nigeria formally eliminated petrol subsidies in 2023, a transfer that reshaped the downstream sector, transferred pricing duty to market forces and uncovered longstanding inefficiencies in provide, logistics and regulation.

Since then, the downstream market has skilled intense competitors, pricing volatility and rising considerations over product high quality and security, particularly amongst smaller operators.

The corporate highlighted Nigeria’s historic downstream infrastructure design, which initially linked 4 state-owned refineries to 21 inland depots via an in depth pipeline community, noting that efficient utilisation of such infrastructure might considerably cut back logistics prices and provide disruptions.

TotalEnergies stated sturdy regulatory oversight was now important to stop market abuse, shield customers and make sure that deregulation delivers sustainable worth reasonably than short-term good points.

The corporate described its position within the present market as a stabilising power, including that its 70 years of steady downstream operations in Nigeria underscored its confidence within the nation’s long-term power outlook.

“This yr marks 70 years of working in Nigeria’s downstream sector. That longevity displays resilience, but additionally perception out there’s potential, supplied reforms are executed with self-discipline,” the assertion stated.

TotalEnergies additionally expressed optimism that enhancements in home refining capability and logistics effectivity would additional strengthen the downstream worth chain, supplied requirements and transparency have been upheld.

On provide and logistics, the corporate welcomed the rising affect of home refining, notably the Dangote Petroleum Refinery, describing it as a possible sport changer for product availability and distribution effectivity.

“With the arrival of home refining, provide and logistics will change into way more environment friendly. We’re able to key into that success story,” the assertion stated.