TotalEnergies warns deregulation wants oversight past funding

TotalEnergies Advertising 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 liable for the exit of most multinational oil firms 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: Reworking 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 by means of its Basic Supervisor, Retail and Playing cards, Abdullahi Umar, who represented the Managing Director, TotalEnergies described itself as the one remaining multinational in Nigeria’s downstream house, attributing this to its adherence to world-class operational, security and governance requirements.

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

In keeping with 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 totally.

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

“Deregulation should be matched with robust 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 mentioned its continued presence in Nigeria’s downstream sector was anchored on its dedication to world greatest practices, stressing that it has persistently launched improvements designed to enhance security, effectivity and shopper confidence throughout its operations.

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

It mentioned the size of its operations demonstrates Nigeria’s viability as a downstream market when the correct insurance policies and requirements are in place.

“Our expertise reveals that Nigeria provides robust volumes and business margins, however just for operators ready to put money into methods, security and self-discipline. World-class requirements will not be optionally available; they’re what hold the market purposeful 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 gasoline 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 issues 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 by means of an in depth pipeline community, noting that efficient utilisation of such infrastructure might considerably scale back logistics prices and provide disruptions.

TotalEnergies mentioned robust regulatory oversight was now important to forestall market abuse, defend customers and be certain that deregulation delivers sustainable worth reasonably than short-term features.

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

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

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

On provide and logistics, the corporate welcomed the rising influence of home refining, significantly the Dangote Petroleum Refinery, describing it as a possible game-changer for product availability and distribution effectivity.

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