Sopuruchi Onwuka

Evolving market trends and fierce competition associated with the deregulation of the downstream petroleum industry are beginning to expose gaps in the regulations that govern the terms of play in the industry.

With the multiplicity of local refining investments, different sources of fuel supply and quality, foreign exchange controversy in domestic transaction, and apprehension over monopolistic tendencies overwhelming the downstream petroleum industry; existing players and new investors demand regulatory clarity and specification of quality that would rule the domestic fuel market as it continues to expand and liberalize.

Chairman of the Advisory Board of the OTL Africa Downstream Energy Week, Otumba Tunji Oyebanji, told journalists on Friday that issues currently rocking the market after it has been deregulated would be tackled at the debate sessions that frontline the 2025 edition of the conference scheduled to hold in Lagos from Monday.

He emphasized the need for updated regulatory instruments that would level out and stabilize the field of play as the market continues to adjust to full deregulation. He also pointed at the need for adaptable regulatory frameworks that can respond to evolving market conditions, integration trends, and sustainability goals.

Otumba Oyebanji who is also the Managing Director of 11 Plc made it clear that whereas the market remains commercially deregulated, and investors take comfortable positions according to their niches, regulatory interventions are increasingly required to tame tendencies of monopoly, protect quality standards and manage realignment of commercial portfolios.

Otumba Oyebanji is also a former Chairman of the Major Energy Marketers Association of Nigeria (MEMAN) who had championed the advocacy and policy campaigns for the deregulation of the domestic fuel market to save private players from the dictates of the Nigerian National Petroleum Company (NNPC) Limited which operated an exclusive subsidized supply in the market.

In stating that the current regulatory structure must quickly evolve to catch up with rapidly changing realities, suggesting that the Petroleum Industry Act (PIA) currently governing the industry must be updated.

With the evolution of scalable refining investments, integrated field developments that include mini-refining modules, and repositioning by tank farm operators into retail of liquid and gas fuels for the motoring consumers; regulation must now adapt to emerging realities and capture activities in the continuously evolving industry value chain, he observed.

He pointed at the regulatory models that rule highly developed energy markets that host international oil companies with separate business units aligned with different segments of the market. He stated that Nigerian must also adopt similar flexible regulatory systems capture integrated industry operations.

Other critical issues in the downstream petroleum industry, including cost optimization, carbon footprint containment, energy choice and supply sustainability in the face of climate health concerns, as well as data transparency are billed to engage delegates at OTL 2025.

Otumba Oyebanji declared that OTL 2025 is expected to create debates around prevailing concerns about distribution of roles in addressing the glitches of competition, transparency, and energy security. He added that commercial opportunities relating to developing the infrastructure required in deepening the market would be showcased at the event.

Organized in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other strategic partners, the OTL Africa Downstream Energy Week encompasses end-to-end operations and services in midstream and downstream business, incorporating a strategic conference, showcase exhibition and networking events.

The event, according to Oyebanji, would provide platform for shaping policies and executive actions that govern the market as a whole, providing crucial insights on which government’s regulators anchor their engagements with the industry.

He noted that the deregulated market which took the industry many years to actualize has now triggered action, tension and intervention by the range of players in the past one year, and “all interested parties are still trying to achieve balance and equilibrium in the new regime.”

With the theme on Energy Sustainability – Growth Beyond Boundaries and Competition,he said, the 2025n OTL provides the platform to address prevailing controversies and help the market achieve balance in the fierce competition shaking the rapidly evolving downstream petroleum landscape.

With more than 60 speakers confirmed to attend the event, Mr Oyebanji said, OTL 2025 will feature some 10 strategic sessions that are designed to provide insight into market trends, innovations, opportunities and targets. Also, anchor themes are focused on strategic investment, finance, technology and corporate realignment.

“As the continent’s premier showcase platform for downstream energy, delegates and visitors are expected to experience a showcase of innovations, services and technology at the OTL Trade Exhibition, with leading industry brands on hand to engage with the market.

“Focus areas include oil refining, petroleum products trading, shipping, tank storage, logistics, marketing and retail, in addition to LPG, lubricants, petrochemicals, power, financial services and policy.

“The week has also been curated to offer memorable visits to production hubs, including the Dangote Refinery Complex. Other exciting highlights include a range of networking sessions, receptions and social events that promise to give international and local visitors an unforgettable experience of Lagos,” he stated.

In supporting all the assertions by Otumba Oyebanji, the Chief Executive Officer of OTL Downstream Development in Africa Ltd./Gte, Joyce Akabogu, confirmed that the conference aims to facilitate open discussions on resolving all issues and challenges thrown up by changes in the domestic policy environment.