Tag: fuel

  • Journey through the pathways of fuel smugglers

    BEBE, an outpost of Benin Republic has an aversion for the lily livered. Only the lion-hearted ply its windy road which connects with Zomi Road and peters out at the Ajegunle axis of Ipokia Local Government Area, Ogun State. Swamps and rainforest span the four-kilometre road with potholes and ditches dotting its pathways. It is a terrain for smugglers, especially trans-border petrol smugglers who travel the road early in the morning twice a week—Wednesday and Saturday.

    A lot of things can kill on Bebe road. From reckless motorcyclists moving contrabands including petrol in jerry cans and running at neck-breaking speed to convoys of smuggled cars fleeing from border patrols of Customs and other security agents manoeuvring their ways through the ditches. Bystanders and villagers are often knocked down, killed or injured by the smugglers while trying to flee from Nigerian law enforcement agents whose sporadic gunshots send jitters down the spines of residents.

    The activities of smugglers are believed to be responsible for the low population of the community which lacks basic social amenities like good roads, water and health facilities, among others. The community also acts as the haven of porters and youths from Nigeria who flock there to work as load carriers for smugglers for a fee.

    The community’s notorious road starts from a point close to a university founded by a Nigerian don at Banigbe, Benin Republic. The reporter had joined a group of petrol smugglers who were on a trip to the community to place an order for new jerry cans and sundry items on July 29.

    ”You are a Nigerian. Why are you visiting Bebe through Banigbe instead of going through the Idiroko checkpoint of the Nigeria Customs Service,” the driver of the car, Weme Boni asked the reporter.

    “Things are hard in the country. I learnt there are menial jobs I can do there, so I am going to Bebe to see if I can get a job,” the reporter responded.

    Apparently convinced by the reporter’s explanation, the driver demanded CFA 1000 (N647) as fare and the journey began at 5.30 am with the car moving tempestuously on the undulating road.

    It had rained in the night. So, as the Golf 3 car that conveyed the reporter and other passengers ran through the floods on the road, a number of villagers emerged from the dotting bushes on the sideways trekking home.

    The villagers were soon out of sight and a convoy of smugglers moving petrol on motorcycles in big yellow jerry cans and racing through the floods of dirty water they also splashed on the car.

    ”That is what makes smuggling tick. Time is of essence because a moment of slack could be costly. It could land a smuggler in the dragnet of Customs and border security forces,” said one of the passengers.

    After a long drive, the car approached a checkpoint and was flagged down by a Beninese policeman.

    ”My name is Zoglo,” he politely introduced himself in smattering English. ”What do you have for me,” he asked with a cheery smile. As soon as the driver handed him a N200 note, he removed a straw of bamboo used to barricade the road and asked us to pass.

    ”I don’t know the fascination. They (Beninese policemen) prefer collecting bribe in naira,” Boni said as he raced the car from the checkpoint.

    At the centre of the community, there were piles of yellow jerry cans on both sides of the four-kilometre road. It serves as the hub of jerry can traders who sell them to petrol smugglers for as low as N300 equivalent of CFA franc.

    A few metres away from the centre of the community lies a checkpoint manned by Nigerian mobile policemen. The minions of law were seen relaxing on a wooden sofa under their tent while a Customs checkpoint is located near the junction of Zomi Road, which connects with Bebe road from Ajegunle area of Ipokia Local Government Area, Ogun State on the Nigerian frontier.

    Zomi Road snakes through a row of buildings near Jolaco Petrol Station in Ajegunle to Idiroko Road, which leads to the Nigeria Customs Service checkpoint bordering Benin Republic. It is the easiest road to Benin Republic but one most avoided by smugglers because of the heavy presence of security operatives.

    However, some of the buildings on Zomi Road in the Ajegunle axis of Ipokia Local Government Area provide a shade for petrol smugglers. There are ‘hidden’ bush paths behind them, which lead to Bebe and other communities in Benin Republic.

    The five hours the reporter spent in the community revealed how trans-border petrol smugglers operate, beat Nigerian security operatives and move unhindered into Benin Republic.

    Bush paths/confusing routes

    Investigation revealed several routes used by petrol smugglers taking the product from Nigeria to Benin Republic. They avoid the main road (Zomi) which connects the road to Bebe because of the heavy presence of security operatives including the Nigeria Customs Service (NCS), police, Immigration, Joint Border Patrol, National Drug Law Enforcement Agency (NDLEA) and State Security Service (SSS).

    Ajegunle has two other bypasses including New Road and Iko Gate Road beside Iko Gate Grammar School. The routes afford the petrol smugglers the chance to move into the francophone country without being seen or trailed by Nigerian security operatives that man the border.

    There are several of such illegal routes in Ipokia LGA. For example, the Egua-Oja Odan-Ilase, a 104-kilometre road, connects four local government areas, namely Yewa South, Yewa North, Imeko Afon and Ipokia, all in Ogun State.

    The road is used by the syndicate controlling the Oja Odan petrol smuggling ring by connecting to it through Ihunbo, Igborodo, Ayetoro, Akojaga Road, Ilashe, Koko Road, Ogosa, Araromi and Ajilete.

    Our reporter’s investigation during a visit to the communities revealed that petrol smugglers escape from the security operatives either by veering into the bypasses or bush paths they created to Igbeji creeks, a stone’s throw from Benin Republic, or Oja Odan and Ijoun where the two countries are only separated by a river.

    The situation is compounded by the uncooperative attitude of the villagers who see no problem with their youths engaging in the illicit business. It was gathered that the villagers most times withhold information on the smugglers when requested by Customs and other security operatives.

    ”We don’t see anything wrong in jobless youths engaging in smuggling so long as they don’t steal. Everyone knows that there is a high rate of unemployment in Nigeria. If we cannot provide jobs for our teeming jobless youths, we should not discourage them from doing a job that they have found since it is not stealing or robbery. The only thing we do is to advise them to be careful when carrying out their duties,” said a community leader in Oja Odan, Chief Samuel Akinyemi.

    How they evade arrest

    Most of the roads are very difficult terrains for security surveillance or patrol, as some of them are specifically designed by smugglers for their nocturnal activities. Some are designed as footpaths only to widen at further distance. Some routes are designed with ditches.

    A suspected petrol smuggler who was in the community to inspect new jerry cans he had ordered said: “Petrol smugglers don’t fall into those ditches because we know the terrain like the back of our palms and move petrol in jerry cans with our motorcycles with ease.

    “Moreover, we created the ditches by ourselves. Only the border patrol teams fall into the ditches when they are chasing us. And whenever we realise they are up to our game, we devise new ploys to make it impossible for them to come after us. Many patrol vehicles have packed up on our routes.

    “That is why the border patrol acquire mostly Sport Utility Vehicles (SUVs) and trucks. But even those can hardly withstand so much.”

    Once the petrol smugglers escape on their motorbikes through the bush paths or bypasses into hamlets in Bebe in Benin Republic, the Nigerian security operatives cannot arrest them. They are then mocked by the smugglers who resort to making jest of them.

    ”It is difficult to arrest petrol smugglers because once they escape through the bush paths into some villages at the frontier of Benin Republic, they would start mocking us because they know that it is against the rule of border patrol to cross into another country with arms to apprehend an offender,” said a senior Nigerian Customs officer who asked not to be named.

    Also, to beat eagle eye security operatives, the petrol smugglers usually fill a number of jerry cans with petrol mixed with water and abandon them when they are being chased or trailed on the bush paths or bypasses. The smugglers abandon such adulterated fuel in jerry cans and escape with good ones. The unsuspecting security operatives would then think that they have impounded the products and celebrate the ‘seizures’ in the media while the smugglers escape with undiluted products into Benin Republic.

    Normally, the seized products are sold by Customs with the proceeds remitted into the national purse. But adulterated fuel abandoned by petrol smugglers cannot be sold, hence, they are thrown away by Nigerian Customs men at the Idiroko Area Command.

    ”They mix petrol with water while moving them across the border into Benin Republic. They abandon some kegs filled with adulterated fuel and escape with the rest while we think that we have made seizures. The smugglers are aware that the seizures are sold to the public and the proceeds are remitted into the coffers of the federal government, hence, they adulterate the petrol in order to prevent us from selling the product,” the customs officer added.

    Another daring ploy designed by the trans-border petrol smugglers to frustrate security agents is the planting of locally made spikes on some bypasses or bush paths to demobilise the operational vehicles of Customs men on their trail. Customs men and security operatives get trapped by the spikes while the smugglers move their products into Benin Republic.

    The Customs Area Controller, Nigeria Customs Service, Ogun State Command, Comptroller Waindu Multafu, in a chat with our reporter, said: ”The spikes are usually buried to a certain level by smugglers on their illegal routes in order to demobilise the vehicles of customs officers on their trail. They bury them to a certain level on their illegal routes so that we don’t see them. In spite of this, 240 kegs of petroleum products were seized from trans-border petrol smugglers recently.”

    ”In view of this development, the command has restructured its operational strategies with a view to optimally achieving its core statutory mandates of revenue collection, anti-smuggling campaigns and trade facilitation, among other collaborative functions.”

    Experts proffer solutions

    The continued smuggling of petrol products to the Republic of Benin by syndicates from Nigeria is seen by experts as unbecoming and one that portends doom for the country’s economy. According to them, the illicit endeavour has negative impact on the economy and could lead to scarcity of petroleum products.

    An economic expert and Chief Executive Officer of Oil Bureau, a Lagos- based oil and gas consulting outfit, Dr. Tunji Adebayo said: ”There is the need for Federal Government to take drastic action towards eradicating the menace of trans-border smuggling of petrol from Nigeria into the Republic of Benin and other neighbouring countries. Failure to do so could create unnecessary scarcity of the product in the future.

    ”The government could do this by asking the Nigeria National Petroleum Corporation (NNPC) to establish filling stations in the Republic of Benin and other neighbouring West African countries. With the establishment of the stations in neighbouring countries, the government will directly take the products there and make a lot of money as income into the federation account.”

    An oil and gas business analyst, Mr Chinedu Odimegwu, advocated the use of technology to monitor the movement of tankers from depots to filling stations.

    He said: “A situation where our major product is being taken to another country through illegal routes is dangerous to our economy and could retard its growth. To my mind, the security agencies at the borders cannot contain this queer business because of the porous nature of our borders.

    “The federal government can help the Nigeria Customs and Excise and other security agencies to halt the continued smuggling of petrol to neighbouring countries through the use of electronic or satellite technology to track the movement of tankers from depot or loading points to filling stations.

    “By so doing, the destination of petrol tankers would be ascertained and security agencies including Customs authorities would be able to forestall the movement of Nigeria’s petrol to neighbouring countries. This is what Saudi Arabia has been doing by gathering data through electronic and satellite technology on the movement of all petrol tankers as they move from loading points to filling stations.”

    A retired Assistant Comptroller General of Immigration and homeland security expert, Mrs Funmilayo Odubela-Aduroja said there is need for the federal government to identify all entry points into the country by erecting walls at the borders.

    ”The porous nature of Nigerian borders calls for serious concern and all kinds of foreigners are cashing in on that to move into the country to carry out their nefarious activities unchecked. Yet, the Nigerian authorities are not doing enough to checkmate the unpleasant situation at our borders.

    ”Apart from trans-border petrol smuggling, as we speak, Nigeria’s cash crops such as cocoa and groundnut are being smuggled to neighbouring countries like Benin Republic and Niger. These countries in turn export the crops and make a lot of money from our collective sweat.

    “The only measure to stop this is to properly fence our borders like the US did to prevent people from her neighbouring countries such as Mexico from coming into her territory through borders.

    “I am also calling for the creation of a Ministry of Homeland Security where all para-military organisations and agencies, excluding the police, are merged and coordinated to provide maximum internal security for the country. This would make the running of the country even cheaper in the face of a battered economy caused by the crashing prices of crude oil all over the world.”

  • Fed Govt saves N1.4tr from fuel subsidy payments, says Osinbajo

    Fed Govt saves N1.4tr from fuel subsidy payments, says Osinbajo

    The Vice President, Prof. Yemi Osibanjo yesterday in Kano said the Federal Government has saved N1.4 trillion which would have been spent on fuel subsidy.

    The Vice President who spoke during the third day of the 15th Joint Planning Board and National Council on Development Planning (NCDP) meeting in Kano yesterday, urged Nigerians to restore confidence on President  Muhammadu Buhari’s administration, promising that  the current econmic challenges facing the country will soon become a thing of the past.

    He also assured Nigerians that very soon, the foreign exchange market will stabilise going by some policies already introduced by the Central Bank of Nigeria (CBN).

    He said: “With the deregulation of the downstream petroleum sector, there has been a significant increase in the availability of petrol throughout the country and the saving of N1.4 trillion on subsidy payments alone.

    “Also, with a more flexible exchange rate regime, we will have to decrease the pressure on the external reserve. In the short run of course, there should be consequences for inflation. We expect that with the greater priority we have seen in the implementation of the policy by the CBN, the foreign exchange market will stabilise and confidence will be restored.

    “The adoption of SDGs (Sustainable Development Goals) in September 2015 was intended to place our world on the part of sustainable development by the year 2030. The 17 SDGs, which combined economic, social and environmental objectives are intended to be universal unlike the Millennium Development Goals (MDGs) which were made solely for developing countries.

    “The universal application of the SDGs and their 169 targets show that they are a menu of options, this allows the implementation to take count of different national realities, capacities, policies and priorities.”

    According to the Vice President, in the Nigerian context, some of the issues that must engage government’s attention will lead to economic diversification, sustain economic growth, eradicate extreme poverty, promote social inclusion, create jobs, address environmental degradation, including climate change.

    He argued that empirical evidence from across the globe has shown that national strategic planning is very critical for attaining structural transformation and sustainable development, adding that the countries of East Asia have proved this convincingly, even though their development was private-sector driven.

    “Strategic plans largely  provide direction, coherence and coordination and they are a veritable framework for guiding the activities of all stakeholders towards achieving a common goal, planning specifics such as goals, target and indicators which embody the SDGs, also enables tracking, monitoring and evaluation. Successful implementation of strategic plans and attainment of the SDGs entails partnership.

  • The politics of aviation fuel scarcity

    The politics of aviation fuel scarcity

    For weeks, things have been tough for airlines, because of the scarcity of aviation fuel otherwise known as Jet A-one.  Despite all efforts, the problem remains unsolved. KELVIN OSA-OKUNBOR reports that the on-going collaboration among airlines, regulators and fuel marketers may end the impasse.

    These are not the best of times for stakeholders in the aviation sector. From domestic airline operators to passengers, even to regulators, the scarcity of aviation fuel, otherwise known as Jet A-One, has become a nightmare.

    The problem, which has been lingering in the last few months, has been hurting operators who bear the burden of huge financial losses caused by disruption in flight operations. It has also left bitter taste in the mouths of passengers, who agonise daily over occasional delays and flight cancellations.

    By extension, the spate of near-air rage by aggrieved passengers demanding to know the status of their flights, for which airlines are unable to provide response, has continued to pose a serious challenge to the industry regulator Nigeria Civil Aviation Authority (NCAA).

    The scarcity of aviation fuel, which hit the industry, has pit many passengers against airline personnel at airports nationwide, even as allegations of sabotage are raging among fuel marketers and the affected airlines. This has put NCAA under tremendous pressure, as it battles to difuse the tension generated by passengers’ legion of complaints.

    Investigations,  however, revealed that aviation fuel is not only unavailable; the fluctuation in the price of the product in the last few months was also an issue that underscored the hiccups in its supply chain. This partly explains why the scarcity appears to have defied previous attempts to resolve it.

    Two former ministers of aviation, Princess Stella Oduah and Chief Osita Chidoka, are said to have set up Ministerial Committees to resolve the crisis. But the move may have failed to yield results, as the problem continued to put the stakeholders in the industry under pressure.

    Already, many airlines, including Arik Air, have scaled down their operations on some routes because of the scarcity. While absolving themselves of blame for the problem, the affected airlines also said that marketers might be grappling with infrastructure challenge.

    However, some players, who spoke with The Nation, put the blame for the scarcity at fuel marketers’ doorstep. For instance, an aviation security expert, Group Captain John Ojikutu, accused fuel marketers of creating the scarcity to increase the price of the product.

    As far as Ojikutu is concerned, airlines and marketers have questions to answer. He said: “Yes, the airlines are shouting. Are the marketers shouting? Are they concerned? What exactly is the problem? Is it a problem of scarcity or one of cost?

    “If it is a problem of cost, is it that of the marketers or that of airlines? Cost in what form? Is it that it is high or because the marketers are not getting foreign exchange?”

    He said there was something the government should look into. “It is a cabal. This is why the NCAA should be involved in providing aviation fuel,” he said.

    According to Ojikutu, the NCAA must be involved in the importation, distribution and marketing of the product. ‘’It should find out why the airlines are not getting fuel. That is why I said there is a problem somewhere, because only the airlines are shouting; the marketers are not,” the expert said.

    Worried by the effects of the scarcity on their operations, Airline Operators of Nigeria (AON), the umbrella body of domestic carriers, called on the Federal Government to step in. Its Chairman, Captain Nogie Meggison, urged the government to, urgently, address the acute shortage of aviation fuel.

    Meggison said the call became imperative because of the consistent unavailability of the product in the past few weeks. He lamented, for instance, that the problem has led to 50 per cent delays or cancellation of flights.

    He said: “We have been forced to cry out over this perennial problem because it continues to put us in difficult situation to go the extra mile to fulfil our obligations to our customers in spite of the inconveniences that go with it. However, we are at the mercy of oil marketers and many times our hands are tied such that we are left with no other option than to cancel flights.”

    The AON chief alleged that apart from the shortage of Jet A-1, marketers have been increasing the price to unbearable levels.  “Till April this year, I bought Jet A1 Fuel for N105 a litre. About a month ago, the price jumped to N145. Two weeks later, it rose to about N200 a litre. Today, the price has skyrocketed above N200 a litre. This has greatly increased our operational cost,” he said.

    Ojukuta said considering that cost of fuel accounts for about 40 per cent of operational costs of most airlines, the astronomical rise in price of the fuel by over 100 per cent had equally increased operational costs. In the light of this, he said, operators’ feasibility studies and financial projections were threatened, thereby putting the airlines in financial difficulty.

    The AON chair lamented that in spite of  these, operators could not increase ticket prices in order not to discourage customers that have been seriously stretched due to the economic hard time facing them. He said the economic downturn has reduced the disposable income of many airline customers.

    He said: “For most of them (customers) now the alternative means of travel is by road; our major competitor. It should be put on record however, that road transport uses Premium Motor Spirit (PMS) also known as petrol, which is highly supported or assisted by the Federal Government with exchange rate of N285 and available to marketers.

    “On the other hand, airlines don’t have such foreign exchange support or availability from government with regards to helping to make Jet Fuel available to airlines or at an affordable price.”

    He, however, said operators earlier this year met the Minister of State, Aviation, Hadi Sirika, to seek a solution to the problem. The minister, according to him, assured the delegation of his assistance.

    While operators await the government’s intervention on the matter, they have also called for the  reviving of  the Aviation Turbine Fuel (ATF) at Warri Refinery and the pipeline -hydrant system of supplying aviation fuel to the Murtala Muhammed Airport (MMA), Lagos.

    The operators said apart from reviving the Warri Refinery, the Atlas Cove and Mosimi pipelines -hydrant system earlier used for supplying aviation fuel to the airport should also be fixed.

    It was learnt that before the pipelines were shut in 1996, aviation fuel hydrant at the Murtala Muhammed Airport was used to supply fuel to aircraft through the pipeline from Atlas Cove and Mosimi.

    Meggison said the Nigeria National Petroleum Corporation (NNPC) should look into the possibility of reviving the pipelines, which must have become rusty, having been abandoned for 18 years. “We need NNPC to revive this pipeline so that airlines can get cheaper and cleaner aviation fuel,” he said.

    He pointed out that one of the causes of high cost of aviation fuel is the cumbersome chain of distribution and supply it has to pass through before getting to airline operators.

    Pumping fuel using pipeline and hydrant, the AON boss said, is safer and more cost effective compared to using tankers and fuel bowsers. He added that airports do not use tankers for fuel distribution these days.

     

    Fed Govt’s intervenes

    Bad as the situation is, stakeholders, especially operators may soon heave a sigh of relief. This is because the Federal Government said it is engaging stakeholders in the aviation fuel supply chain to ensure availability of the product.

    Speaking through the NCAA, the government said it was engaging fuel marketers to clear hurdles in the supply of the product, which had ripple effects on airline operations for weeks.

    The regulatory authority said it was aware of the prevailing scarcity of Jet A1, which has inevitably led to flight cancellations and delays by the airlines, adding that it has also taken cognisance of efforts being made by the airlines to ensure that passengers were ferried without any hitches.

    Last month, Arik Air said it was grappling with flight schedule disruptions caused by severe scarcity of aviation fuel across the country.

    Its spokesman, Adebanji Ola, said since the beginning of this year, Nigeria has been grappling with inadequate supply of aviation fuel leading in most cases to shortages of the product and consequently the disruption of flight operations.

    Ola said: “The airline operates an average of 120 daily flights, requiring about 500, 000 litres of fuel daily. Due to the large number of domestic and international flights, it is the most impacted by the inability of oil marketers to meet its daily fuel requirements on a timely and consistent basis. This has forced the airline to postpone flights while waiting for the fuel marketers to source and deliver the product.

    “On many occasions, despite all efforts in engaging the marketers, fuel could not be sourced, and flights may eventually be cancelled, causing not only revenue loss for the airline but also inconveniencing passengers.”

    He, however, identified marketers’ supply and infrastructural challenges as some of the key factors responsible for the epileptic supply of aviation fuel. He explained: “At the root of the fuel supply crisis is low stock due to the inability of marketers to source for foreign exchange to import more Jet A1 fuel into the country.

    “There is also distribution challenge, as the discharging of vessels bringing Jet A1 and other petroleum products are done in the same jetty. Loading various trucks for distribution to cities like Kano or Abuja takes considerable effort and time.

    The situation in the north is even more difficult since the product takes longer to be delivered due to the trucking distance. Oil marketers have also resorted to trucking of aviation fuel to the airports because hydrants are not consistently available at the airports.”

    Ola said while the Federal Government and oil marketers were working hard to address the supply and distribution challenges, operators had appealed to customers to bear with them, as they might experience flight delays and cancelations because of the prevailing scarcity of aviation fuel across the country.

    It remains to be seen how the deal with oil marketers will resolve the problem. But until that happens, it remains complaints galore for various stakeholders in the aviation sector.

  • ‘Govt loses 560,000bbls, 109m litres of fuel in six months’

    ‘Govt loses 560,000bbls, 109m litres of fuel in six months’

    • Petroleum sector roadmap coming

    Over the past six months (January- June) this year, Nigeria lost 560,000 barrels of oil and 109 million litres of petroleum products to the activities of pipeline vandals, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu said yesterday in Lagos.

    Speaking at the 2016 annual conference of the National Association of Energy Correspondents (NAEC) with the theme is: Low oil price: Impact and the way forward, where he delivered the keynote address, he lamented the huge impact renewed attacks on oil and gas pipelines this year has cost the Federal Government.

    Kachikwu said over 3,000 incidents were recorded from 2010-2015, resulting in loss of 643 million litres of products amounting to N51.28 billion, while between January and June this year, 1,600 incidents were recorded resulting in loss of 109 million litres of products and 560,000 barrels of crude meant for the refineries.

    Besides, he noted that for the Federal Government to meet its targeted annual production, it requires additional 1.1 million barrels per day from now to the end of the year. He also added that due to pipeline vandalism, about 850 million standard cubic feet per day (scf/d) of gas has been shut in with power outage exposure of 2,700-3,000 megawatts (Mw). In addition, he lamented that the Niger Delta crisis has resulted in loss of lives, high cost of operations, fuel shortage and environmental degradation.

    Kachikwu also stated that the Federal Government will unveil a petroleum sector roadmap next week as part of efforts to unlock the potential in the oil and gas sector, noting that five other regulations to provide clarity on the position of government with respect to the management and development of the sector are also to be rolled out by October.

    He said the roadmap is imperative now that investment capitals are shrinking globally. Such policies will remove obstacles and encourage the inflow of foreign direct investment (FDI) to grow the sector. The roadmap will provide comprehensive gas policy, unlock gas potentials, transit Nigeria from gas flare penalty regime to flared gas commercialisation and shift focus from government built to investor built infrastructure.

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru lamented that the decline in oil prices from $110 per barrel in June, 2014 to $45 per barrel has adversely impacted government revenue earnings as oil sector accounts for approximately 90 per cent of the nation’s foreign exchange.

    “A major challenge, therefore, is securing the crude volumes to a level that ensures we deliver the revenue target.  We are working assiduously to resolve the security issues in the Niger Delta so that we can guarantee volumes,” he added.

  • IPMAN, NIMEX partner on 100,000mt of fuel import

    Independent Petroleum Marketers Association of Nigeria (IPMAN) is collaborating with NIMEX Petroleum Group to import 100,000 metric tonnes (mt) of petroleum products to boost supplies, The Nation has learnt.

    IPMAN National President, Chief Obasi Lawson said the association has signed an agreement with NIMEX Petroleum Group for the importation of  petrol Diesel and  kerosene to complement the Federal Government’s effort in driving the downstream sub-sector.

    Lawson said the products would be imported by NIMEX while  IPMAN members would distribute them across the country to augment supplies by the Nigerian National petroleum Corporation (NNPC) and other sources.

    He said with the deal, products would be available, especially petrol, adding that at the moment, the NNPC’s supplies to members of the association was insufficient.

    Lawson said: “IPMAN is not unmindful of the positive effect its complementary effort to bring in petroleum products to service the dire needs of our members. The strategic relationship with NIMEX Petroleum Group will also support to improve the supply chain of petroleum products in the country and positively drive the deregulation policy.

    “IPMAN has grown to occupy a pride of place in the downstream sector of the oil and gas Industry. With a membership of well over 10,000 marketers across the country, it controls well over 87 per cent of the petroleum products retail outlets in Nigeria with a reach to every nook and cranny.

    “This commendable spread of IPMAN members’retail outlets across the country requires a steady supply of petroleum products for easy access by Nigerians.

    “The NIMEX Petroleum Group founded by Azmat Mahmoud, an astute German businessman, is a global name in the provision of solid services in the petroleum sector.The company has a global footprint in more than 15 countries in Africa with three decades experience in the provision of services in petroleum-related trading.

    “It is in recognition of this global reach by NIMEX, that IPMAN decided to partner with it in order for it to bring its huge experience to support IPMAN in capacity building. Mr Kanwar Ratra, the President of NIMEX, has assured us of their preparedness to satisfy the yearnings of our members for products.”

    The IPMAN chief praised the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and the Group Managing Director of NNPC, Dr Maikanti Baru, for their wonderful job in the oil and gas industry reform.

    According to him, Kachikwu and Baru through the NNPC and the Products and Pipeline Marketing Company (PPMC) are responsible for the peace that IPMAN and other Nigerians are enjoying today.

  • Oando opens fuel retail station

    Oando opens fuel retail station

    Oando Marketing Limited has opened a retail station in Orile, Lagos.

    The quality of the station is consistent with the company’s commitment to lead in fuels retailing in Nigeria.

    With a fuels distribution capacity of over two billion litres yearly, Oando has retained its leading market share for fuels retailing and is poised to continue to expand leveraging its strong brand affinity, efficient distribution capacity and entrepreneurial heritage.

    The new station called Oando KM3, Orile boasts of modern, contemporary and eye-pleasing design with detailing infused to meet the needs of customers and travellers on the expressway.

    The station upgrade was timely done to complement the new 10 lane super highway, billed for completion in less than 24 months. It is also close to one of the passenger train stations on the new highway.

    The station can service over 2000 cars per day with ultra-fast premium fuel dispensing units configured to deliver accurate quantities at all times to ensure consumers receive value for their money. It will deliver products to customers in the Ijora, Orile and Iganmu axis.

    The Chief Executive Officer, Oando Marketing Limited, Mr. Abayomi Awobokun expressed satisfaction with the quality of the station’s upgrade, its visual contribution to the neighbourhood, the environmental considerations in its design and most important the value it would bring to customers and travelers on the Lagos-Badagry super highway when it is completed.  He acknowledged the hospitality of the host community, led by the Ojora of Ijora, Oba Abdulfatai Oyeyinka Aremu Aromire.

  • Oando opens fuel retail station

    Oando opens fuel retail station

    Oando Marketing Limited has opened a retail station in Orile, Lagos.

    The quality of the station is consistent with the company’s commitment to lead in fuels retailing in Nigeria.

    With a fuels distribution capacity of over two billion litres yearly, Oando has retained its leading market share for fuels retailing and is poised to continue to expand leveraging its strong brand affinity, efficient distribution capacity and entrepreneurial heritage.

    The new station called Oando KM3, Orile boasts of modern, contemporary and eye-pleasing design with detailing infused to meet the needs of customers and travellers on the expressway.

    The station upgrade was timely done to complement the new 10 lane super highway, billed for completion in less than 24 months. It is also close to one of the passenger train stations on the new highway.

    The station can service over 2000 cars per day with ultra-fast premium fuel dispensing units configured to deliver accurate quantities at all times to ensure consumers receive value for their money. It will deliver products to customers in the Ijora, Orile and Iganmu axis.

    The Chief Executive Officer, Oando Marketing Limited, Mr. Abayomi Awobokun expressed satisfaction with the quality of the station’s upgrade, its visual contribution to the neighbourhood, the environmental considerations in its design and most important the value it would bring to customers and travelers on the Lagos-Badagry super highway when it is completed.  He acknowledged the hospitality of the host community, led by the Ojora of Ijora, Oba Abdulfatai Oyeyinka Aremu Aromire.

    He said: “Despite industry challenges, Oando Marketing is still able to compete favourably amongst its peers evidenced not only by its market share and current station footprint but also by its ability to continue upgrading and growing its network right across the country.”

  • PPPRA pushes for fuel tax

    •Refineries’ privatisation 

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has said the imposition of taxes on petroleum products such as petrol, diesel, kerosene and gas is capable of boosting Federal Government’s revenue.

    It also urged the government to sell the refineries and ‘Downstream Logistics Facilities’ as another way of shoring up revenue.

    According to a report the agency submitted to the Ministry of Finance  at the conclusion of a two-day National Revenue Retreat in Kano, the PPPRA said the introduction of taxes on petroleum products will supplement the revenue lost due to the fall in oil prices.

    The report showed that the average national daily consumption of fuel stood at 45 million litres, diesel-nine million litres and aviation fuel, 1.5 million litres.

    It showed that there were three different taxes that could be charged, which the PPRA’s pricing template did not currently accommodate. These are Highway Maintenance, Government Tax, Import Tax and Fuel Tax.

  • Trafigura, others in talks with marketers on fuel supply

    The Federal Government’s decision to deregulate the downstream sector appears to be paying off as globally acclaimed-oil trading institutions are approaching indigenous oil marketers for a deal, The Nation has learnt.

    The firms – Trafigura (Switzerland), Puma (Singapore), Noble Group (Hong Kong), and Archer Daniels Midland Co. (Illinois), Vitol Group (Swizerland), Mercuria Energy Group (Switzerland), and Cargill Energy Incorporation (Minnesota) – which are global firms with operations in North America, South America, Europe, Asia, Africa, have been meeting with major and independent marketers for a deal.

    According to sources, if the deal sails through, it would see the oil trading firms supplying fuel to marketers in Nigeria.

    An independent oil marketer, who spoke on the condition of anonymity, said partnership plans among marketers were ongoing, adding that the leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN) may speak on the issue.

    IPMAN’s President Chief Chinedu Okoronkwo confirmed the discussions.  He said it was difficult to rule out partnership among oil and gas operators within and outside the country since the industry has been deregulated.

    He said deregulation has created room for competition, adding that the best way operators could maximise the gains of deregulation is to go into partnership.

    Okoronkwo said: “In view of the recent deregulation of the downstream sub-sector of the oil and gas industry, the country should be expecting huge supply of petroleum products soon.  The reason is because marketers and major oil trading firms are discussing to achieve that goal. Trading firms, such as Trafigura, Puma and others have been coming to Nigeria to hold meetings with marketers on how to supply them fuel, and further establish an enduring relationship with them.

    “The firms want to start bringing fuel to Nigeria. They have spoken to many marketers and the response has been quite good.  There would be increase in the supply of fuel in the country soon, a development, which would engender competition in the industry.”

  • Agitation for fuel attendants’ welfare ongoing, says NUPENG

    Agitation for fuel attendants’ welfare ongoing, says NUPENG

    The agitation for improved welfare package for over 300,000 petrol attendants in the country is ongoing, the Chairman, Southwest branch of the National Union of Petroleum and Natural Gas Workers (NUPENG), Mr. Tokunboh Korodo, has  said.

    He said the body is not resting on its oars in ensuring that fuel attendants get improved welfare package and live a good life, saying N18, 000 is being considered as the minimum salary for petrol attendants nationwide. He said the workers will be better for it if everything goes according to plans.

    He said inability of stakeholders to reach a compromise has slowed down discussions on the issue,  adding that efforts to get the dealers to understand the predicament of petrol attendants and further increase their salaries have proved difficult, but it is accomplishable.

    Korodo said: “Discussions are ongoing on the issue of increasing the emoluments of petrol attendants and others working at fuel retail outlets across the country. Several meetings have been held on the issue because we believe that the workers’ welfare must be improved.”

    The National Chairman, Petrol Tanker Drivers arm of NUPENG, Mr. Akanni Oladiti said efforts are being made to reposition the downstream sector of the oil and gas for growth. He said petrol tanker drivers are being trained to be more professional in their conduct, stressing that the training would be nationwide.