Sopuruchi Onwuka

The Chairman of the OTL Africa Downstream Advisory Board, Otunba Adetunji Oyebanji, has called on government to design an energy security programme that transcends fuel availability to economic stability.

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He called for building a balanced system where local production meets national demand competitively without undermining overall economic stability of the country or triggering inflationary jumps that aggravate poverty in the country.

In pointing at recent energy policy measures and their impact on foreign-exchange stability in the economy, he called for a new regulation to moderate competition in the market and address the prevailing market turbulence.

Speaking at the 2025 OTL Africa Downstream Energy Week, in Lagos, Oyebanji said whereas deregulation has also opened opportunities for market forces to propel and reward innovative products and services, strong regulation is required to keep the foreclose emergence of market monopoly.

While counting new realities of deregulation to include competition, he said regulators have the responsibility to ensure that the market is fair to all players in the full industry value chain. He said the overall aspiration is to shape a domestic fuel market that rewards investments that contribute to energy security and economic stability.

While applauding policy incentives that guarantee crude oil allocation to domestic refineries in Naira denominated transactions, he cautioned that increasing local supply must not undermine foreign-exchange inflows into the country or commercial incentives to upstream producers.

“We must make Nigeria attractive to investors, both local and foreign. Energy security cannot exist without production growth,” Oyebanji said, emphasizing the need to align crude allocation, forex management, and investment incentives.

Oyebanji stressed the importance of accurate data and transparency for effective policy formulation and investment decisions. He proposed the establishment of a centralized data management systems dedicated to providing Nigeria’s actual fuel consumption, refinery output, and depot capacity.

“Without reliable data, regulation and commercial decisions will remain speculative,” he stated.

In casting an outlook for the Nigerian downstream petroleum industry, Otunba Oyebanji, noted that deregulation is already triggering commercial realignments, with mergers and acquisitions expected in the coming years as businesses adapt to new pricing and operational realities.

“Ongoing negotiations and volume shifts are reshaping business models. We expect visible mergers and acquisitions within two to five years as the market stabilizes,” he said.

He added that decarbonization and energy transition would dominate future conversations, urging a measured approach that aligns global environmental targets with local economic realities.