Nigeria: Petroleum Downstream Regulator Denies Dangote Refinery’s Dirty Fuel Claims

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has rejected claims by Dangote Industries Limited that some marketers have imported dirty fuel into the West African nation.

“There is no dirty fuel that we would encourage to come into Nigeria. And there is no dirty fuel being brought in,” said Ogbugo Ukoha, Executive Director of Distribution Systems, Storage and Retailing Infrastructure, at the NMDPRA during a press briefing after a meeting with the oil marketers and local refiners at the headquarters of the NMDPRA in Abuja on Tuesday.

His response followed allegations by Devakumar Edwin, Vice President in charge of Oil and Gas at Dangote Industries Limited, that the regulator had granted licences indiscriminately to marketers to import dirty fuel into Nigeria.

According to Ukoha, NMDPRA takes seriously its statutory mandate to ensure that only quality petroleum products are supplied and consumed in Nigeria.

Mr Ukoha explained that the Economic Community of West African States (ECOWAS) heads of state, in 2020, endorsed a declaration adopting the Afri-5 fuel roadmap that requires that certain products have a minimum of 50 parts per million (ppm) litres of sulphur.

“Whilst it encouraged almost an immediate enforcement against imports to comply with that standard, the same treaty deferred enforcement for local refineries up to 31 December 2024.”

He said section 317 of the Petroleum Industry Act (PIA) 2021 also captured and upheld this ECOWAS treaty.

“So as an authority, what have we done since we came into being? We started by engendering compliance. We saw a downward trend up to December 2023. In December and January of this year, we noticed a spike in the sulphur contents of products being imported. And we again now began strong enforcement from 1st February.

“I am happy to tell Nigerians that up until as we speak in June, the average sulphur content in every Automotive Gas Oil (AGO) that is brought into Nigeria is far below, the average is far below what the 50 ppm provision is in the law.

“With the local refineries, remember that declaration deferred it and so they continue to produce at a higher level. But we are not very anxious about that because even the new refineries that are coming in have within their design of the plant desulphurisation units that will see in the nearest future that sulphur going down as low as 10 ppm,” he said.

He assured them that this is a mandate that the authority takes very seriously and that it is determined to guarantee the well-being and health of Nigerians.

“What we have on the average from imports has continued to go down from 200 on the average ppm and now we have it far below the 50 ppm that is in the law, provided under the law.

“And then with the refineries, there is no need to enforce that until the end of this year. But they are already taking steps to see that is also guaranteed,” he said.

Speaking on the outcome of the meeting, Mr Ukoha said the meeting was aimed at promoting collaboration in a manner that ensures and guarantees energy security within the country.

“Our discussions covered considerable issues, very significant and profound. Issues of pricing, and competition have been raised and we will continue to engage with every operator to see that we land at a place that is ultimately beneficial to Nigeria and Nigerians,” he added.

 

Source: https://energynewsafrica.com