Strategic Collaboration, Panacea to Imported Substandard Petrol
In January, what began as the usual queues for fuel has however defied any solution thrown at it this time around, leaving Nigerians to suffer the brunt with damaged cars from bad fuel, as well as machines whose operations require the use of petrol as fuel. Also in the quagmire are businesses and transportation hub while the denials and counter blame between the authorities linger. To resolve this issue completely, Mary Nnah writes that strategic collaboration is required by stakeholders
When the queues appeared towards the third week in January, especially in Abuja, many Nigerians thought the marketers were up to their usual gimmick of trying to make brisk business from their old stock of Premium Motor Spirit (PMS) commonly known as petrol as rumours were rife then that the government planned to stop paying subsidy for petrol by the end of the month.
Importation of Adulterated PMS
While Nigerians were trying to wrap their heads around a fresh reason for the scarcity after the government announced that it is not removing subsidies on petrol so soon, news of the real reason emerged.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the petroleum sector regulator, disclosed that they had to order the shutting down of some filling stations because they had taken delivery of PMS laced with methanol at quantities above Nigerian recommended standard. The move was to purge the affected chain of the bad fuel from the market.
Upon investigation, the Nigerian National Petroleum Company (NNPC) Limited disclosed that the adulterated petrol was imported into Nigeria from Belgium undetected, going ahead to also reveal the oil companies that brought it in.
During a late-night briefing held on Wednesday, February 9, 2022, in Abuja, the Group Managing Director (GMD) of NNPC, Mele Kyari, disclosed that the adulterated fuel was imported into the country by four importers from Antwerp in Belgium.
Giving details of how this happened, Kyari said that NNPC’s investigation detected the presence of Methanol in four PMS cargoes amounting to hundreds of millions of litres imported by MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil.
MRS used the vessel, MT Bow Pioneer; Emadeb/Hyde/AY Maikifi/Brittania-U Consortium imported the product via the vessel MT Tom Hilde; Oando used the vessel MT Elka Apollon, while Duke Oil imported its PMS using MT Nord Gainer.
Failure of Quality Inspectors?
An interesting twist to this is the failure of quality inspectors to detect the high level of Methanol in the petrol, first at the point of export from Belgium and the point of arrival in Nigeria.
Meanwhile, NNPC’s quality inspectors including GMO, SGS, GeoChem, G&G, and other inspection agents appointed by the Midstream and Downstream Petroleum Regulatory Authority had certified that the cargoes met Nigerian specifications.
In an explanation of why the adulterated petrol missed the eagle eyes of the inspectors, the NNPC GMD said the quality checks do not include checks for Methanol percentage adding that cargoes quality certificates issued at load port in Antwerp-Belgium by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.
Whatever the reason might be, it has indeed been a very difficult period for Nigerians, as the situation has left many people with damaged vehicles and machines whose operations require the use of petrol as fuel.
In agreement with this and appeal for cooperation, the NNPC GMD said, “It is a very difficult period for us, and it is very important to update our customers and members of the general public on the ongoing efforts by NNPC and other stakeholders including you, to resolve the issues generated by the unfortunate supply and discharge of methanol blended gasoline (PMS) in some Nigerian depots.”
Remedial Actions
Some remedial actions like quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck and marine) put in place by NNPC since it received the report of the adulterated petrol on 20th January may have proven effective. This is as the NNPC has put all defaulting suppliers on notice for remedial actions.
Import of SON and Inter-agency Collaboration
Although four of the oil companies accused by the NNPC of importing substandard petrol have denied the allegation, the incident has reinforced earlier appeal by the Standards Organisation of Nigeria (SON) for inter-agency collaboration for effective sectoral standards regulation.
Earlier in the year, SON announced plans to standardise the nation’s oil and gas sector in its bid to enhance products and services quality attainment in the sector beginning from 2022.
To this effect, the Director-General of SON, Mallam Farouk Salim, had inaugurated a Steering Committee to coordinate modalities for implementing the provisions of SON Act No 14 of 2015 as it relates to the nation’s oil and gas sector.
The essence, according to him, is to position SON to ensure that every area of operation in Nigeria’s Oil and Gas Sector is standardised to guarantee the quality, safety, and a sustainable environment in line with international best practices.
The SON DG said steps have already been taken to upscale the human and material capacity of the organisation to provide the needed technical support to the oil and gas sector in such areas as piping inspection certification, piping construction, storage tank inspection and certification, asset management standards.
Other areas SON would be offering support towards standardisation of the industry include quality management system requirements for the petrochemical, oil, and natural gas industry, basic offshore safety induction, and emergency training amongst others.
“SON’s quality forays into the oil and gas industry is phased into short, medium and long term due to the strategic importance of the sector to Nigeria’s economy and the attendant need to establish, maintain and improve standards, assure the accuracy of measurements as well as the safety and durability of products and services within the industry,” Salim stated.
Meanwhile, Salim has tasked the in-house committee to enhance SON’s activities and strategic repositioning in the oil and gas industry to effectively regulate quality and promote international best practices, assuring that the organisation is prepared to overcome challenges that may arise in the course of striving to improve standardisation and quality assurance in the Oil and Gas Sector.
The imported petrol adulteration incident may have heightened the call for SON to be returned to the ports to complement what other agencies there are doing.
Time to Step Up
Although SON is already collaborating with other regulatory agencies as confirmed by the organisation’s Director, Public Relations, Bola Fashina, the time to step this up is now.
“SON has been working closely with agencies to ensure compliance to standards. On issues surrounding food and other regulated products, we are working closely with the National Agency for Food and Drug Administration and Control (NAFDAC), on the environment, we are working with the National Environmental Standards and Regulations Enforcement Agency (NESREA), we have a good collaborative relationship with the Nigeria Customs Service and other regulatory agencies in the country. But with the recent event, we are going to speed up our collaboration with other agencies,” Fashina said.
Call to Return SON to the Ports
The hard struggle by NNPC and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to mop up the adulterated petrol from circulation is a sad reminder of the point that has been repeatedly made by the previous and current leadership of SON, the National Assembly, and other stakeholders, that ‘it is easier to fight the influx of substandard products at the points of entry than chasing them around all over the country in markets and warehouses, among others.’
According to statistics, over 75 per cent of the products imported into the country come through seaports and waterways.
Immediate past Chairman of Nigeria’s Senate Committee on Industry, Sam Egwu, emphasised this point with a call for the return of SON to the nation’s ports during one of the committee’s oversight functions to SON’s offices and laboratories in Lagos.
“Nigeria is import-dependent, with porous borders and for them (SON) not to be at the port to inspect these goods first-hand is not good enough. They should be allowed to be at the ports to see these products before they enter the market,” Egwu said.
This was also echoed by the chairman, House of Representatives Committee on Industry, Enitan Dolapo-Badru, at an oversight visit to SON’s laboratory in Lagos.
“We are very resolute in our efforts to make sure that issues hindering the agency’s operations are addressed because day in day out, we record lots of deaths from substandard products where several thousands of unreported cases of avoidable deaths happen and it is unthinkable that substandard iron rods, tyres, gas cylinders, generators, and so many other things are being imported into the country and yet SON is being prevented from operating at the ports,” Badru said.
Need for More Testing Laboratories
Meanwhile, SON’s DG has appealed to the National Assembly to support SON’s quest to establish more laboratories in the country, stressing that the agency is inundated with so many goods to certify, monitor and test.
He added that this cannot be overemphasised, especially at a time when the African Continental Free Trade Agreement (AfCFTA) has taken full flight, also stating that, there is the need to develop the nation’s testing capacity to address unscrupulous elements who would want to use the trade pact to make Nigeria a dumping ground.
Commenting on the substandard PMS saga on a live television programme, Salim stated that his agency had provided the coordination, secretariat, and guidance for the development of relevant standards for the Oil and Gas sector (including for PMS), ensuring that the process follows international best practice, is in tune with global competitive requirements and approved by the Standards Council.
According to him, SON receives feedback from general observations, consumer complaints, and regular market survey activities by its 42 state offices across the country to form part of the considerations for the review of the standards when necessary.
He also disclosed that efforts are ongoing to enhance his agency’s collaboration with the sector regulators by offering its internationally accredited testing capacity and calibration services by the SON promoted National Metrology Institute (NMI), as well as to engage with the Presidential Committee set up to tackle the substandard PMS saga.
Quote“There is the need to develop the nation’s testing capacity to address unscrupulous elements who would want to use the trade pact (AfCFTA) to make Nigeria a dumping ground”
