Just days after recovering from the botched plan of a protest on anticipated subsidy removal on Premium Motor Spirit (PMS) otherwise called petrol, Nigerians slipped into another petrol scarcity which began early this month.
The queues have gotten worse since last week when the news of adulterated petrol supply spread across the nation. It was learnt that about 100 million litres of adulterated petrol was imported and supplied to retail outlets in Nigeria.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that the shipment from Belgium contained a higher level of methanol than the Nigerian specification for petrol which prompted the Nigerian National Petroleum Company Ltd (NNPC), the sole importer of petrol, to withdraw the bad product and supply quality product.
NNPC later admitted that its inspectors tested and certified all the imported cargoes of petrol but that the test was not for methanol which was said to be higher in the product.
The Chief Executive Officer/Group Managing Director of NNPC Ltd, Mallam Mele Kyari, gave further clarifications after meeting with some oil marketers to resolve the issues generated by the recent supply and discharge of the high methanol-blended petrol in some Nigerian depots.
He said the PMS cargo imports were tested and certified both in Belgium, where they came from and by an inspection agent appointed by NMDPRA on arrival.
“It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for per cent methanol content and therefore the additive was not detected by our quality inspectors.”
Just as the case was being resolved, President Muhammadu Buhari has directed that the providers of the substandard petrol must be held accountable.
He gave the directive in a statement by his Senior Special Assistant on Media and Publicity, Garba Shehu.
The presidency said the issue of petroleum product shortages was linked to the inadvertent supply of products of foreign origin into the Nigerian market.
The president also directed that in line with the law, service providers must make full disclosure of relevant information with respect to the consumption of their products and that dissatisfied consumers were entitled to a proper redress of their complaints.
He also gave directives to the relevant government agencies to take every step, in line with the laws of the country, to ensure the respect and protection of consumers against market abuses and social injustices.
Earlier, the Minister of State for Petroleum Resources, Timipre Sylva, promised that the federal government will launch an investigation to unravel the circumstances behind the circulation of adulterated petrol with methanol quantities above the country’s specification.
NNPC partners behind petrol import
Narrating the occurrence, Kyari said on 20th January 2022, NNPC received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp, Belgium.
He also said NNPC investigation revealed the presence of methanol in four PMS cargoes imported by the Direct-Sale-Direct-Purchase (DSDP) suppliers. The four cargoes were all lifted from LITASCO Terminal in Antwerp, Belgium.
The NNPC boss said the cargoes’ quality certificates issued at load port (Antwerp, Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian specifications.
“The NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,” Kyari added.
Kyari said to prevent the distribution of the petrol, the company ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck & marine).
Kyari emphasized that defaulting suppliers have been put on notice for remedial actions and NNPC is working with NMDPRA to take necessary actions in line with subsisting regulations.
Here are the four consortium and partners that NNPC Limited used on January 20, 2022 to import petrol from Belgium discovered to have above the Nigerian specification of methanol.
One of the first firms named was MRS which brought its content through MT Bow Pioneer vessel, according to NNPC.
MRS, registered as MRS Oil Nigeria Plc, has its business address at No. 2 Tin Can Island, Apapa. It has been registered since August 12, 1969 and has an active operational status recognised by CAC with registration No – RC – 6442.
Its management is led by the Managing Director, Mr Marco Storari and the company is a subsidiary of MRS Holdings Ltd, according to its website.
The GMD of NNPC, Malam Kyari, in a video last Thursday, said MRS brought in the petrol cargo through MT Bow Pioneer vessel.
However, MRS had earlier in a statement clarified its role noting that it only received observed contaminated fuel from Duke Oil which is a subsidiary of NNPC.
It said Duke discharged the cargo in Apapa between 24 and 30 of January, 2022 and MRS got 5,000 metric tons (MT) in its depot and distributed the product to only eight of its stations in Lagos before observing the bad state with 20 per cent methanol content.
It said it isolated the right stations with 350,000 litres and “we await approval from NNPC and NMDPRAfor the return of the product.”
Next on the list of importers is Emadeb/Hyde/AY Maikifi/Brittania-U Consortium which shipped the petrol from Belgium using MT Tom Hilde vessel. This is a consortium of four separate companies.
NNPC Ltd said they brought in their own consignment of the petrol through MT Tom Hilde from the same Litasco firm with the ship loading at Antwerp Port in Belgium.
Emadeb, however, in a statement later, exonerated the first three firms, and named Brittania-U.
According to CAC search, Brittania-U is registered as Brittania-U Energy Resources Ltd with RC – 1153310, having an office address on the 4th floor of Union Bank Building on 97 Adeola Odeku Victoria Island Lagos. Its operational status is inactive at CAC but was registered on 13th November 2013.
It is led by the Chairman/Chief Executive Officer, Catherine Uju Ifejika, its website said.
Ifejika is a lawyer and former Secretary of Chevron Oil Nigeria Plc.
Emadeb Energy Services Ltd is the lead consortium of Emadeb/Hyde/AY Maikifi/Brittania-U Consortium. It was incorporated as RC – 693054 with a business address at 14, River Kubanni Crescent, Off Nile Street, Maitama in Abuja.
The CAC search said the firm, which is active, was registered on May 28, 2007 and headed by the Chief Executive Officer, Adebowale Emanuel Olujimi.
Hyde Energy Limited was established in 2012 and registered with CAC on 12th July, 2012 with registration certificate RC – 1051332.
It is headed by the Chief Executive, Mr Oladimeji Edwards, with its business address at 3rd Floor, Canton Concourse Building, 12 Landbridge Avenue, Oniru, Victoria Island, Lagos.
However, its operational status is ‘Inactive’ according to a CAC preliminary search.
AY Maikifi Oil and Gas Company Ltd, which is its official name on its website, was not found on the preliminary search engine of CAC.
The company prides itself as having successfully and satisfactorily handled the supply of petroleum products to different parts of this country.
Alh. Adamu Yahaya Maikifi is the Chairman/CEO and the Managing Director is Yamta M. Audu, an accountant.
The third firm NNPC named on the import of the high specification petrol is Oando which used MT Elka Apollon vessel to bring in the content from the same place in Belgium.
Oando PLC is registered with CAC with RC – 6474, having a business address at 17A, Ozumba Mbadiwe Avenue Victoria Island Lagos.
The company, with an inactive operational status on the CAC search register, shows it was registered on August 25, 1969.
According to its website, it is one of Africa’s leading energy solutions providers with a proud heritage and is listed on the Nigerian Exchange and the Johannesburg Stock Exchange in South Africa.
It is driven by Adewale Tinubu who is the Group Chief Executive.
The fourth group NNPC Ltd named in the petrol importation saga is Duke Oil (NNPC) using MT Nord Gainer ship.
Duke Oil Services Ltd is a United Kingdom registered oil service company and subsidiary of NNPC Ltd. It is not registered on CAC as a Nigerian firm.
NNPC partly confirmed this on its website stating that, “Duke is a wholly-owned subsidiary of the Nigerian National Petroleum Corporation (NNPC), providing administrative services to other Duke Oil companies within the NNPC group.
“Duke is incorporated and is a tax resident in the United Kingdom.”
Thus, the subsidiary is under the control of the GMD/MD of NNPC Ltd, Malam Mele Kyari, and is said to be the sole importer of petrol so far, as also corroborated in the MRS’ statement.
As the fuel scarcity rages, NNPC in a statement on Wednesday said it has begun 24-hour loading at its depots and sales at its retail outlets.
The spokesman of NNPC, Garba Deen Muhammad, said one billion litres of petrol is in stock while 2.3bn litres is arriving in Nigeria already to end the queues.
