The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has refuted the allegation that dirty fuel was imported into Nigeria.
DAPPMAN in a statement signed by its management which was made available to New Telegraph on Tuesday stated emphatically that no member of the association and indeed, no private fuels depot has imported into the country any fuel with specification that is outside of the regulation other than what is currently approved by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA).
It opined that the information from the Dangote Refinery Management is allegedly laced with inaccuracies.
According to it, the downstream regulatory authority, NMDPRA in the very recent past had initially objected to offtakes by DAPPMAN’s daughter vessels from import mother vessels, via Ship-to-ship operations which usually take place offshore Lome, a move which was vehemently protested and resisted by downstream operators and has been rescinded.
Recalled that the Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, had in a statement lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in allegedly granting licences, indiscriminately to marketers to import dirty refined products into the country.
He said: “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. Since the US, EU and UK imposed a Price Cap Scheme from 5th February, 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.
“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently. It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria, when we have more than adequate petroleum refining capacity locally.”
It would be recalled that in May, Belgium and Netherland adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union. These measures synchronise fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content. Historically, these fuels, with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.
Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherland, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam. Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected the trade to Belgium, now used by oil producers and traders to export gasoline with excessively high levels of benzene and sulphur.
“For far too long, toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said Khattabi.
“In September 2017, an investigation by an international organisation, Public Eye revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets. As much as a quarter of the petrol and diesel available in West Africa originates from the ports of Amsterdam, Rotterdam, and Antwerp.
“These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe. The Netherlands and Belgium were enjoined to enforce regulations to shield millions of Africans from exposure to toxic fuels.
“The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets.”
DAPPMAN’s statement read: “Over this last weekend, the news broke on the lamentations of the Management of Dangote Industries Limited wherein they were quoted as having stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been granting licenses indiscriminately to marketers to import what they described as ‘dirty refined products’ into the country.
“The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN)), wishes to state emphatically that no member of the association and indeed, no private fuels depot has imported into the country any fuel with specification that is outside of the regulation other than what is currently approved by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) and would wish to state that the information from the Dangote Refinery Management is laced with inaccuracies.
“DAPPMAN noted that the downstream regulatory authority, (NMDPRA), in the very recent past had initially objected to offtakes by our daughter vessels from import mother vessels, via Ship-to-ship operations which usually take place offshore Lome, a move which was vehemently protested and resisted by downstream operators and has been rescinded.
“DAPPMAN recalls that between February and May 2024, the NMDPRA had allowed AGO imports with maximum sulphur content of 200/ppm however this was followed by another move, by the regulator, to fast forward the country target date of the implementation of the 50/ppm sulphur limitation on PMS and AGO imports, from 31st December 2024 to 1st June 2024, thereby limiting all marketers and depots’ AGO source to Dangote Refinery even though the latter was yet to install its desulphurization equipment as the sulphur in its blends of AGO presently exceed 50/ppm.”
It stated that this again was resisted by DAPPMAN in its letter to the NMDPRA which was dated 10th June 2024 to warn and alert the regulator not to ‘inadvertently promote and introduce a monopoly into the sector.
“With stiff resistance at every attempt at introducing a Dangote Refinery monopoly into the downstream, and the fact that the latter, despite its most recent production of AGO with sulphur contents reported at 1200/ppm, it is baffling to us that the Management of Dangote Industries (including the Dangote Refinery), who are very much aware of these facts, could claim that the NMDPRA has been granting licenses indiscriminately to marketers to import ‘dirty refined products’ into the country. Their current blend of AGO, with reported sulphur contents of 1200/ppm is technically classified as ‘dirty fuel’ and grossly in excess of the 200/ppm imported by any marketer or depot owner.”
The statement further said that Dangote Refinery as a business entity is free to adopt any model that suits its management however its current practice of cheaper bulk sales prices to international buyers at the detriment of Nigerian buyers calls to question their patriotism to the country.
It noted that several Nigerian marketers had in recent past been offered Dangote Refinery cargoes by international trading firms at rates that are very much lower than what they were directly offered by Dangote Refinery, adding that this will not be in the interest of the Nigerian fuel end-user.
It stated that there is no doubt that the success of Dangote Refinery will be a thing of pride to the nation, but that all downstream operators and their activities must be in tandem with the provisions of the Petroleum Industry Act 2021 which abhors ‘monopoly’ of any sort.
According to it, DAPPMAN will continue to work with all stakeholders, including Dangote Refinery willingly to provide safe, healthy fuels to all Nigerians competitively giving them great and affordable fueling options for their daily activities.
