Tag: PMS

  • Fuel scarcity: You’ve placed Nigeria on auto-pilot – PDP tells Buhari

    Fuel scarcity: You’ve placed Nigeria on auto-pilot – PDP tells Buhari

    Peoples Democratic Party (PDP) has stated that President Muhammadu Buhari-led administration has placed Nigeria on auto-pilot as the fuel scarcity lingers on.

    The party also declared that the Buhari led administration has failed to deliver on its promise to make life easier for Nigerians.

    According to the party, the current petrol scarcity and “widespread uncertainties” show that the country is on auto-pilot.

    In a statement issued on Thursday, Debo Ologunagba, PDP’s spokesperson, said the scarcity of petrol has resulted in high cost of living.

    “The Peoples Democratic Party (PDP) charges Nigerians to brace up and support one another in the face of abandonment by the All Progressives Congress (APC) administration as all critical indicators show that the APC has abdicated its constitutional duty to guarantee the security and welfare of the people,” the statement reads.

    “The prevailing chaotic situation in the country with widespread uncertainties, unabating fuel crisis, piercing economic hardship, sectional agitations, heated industrial unrests, infrastructural stagnation, kidnapping, daily bloodletting and escalated insecurity with gangsters now taking over the streets of major cities further confirms that the APC administration is now on autopilot with its central command structure in disarray.

    “While other world leaders are solving problems in their countries, President Buhari, who promised to fix our refineries, abandoned Nigerians to the excruciating fuel crisis caused by the corruption perpetrated by APC leaders in the helm of affairs in the petroleum sector, which has now crippled economic activities in the country.

    “Nigerians will recall that after being exposed for importing contaminated fuel with consequential damage to vehicles, machinery and businesses, the APC government had promised to fix the situation. Sadly, several weeks after, the APC Federal Government had failed in its promise as always like in every other aspect of our national life.

    “With the corruption and abdication of duty by the APC, our nation is now at the mercy of black-market vendors who charge already overburdened Nigerians as high as N500 per litre of fuel; a development that has resulted in a spiral increase in transport fares, costs of food, medicines and other essential commodities.

    “This is in addition to the collapse of many businesses, massive loss of jobs, hunger and starvation, the sudden death of breadwinners with grave economic pressure on millions of families and attendant social consequences to our country.

    “By travelling out of the country at the time Nigerians expect him to make himself available and provide leadership to address the agitations by striking university lecturers, President Buhari further exposes APC’s lack of commitment towards the wellbeing and development of Nigerians youths.

    “Our Party is concerned that the insensitivity and utter disregard of the APC and its government for the feelings of the people have heightened tension in the country and if not checked could result in widespread restiveness and eventual breakdown of law and order.”

    While promising to fix the country after winning the 2023 presidential election, the PDP said “it is clear that the APC has come to the end of the road in governance and has nothing else to offer Nigerians”.

  • Fuel scarcity: FG appeals to Nigerians to be patient

    Fuel scarcity: FG appeals to Nigerians to be patient

    The Federal Government has sympathised with Nigerians over unforeseen hardship occasioned by scarcity of Premium Motor Spirit (PMS) and called for patience in finding lasting solutions to the problem.

    Chief Timipre Sylva, Minister of State for Petroleum Resources, made the appeal on Sunday in a statement by his Senior Adviser (Media & Communications), Horatius Egua.

    “In the last weeks, Nigerians have grappled with fuel scarcity not because of the absence of supply of products but due to inspection failure, which allowed adulterated products into the country.

    “This is regrettable, and the Federal Government sympathises with the citizenry over the unforeseen hardship, occasioned by the inevitable scarcity.

    “Let me once again appeal to Nigerians to be patient with government in finding lasting solutions to the crisis,” Sylva said.

    He appreciated the NNPC for showing so much concern to the plight of Nigerians by coming forward with an apology.

    “This is unprecedented and showed that we on the government side are not afraid to take responsibility,” he added.

    The minister also said the Midstream and Downstream Petroleum Regulatory Authority had been out on the streets, fuel stations to ensure that the situation normalise quickly.

    According to him, we are beginning to see the fruits of their efforts.

    “It is not a time to trade blames as is customary in Nigeria. It is, therefore, not a time to query anyone but a time to come together to salvage the plight of the average Nigerian.

    “After the storm settles, there will be time enough to investigate and get to the bottom, so that this does not repeat itself.

    “President Muhammadu Buhari’s charge to all parties and agencies concerned is to work together to ensure that normalcy returns quickly.

    “The Nigerian people deserve the best and the government is determined to set the country on the right path of petroleum products availability and sustainability,” Sylva said.

    This, he said, was demonstrated in the award of the contracts for the rehabilitation of all our refineries and the acquisition of stake in the Dangote Refinery.

  • No adulterated fuel in Delta – NUPRC

    No adulterated fuel in Delta – NUPRC

    The Warri Zonal Office of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has yet to record any case of adulterated petroleum products in its various operations.

    Mr Ignatius Anyanwu, Operations Controller, NUPRC, Warri Zonal Office said this when he spoke with newsmen on Friday in Warri about the operations of the zone which comprised of Delta, Edo, Ondo and Ekiti.

    Anyanwu, who expressed surprise at the sudden queue that had resurfaced in most filling stations in Delta, said that there were enough petroleum products to serve the consumers.

    “The case of adulteration we are hearing, we did not record anyone in Warri zone. We have enough sufficiency in stock. I wonder why the sudden queue in filling stations across the state,” he said.

    Residents in Warri and environs woke up on Tuesday to see queues in most of the filling stations in the metropolis resulting in panic buying.

    Anyanwu advised motorists to stop panic buying, saying that the surveillance team of the commission was working assiduously to ensure there were no hoarding or diversion of products.

    “A total of 4.8 million litres of petrol were trucked out on Wednesday to the four catchment states under the Warri zone, which means that Delta now has 2.3 million litres,” he said.

    Anyanwu said that 116 trucks distributed the products across the four states, saying that 55 trucks out of the trucks supplied petrol to filling stations in Delta.

    “We had two vessels, one discharged on Wednesday, while the other discharged on Thursday.As of Thursday, we had over 62 million litres in stock and this is being distributed throughout the states. So, there should not be scarcity or panic buying.

    “We are surprised to see the queue at filling stations, there is no need for that because we have enough sufficiency in stock, of course, there was a case of adulteration in Lagos and others; the public does not need to panic.

    “Although, truly speaking, the queues are gradually disappearing unlike on Wednesday.When we saw the queue, we immediately dispatched our surveillance team.

    “They went to Asaba on Wednesday and on Thursday; they monitored Warri and environs to find out the cause of the queue,” he said.

    Anyanwu added:”The preliminary finding for that of Asaba is that most of the Independent Marketers do not really have the product, but the Major Marketers had and were selling at the pump price.

    “The few Independent Marketers that have fuel were selling above the pump price. So there is a tendency for people to go to where the price is normal. I believe that is what is building the queue.

    “The next thing we are going to find out now is why the discrepancies in their prices.”
    He said that the regulatory body would continue to intensify surveillance to ensure total compliance with the rules and regulations of the downstream operations.

    Anyanwu, however, warned petroleum marketers against sharp practices in the downstream sector, saying that violators would be sanctioned accordingly.

  • PMS: Depot owners extend loading hours to restore normalcy

    PMS: Depot owners extend loading hours to restore normalcy

    Member Companies of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) say they have extended loading hours in their depots and retail outlets until the current fuel scarcity is normalised.

    Dame Winifred Akpani, Chairman, DAPPMAN, made this known in a statement issued on Wednesday in Lagos.

    She empathised with DAPPMAN’s customers and the public on the current hardships faced following the importation of some quantities of off-spec Premium Motor Spirit (PMS) into the country.

    Akpani said: “DAPPMAN assures all our dear customers and the general public that all hands are on deck.

    ”DAPPMAN depots and retail outlets have commenced, within the security and safety limits allowance, extended hours of loading from our various depots and in all our retail outlets until the situation normalises.

    “We believe with the support and co-operation of all stakeholders, including Pipelines and Products Marketing Company Ltd. and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the current challenges of petrol purchase from our various retail outlets will be over.

    “DAPPMAN urges the buying public to kindly desist from panic purchases as some stocks of PMS have been received by our members for distribution to our retail outlets and other registered interested and willing retailers.”

    According to her, more fuel-laden vessels have continued to arrive in the country to remedy the situation.

    Akpani said: “We have worked assiduously with the regulatory authorities from the onset to curtail the further distribution of the off-spec fuel in all DAPPMAN depots and retail outlets.

    “DAPPMAN also seconded versatile professionals to the Technical and Commercial Committees set up by the regulators and stakeholders who have initiated best practices ‘Standard Operating Procedures’ .

    “This is to ensure that the off-spec products are quarantined, professionally processed, tested and certified good for distribution to the market.

    “We are also working with Nigerian National Petroleum Company Ltd., through its subsidiary, the PPMC Ltd., to ensure that adequate stocks of ‘on-spec’ petrol are made available to Nigerians in all nooks and crannies of the nation.

  • Adulterated PMS: Fuel scarcity bites hard in Abuja, Lagos

    Adulterated PMS: Fuel scarcity bites hard in Abuja, Lagos

    Some commuters in the Federal Capital Territory (FCT), have decried increase in transportation fares due to fuel scarcity, making movement in the territory difficult.

    The commuters on Wednesday lamented that their greatest challenge was finding commercial vehicles to their destinations, especially to their places of business or work.

    They said this might be because most of the taxi drivers were either on the long queues in petrol stations or were off the road due to no petrol.

    They therefore called on the authorities concerned to speedily intervene to bring the situation back to normal as many Nigerians were suffering.

    Mr Calistus Emeka, who lives around Mararaba axis, said he had to pay N400 from his area to Wuse area, instead of N200.

    Emeka said as a cleaner, working at the Secretariat, his salary was meager and he could barely afford to continue to pay the increased fare.

    According to him, if nothing is done soon, he may not be able to go to work in the coming days.

    Mr Gabriel Oko, who also lives along the Mararaba axis, said he had to stand by the road side for hours to get a vehicle to work.

    Oko said: “Before getting to town from my area, I stood for hours waiting to get a taxi and could not find one, I had to take a bike to a certain point before getting a taxi.

    “This situation is very pathetic, even with your money, you cannot get a vehicle to convey you to your destination. I just pray this does not linger for a long time.”

    Ms Agatha Sule, who lives along the Gwagwalada axis, said she used to pay N400 to Area 1, but due to the lack of fuel situation, she paid N700 to town.

    “I know there is fuel scarcity in town but I was not prepared for the increased cost of transportation.

    “I work as a secretary in my office. If not for the fact that I have my office keys with me, I would not have gone to work today.

    “This increase is just too much. How do they expect very low income earners like us to survive?

    “The problem is that we are the ones even feeling this pain more.”

    Mrs Lucy James, another commuter, said she paid N350 from Apo axis to Wuse unlike the usual fare of N250.

    James prayed that relevant authorities would intervene, saying this was posing a great challenge for many Nigerians.

    Another passenger who lives in Kubwa/Dutse axis, Theophilus Ada, said the cost of transportation to town had also doubled within the past two days.

    In a similar vein, Mrs Joy Benjamin, a Civil Servant, said she was forced to buy 10 litres of fuel from black market at N5,000 to get to work.

    Benjamin said she had to do that because many fuel stations were not selling the product and the ones selling had very long queues and she did not have time to wait.

    Meanwhile, some motorists who spoke with NAN, revealed that some major fuel stations preferred to sell the product to black marketers who paid them extra money to get it.

    According to Mr Maurice Nze, the attendants have taken advantage of the situation to hide the fuel in the morning time, only to dispense it at night to black marketers.

    “A good number of filling stations are hoarding their products in the day time, but sell it at night to make more gains, this act has contributed to the suffering we are now witnessing.

    “I want to appeal to the government to set up a taskforce to check activities of some of these filling stations both during the day and at night,” Nze appealed.

    A taxi driver, Mr Rufus Nwafor said he spent close to three hours at the station to get fuel.

    According to Rufus, the scarcity is really affecting their business because even after spending so much time at the station to get fuel, passengers find it difficult to pay.

    “We have increased the fare, not because the price has changed at the station but because of the time we spend trying to get the fuel.

    “We are not happy increasing the fare but we have to find a way to make up for the time wasted trying to get fuel.”

    Another taxi driver, Mr Bolanle Segun said he had to buy black market this morning because he could not get fuel at the station.

    Segun said: “This day I do not force anybody to enter my vehicle, if I tell you the price and you are not ready to pay, I will not carry you.

    “This is because we spend hours trying to get fuel and today, just when it was close to my turn to buy, the attendant said the fuel has finished.

    “I had to go and buy from black market along the road side because my tank was empty.’’

    NAN reports that the Nigerian National Petroleum Corporation Ltd. (NNPC) on Tuesday said it distributed one billion litres of safe Premium Motor Spirit to various fuel stations nationwide.

    The NNPC also noted that 2.3 billion litres of PMS will arrive Nigeria before the end of February to address the current situation and restore sufficiency.

    Similarly, black marketers on Wednesday took advantage of the lingering scarcity of Premium Motor Spirit (PMS) to make brisk business from residents and motorists in Lagos State.

    The ongoing scarcity of PMS, also known as petrol, is due to the withdrawal of the off-spec products imported into the country from the market.

    A NAN correspondent who monitored the situation at Oshodi, Ojota, Ikeja, Mushin, Surulere, Iyana-Ipaja, Abule Egba and Lekki observed that many filling stations were still not selling petrol.

    Long queues were seen at the few stations selling, with both private and commercial motorists as well residents besieging them as early as 5a.m.

    The vehicular queues led to traffic gridlock on some major roads across the state, especially on the Lekki-Epe axis.

    Black marketers with various sizes of kegs were seen hawking petrol within a few meters of the filling stations.

    Their operations were noticeable in areas such as Ikorodu Road, Mushin, Mobolaji Bank Anthony Way and Surulere.

    Some of the marketers were selling a litre of fuel for prices between N180 to N250 per litre depending on the location, demand and negotiating skills of the buyer.

    A commercial bus driver, Mr Wasiu Oyeleke, told NAN that he bought 10 litres of PMS for N2,000.

    “Yesterday, I could not get fuel after I closed for the day and none of the stations in my area is selling.

    “I managed to buy from these boys (black marketers) in Mushin which I am using now,” he said.

    Another commercial bus driver, Mr Emma Udoh, told NAN that he was offered 20 litres of fuel for N3,600 by one of the black marketers but he refused.

    He said: “I remember my last experience in their hands when I bought fuel from them and nearly destroyed my car.

    “I have been here for almost three hours and will wait until I am able to get fuel but it is very frustrating for all of us.

    A tailor, Mr Anu Ayorinde, said operators of small businesses were also suffering from the petrol scarcity due to epileptic power supply by the electricity Distribution Companies.

    Ayorinde said they had to get fuel from the black market for their generators, rather than wait on the queue for hours and be unable to deliver jobs on time for their customers.

    The Nigerian National Petroleum Company Ltd. had in a statement issued on Tuesday said it had put measures in place to accelerate nationwide distribution of PMS.

    The NNPC said the distribution was disrupted by the quarantine of methanol blended petrol.

    The company said it had began 24-hour operations at its depots and retail outlets, adding that it had over one billion litres of certified PMS stock that was safe for use in vehicles and machineries.

  • Fuel scarcity: MOMAN directs members to operate jetties, depots 18 to 24 hours daily

    Fuel scarcity: MOMAN directs members to operate jetties, depots 18 to 24 hours daily

    The Major Oil Marketers Association of Nigeria (MOMAN) has directed its members to extend the operations of their jetties, depots and filling stations to between 18 to 24 hours daily until queues subside across the country.

    MOMAN’s Chairman, Mr Olumide Adeosun, confirmed the development in a statement issued on Wednesday in Lagos.

    Adeosun said MOMAN members were working with the regulatory authorities and the Nigerian National Petroleum Company Ltd. towards a resolution of the current fuel crisis.

    He said: “Most importantly, MOMAN members have committed resources towards enhanced operations and associated activities to reduce the burden of the current fuel scarcity to our customers.

    “Towards this purpose, MOMAN members shall extend opening hours of jetties, depots, and filling stations to a minimum of 18 hours a day and where possible up to 24 hours a day in high density and flagship locations where the security situation permits.

    “MOMAN members shall operate these extended hours until the excessive queues subside.”

    He urged customers not to engage in panic buying as it might take a few days for normalcy to return, as the act also increases the pressure on the supply chain.

    Adeosun noted that MOMAN subject matter experts were active contributors to the technical and commercial committees set up by the regulatory authorities.

    According to him, the committees are saddled with re-stocking fuel supplies, resolving the blending of contaminated product and identifying losses suffered by customers, operators and third parties.

    He said MOMAN’s committee of chemists were also working with designated laboratories to double check the quality of product (re-blended or new) before they are released into the fuels supply chain.

  • Fuel scarcity: NNPC commences 24 hour operations at depots, retail outlets

    Fuel scarcity: NNPC commences 24 hour operations at depots, retail outlets

    The Nigerian National Petroleum Company Ltd. says it has started 24-hour operations in NNPC depots and retail outlets, to restore normal supply and distribution of Premium Motor Spirit (PMS) across the country.

    TheNewsGuru.com (TNG) reports the NNPC made this known in a statement issued on Tuesday.

    The statement said :” NNPC Ltd. wish to reassure Nigerians that it has put adequate measures in place to accelerate nationwide distribution of PMS earlier disrupted by the quarantine of methanol blended petrol.

    “The quarantine was a necessary step to safeguard our customers from the potential impact of this PMS grade on vehicles and machineries.

    ”As of today, NNPC has over one billion litres of certified PMS stock that is safe for use in vehicles and machineries.

    “In order to accelerate distribution across the country, we have commenced 24-hour operations at our depots and retail outlets. “

    According to the statement, as part of NNPC’s strategic restocking, over 2.3 billion litres of PMS is scheduled for delivery between now and end of February 2022, which will restore sufficiency level above the national target of 30 days.

    It said the Major Oil Marketers Association of Nigeria, Depot Owners and Petroleum Products Marketers Association of Nigeria and Independent Petroleum Marketers Association of Nigeria had also commenced 24-hour loading and dispensing activities in some of their designated outlets.

    The statement said NNPC monitoring team was collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other security agencies to ensure smooth distribution of PMS nationwide.

    “NNPC implores Nigerians to avoid panic buying as there is sufficient volume of PMS in-country and effort is being made to accelerate distribution to all filling stations,” it said.

  • Petrol being dispensed at the various filling stations in the country is safe – NNPC

    Petrol being dispensed at the various filling stations in the country is safe – NNPC

    “As of today, NNPC has over one billion litres of petrol in stock and the petrol
    being dispensed at the various filling stations in the country is safe,” the Nigerian National Petroleum Company (NNPC) announced on Tuesday in Abuja.

    NNPC Group Executive Director (Downstream), Mr Adetunji Adeyemi, noted that in order to accelerate PMS distribution across the country, the company has commenced 24 hours operations at its depots and retail outlets nationwide.

    Adeyemi revealed that NNPC has several million litres of petrol in stock, adding that they were expecting about 2.3 billion litres of petrol in the country by the end of the month.

    He stated that the retail outlets of major oil marketers have also commenced 24 hours service to ensure that more motorists were attended to daily.

    Adeyemi added: “To address the (fuel scarcity) situation, over 2.3 billion litres will arrive in the country between now and the end of February 2022,” the NNPC group executive director said.

    “This will restore sufficiency level above the national target of 30 days. As of today, NNPC has over one billion litres of petrol in stock and the petrol being dispensed at the various filling stations in the country is safe.

    “Furthermore, NNPC has constituted a monitoring team with the support of the authority and other security agencies to ensure smooth distribution of petrol nationwide.”

  • Govts incompetently running NNPC deserve the Nobel prize – By Owei Lakemfa

    Govts incompetently running NNPC deserve the Nobel prize – By Owei Lakemfa

    By Owei Lakemfa

    THE latest episode in the Nigerian drama of governance is the importation of at least 100 million litres of contaminated PMS which knocked car engines.

    As with such cases of governance, nobody, official or organisation is willing or honest enough to take responsibility.

    The Nigerian National Petroleum Company, NNPC, which claimed to have discovered the contaminated fuel on January 20, 2022, has for 24 days now, been unable to bring the situation under control leaving chaos at fuel stations, and the economy limping.

    However, it has been busy trying to pass the buck. Its Group Managing Director, Mr. Mele Kyari, named four entities; MRS, Oando, Duke Oil and a consortium consisting of Emadeb/Hyde/AYMaikifi/Brittania as being the culprits. Oando denied while MRS pointedly accused the NNPC of being responsible.

    The joke is that Duke Oil is a subsidiary of the NNPC while the same NNPC established the Emadeb consortium in May 2021. As the sole importer and supplier of fuel in the country, the bulk stops at the NNPC’s table.

    So when the House of Representatives charged the same agency to discipline the culprits, it could be nothing but a joke; how do you ask the NNPC to call itself to order? It is like President Muhammadu Buhari who doubles as Petroleum Minister promising to get to the bottom of the problem; we know what it is, the NNPC is the problem. In the eyes of the National Assembly, the NNPC is a rogue organisation that operates outside the law with impunity.

    The Senate in October 2021 at the public hearing on the 2022-2024 Medium Term Expenditure accused the NNPC of ever being on a spending spree, illegally deducting monies from the federation account and refusing to pay its excess revenue into the Consolidated Revenue Fund.

    Just on January 26, 2022, the Nigerian Governors Forum, NGF, at a meeting with labour leaders in Abuja, accused the NNPC of being a fraudulent agency with opaque intentions. It also accused the body of mismanaging proceeds accruing on fuel subsidy. In 2012, the House of Representatives in verifying and determining “the actual subsidy requirements and monitor(ing) the implementation of the Subsidy Regime in Nigeria” established that the NNPC brazenly violates the constitution by illegally withdrawing funds from the federation account.

    Examples of these include the fact that while the Central Bank in 2009 paid the NNPC N81.648 Billion as legitimate subsidy, the corporation additionally deducted for itself, the sum of N408.255 Billion. While the NNPC was paid legally N402.423Billion in 2010, it helped itself to an additional N407.801 Billion. In 2011, the NNPC was legally paid N844.944 Billion while it illegally paid itself an additional N847.942 Billion. Again, it was discovered that while the then regulatory Petroleum Products Pricing Regulatory Agency, PPPRA recommended that the NNPC deduct N540.419 Billion in 2011, the NNPC helped itself to an additional N285.098 Billion.

    Theoretically, it is impossible for contaminated fuel to be sold at fuel stations because there are about a dozen check points to ascertain product quality. This begins from the point of importation. These include NNPC quality control agents and independent laboratories by independent marketers. There are also various government agencies like the Standard Organisation of Nigeria, SON, which is the sole statutory agency vested with the powers of “standardising and regulating the quality of products in Nigeria.” There are many government agencies like that of Consumer Affairs that are culpable in this contaminated fuel importation scandal. But I am willing to exonerate the Customs and Excise. Yes, this agency operates in all ports and borders of the country with the statutory charge of supervising all goods imported into or exported out of the country, collecting Import and Excise duties, and should, therefore, be involved in monitoring imported petroleum products, but its experiences dictate it should turn a blind eye.

    The Customs exercised the issuance of clearance to discharge or authority to unload petroleum products with the quantities stated. But to perpetrate fraud, a dozen years ago, the petroleum product importers rather than discharge products on the Nigerian waters, stayed outside it to discharge the products from so-called Mother ships into Daughter vessels.

    In order to verify the quantities carried by these so-called Mother vessels, Customs officials went to make verification. But their vessel came under the fire of the importers and some Customs officers were killed. Rather than investigate these murders and take a strong stance, Government officials advised the Customs not to check ships carrying fuel. Subsequently, the Federal Ministry of Finance and the Central Bank issued circulars to the Nigerian Customs not to inspect PMS imported by the NNPC.

    The NNPC is so attractive that any incumbent President must be its supervising minister. This reflects in its self-congratulatory arrogance, emptiness and gross incompetence. Nigeria began the commercialisation of oil 66 years ago, but until today, foreign companies are at the core of oil production in the country and the NNPC does not know how many litres of oil the country produces daily or how many are stolen. Although the country’s foreign earnings are dependent on oil exportation, the six petroleum exportation terminals in the country are owned by foreigners who do not owe allegiance to the country; Shell owns two, while the rest four are owned by Chevron, Texaco, Mobil and Agip.

    The NNPC is so inept that while running four big refineries, it can neither refine petroleum products nor successfully import and distribute the products. Despite the corporation’s marked inability to carry out its basic functions, the Federal Government under its Road Infrastructure and Refreshment Tax Credit Scheme on October 27, 2021 awarded it contract to reconstruct 21 roads at the cost of N621.2 billion.

    The NNPC and its parent Petroleum Ministry expose Nigeria to the international ridicule of being averagely, amongst the ten highest oil producers in the world but incapable of refining even a litre for local consumption. The disgrace is more magnified by the realisation that Belgium, the country from which the contaminated fuel was imported, is not oil-producing! This level of foolhardiness is unheard of in contemporary world history. This is so much that we need to approach the Nobel Prize Committee to institute a prize for the most incompetent and decidedly most injudicious management of resources.

    The contaminated fuel when poured into a clean bucket is like the Nigerian democracy; the sludge at the bottom are the local governments, the finer parts in the middle are the state governments while floating aimlessly on top is the Federal Government; when poured into the Nigerian vehicle, they knock the engine. Anybody who does not know that the Nigerian democracy is a knocked engine that needs to be overhauled or replaced should go back to sleep.

  • A nation of adulterated fuel and adulterated stories – By Dakuku Peterside

    A nation of adulterated fuel and adulterated stories – By Dakuku Peterside

    By Dakuku Peterside

    For decades, Nigerians have been living in denial about the state of our country’s petroleum refining and distribution system. Even non- specialists without any training in elementary petroleum economics know there is something wrong with our petroleum products refining, importation, and distribution regime and regulatory systems. Unfortunately, even with enacting the protracted Petroleum Industry Act, Nigerian leaders have not mustered the political will to address the issue for reasons of political convenience and economic motives.

    One of the critical problems is that Nigeria, as one of the largest producers of crude oil globally and the largest producer in Africa, has been shamelessly engaging in importing petroleum products because the refineries are not in good working condition. Nigeria has a corruption-ridden and devastating oil subsidy regime, a poor and ineffectual regulatory framework that negatively impacts its economy. There is a need for systemic change to eliminate the importation of petroleum products, get the refineries working, and ensure a fit-for- purpose regulatory framework with little or no room for abuse. One issue that merits consideration alongside this envisioned overhauled system is total deregulation of the sector to attract private investment.

    Last week, as is the case with the pervasive substandard products – drugs, industrial products, cosmetics, drinks, and other consumables – imported into Nigeria, substandard petroleum product or, more appropriately called, off-the-specification product was imported and distributed across the nation with devastating implications on users of the products. This event sparked off a lot of fury and reactions. Typical of Nigeria, we have focused on the blame game, and nobody accepts responsibility, not even NNPC. This event is not the first time we imported petroleum products that did not meet national and international standards and will certainly not be last. The successful importation and distribution of “adulterated fuel” has vast implications, from economic losses, large scale deterioration in the performance of car engines, environmental pollution to most importantly, failure of regulatory enforcement.

    Now we face this monumental challenge; the critical issue is unravelling the truth, examining the lessons, proffering solutions on the way forward, and rejigging our supply and regulatory systems to make them more effective and efficient. The big question is, do we have the political will?Although ill-fated and hugely damaging to our economy and image, this substandard PMS brouhaha may be an opportunity to revisit our PMS importation and distribution system and the regulatory regime to get it right once and for all times.

    The usual reaction by Nigerians and the government is what we are witnessing now: the Federal Government will call for investigations, the Ministry of Petroleum will set up an investigation panel made up of the same people who should have prevented this from happening in the first place. The National Assembly will condemn and set up a committee of those with oversight responsibility to ensure this system failure did not occur ab initio. Investigators make a scapegoat of a few petroleum importing companies who acted on behalf of NNPC and use one “truth” to cover another truth until the truth becomes the casualty in the process of trying to unravel the truth. This process is cyclical and produces nothing tangible. Soon we will forget, like a collective that suffers amnesia, and new events will show up to overshadow previous ones, and we, as usual, move on as if nothing happened.

    This issue of substandard or adulterated fuel raises five critical questions that could lead us to the truth: What standards of refined PMS petroleum products are prescribed for consumption in Nigeria? Has the market regulator and regulatory process for importing petroleum products failed? Did the multiple quality control mechanism for imported petroleum products fail? How did the “off- the – standard” pass into the market and escape all checks by the regulator? Do the regulator, supplier, and testing laboratories have the requisite capacity? Why has the importation process of petroleum products been shrouded in secrecy for so long? As we transition to complete deregulation, what are the regulatory systems we are putting in place to ensure Nigerians do not suffer from consuming “adulterated products “? Why would a major oil-producing nation be a significant petroleum product importing country for over 40years? Why are our refineries refining little or no fuel inspite of billions of dollars in maintenance bill over a 25 year period?

    The specific infraction that sparked this instant reaction is that methanol, in unacceptable percentage, was found in premium motor spirit (PMS), otherwise called fuel, supplied to retailers. The product was traced to cargo delivered by Litasco, the Swiss trading arm of Russia’s Lukoil. NNPC ltd, in trying to explain its involvement in the matter, inadvertently caused panic, brought about a disruption in the supply chain, leading to long queues due to panic buying. MRS Nigeria, the retailer that raised the alarm, also issued a statement denying importing this specific cargo but instead received it through NNPC. MRS Nigeria further explained the steps she had taken to mitigate the situation.

    A consortium under the Direct-Sale-Direct-Purchase (DSDP) contract also issued a formal statement to explain her side of the story. This poor information management or miscommunication confused Nigerians about the truth about this adulterated petroleum product. Industry professionals have said that testing for methanol is typically not the conventional practice because it is a blending component for petroleum products. Methanol in acceptable quantity in PMS raises the octane level and minimises engine knock. However, PMS (fuel) with high methanol content harms car engines, leading to structural failure or the explosion of car engines. It is also highly corrosive to aluminium components and can easily cause damage to gaskets and rubber hoses. Methanol is used as various blends up to 5% in China, India, Europe, and America. More worrisome in this instant case is that this cargo with high methanol content was certified as meeting Nigerian PMS specifications by NNPC quality inspectors. Also, this product was approved by the Midstream and Downstream Petroleum Regulatory Authority (NMDRA), the industry regulator. The import passed all regulatory scrutiny and was found fit for consumption. The net effect is that there was a clear oversight of requisite methanol content standards by the supplier and NNPC, authorized sole importer of PMS.

    I have read many knee jerk reactions from quarters, and it is evident that many commentators and “experts” do not have informed knowledge. Based on my background knowledge and experience as a former Chairman, House of Representatives Committee on Petroleum Downstream, I think our focus as a country should be on the lessons in this saga to fix a seemingly intractable defective PMS importation and distribution regime.

    There are five lessons Nigeria must learn from this saga. PMS Products standards are essential for consistency and safety. First, the regulator should set holistic standards known to both suppliers and consumers, and enforcement of such measures should be sacrosanct and blind to all actors. I am not unaware that the Standard Organisation of Nigeria (SON) and Nigeria Upstream Petroleum Regulatory Commission (NUPRC), through its precursor organisation, the Department of Petroleum Resources (DPR), have a single standard for PMS in Nigeria. Second, regulatory enforcement is vital. The regulator requires capacity, effectiveness, efficiency, and diligence. The profit motive will always drive businesses and, if not effectively regulated, will put their economic interest above public interest and safety.

    Third, technology is available in the market today to ensure the products supplied are consistent with prescribed standards. We need to optimise the benefit of technology throughout the petroleum supply and distribution network. Fourth, transparency and capacity are essential in authorising firms to bring products into the country. Lack of transparency breeds corruption compromises quality and is primarily responsible for substandard products. Finally, importing petroleum products for 200 million Nigerians, who produce crude oil, is not sustainable. Dependence on foreign refineries for petroleum products is not suitable for the price, product availability, and quality consistency, and it is susceptible to corruption. It is time we sell off non- functional refineries, license more private ones and end fuel importation and subsidy regime.

    The menace of bringing substandard fuel to Nigeria is a social, economic, and environmental monstrosity and an international embarrassment to Nigeria. NNPC ltd, on paper and face value, is the sole importer of PMS today, so it must accept ultimate responsibility for this infraction. It should ensure that it recruits only reputable and capable organisations to import PMS on her behalf, and the system must be made open and transparent. Besides, the fuel quality specification provisions need to be strictly aligned with international best practices to deter companies from cashing in on loopholes circumventing the standards and importing fuel with high Sulphur or methanol content.

    There is a need to strengthen the surveillance and monitoring structures so that regulators can easily detect such violations of standards before they enter the domestic supply chains. The ripple effect of adulterated fuel in the market is dire – the cost of recalling the products; the scarcity of the PMS product causes economic pain and hardship and damage to consumers vehicles and other engines that use the PMS. The bottom line is that Nigeria should transition from a net importer of PMS to a net exporter.

    Government and other stakeholders should do whatever it takes to kill this massive ‘elephant in the room’. They must summon the political will to crack down on offenders and to fortify the PMS regulatory regime to avoid such embarrassment in the future. President Muhammadu Buhari is leading the way by committing to getting to the bottom of the problem and setting up a high-powered committee to investigate and bring to book all found guilty in this saga. And he directed relevant government agencies to take every lawful step to ensure the respect and protection of consumers against market abuse and social injustice. All other stakeholders must align with the President’s actions and sort things out.

    This is not time for apportioning blames and pointing accusing fingers at various organisations and regulatory regimes affected by this saga, we must articulate the lessons and work hard to rejig the system to improve the situation. This development offers us the opportunity to re-examine our petroleum products supply and distribution regime and take decisive actions that benefit Nigerians. PMS is one product that all Nigerians consume, and anything affecting it impacts the lives of all Nigerians. Such a vital product must not be left to the vagaries of production and importation from abroad, and I think this must be considered an issue of national security. Fortunately, Dangote Refinery and other Modular refineries are almost at the stage of starting local refining of PMS. Hopefully, they will have the capacity to refine PMS to cover the demands of Nigerians and other African countries that depend on Nigeria for their PMS shortly.