Oredola Adeola
The Major Energy Marketers Association of Nigeria (MEMAN) has proposed the creation of Petroleum Industry Consultative Committees (PICC) to end the public exchange of press statements and resolve ongoing disputes between Dangote, other local refiners, NNPC Limited, and regulators, with the aim of fostering internal dialogue.
Huub Stokman, Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), and Adetunji Oyebanji, Managing Director of 11Plc, made this observation during an industry forum on optimizing the Nigerian oil and gas sector during a virtual webinar event organized by MEMAN and its key partners on Monday.
Stokman in his presentation called for the establishment of PICC, inspired by the success of the Bankers’ Committee, the proposed committees aim to enhance collaboration, regulatory compliance, and financial stability within Nigeria’s petroleum sector.
The Committees, as outlined by Stokman, would consist of three key groups: the Midstream and Downstream Industry Coordination Committee (MDICC), the Industry Interface Committee (ICC), and the Petroleum Industry Consultative Assembly (PICA).
These bodies, according to him, would focus on strategic coordination within the industry, particularly in relation to pricing and subsidy removal for Premium Motor Spirit (PMS), commonly known as petrol.
According to Stokman, wo doubles as Managing Director of NNPC Retail Limited, the committees’ primary objective would be to support the beneficiation of Nigeria’s crude oil and guide the systematic evolution of PMS pricing.
“The Petroleum Industry Consultative Committees are also expected to promote automation, technology, innovation, efficiency, best practices, and self-regulation within the industry,” he said.
Drawing inspiration from the success of the Bankers’ Committee, Stokman added that these bodies would serve as platforms for resolving conflicts across the supply chain.
The structure of the proposed Committees according to him, will include:
Midstream and Downstream Industry Coordination Committee (MDICC)
The MDICC is proposed to meet quarterly, with its sessions chaired by the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Its membership will include representatives from the Federal Competition Commission (FCC), other government agencies, the Nigerian National Petroleum Company Limited (NNPCL), the Ministry of Petroleum Resources, industry associations such as MEMAN, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and others.
CEOs of major marketing companies and local refinery operators will also be part of the committee.
Industry Interface Committee (IIC)
The IIC will be designed to facilitate dialogue between the upstream and midstream/downstream sectors. It will meet quarterly and be co-chaired by the ACE of NMDPRA and the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Representatives from the Ministry of Petroleum Resources, the Oil Producers Trade Section (OPTS), the Independent Petroleum Producers Group (IPPG), and downstream associations will also participate.
Petroleum Industry Consultative Assembly (PICA)
PICA will act as a high-level platform for broader industry discussions and decision-making, adding that the assembly is expected to meet biannually or annually and will be chaired by the Minister of State for Petroleum Resources (Oil), with representation from the gas sector, MDICC, and IIC members.
Stokman therefore noted that these committees, once established, will play a critical role in ensuring the smooth functioning of Nigeria’s petroleum industry by fostering collaboration among key stakeholders and facilitating strategic decision-making.
He also highlighted the importance of long-term planning to diversify Nigeria’s energy mix and adapt to the evolving global energy landscape.
Corroborating Stokman’s proposal, Adetunji Oyebanji, former MEMAN Chairman and Managing Director of 11Plc, stressed the need for stakeholders to resolve industry disputes internally, rather than through public press statement battles, which he revealed should be addressed within the industry.
He urged an end to public disagreements, particularly those between the NNPCL, regulators, and Dangote, and called for a more formalized platform for dialogue.
“The MEMAN is working closely with other stakeholders to consolidate discussions and ensure we collectively move the industry forward,” Oyebanji added.
