By Ese Ufuoma
In a decisive move to enhance road safety and streamline fuel distribution, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has ordered a ban on 60,000-litre capacity petrol tankers, effective March 1st. This directive, announced by NMDPRA’s Chief Executive, Mr. Ahmed Farouk, during a pivotal Stakeholders Technical Committee Meeting in Abuja, signals a significant shift in Nigeria’s fuel transportation policy. The NMDPRA also outlined a phased approach, with plans to prohibit 45,000-litre capacity trucks from loading petroleum products by the fourth quarter of 2025.
The meeting, which convened key stakeholders including the Department of State Services (DSS), Federal Fire Service, Federal Road Safety Corps (FRSC), National Association of Road Transport Owners (NARTO), National Union of Petroleum and Natural Gas Workers (NUPENG), and the Standards Organization of Nigeria (SON), underscored the urgency of addressing the escalating incidents of tanker-related accidents.
NMDPRA’s Executive Director of Distribution Systems, Storage, and Retailing Infrastructure, Mr. Ogbugo Ukoha who represented Mr. Farouk, articulated that the ban is a direct response to the alarming frequency of road mishaps involving heavy-duty petroleum tankers. “This meeting aimed to solidify timelines for ten critical resolutions designed to curb the observed surge in tanker incidents and associated fatalities,” Ukoha explained. The consensus among stakeholders was pivotal, paving the way for collaborative efforts to ensure safer petroleum product transportation nationwide.
Addressing concerns regarding fuel quality, Mr. Farouk dismissed recent claims as unfounded and misleading. He reassured the public that all imported and domestically refined petroleum products undergo rigorous testing to meet stringent regulatory standards before entering the market. The NMDPRA reiterated its commitment to upholding the Petroleum Industry Act (PIA) 2021 and SON specifications, which encompass parameters such as research octane number, sulfur content, density, colour, and oxygenate levels.
“Every product, whether from local refineries or imports, is subjected to thorough laboratory testing at both load and discharge ports,” Farouk emphasised. “Accredited laboratories issue quality certificates, confirming compliance with specified standards before any product is distributed.” He further clarified that hydrocarbons are inherently complex compounds, necessitating the specification of acceptable value ranges. Strict control of sulfur content is crucial, as elevated levels can induce corrosion and contribute to environmental degradation.
Examining fuel supply dynamics, Farouk noted a shift in Premium Motor Spirit (PMS) consumption patterns. Prior to the subsidy removal, the daily PMS supply averaged 66 million litres. However, post-subsidy, this figure has stabilised at approximately 50 million litres, reflecting a significant reduction in consumption. Domestic refineries currently contribute less than 50% of the total supply, with the remaining shortfall met through imports, as mandated by the PIA. Notably, Oil Marketing Companies (OMCs) with domestic refining capabilities have not imported PMS this year. The NMDPRA remains vigilant in ensuring adequate supply to prevent scarcity, with other OMCs bridging the supply gap through imports.
Potential Impacts of the Ban
Economic experts have noted that NMDPRA’s ban is poised to have impacts on Nigeria’s fuel transport sector. These include enhanced road safety with a primary objective to reduce the frequency and severity of tanker accidents, thereby saving lives and mitigating property damage.
The National Association of Road Transport Owners (NARTO) has also expressed concerns about potential financial losses, as many members possess 60,000-litre capacity tankers. There are also concerns about job losses for drivers. There are also concerns that the ban will increase the cost of fuel distribution, and therefore increase the price of fuel, especially in Northern regions of Nigeria. Logistics and distribution networks will need to adapt to the use of smaller-capacity tankers, potentially affecting fuel supply to remote areas, which can also lead to a reduction in the capacity and quantity of fuel supplied across the country.
Also, the ban brings to the forefront the need for better road infrastructure, and also the need for functional pipelines, to reduce the reliance on road transport for fuel distribution.
NMDPRA’s proactive regulatory measures, including the tanker ban and stringent quality control, signify a robust commitment to enhancing safety, efficiency, and transparency within Nigeria’s fuel sector with the hope for better distribution lines.