Nigeria: Regulatory Discipline Key To Nigeria’s Downstream Success – TotalEnergies

TotalEnergies Marketing Nigeria Plc, a subsidiary of the French oil major, has warned that Nigeria’s deregulated downstream petroleum market will fail to deliver long-term value unless it is backed by firm regulatory discipline, consistent policies and strict safety enforcement.

The company made this known in a statement carried by local media, including Punchng.com.

According to the oil major, the absence of these fundamentals—rather than a lack of capital—has driven most multinational oil companies out of Nigeria’s downstream sector over the years.

The company’s position was contained in a statement issued on Thursday after its participation in a high-level panel session titled “Driving Domestic Value: Transforming Downstream Markets and Refining” at the 2026 Nigeria International Energy Summit in Abuja.

TotalEnergies also reaffirmed its long-term commitment to Nigeria’s downstream petroleum sector, citing policy stability, deregulation, and improving supply infrastructure as key enablers of its sustained operations in the country.

General Manager for Retail and Cards, Abdullahi Umar, who represented the Managing Director of TotalEnergies, noted that the company remains the only multinational still operating in Nigeria’s downstream space, attributing this to its adherence to world-class operational, safety, and governance standards.

“Capital alone does not build a sustainable downstream market. No serious investor wants to operate in an environment where policies are inconsistent and safety standards are weak,” the company said.

According to TotalEnergies, past regulatory uncertainty and uneven enforcement of rules created an unbalanced playing field that discouraged long-term investment and forced several international operators to scale down or leave the market entirely.

The company noted that although Nigeria’s transition from a subsidy-driven regime to a private sector-led market is a welcome development, deregulation without discipline risks replacing inefficiency with instability.

“Deregulation must be matched with strong standards enforcement. Healthy competition can only exist when all players are held to the same safety, quality and operational benchmarks,” the statement added.

TotalEnergies said its continued presence in Nigeria’s downstream sector is anchored on its commitment to global best practices, stressing that it has consistently introduced innovations aimed at improving safety, efficiency and consumer confidence across its operations.

The company currently operates more than 500 retail service stations across Nigeria, making it one of the largest fuel retail networks in the country. It said the scale of its operations demonstrates Nigeria’s viability as a downstream market when the right policies and standards are in place.

“Our experience shows that Nigeria offers strong volumes and commercial margins, but only for operators prepared to invest in systems, safety and discipline. World-class standards are not optional; they are what keep the market functional and credible,” TotalEnergies stated.

The oil major also welcomed the gradual implementation of the Petroleum Industry Act (PIA), saying predictable regulation is critical to restoring investor confidence and stabilising the market after years of distortions caused by fuel subsidies.

Nigeria officially removed petrol subsidies in 2023—a move that reshaped the downstream sector, transferred pricing responsibility to market forces and exposed longstanding inefficiencies in supply, logistics and regulation.

Since then, the downstream market has witnessed intense competition, pricing volatility and rising concerns over product quality and safety, especially among smaller operators.