…As NMDPRA insists imported diesel meets regulatory standards

By Esther Agbo and Afolabi Ifeoluwakitan

Following the claim by Dangote Industries Limited (DIL), that Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is granting licences to import banned diesel, aviation fuel, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has strongly refute the recent claims.

This is even as DAPPMAN criticised Dangote of selling dirty diesel and the NMDPRA of an attempted monopoly in the downstream sector.

The downstream sector in Nigeria deregulated with different players in the value chain.

In a statement made available to NewsDirect, DAPPMAN emphasised that none of its members, nor any private fuel depot in Nigeria has imported fuel outside the specifications approved by the NMDPRA. As they described the assertions from Dangote Refinery’s management as inaccurate and misleading.

DAPPMAN highlighted that the NMDPRA had initially opposed the practice of ship-to-ship transfers of fuel imports offshore Lome, a decision that was later rescinded following protests from downstream operators.

Narrating its ordeal, the marketers noted regulatory changes that occurred between February and May 2024, which allowed the importation of Automotive Gas Oil (AGO) with a maximum sulphur content of 200 parts per million (ppm).

“However, in June 2024, the NMDPRA moved the implementation date for the stricter 50 ppm sulphur limit on petrol and diesel imports to 1st June 2024, a decision seen as an attempt to favour Dangote Refinery, hence, effectively restricted all marketers and depots to sourcing AGO from Dangote Refinery, even though the refinery had not yet installed its desulphurization equipment, resulting in AGO blends with sulphur levels exceeding 50 ppm.

“DAPPMAN opposed this in a letter to the NMDPRA on June 10, 2024, cautioning the regulator against unintentionally fostering a monopoly in the sector. Despite strong resistance to every attempt to create a monopoly for Dangote Refinery in the downstream market, and considering that the refinery’s recent AGO production has sulphur levels of 1200 ppm.

“DAPPMAN finds it perplexing that Dangote Industries would claim the NMDPRA is issuing licences for the importation of ‘dirty refined products.

“Their AGO blend, with its high sulphur content, is classified as ‘dirty fuel,’ far exceeding the 200 ppm limit adhered to by other marketers and depot owners,” it said.

Moreover, DAPPMAN criticised Dangote Refinery’s business practices, alleging that the company sells fuel at lower prices to international buyers compared to local Nigerian buyers.

This pricing strategy, DAPPMAN argued, undermines Nigerian marketers and questions Dangote Refinery’s commitment to the nation’s interests.

“Recently, several Nigerian marketers were offered Dangote Refinery cargoes by international trading firms at significantly lower prices than those directly offered by Dangote Refinery, which is not beneficial for Nigerian fuel consumers.

“While the success of Dangote Refinery would be a national achievement, it is crucial that all downstream operators comply with the Petroleum Industry Act 2021, which opposes any form of monopoly.”

DAPPMAN concluded its statement by reiterating its willingness to collaborate with all stakeholders, including Dangote Refinery, to ensure the provision of safe and affordable fuel to Nigerians, in compliance with the Petroleum Industry Act of 2021, which opposes monopolistic practices.

Likewise, the NMDPRA has reacted to the accusations by Dangote.

Recall that Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL) criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for what he described as the indiscriminate granting of licences to marketers to import substandard refined products into the country.

Reacting to Edwin’s allegations, the NMDPRA in a response to NewsDirect’s enquiry made since Sunday insisted that all imported diesel meets regulatory standards.

In a response signed by George Ene-Ita, the Authority expressed its commitment to regulating the quality of petroleum products consumed in Nigeria as mandated by Section 32 of the Petroleum Industry Act (PIA) 2021.

The statement partly reads, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is statutory mandated (Section 32 of the Petroleum Industry Act 2021) to regulate the quality of all petroleum products consumed in Nigeria and ensure that these products meet stipulated standards.”

NMDPRA however detailed Nigeria’s adherence to the ECOWAS Heads of States’ declaration of February 2020, which adopted the AFRI-5 Fuels roadmap. This roadmap stipulates that imported Automotive Gas Oil (AGO) should contain a maximum of 50 parts per million (ppm) of sulfur. Although the full implementation of this requirement was deferred to December 31, 2024, to allow regional refineries time to upgrade their processing plants, the NMDPRA has already made significant progress in reducing sulfur content in imported diesel.

“Nigeria is a signatory to the ECOWAS Heads of States’ declaration of February 2020 that adopted AFRI-5 Fuels roadmap which requires that imported AGO should have a maximum 50 parts per million (50ppm) litres of Sulphur content. The declaration however deferred this requirement up to 31st December 2024 for refineries within the sub-region, thereby allowing sufficient time for processing plants to be upgraded.

“Section 317 of the PIA upholds the AFRI-5 specification. However, it’s full implementation as dictated by the PIA has been guided by the overarching need to maintain stability in domestic supply and pricing during the transition.”

“Since February 2024, NMDPRA has effectively ensured the compliance and enforcement of the Sulphur specification that has reflected a steady downward trend in the sulphur content of imported AGO from an average of 173.9ppm in February to as low as 18.2 in June 2024. And there is every reason to be optimistic that this trend will continue going forward including when our domestic refineries fully operationalize the AFRI-5 template from January 2025.”

The NMDPRA concluded by reiterating its dedication to maintaining a level playing field for all market participants and ensuring that only products meeting the specified standards are consumed in Nigeria. The authority underscored its efforts to safeguard the health and well-being of Nigerians by enforcing these quality standards in full compliance with the PIA.

“NMDPRA continues to collaborate with all stakeholders in ensuring a level playing field for all players, and that only Petroleum products which meet specifications are consumed in Nigeria in full compliance with the PIA with a view to safeguarding the overall health and well-being of Nigerians.”

Also reacting, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, who addressed journalists, following a meeting with oil marketers and local refiners in Abuja on Tuesday, stated that the authority has continued to ensure that only safe products are brought into the country.

According to him, “The ECOWAS heads of state in 2020 endorsed a declaration adopting the fuel roadmap that requires that certain products have a minimum of 50 parts per million litres of sulphur. “

He added that while it encourages almost immediate enforcement against imports to comply with that standard, the same treaty deferred enforcement for local refineries up to 31 December 2024.

“Now the PIA when it was passed in 2021 in section 317 also captured and upheld this ECOWAS treaty. 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 2023 December. In December and January of this year, we noticed a spike in the sulphur contents of products being imported. And we again now began strong enforcement from 1 February.

“I am happy to tell Nigerians that up until we speak in June, the average sulphur content in every AGO that is brought into Nigeria is far below, the average is far below the 50 parts per million litres as provided in the law,” he said.

Ukoha noted that the average sulphur content in every automotive gas oil that is brought into Nigeria is far below the 50 parts per million (ppm) litres as provided in the law.

He explained that the local refineries had however continued to produce at a higher level of sulphur.

“But we are not very anxious about that because even the new refineries that are coming in have within their design of the plant desulphurization units that will see in the nearest future that sulphur going down as low as 10 ppm.

“NMDPRA takes very seriously its statutory mandate to ensure that only quality petroleum products are supplied within and consumed in Nigeria.

“And so I would like to assure Nigerians that this is a mandate that the authority takes very seriously and that we are here to guarantee the well-being and health of Nigerians. And there is no dirty fuel that we would encourage to come into Nigeria,” he said.

Ukoha noted that the meeting with the marketers, and refiners was aimed to promote collaboration in a manner that ensures and guarantees energy security within the country.

“Our discussions covered considerable issues, very significant and profound. Issues of pricing, and competition have been raised and we’ll continue to engage with every operator to see that we land at a place that is ultimately beneficial to Nigeria and Nigerians,” he said.

Recall that the Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin over the weekend said that the decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licences indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets.

The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world.

“The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy,” Edwin stated.

…As Ribadu, Mohammed Idris preach responsible reporting

By Adeyanju Esther and Blessing Emmanuel, Abuja

The National Security Adviser (NSA), Mallam Nuhu Ribadu has revealed that terrorists are taking advantage of media publicity to recruit Nigerian youths to join their ranks.

Ribadu speaking at a two-day training workshop in Abuja titled ‘Effective Reporting Towards Strengthening Alternatives to Terrorist Ideology,’ alleged that the kind of reportage given to terrorist activities is making terrorism appealing to youths.

“Terrorist groups have continued to provide dysfunctional information through social media platforms, networking sites, and online propaganda including mainstream and traditional mediums of communication in such manner appealing for easy recruitment of many especially among the youths,” he explained.

“Information is power,” Ribadu stated, emphasising that the media must produce content that counters terrorist narratives and supports robust campaigns against terrorism and violent extremism.

He stressed the dual nature of information, which can either support state efforts or aid adversaries, and urged media practitioners to be mindful of their influence.

In the same vein, the Minister of Information and National Orientation, Mohammed Idris noted that: “The media holds immense power to influence minds, shape narratives, and promote peace.”

“In the fight against terrorism, the media can either undermine or bolster our collective efforts to provide alternatives to extremist ideologies. Through your reports, images, and commentaries, you have the unique ability to educate, inform, and inspire resilience among the public,” Idris said.

The Minister emphasised that terrorism is not only a physical threat but also an ideological battle. Extremist groups exploit vulnerabilities, spread fear, and propagate messages that present them as fighting for a social cause. To counter this, he urged journalists to offer compelling, positive alternatives that resonate with the same audiences targeted by terrorists.

“Your reporting plays a pivotal role in this endeavour,” he said.

“The media should continue to project successful initiatives and programs of NCTC and ONSA that counter radicalization as well as the rehabilitation and reintegration of repentant terrorists into the community.”

Minister Idris encouraged Defence Correspondents and Reporters to collaborate with security experts, sociologists, psychologists, and community leaders to provide a multi-faceted perspective on terrorism and its alternatives. He stressed the importance of using data and research to enhance the credibility and depth of their stories.

Furthermore, he reminded journalists to uphold the ethics of journalism by being objective and fair, avoiding sensationalism, respecting the dignity of victims and affected communities, and steering clear of biased or inflammatory language.

Sensational reporting, he warned, can inadvertently glorify terrorist acts and spread fear, while misinformation and fake news can be as damaging as terrorist acts themselves.

Minister Idris also reiterated the commitment of President Tinubu’s administration to free and responsible journalism, pledging continued support for journalists through access to accurate information, regular media briefings, and training opportunities like this workshop.

Meanwhile, Dr. Bosede Awodola, Director of the National Peace Academy at the Institute for Peace and Conflict Resolution (IPCR) echoed the same sentiments, noting that Nigeria’s peace and democracy are threatened by terrorist activities.

Awodola criticised the tendency of some media to sensationalise terrorism narratives, which can heighten public fear, and called for improved media practices to foster peace and security.

She further underscored the need for media practitioners to enhance their skills in conflict-sensitive reporting and peace journalism.

The workshop aimed to build media capacity to disseminate appropriate narratives that address extremist ideologies and support national security efforts. It also featured discussions on terrorism activities, current narratives, and the role of media in reducing tensions and fears.

…Consultations key as Tinubu reviews minimum wage recommendations — Mohammed Idris

By Matthew Denis

The wait for a new minimum wage continues as the FEC put off consideration of the memo, failing to address labour’s demand for a N250,000 minimum wage.

The Federal Executive Council (FEC) stepped down consideration and deliberation on the memo on the new minimum wage to allow President Bola Tinubu engage in more consultation with stakeholders.

Minister of Information and National Orientation, Mohammed Idris, disclosed this on Tuesday while briefing State House correspondents on the decisions taken at the council meeting.

He said the President has studied the report submitted by the Tripartite Committee on Minimum Wage and would consult further before a final submission on a new national minimum wage to the National Assembly.

Talks for a new minimum wage for Nigerian workers have been on for a while. The Minimum Wage Act of 2019, which made N30,000 the minimum wage, expired in April 2024. The Act should be reviewed every five years to meet up with contemporary economic demands of workers.

President Bola Tinubu in January set up a Tripartite Committee to negotiate a new minimum wage for workers. The committee comprises the Organised Labour, representatives of federal and state governments as well as the Organised Private Sector.

However, the committee members failed to reach an agreement on a new realistic minimum wage for workers, forcing labour to declare an indefinite industrial action on Monday, June 3, 2024. Businesses were paralysed as labour shut down airports, hospitals, national grid, banks, National Assembly and state assemblies’ complexes.

The labour unions said the current minimum wage of N30,000 can no longer cater to the wellbeing of an average Nigerian worker, saying government should offer workers something economically realistic in tandem with current inflationary pressures, attendant effects of the twin policies of petrol subsidy removal and unification of the forex windows of the current administration.

Labour “relaxed” its strike on June 4, 2024 following assurances from the President that he was committed to a wage above N60,000.

Both the Trade Union Congress (TUC) and Nigeria Labour Congress (NLC) leadership subsequently resumed talks with the representatives of the Federal Government, states, and the Organised Private Sector.

Nigeria NewsDirect had reported that on Friday, June 7, 2024, the two sides (labour and the government) still failed to reach an agreement.

While labour dropped again its demand from N494,000 to N250,000, the government added N2,000 to its initial N60,000 and offered workers N62,000.