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Home»Oil & Gas»Federal Government Denies Importation Of Dirty Fuel Into Nigeria
Oil & Gas

Federal Government Denies Importation Of Dirty Fuel Into Nigeria

Editor FrancisBy Editor FrancisJune 26, 2024No Comments3 Mins Read
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The Federal Government on Tuesday firmly denied allegations of importing dirty fuel into Nigeria, countering recent claims made by an official from the Dangote Petroleum Refinery.

The declaration came after a meeting in Abuja between government officials, oil marketers, and local crude oil refiners. The discussions focused on refined products’ pricing, competition, and the importation of domestically produced products.

During the meeting, oil marketers acknowledged that while local refineries were producing refined products, they would continue to source products from various suppliers, including indigenous producers.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) responded to the allegations by stating that high-sulphur-content petroleum products were last imported in February and that this issue had been addressed.





Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, spoke to journalists after the meeting. “There is no dirty fuel being brought into Nigeria,” Ukoha declared, addressing allegations from Dangote Refinery’s Vice President of Oil and Gas, Devakumar Edwin.

Edwin had accused the NMDPRA of indiscriminately granting licences for the importation of high-sulphur diesel, primarily sourced from Russia, into Nigeria. He claimed that despite Dangote’s compliance with ECOWAS regulations in diesel production, high-sulphur diesel from Russia was still being imported into the country.

In response, Ukoha emphasised that the NMDPRA strictly adheres to procedures for importing refined petroleum products to prevent the inflow of dirty fuels. He reassured that the agency is committed to ensuring only quality petroleum products are supplied and consumed in Nigeria.

“The ECOWAS heads of state in 2020 endorsed a declaration adopting a fuel roadmap that requires certain products to have a maximum of 50 parts per million (ppm) of sulphur. While enforcement against imports to comply with standards was encouraged immediately, the same treaty deferred enforcement for local refiners until December 31, 2024,” Ukoha explained.

He noted that since the enactment of the Petroleum Industry Act (PIA) in 2021, the NMDPRA has worked towards compliance, with significant reductions in sulphur content in imports observed by 2022. “From February 1, we began strong enforcement, and as of June, the average sulphur content in diesel brought into Nigeria is below the 50ppm legal limit.”

Ukoha assured that local refiners are also taking steps to comply with these standards. “We are confident that sulphur levels will reduce to as low as 10ppm with the new refineries’ desulphurisation units,” he added.

During the meeting, which included officials from Dangote Refinery and modular refineries, the parties discussed ongoing collaborations to ensure energy security and fair pricing in the market.

Gabriel Ogbeche, Group Managing Director of RainOil Ltd, stated that marketers are free to source products from various suppliers but are also supporting local refineries. “We’ve agreed to maintain a level playing field between marketers and refiners and will continue to collaborate for the industry’s best interest.”

Rabiu Umar, Group Chief Commercial Officer of Dangote Group, described the meeting as productive and expressed optimism about future industry developments. Concerns had arisen recently about oil marketers bypassing the Dangote Refinery by importing diesel despite its significant local production.

 

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