Dangote Refinery’s petroleum products are inferior – NMDPRA

By Doris Isreal Ijeoma In a move, most capable of demarketing its products, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has said that the quality of petroleum products from the Dangote refinery, as well as those from Watersmith, Aradel, and other modular refineries, is inferior compared to imported ones. Chief Executive Officer of NMDPRA Farouk Ahmed disclosed this in a recent interview with journalists, a video of which was published by TVC. The regulator boss discarded reports that some elements within the oil and gas sector were trying to scuttle the Dangote Refinery. According to him, the 650,000 barrel-per-day refinery has not been issued an operational licence by NMDPRA. He noted that the Lagos-based Dangote Refinery is still in the pre-commissioning stage and about 45 per cent completed. Ahmed added that the country can not risk dependence on Dangote Refinery by suspending petroleum products, especially Automotive Gas Oil and Dual Purpose Kerosene, DPK. He said: “That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licenced yet. We haven’t licenced them yet. I think they are about 45 per cent to completion. “We cannot rely on one refinery to feed the nation because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.” Ahmed said that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulphur content, falling short of West Africa’s requirement of 50 parts per million (PPM). “Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are inferior to imported ones,” he stated. This development comes days after the Chairman of Dangote Group, Aliko Dangote, said Dangote Refinery is set to commence fuel supply in August 2024. Earlier, Devakumar Edwin, the Vice President of Dangote Industries Limited, had alleged that most fuel products imported into Nigeria are substandard. He also accused international oil companies of frustrating the kickoff of the Dangote Refinery by selling oil crude at a higher price in Nigeria. However, the Nigerian Upstream Petroleum Regulatory Commission dismissed Edwin’s claim of substandard petroleum products in Nigeria. It would be recalled that Alhaji Aliko Dangote recently told a bewildered nation grappling with needless petrol scarcity that some vested interests in the oil industry were sabotaging his effort to satisfy Nigeria’s petrol demand.

FCTA inaugurates task force on safe handling of petroleum products

FCTA inaugurates task force on safe handling of petroleum products

The Federal Capital Territory Administration (FCTA) has inaugurated a Ministerial Task Force on the safe handling of petroleum products in the capital city, Abuja. The Permanent Secretary, FCTA, Mr Olusade Adesola, while inaugurating the task force in Abuja on Thursday, said that the measure was to curtail incidences of fire outbreaks in the nation’s capital. Adesola said that fire outbreaks in the FCT in recent times had resulted in the loss of lives and destruction of property. He vowed to sanction any fuel-filling station within the territory that failed to observe the necessary safety measures as required by law. “In 2022 alone, no fewer than four filling stations were reported to have been gutted by fire within the FCT. “Improper handling of petroleum products, as well as non-compliance with safety measures as it concerns operational guidelines of managing filling stations have been largely responsible for several fire outbreaks,” he noted. Adesola expressed optimism that the Ministerial Task Force would work assiduously to reduce occurrences of fire outbreak by ensuring that operators of filling stations adhered strictly to safety measures. He explained that inaugurating the taskforce was a proactive step taken by the government to secure the lives and property of residents. He said that part of the terms of reference of the taskforce was to monitor and ensure compliance to safe timing of uploading and offloading of volatile substances, including petrol and cooking gas. He said that the task force was also expected to monitor and ensure that all filling stations had functional, basic and relevant equipment. Adesola also said that the task force would ensure that filling stations had trained fire safety officers. “They are also to monitor and ensure that volatile substances are not off-loaded with vehicles or customers already waiting within the premises of the filling stations. “The task force is expected to clamp down on “black market” operators and the filling stations conniving with them. “The task force will be expected to recommend the closure of filling stations violating basic fire safety rules and those found colluding with black market operators. The members of the task force were drawn from the FCT Emergency Management Agency (FEMA), Department of Development Control, FCTA Fire Service Department, and FCTA Department of Security Services. Others, he said, were drawn from the Department of State Security Services, the Nigerian Police Force, Nigeria Security and Civil Defence Corps, and the National Union of Road Transport Workers. The task force also has representatives from NNPC upstream and downstream sectors, major petroleum marketers’ associations, and independent marketers’ associations. Responding, the Chairman of the Task Force, Dr Idriss Abbas, Director-General, FEMA, thanked the FCTA for finding the members capable of handling the assignment. He assured the FCTA that the task force would work assiduously to deliver on the mandate. 

lPMAN supports FG on mitigating effects of fuel subsidy removal

Eteo oil Spill destroyed communities’ source of water – Rights group Health of Mother Health Foundation (HOMEF), has again decried the recent oil spills that ravaged Aleto and Eteo communities in Eleme Local Government of Rivers State, saying it has crippled farming and fishing activities in the area. HOMEF said the spills also destroyed the communities’ only source of potable water. HOMEF and members of Oilwatch Nigeria that paid a visits to the two scenes recently for an on-the-spot assessment to ascertain the level of response and possible cleanup of the affected environment said it met the environment still in a sorry situation as nothing is being done to salvage or clean the pollutions caused by the spills. A statement by HOMEF on Saturday by the Media and Communication Lead, Kome Odhomor, Executive Director, Nnimmo Bassey, expressed displeasure that the oil companies are neither decommissioning their aged infrastructure nor ensuring that their facilities are in good working condition. He regretted that rather than remediating the harm caused by their activities, more investments are being made by the oil companies to expand the areas of threat. Bassey further lamented that two months after the spill occurred, the companies have yet to respond and interface with the communities in any meaningful way. “It was heartbreaking to listen to the lamentation of the community women who now have no source of potable water and cannot process their cassava, a major staple due to the pollution of their stream. The insensitivity of the polluters and regulatory agencies is appalling. These atrocious incidents are also compounding the work of HYPREP. While the agency is working to clean some areas, these polluting incidents are threatening to erase their efforts.” During the site visits, coordinator, Peoples Advancement Centre (PAC), and member Oilwatch Nigeria Celestine Akpobari, called on NOSDRA and other relevant agencies of government to do the needful and send relief materials to the starving people immediately. “It is sad and very embarrassing that a spill of this magnitude at Eteo would happen in very close proximity to human habitation and the NPDC and the government of Nigeria carry on as if nothing has happened to the people. It is worse that the spill has affected the community's only source of drinking water. It is not enough to just sneak in at night to clamp the pipe, the right thing must be done.” While receiving the team of CSOs who visited his palace, His Royal Highness Emere Emmanuel T. Akobe the Paramount ruler of Eteo community expressed shock over the attitude of the NPDC saying, “Our beautiful stream is dead, My people don’t deserve this type of treatment and after we have brought the notice of the National Assembly, there is still no response from them, and my people continue to suffer the impact of the spill.” HOMEF reiterates that Aleto and Eteo communities and the entire Niger Delta must not be treated like disposable or sacrifice zones for profit-seeking endeavors. NOSDRA should be more proactive in meeting the challenging situations of oil spills in the region, while the polluting companies should urgently halt their polluting activities, clean up their spills, and pay compensation to affected individuals and communities. The CSOs also demanded that oil companies decommission all aged pipelines and facilities in the region in line with UNEP recommendations in the assessment of the Ogoni environment.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says it is ready to support the Federal Government in mitigating the impact of subsidy removal on Nigerians. Alhaji Debo Ahmed, a former Vice Chairman, IPMAN Western zone, gave the assurance on Tuesday in Lagos. Ahmed also expressed IPMAN’s willingness to collaborate with the government in developing alternative sources of energy to alleviate the effects of subsidy removal. “We expect FG to call critical downstream stakeholders to fathom a design of alternative sources of energy and how this can go around the country within the shortest possible time. “IPMAN is ready to synergise with the government in this respect because of our spread and ability to deliver whenever called upon by the government,” he said. He highlighted the importance of exploring Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as competitive and viable options. Ahmed emphasised that IPMAN’s extensive network of filling stations could facilitate the installation of CNG and LPG facilities across the country. He called on the government to swiftly address this urgent matter by providing financial support and establishing CNG vehicle conversion centers. “It is an urgent issue that bothers on economic expediency, the government should not delay. “With this huge money realised government should be able to provide busses that use CNG and normal fossil oil but fare reduction to the barest minimum in order not to kill huge investments in the fossil oil business. “The National Gas Expansion Programme Committee should be call back to continue their good work of bringing sellers and suppliers of CNG equipment together and also the quality assurance,” Ahmed said. He suggested reviving the refineries under close government supervision and urged the National Gas Expansion Programme Committee to continue its commendable work. Mr Joe Nwakwue, an oil and gas consultant and former Chairman, SPE Nigerian Council, said that the implementation of subsidy removal requires careful planning. Nwakwue said this would ensure the timely rollout of palliatives and judicious use of the saved funds, thereby benefiting all Nigerians. He said that the subsidy savings remained the best solution, noting that its real implementation would reduce borrowing by the government. “In essence, we were hitherto funding subsidies from borrowings, the elimination should reduce the fiscal pressure to borrow;” he said. Mr Tunji Oyebanji, the Chief Executive Officer of 11 Plc said that it was obvious, that the savings was made possible because the government through NNPCL was no longer bearing the cost. According to him, the government should be wary of slipping back into the subsidy regime because prices are still rising. “It should ensure judicious use of the saved funds and the timely rollout of palliatives,” Oyebanji said. Recall that President Tinubu on Monday during a nationwide broadcast, said that for over two months, the government had saved over a trillion Naira from subsidy. Tinubu said that the money would be used more directly and more beneficially for all families. According to him, for several years, he has consistently maintained the position that the fuel subsidy has to go.