This Day (Lagos)

Nigeria: Scarcity Linked to Intercepted Vessels

Chika Amanze-Nwachuku

7 April 2008


Lagos — About 155,099 metric tonnes of petroleum products which do not conform to Nigeria's specification have been intercepted by the Department of Petroleum Resources (DPR).

The products which were brought into the country in the last two weeks were discovered by officials of the regulatory agency attached to the ports.

DPR confirmed yesterday that the 13 off-spec petroleum laden vessels were consequently rejected and quarantined.

The vessels are: MT Argosy , MT Pirapita, MT Meredith, MT Chazi, MT Chelsea, MT Pro Diamond, MT Ruby, MT Mistral, MT CM Spirit, MT Oriental Ruby and MT Eron.

An official of the agency said last night that the products were imported by some major marketers and that they included Premium Motor Spirit (Petrol), Automative Gas Oil (AGO), Aviation Turbine Kerosene, and Dual Purpose Kerosene.

The analysis carried out by the officials showed that the products did not conform to Nigeria's specifications and could inflict damages on Nigerian cars.

Recertification remarks by the agency revealed that the products were rejected for reasons ranging from presence of ethanol, off limit reid vapour pressure, off limit flash point, off spec colour, contamination, off limit ron and acqueous deposits in three compartments.

Industry sources hinted yesterday that the rejection of the vessels is the reason for the current fuel scarcity nation-wide, as virtually all the petrol imported by most marketers contained ethanol.

But dismissing the report, a DPR official stated that no amount of pressure will make the department allow any vessel with products that do not conform to Nigeria's specification to discharge in the country.

He blamed the Pipelines and Product Marketing Company (PPMC) for failing in its responsibility to import products that will meet the nation's demand and instead abdicate its duty to marketers who import off-spec products which they blend for more gains.

"The vessels were intercepted through our stringent scrutiny at the various points of discharge.

"As you are aware, the guidelines for importation of petroleum products stipulate that importers must inform the DPR of the quality and quantity of expected product at least seven days prior to arrival of such product at our jetties. This is to ensure appropriate checks with approved standards before delivery. This exercise is carried out in line with recommended parameters of the technical committee on standards of quality of petroleum and petrochemical products as issued by the Standards Organisation of Nigeria (SON). The results obtained from the test are compared with the certificate of quality specifications before approving discharge into storage tanks," the official said, adding that the agency has mandated all depot owners to have well equipped laboratories for everyday test and confirmation of product quality before discharge for public consumption.

However, the DPR checks at the ports for ethanol content are believed to have resulted in the scarcity of petroleum products across the country as long queues have since resurfaced at various filling stations in Lagos, Ibadan, Abuja, Kaduna, Enugu, Owerri, Port Harcourt and Yenagoa.

Reacting to the situation, Spokesman of the Nigerian National Petroleum Corporation (NNPC), Dr. Livi Ajuonuma, stated that the presidency had given a directive to the regulatory agency to the effect that vessels carrying products with ethanol content of between 1.5 per cent and 5 per cent could be allowed into the country. He said the exercise by DPR contravenes that directive.

"President Umaru Musa Yar'Adua had earlier issued a directive to DPR urging it to allow vessels carrying products with ethanol content of between 1.5 per cent and 5 per cent. That ethanol at 5 per cent is an octane booster technically satisfied as good for cars on Nigerian road. This is part of the E-10 programme that is Nigeria's renewable fuels programme which is set for launch soon.

"We urged the DPR to come alive to it responsibility to the consuming public ensuring that product vessels are cleared expeditiously to avoid the seeming artificial scarcity and lengthy queues at the pumps," he said.

He however enjoined the agency and various security agencies to track down all those who sell petrol in jerry cans.

He also dismissed reports that president has banned fuel importation, arguing that even if all the refineries in Nigeria operate at optimum capacity, the nation's daily demand would still not be met.

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Author: gishola
Mon Apr 7 14:45:59 2008

For importing such a large amount of petroleum product, it would have been expected that a Nigerian representative team would be based at the source of the petroleum product to check all necessary parameters of the product before being shipped. With the serious condition of scarcity created, the government seems to be somehow tinkling with and manipulating the acceptable setdown national standard of petroleum product supply to the country so that the off-standard batch could be allowed to be deliverd to the country irrespective of the health hazards it may pose to the citizens. Is this setting any general trend?


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