TotalEnergies Marketing Nigeria Plc 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 oil major stated that the absence of these fundamentals, rather than a lack of capital, was responsible for the exit of most multinational oil companies from Nigeria’s downstream sector over the years.
The company made the position known 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 ongoing 2026 Nigeria International Energy Summit in Abuja.
It also reaffirmed its long-term commitment to Nigeria’s downstream petroleum sector, citing policy stability, deregulation, and improving supply infrastructure as key factors that sustain its operations in the country.
Speaking through its General Manager, Retail and Cards, Abdullahi Umar, who represented the Managing Director, TotalEnergies, described it as the only remaining multinational 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 uneven playing field that discouraged long-term investment and forced several international operators to scale down or exit the market entirely.
The company noted that while Nigeria’s transition from a subsidy-driven system to a private sector-led market was a welcome development, deregulation without discipline risked 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 was anchored on its commitment to global best practices, stressing that it has consistently introduced innovations designed to improve safety, efficiency and consumer confidence across its operations.
The company currently operates over 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 provisions of the Petroleum Industry Act, saying predictable regulation was critical to restoring investor confidence and stabilising the market after years of distortion 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 experienced intense competition, pricing volatility and rising concerns over product quality and safety, especially among smaller operators.
The company highlighted Nigeria’s historic downstream infrastructure design, which originally linked four state-owned refineries to 21 inland depots through an extensive pipeline network, noting that effective utilisation of such infrastructure could significantly reduce logistics costs and supply disruptions.
TotalEnergies said strong regulatory oversight was now essential to prevent market abuse, protect consumers and ensure that deregulation delivers sustainable value rather than short-term gains.
The company described its role in the current market as a stabilising force, adding that its 70 years of continuous downstream operations in Nigeria underscored its confidence in the country’s long-term energy outlook.
“This year marks 70 years of operating in Nigeria’s downstream sector. That longevity reflects resilience, but also belief in the market’s potential, provided reforms are executed with discipline,” the statement said.
TotalEnergies also expressed optimism that improvements in domestic refining capacity and logistics efficiency would further strengthen the downstream value chain, provided standards and transparency were upheld.
On supply and logistics, the company welcomed the growing impact of domestic refining, particularly the Dangote Petroleum Refinery, describing it as a potential game changer for product availability and distribution efficiency.
“With the advent of domestic refining, supply and logistics will become much more efficient. We are ready to key into that success story,” the statement said.
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