Wednesday, September 18, 2024

NMDPRA Refutes Allegations of Dirty Fuel Imports at Dangote Refinery

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has refuted claims made by the Dangote Refinery leadership regarding the presence of imported dirty fuel in Nigeria.

The Authority asserted its commitment to ensuring that only high-quality petroleum products are consumed in the country, emphasizing that it does not condone the importation of substandard fuel. Mr. Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, communicated this during an interview with journalists after a meeting with oil marketers and local refiners on Tuesday in Abuja.

Dangote Oil Refinery and Petrochemicals had previously accused the NMDPRA of allowing oil marketers to import dirty fuel. Specifically, Devakumar Edwin, Vice President, Oil and Gas, at Dangote Industries Limited (DIL), alleged that International Oil Companies (IOCs) in Nigeria were attempting to undermine the Dangote Refinery’s operations.

In response, Ukoha clarified the situation while addressing the media in Abuja. He stated that the sulphur content in imported fuel, even as of June, did not exceed the legal limit.

“There is no dirty fuel being brought in and I have given you the statistics for June. What we have on the average from the imports have continued to go down from 200 Parts Per Million (PPM) on the average and now we have it far below the 50 PPM that is provided under the law,” he said.

He also recalled that in 2020, the ECOWAS Heads of State endorsed a declaration adopting the African Fuel Roadmap, which mandates that certain petroleum products should contain a maximum of 50 parts per million (ppm) of sulphur. While this standard was to be enforced immediately on imports, local refiners were given until December 31, 2024, to comply. Ukoha noted that despite the deferred enforcement, local refineries were already voluntarily adhering to these standards.

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

He also mentioned that the Petroleum Industry Act (PIA) of 2021, particularly Section 318, reinforced the ECOWAS treaty standards.

“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 2022-2023 December,” he added.

This response from NMDPRA came after Nairametrics reported that Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, accused the NMDPRA of indiscriminately issuing licenses to traders, facilitating the importation of “dirty” diesel and jet fuel into the country.

According to Edwin, despite Dangote’s adherence to ECOWAS standards, the authority was allowing traders to import high-sulfur petrol from Russia. He pointed out that with the US and UK imposing caps on Russia’s petroleum products, these high-sulfur fuels were being diverted to Nigeria by various traders.

“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market,” Edwin said.

The NMDPRA’s firm stance and the measures it has implemented highlight its dedication to maintaining fuel quality in Nigeria. The Authority remains committed to ensuring that all petroleum products meet the required standards, countering any claims of substandard fuel importation. Through continuous monitoring and stringent regulation, the NMDPRA aims to uphold the integrity of Nigeria’s petroleum industry and protect consumers from the adverse effects of dirty fuel.

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