TotalEnergies Marketing Nigeria Plc has warned that Nigeria’s deregulated downstream petroleum sector risks falling short of its potential unless it is supported by firm regulatory discipline, consistent policies, and strict enforcement of safety standards.
The oil marketing company said the long-term challenge in Nigeria’s downstream sector has not been lack of capital, but weak regulation and policy inconsistency, which over the years discouraged investment and led to the exit of several multinational operators.
TotalEnergies made this known in a statement on Thursday following its participation in a high-level panel session titled “Driving Domestic Value: Transforming Downstream Markets and Refining” at the ongoing 2026 Nigeria International Energy Summit in Abuja.
Reaffirming its commitment to Nigeria’s downstream market, the company said policy stability, deregulation, and gradual improvements in supply infrastructure have helped sustain its operations in the country.
Speaking through its General Manager, Retail and Cards, Abdullahi Umar, who represented the Managing Director, TotalEnergies described itself as the only remaining multinational operating at scale in Nigeria’s downstream sector. It attributed this to its strict adherence to international operational, safety, and governance standards.
According to the company, serious investors are unwilling to operate in environments where regulations are inconsistently applied and safety standards are weak, noting that such conditions previously created an uneven playing field in the market.
While welcoming Nigeria’s transition from a subsidy-driven fuel system to a private sector-led pricing regime, TotalEnergies cautioned that deregulation without discipline could replace inefficiency with instability.
The company stressed that healthy competition can only thrive when all market players are held to the same safety, quality, and operational benchmarks, adding that strong regulatory oversight is essential to protect consumers and maintain market credibility.
TotalEnergies said its continued presence in Nigeria is anchored on long-term investment in systems, safety, and innovation. It currently operates over 500 retail service stations nationwide, making it one of the largest fuel retail networks in the country.
It added that the scale of its operations shows Nigeria remains a viable downstream market when the right policies and standards are in place.
The company also welcomed the gradual implementation of the Petroleum Industry Act, describing predictable regulation as critical to restoring investor confidence after years of distortion caused by fuel subsidies, which were removed in 2023.
Since the subsidy removal, the downstream sector has experienced increased competition, price volatility, and growing concerns over product quality and safety, particularly among smaller operators.
TotalEnergies highlighted Nigeria’s existing downstream infrastructure, including pipelines linking refineries to inland depots, noting that efficient use of these assets could significantly reduce logistics costs and supply disruptions.
As it marks 70 years of continuous downstream operations in Nigeria, the company described itself as a stabilising force in the market and expressed confidence in the country’s long-term energy outlook, provided reforms are implemented with discipline.
It also expressed optimism about the impact of rising domestic refining capacity, particularly the Dangote Petroleum Refinery, saying it could significantly improve fuel availability and distribution efficiency across the country.
