OpeOluwani Akintayo
Lagos — Unaware what fate had planned to bring his way, Sanyaolu drove to NNPC at Oba Ogunji Road, Ogba to get his SUV tank filled.
It was the second day of the week, a Monday in February, as he rushed out following news of fuel scarcity across the country.
As he joined the long queue which had stretched into the road, Sanyaolu recounted how an eager crowd of keg carriers while hurling insults at one another, struggled in a bid to buy some petrol for their generators.
“It got to my turn three hours after I joined the queue. I bought 10 litres, paid and heaved a sigh of relief.
“At last, I can rush down to the office. It was already around one in the afternoon”, he added.
Taking a pause for breath, he continued as he scratched his head with his right-hand index.
“The car started jerking hours after I bought the fuel, but I managed to drive home after work”.
It was the following morning, and Sanyaolu said he heard some “strange noise” as he tried to start the car.
“I later invited my mechanic who confirmed the engine had been impacted. He changed a few things but still, the performance was not into gear. He later advised I change the engine. The engine packed up”.
“The engine will cost me well over N350, 000”, he added.
Asked how much he had spent before he was advised to change the engine, “I spent over one hundred thousand Naira”, he replied.
Sanyaolu said he has been “unable to keep several official appointments” which had “forced” him to reschedule same.
“…this comes at a huge disadvantage”, he said.
“Besides, I am now spending more on Uber Services. In two weeks, I have spent about N50,000 on Uber and this is no longer sustainable. How much do I earn that I would be spending that much on Uber”, he said.
SweetcrudeReports had in early February, reported how adulterated fuel was being circulated across the country.
In a bid to salvage the situation, state oil company, NNPC withdrew as much as 100 million affected products from circulation, resulting in fuel scarcity.
As a result of public outcry following reports of the adulterated fuel, NNPC, the sole importer of the product, then released names of importers involved in the importation of the controversial petrol on its behalf.
A statement signed by Garba Deen Muhammad, Group General Manager Group Public Affairs Division of the company, listed MRS, Emadeb/Hyde/AY, Oando and a subsidiary of NNPC, Duke Oil as defaulters in the dirty fuel scandal.
An earlier statement by Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, had revealed the presence of Methanol above Nigeria’s specification in the product imported.
The NMDPRA that currently replaced the defunct Department of Petroleum Resources, DPR, is directly responsible for the regulation of the midstream and downstream petroleum operations in Nigeria which includes technical, operational, and commercial activities.
According to NNPC, four PMS cargoes imported the product through a Direct-Sale-Direct-Purchase, DSDP arrangement.
Under the DSDP scheme, selected overseas refiners, trading companies and indigenous companies are allocated crude supplies in exchange for the delivery of an equal value of petrol and other refined products to the NNPC.
However, NNPC release quoting Chief Executive Officer/ Group Managing Director of NNPC, Mallam Mele Kyari made the pledge at the end of a meeting with some oil marketers, noted that cargoes quality certificates issued at loadport (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.
Providing a graphic chronicle of the unfortunate incident, the NNPC CEO said that on 20th January 2022, the company received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.
“The NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,’’ he said.
Kyari noted that as a standard practice for all PMS import to Nigeria, the said cargoes were equally certified by inspection agent appointed by the NMDRA.
“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 Percent methanol content and therefore the additive was not detected by our quality inspectors’’ he stated.
However, in order to prevent the distribution of the petrol, the NNPC CEO said the company promptly ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck & marine).
Kyari said NNPC would restore sanity in the supply and distribution of quality petrol across the country within a short period.
However, the scarcity is yet to totally wane despite millions of litres pumped into circulation. Many filling stations are still under lock and keys, while those dispensing witness long queues of vehicles.
Sunday Michael Ogwu, an Abuja resident, told SweetcrudeReports how petrol he bought from black marketers after cuing for more than four hours at A.A Rano, airport road, affected his car, and eventually wasted his whole day.
“It was not long after purchase, on my way back to the office at Utako, that the vehicle developed complications”, he said.
The road-road mechanic who said he had received several complain of bad fuel, ran a scan and said his fuel pump had “packed up”.
“He called an electrician who confirmed and recommended a replacement.
“I bought the fuel pump for N6000. Workmanship was N4000 for both mechanic and electrician.
“We had to drain the bad fuel too. The bad fuel cost me N6000. Then, we bought another 10 litres which the seller vouched was pure for another N6000.
“My entire day was wasted”, he lamented.
It was a narrow escape and a case of luck for Nosakhare Edwin Idehen from Benin city.
“My car didn’t start on time next morning. And when it finally started, it wasn’t smart”, he said as he began narrating his experience.
“I didn’t really spend much money, though. I just drew out the fuel and replaced it with fuel I bought few days before for my generator. So, I started using the bad fuel in my generator.
“It didn’t affect my work because I am self-employed. The issue only causes me delay and the stress i went through to take out the fuel from my tank.
“I was lucky the dirty fuel didn’t do much damage on my nozzle. I bypassed the remaining fuel in the hose that leads to the tank, and directly pump small amount of my old fuel into the nozzle. Instantly my car started, and the engine was now warm enough to burn the remaining fuel in the hose.
“Government should have been proactive enough to check bad products entering the country. Who knows what the combustion of such toxic fuel will cause to our environment and health?”, he asked.
Mr. Mudi, a resident of Lagos state, said he spent a total of N174, 000 to replace damaged parts in his Honda Accord 2010 model car.
A breakdown of the receipt sent to SweetcrudeReports, showed that a total of N145, 000 was spent to replace the top cylinder, N27, 000 on fuel pump V6 (all parts sourced at second-hand prices), while N2000 was spent on transportation.
Black market booms
SweetcrudeReports findings showed that black marketers have since the scarcity begun cashing out big time, as product now sells between N200-N250 per litre, as against approved price of N162-N165 per litre.
Findings revealed that most petrol stations as of Tuesday, have ran out of products with many of them under lock and keys.
Further investigation showed that many of the filling stations during the peak of the crises, resulted into profiteering by selling the product only to black marketers so as to make quick money.
It was also gathered that most private depot owners recently raised the cost of petrol from the approved N142-N145/litre price to between N162-N170/litre.
MOMAN, DAPMAN extend opening hours of jetties, depots, filling stations
In a bid to salvage the crises and support government efforts, members of the Major Oil Marketers Association of Nigeria, MOMAN and Depot and Petroleum Marketers Association of Nigeria, DAPMAN have since extend opening hours of jetties, depots, and filling stations to a minimum of 18 hours a day, and where possible up to 24 hours a day in high density and flagship locations where the security situation permits.
Olumide Adeosun, Chairman of MOMAN said the measures was put in place in order to re-stock fuel supplies, resolve the blending of contaminated product and identify losses suffered by customers, operators and third parties.
He also assured that MOMAN’s committee of chemists are working with designated laboratories to double check the quality of product (re-blended or new) before they are released into the fuels supply chain.
Adeosun said MOMAN’s subject matter experts are active contributors to the technical and commercial committees set up by the regulatory authorities to handle the crises.
“Most importantly, MOMAN members have committed resources towards enhanced operations and associated activities to reduce the burden of the current fuel scarcity to our customers.
“MOMAN members shall operate these extended hours until the excessive queues subside”, he said.
NMDPRA not taking responsibility
In a twist of event, Chief Executive Officer, NMDPRA, Farouk Ahmed, said he would not take responsibility for the proliferation of the adulterated petrol even though his agency is in charge of ensuring that standards are adhered to.
Ahmed said during an interview that he just took over the leadership of the new agency a few months ago and this was what he met in place.
The Authority CEO during an interview, told Punch that those who acted on behalf of the NNPC did not “detect this material until it entered the system”.
“So, actually, I don’t want to pass blame, but I also won’t take responsibility because this is our work and I am just been three months on the job and it is part of the learning curve and so we are learning and we will take the learning forward,” he added.
Kyari appears before Reps
To get to the root of the crises and proffer solutions, Kyari was invited to appeared before the House of Representatives Committee on Petroleum (Downstream) last week.
Kyari, while briefing the Committee, said the reason tests did not reveal methanol presence was because Nigeria’s testing mechanism does not cover methanol.
He also noted that methanol discovery was made by its inspection agents who noticed the emulsification at the filling stations.
“We are a law-abiding company. There is no way we could have known about the methanol presence. The only way we could have known about it is if our suppliers, in good faith, disclosed it to us,” he said.
“In this particular instance, the discovery was made by our inspection agents who noticed the emulsification at the filling stations and brought it to our attention.
“Subsequent investigation revealed that the four cargoes which are all from the same source also contained methanol-blended PMS,” Kyari said.
He noted that the NNPC then moved swiftly to trace all the affected products and quarantine them to forestall further damage.
He said measures have been put in place to accelerate fuel supply and distribution in the country.
He pledged that NNPC would cooperate with the committee and the NMDPRA to get to the root of the matter.
He expressed deep empathy with Nigerians on the current situation and assured that adequate measures have been put in place to maintain supply sufficiency and prevent future occurrence.
The four suppliers; including NNPC trading arm, Duke Oil have since denied being responsible for importation of the adulterated petrol.
Duke Oil, Oando, others deny allegations
A subsidiary of NNPC, Duke Oil and Oando Plc, denied involvement in the importation of the adulterated fuel into the country.
The firms made their stand known when they appeared before the House of Representatives Committee on Petroleum Resources, Downstream last Wednesday.
Lawal Sade, Managing Director, Duke Oil during the questioning, said that the product imported by his company was certified okay both at the Port of loading and the Port of discharge by relevant authorities.
He, however, said they were notified by the Nigerian National Petroleum Corporation, NNPC a few hours after the discharge that the product had some particles which made it to discontinue the process.
According to him, there was a confirmation by the regulator, which is the new Nigerian midstream, downstream authority to discharge that cargo within the stipulated date.
” The cargo discharged, and the vessel sailed. It was just after 24 hours of operation then; Duke Oil was notified by the NNPC that there was a complaint from some of their customers that the cargo has some particles
According to him, the cargo has been certified by the midstream and there is a joint inspection before the discharge and the specification provided in the contract with NNPC meet up the Nigerian specification.
Representative of Oando Plc, Afanga Afanga said that the firm’s product met the Nigerian specification.
“In line with our Direct Sale Direct Purchase contract with NNPC, on the 16th of January 2022, we delivered 90MT worth of PMS on board the Vessel MT Elka Apollon.
“It is important to note that this PMS cargo that was supplied met and was in line with all the Nigerian contractual specifications.
He said that it was confirmed by the mandatory tests that were conducted at the loading port in Europe and before discharge in Nigeria by an independent NNPC quality inspector.
He added that the agents of the Nigerian Midstream and Downstream Regulatory Authority also confirmed it.
He said that it was on this basis that the cargo was certified and accepted for discharge by NNPC.
In his ruling, the Chairman of the committee, Rep. Abdullahi Gaya, asked the companies to submit all relevant documents regarding their presentation, saying they may be reinvited if necessary.
The other two suppliers have also refuted all allegations against them.
Government to compensate victims
The Federal Competition and Consumer Protection Commission (formerly Consumer Protection Council) said an arrangement has been put in place to compensate motorists whose vehicles were damaged by the adulterated fuel.
The Chief Executive Officer of the FCCPC, Babatunde Irukera, in an interview, said claims will be sent to retailers involved.
“Current engagement shows that key relevant stakeholders have arranged for retailers to accept responsibility for repair and restoration of damaged vehicles/equipment. The respective legal departments are working to establish a framework that does not address injury that falls within the category stated above”, he said.
Labour groups, human rights lawyers and civil right advocates have since condemned NNPC’s negligence at allowing such product quality into the country in the first instance.
Human rights lawyer, Femi Falana, SAN, confirmed that claims and complaints would be sent to the FCCPC.
However, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Mr. Mike Osatuyi, said claims would be forwarded to the NNPC.
Osatuyi told Arise Television that some customers, whose vehicles were damaged by the adulterated fuel, attacked filling station attendants.
“We got attacked from some customers because they believe that we are into sharp practices and when they buy fuel and their vehicle gets spoilt, then they ask us to repair their vehicle. I am sure you will see videos on social media of customers parking their cars at filling stations because their cars broke down after buying fuel,” he stated.
When asked how they would receive compensation from the NNPC for distributing bad petrol, Osatuyi said, “We have told our members to identify those affected, which stations, which companies so that we can pass the information to the government. And since we are not responsible for importation, then there must be restitution. And the government must come in to mitigate the damage done to individuals’ vehicles.”
On whether IPMAN would be suing the government and the NNPC, Osatuyi said that was not an option for now because the association was still having talks with the oil company.
He, however, said if it does not get a favourable response from the NNPC, the marketers would seek redress.
Osatuyi added, “We are not going to sue the government, but we are going to collect data of affected stations and what it cost us and pass it to the authority so that we don’t have problems. This has happened and they are trying to mitigate the problem.”
On whether he was sure of compensation, he responded, “They have no choice. This is clear. It is when we engage them and present figures and if they are trying to be funny, we will do what we can do within the ambit of the law.”
Osatauyi advised the Federal Government to ensure that the country has refineries so that Nigeria could stop importing fuel.
Timipre Sylva breaks silence
A statement issued in Abuja by his Senior Adviser, Media and Communications, Horatius Egua, Minister of State for Petroleum Resources, Chief Timipre Sylva, expressed regrets over the importation of adulterated petrol into Nigeria, saying it was not due to the absence of products but inspection failure.
He said, “In the last weeks, Nigerians have grappled with fuel scarcity, not because of the absence of supply of products but due to inspection failure, which allowed adulterated products into the country.
“This is regrettable, and the Federal Government sympathises with the citizenry over the unforeseen hardship, occasioned by the inevitable scarcity.
“Let me once again appeal to Nigerians to be patient with the government in finding lasting solutions to the crisis.”
He appreciated the Nigerian National Petroleum Company, NNPC Limited for showing concern to the plight of Nigerians by coming forward with an apology.
“This is unprecedented and shows that we on the government side are not afraid to take responsibility,” he stated. He further noted that the Midstream and Downstream Petroleum Regulatory Authority had been out on the streets to ensure that the situation normalised quickly, adding that the government was beginning to see the fruits of these efforts.
Sylva said, “This is a time that calls for collective action to save a situation that was not foreseen. It is not a time to trade blames as is customary in Nigeria.
“It is therefore not a time to query anyone but a time to come together to salvage the plight of the average Nigerian.
“After the storm settles there will be time enough to investigate and get to the bottom, so that this does not repeat itself.”
Culprits to face sanctions
President Muhammadu Buhari who doubles as the Minister for Petroleum has since stated that those found culpable in the importation of the bad fuel would be punished.
The House of Representatives ruled that due diligence was ignored before passing the product for distribution to marketers, says that culprits must be punished.
To this regard, House Majority Whip, Mohammed Monguno, moved a motion of urgent public importance, titled “Need to Investigate the Release and Sale of Adulterated Premium Motor Spirit (PMS) in Petrol Stations Across Nigeria.”
Adopting the motion, the parliament mandated the Committee on Petroleum Resources (Downstream) to “investigate the release of adulterated PMS across the country, with a view to ensuring that culprits are brought to book, as well as make recommendations towards curbing a reoccurrence of such incident.”
The lower legislative chamber also asked the committee to “ascertain whether the Nigerian specification concerning importation, distribution and dispensing of the alleged toxic petrol in Nigeria, from January till date, complied with international standards.”
Also, the lawmakers further asked the committee to “investigate the roles played by the NNPC, Standard Organisation of Nigeria, Nigeria Customs Service, Nigerian Navy; any other government regulatory agencies, limited liabilities companies, and individuals in the unfortunate episode.”
Furthermore, the parliament has asked the NNPC to suspend the four companies involved in the importation of the adulterated PMS.
NNPC slams fresh N500, 000 operational charges on marketers
And while Nigerians are yet to recover from the crises, the NNPC last week, introduced a fresh N500, 000 ship-to-ship coordination charges for petrol.
SweetcrudeReports had reported that a letter from the NNPC, with reference NNPC/ML/STS01, dated February 18, 2022, and addressed to all marketers, saw the national oil company explained that the charge would cover manpower, logistics, among others.
The letter, which was titled, “Payment of STS Coordination Charge,” and signed by O.I.O. Ajilo, for the NNPC’s Group General Manager, Shipping, read in part, “Please be informed that the NNPC management has directed that effective February 10, 2022, the sum of N500,000 will be charged for STS Coordination fees for each transshipment operation involving the NNPC Marine Logistics.
“This amount is to cover manpower and logistics required for coordination and production of cargo documents for the transshipment operation.
“A Remita payment request will be generated by our accounts section for each operation to effect necessary payment upon the vessel’s tendering Notice of Readiness. Thank you for your anticipated cooperation and understanding.”
In another document titled, “Commencement of STS Coordination Charge,” which was from the General Manager, Marine Logistics, to marketers, with reference GGM/ML/04, and dated February 8, 2022, the national oil firm explained the functions of Marine Logistics.
It said its functions were to coordinate ship-to-ship transshipment activities for the Pipelines and Products Marketing Company, NNPC Retail Limited and third-party marketers, as well as facilitate the processing of clearances for shuttle vessels and preparation of Bill of Lading on completion of STS.
Marine Logistics, PPMC and NNPC Retail Limited are subsidiaries of the national oil company.
The document, which was signed by Asuquo Inuikim, read in part, “Kindly recall that customers (PPMC, NNPC Retail and third-party marketers) who hire ML (Marine Logistics) vessels for STS and discharge operations are charged STS fees which is included in the vessel freight. However, third-party marketers who do not hire Marine Logistics vessels are serviced free.”
The new charges come following SweetcrudeReports findings that there is a rise in ex-depot prices above the approved cost of N142-N145/litre to between N162 and N170/litre.
This has in-turn affected prices of petrol at most filling stations above official prices of N162-N165/litre across the country.
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