Marketers Call For Infrastructure Support To Accelerate CNG Growth

Major Energy Marketers Association of Nigeria (MEMAN) has expressed concern that a huge opportunity strain exists in the Compressed Natural Gas (CNG) energy market and sought for direct investment in conversion infrastructure to support the project.

The marketers also called for open market competition in the downstream sector.

Speaking at MEMAN’s quarterly online press webinar, with the theme ‘Fair and Healthy Competition in the Nigerian Market,’ which drew media professionals, industry experts, and stakeholders to discuss Nigeria’s changing energy landscape, the association’s chief executive officer(CEO), Clement Isong said, several MEMAN members are transitioning from diesel to CNG trucks in line with the government’s cleaner energy drive.

However, he warned that the policy remains in early stages and infrastructure gaps must be addressed. CNG is still a developing policy. Infrastructure is lacking, so coordinated planning is vital, he said. His members are also implementing solar stations and pooled logistics to boost efficiency and reduce operational costs.

Describing Dangote’s plan to roll out 4,000 CNG trucks as brilliant, he raised concerns about fairness and competition oversight.

‘That’s a major move for logistics and sustainability. But it might also trigger fears of dominance in the fuel supply chain,’ he said. He pointed out that Dangote has experience using CNG in its cement operations, having converted around 2,000 trucks already.

Isong said this experience gives the company an edge, but warned that clear rules are needed to protect market fairness. He called on the Federal Competition and Consumer Protection Commission (FCCPC) and the NMDPRA to manage innovation alongside market stability.

This must be an ongoing conversation between regulators and market actors, he said. He emphasised that MEMAN supports deregulation and innovation, but cautioned that market structure must not be ignored. We support CNG trucks and similar innovations. But we must fully assess the implications before taking positions, he said.

He said, MEMAN is carefully watching market developments and will respond once all facts are available.  “We need a full picture before making any conclusions,” he said. He noted that innovation must align with national priorities and benefit the average Nigerian. Rushing to conclusions would be unwise. This should be about national interest and consumer welfare,” Isong said.

He acknowledged risks in a deregulated market, such as monopolies, but stressed the long-term value of competition. Competition fosters efficiency and sustainability, but oversight is vital to prevent market capture, he said.

He added that energy is vital to development and must be priced and distributed with the public in mind. If fuel prices soar, Nigerians suffer and growth stalls. We need ongoing discussions on distribution and pricing, he said.

On collaboration, he noted that the sector often shares resources to manage costs and improve efficiency. “Many MEMAN members buy from Dangote and work together on logistics. Globally, the oil sector cooperates across the chain. Retail competition exists, but supply chain cooperation ensures lower costs and reliability,” he said.

Nigeria’s energy transition continues, and Dangote’s 4,000 CNG trucks could significantly reshape fuel logistics. The impact depends on how this move is regulated, expanded, and integrated into the wider national strategy.

Earlier, Dangote Industries said it would start nationwide fuel distribution from August 15, using the new CNG trucks. This was confirmed by Dangote’s Internal Communications Specialist, Abiodun Alade.

MEMAN said it is monitoring market responses and will engage constructively once Dangote’s plans become clearer.