The Federal Government has emphatically denied accusations of importing contaminated fuel into Nigeria, refuting claims made by a Dangote Petroleum Refinery official. Oil marketers and local crude oil refiners made a declaration after convening in Abuja. They discussed matters relating to the pricing of refined products, competition in the market, and the importation of domestically made-goods. At the meeting, oil marketers discussed how, despite the production of refined products by local refineries, they would continue to seek products from other sources to support both local and foreign producers.
Also, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) responded to accusations of importing contaminated fuel. Ogbugo Ukoha, the Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, reassured reporters during the press conference that there are no issues with fuel quality being imported into the country. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, also alleged that the NMDPRA was unfairly issuing licenses to marketers, leading to the import of high-sulphur diesel from Russia into the country.
Edwin warns of cancer risks from high-sulfur diesel imports into Nigeria.
This claim was made in response to Edwin’s accusations. He pointed out the risks associated with importing these products, mentioning that many European nations have prohibited their use because of the Cancer-causing properties. Ever since the price cap scheme on Russian petroleum products was implemented by the US, European Union, and United Kingdom on February 5, 2023, he noted that many ships filled with Russian ultra-high sulphur diesel have been gathering near Togo. These ships then sell their cargo to be disposed of in the Nigerian market.
Recently, Belgium and the Netherlands banned the Export of extra-high-sulfur diesel to West Africa due to concerns over its carcinogenic properties. This move was prompted by alarm in some European countries about the impact of this fuel being dumped into the country’s market. Regrettably, the country is issuing intake licenses for the entry of unclean diesel into the country despite having sufficient local petroleum refining capabilities. The federal agency emphasised the significance of following all necessary procedures for procuring refined petroleum products into the country to avoid the introduction of contaminated fuels.
Refineries in the country must meet ECOWAS sulphur standards by 2024.
Ukoha stressed the values of Nigerian refineries meeting ECOWAS-approved standards for their products in the region. Ukoha emphasised the importance of NMDPRA’s commitment to guaranteeing the supply and consumption of high-quality petroleum products in the country following its statutory obligations. He shared insights into the matter, noting that in 2020, ECOWAS heads of state endorsed a declaration for a fuel roadmap, mandating a minimum of 50 parts per million (ppm) of sulphur in specific products. Under the terms of the treaty, the local refiners were given an extension for enforcement until the end of 2024, a provision that was confirmed by the passing of the Petroleum Industry Act (PIA) in 2021.
Compliance was initially enforced by Ukoha, leading to a decline observed until December 2023. Yet, a sudden surge in sulphur levels in received products in December and January prompted a renewed crackdown from February 1st. He informed the people in the country that the sulphur content in all imported AGO has remained below the legal limit of 50 ppm since June and continues to comply with regulations. Ukoha clarified that local refiners are temporarily delaying compliance with the declaration; however, he also mentioned that upcoming refineries are incorporating Desulfurization units to reduce sulphur levels significantly to as little as 10 ppm soon.
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One of the key benefits of having a standard refinery is the enhancement of energy Security and the decrease in dependence on imported petroleum products. By meeting the country’s internal fuel and petroleum product needs independently, without having to rely on foreign sources, the vulnerability to international market fluctuations and supply interruptions is significantly lowered. Additionally, it has the potential to boost Economic Growth and generate employment opportunities. Additionally, the establishment of a refinery can serve as a magnet for investments in sectors like petrochemicals and Manufacturing.
