Tag: NMDPRA

  • Appeal Court reverses 14-year jail term handed NMDPRA official

    Appeal Court reverses 14-year jail term handed NMDPRA official

    …says prosecution fails to prove forgery, criminal trespass 

    The Court of Appeal in Abuja has reversed the 14 years jail term handed to an official of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Harrison Ndika Uchenna, upon his conviction by a High Court of the Federal Capital Territory (FCT) on charges of forgery and using forged documents as genuine.

    In a unanimous judgment, a three-member panel of the appellate court also reversed the trial court’s sentence of Uchenna to one year imprisonment or a fine of N50,000  upon his conviction for the offence of criminal trespass.

    The judgment was on an appeal, marked: CA/ABJ/CR/634/2022 filed by Uchenna against the judgment delivered on October 11, 2021 by Justice Yusuf Halilu of the HIgh Court of the FCT.

    The police had prosecuted Uchenna before the High Court of the FCT on a five-count charge in which he was accused of giving false information to the police, engaging in forgery, using forged documents as genuine and criminal trespass.

    Uchenna pleaded not guilty when he was arraigned on the five-count charge, marked: FCT/HC/CR/171/2018. But, at the conclusion of trial, Justice Halilu convicted him on all the five counts.

    The trial judge sentenced him to two years imprisonment or option of N50,000 fine in respect of counts one; one year jail term or option on N50,000 fine in respect of counts two and five, which relate to giving of false information and criminal trespass.

    He got 14 years without an option of fine for the offences of forgery and using as genuine, forged documents as contained in counts three and four of the charge 

    In the lead judgment of the Court of Appeal, Justice Peter Obiorah partially allowed the appeal filed are argued for Uchenna by his lawyer, Dr. Ogwu Onoja (SAN).

    Justice Obiorah held that the trial court erred in convicting Uchenna for the offences of forgery, using forged documents as genuine and criminal trespass, because the prosecution failed to prove the offences charged beyond reasonable doubt.

    Raed Also: Court throws out Ajayi suit seeking disqualification of Aiyedatiwa’s deputy

    The judge proceeded to discharge and acquired him on counts three, four and five dealing with forgery, using forged documents as genuine and criminal trespass.

    Justice Obiorah however, affirmed Uchenna’s conviction and sentence by the trial court on counts one and two, a decision in respect of which the appellant (Uchenna) has since lodged an appeal at the Supreme Court 

    In a certified true copy (CTC) of the judgment, delivered on September 23, Justice Obiorah said: “I have resolved issues one and two in favour of the respondent (the prosecution). 

    “The effect is that the conviction of the appellant by the trial court on counts one and two, which are offences bothering on giving of false information, is correct. 

    “In the same vein, I have resolved issues three and four in favour of the appellant. This means that the conviction of the appellant for the offences of forgery and criminal trespass by the trial court cannot stand. 

    “Consequently, this appeal against the judgment of Halilu, J. of the High Court of the Federal Capital Territory, Abuja in Charge No. FCT/HC/CR/171/2018 delivered on 11th October, 2021, succeeds in part. 

    “The conviction and sentence of the appellant in respect of counts one and two of the charge whereby the trial court imposed a sentence of two years imprisonment with an option of fine of N50,000.00 in respect of count one, and one year imprisonment with an option of fine of N50,000.00 in respect of count two, is hereby upheld and 

    affirmed. 

    “The conviction and sentence of the appellant in respect of counts three, four and five of the charge, whereby the trial court imposed a sentence of 14 years imprisonment without option of fine for counts three and four, and sentence of one year imprisonment with option of fine of N50,000 for count five, is hereby set aside. 

    “The appellant is hereby discharged and acquitted in respect of the conviction on counts three, four and five,” Justice Obiorah said.

    Justices Hamma Barka and Abba Mohammed, who were also on the panel, agreed with the lead judgment.

  • NMDPRA pegs 10m/annum for refiners, product distributors 65,000b/a

    NMDPRA pegs 10m/annum for refiners, product distributors 65,000b/a

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday defined Wholesale Customer of Petroleum Liquids as the one that supplies 10 million litres per annum. 

    The Authority in its document titled: “Regulatory Regime for Wholesale Supply Operations,” which made the definition a refiner as one who uses 65,000 barrels per annum.

    The NMDPRA presented the document in Abuja at the stakeholders sensitization program on regulatory regime for wholesale operations.

    The document said the duty of a wholesale supplier is to provide reliable supply of hydrocarbon to its wholesale customers.

    He or she is expected to remit wholesale levies collected as component of wholesale price paid by wholesale customers as applicable.

    NMDPRA said the “Petroleum Industry Act (PIA) introduced the concept of wholesale supply to ensure delivery of hydrocarbons to the midstream and downstream petroleum sector.”

    The PIA, said the  document, also ensures appropriate licence for any person engaged in the sale and delivery of petroleum liquids to wholesale customers either for domestic use or export.

    Earlier, NMDPRA Chief Executive, Engr. Farouk Ahmed recalled that the PIA came into existence in August 2021, introducing licences for wholesale supply operations as prescribed in sections 142 and 197 of the Act.

    Represented by the Hydrocarbon Processing Plants, Installations and Transportation Infrastructure, Engr. Francis Ogare, he said the enforcement of the PIA stipulations would have commenced since 2021.

    He said while some of the operators are complaining that the law should be upturned others are complaining of paucity of cash owing to non-payment from their customers.

    Read Also: NMDPRA: MDGIF seeks sustained support for gas infrastructure

    Ahmed, however, revealed that the government has been worried that the NMDPRA has not enforced the law fully in this regard.

    He told the operators that “This programme is to tell you this law of the country. When we write you the letter of non-compliance we are saying you are not following the law.”

    These licences, he said, are the appropriate licences for entities engaged in, or wishing to engage in, the sale and delivery of natural gas and petroleum liquids, for domestic use or exports. 

    He explained that wholesale gas and petroleum liquids supply operations marks a significant evolution from the Petroleum Act of 1969 (PA) that was focused on production and exports only, to the Petroleum Industry Act of 2021 (PIA), which ensures domestic energy security in addition to exports.

    He said the benefits of wholesale supply operations cannot be over emphasized.

    Continuing, he said they include fostering investments across the petroleum value chain, enhancing transparency in hydrocarbon measurement, providing tools for enforcing domestic obligations, ensuring arm’s length dealings for a level playing field, and acting as a pathway for willing buyer-willing seller transactions of Nigeria’s hydrocarbon resources, amongst many other significant advantages.

    According to him, however, due to lingering issues, NMDPRA has been inundated with contentions regarding the implementation of wholesale supply operations. 

    He said the “recently published Guidelines on Wholesale Gas and Petroleum Liquid Supply Operations on our NMDPRA website will be the focus of the presentation. 

    “There will be discussions on the wholesale supply licensing framework, qualified persons for the licence, and opportunities for collaborations to ensure maximum benefits are derived from wholesale supply operations.

    “As is the practice with NMDPRA, the program shall be interactive with a question-and-answer session after the presentation is made. 

    “This will enable us to gather feedback that will aid the smooth implementation of these guidelines. 

    Finally, as stakeholders in this industry, it is important to note that it is our collective responsibility to ensure that current and future wholesale gas and petroleum liquids supply demands are met. 

    “This is not only pivotal to our national economy but also integral to the global energy market.

    “I therefore appeal to you to explore these opportunities through the operationalisation of these guidelines that will pave the way for optimised midstream and downstream oil and gas operations, energise development of infrastructure and foster collaborations that will contribute to the growth of our nation’s energy sector.”

  • NMDPRA: MDGIF seeks sustained support for gas infrastructure

    NMDPRA: MDGIF seeks sustained support for gas infrastructure

    Following the recent disbursement of N122 billion aimed at bolstering the country’s gas infrastructure, the Midstream and Downstream Gas Infrastructure Fund (MDGIF) at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),  called for sustained government support to attract critical investments into gas processing, transportation, storage and distribution. 

    The Executive Director of MDGIF, Oluwole Adama, made this appeal at the OTL Africa Summit in Lagos  with the theme: “New Energy Order: Updates on Gas, CNG, and LPG”. 

    Adama highlighted the importance of a supportive regulatory framework to ensure the growth and stability of the gas sector, noting that sustained incentives from the government would be instrumental in fostering a robust environment for private-sector investment in critical infrastructure for Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and overall gas sector improvements.

    “The injection of funds is only a step; consistent policy support and incentives will pave the way for increased private investment, enhancing our domestic gas value chain and promoting Nigeria’s economic growth,” Adama stated.

    The ED of MDGIF underscored the importance of a comprehensive approach that integrates policy, infrastructure and technology investments to fully realise Nigeria’s gas potential.

    Adama stated that: “Nigeria is sitting on gas and in line with the global energy order of cleaner fuels, we must position our gas as the energy transition fuel.” He pointed out that the country, endowed with more gas than crude oil, needs to leverage this resource effectively.

    Highlighting the vision of the MDGIF, the ED stated that the Fund is focused on financing projects related to Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG) processing plants, gas transportation and distribution, bulk storage and terminals, and capturing gas flares in alignment with the federal government’s net-zero carbon commitment.

    Read Also: Lokpobiri directs NMDPRA to investigate petrol tanker explosion in Jigawa

    He noted that the key goal of the Fund is to enhance local utilization of gas, particularly at the retail level, targeting widespread end users through initiatives like mother-and-daughter stations.

    According to him, projects to be funded must align with Nigeria’s National Gas Expansion Programme (NGEP), energy security and the strategic goals for gas utilisation.  He added that the projects must possess economic value, be commercially/technically viable, and align with Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) standards.

    “We focus on promoting and supporting viable projects while leaving the execution to project owners to drive gas production and utilization,” Adama explained. 

    “We have already announced six project promoters who met our funding criteria, ensuring that these projects are positioned to boost the domestic gas market and advance our energy transition objectives.”

    As MDGIF is primarily an enabling body, its role is not to initiate projects but to provide the financial and strategic backing needed to encourage private-sector investment and optimize Nigeria’s gas resources, Adama elaborated on the  MDGIF’s recent disbursement of ₦122 billion, which aims to close the infrastructure gap across Nigeria.

    He said, “This investment will be supported by a 1.5 percent levy on wholesale petroleum product prices and is expected to generate income from equity investments made by MDGIF project partners, as well as penalties from gas flaring across oil fields.

    “Our primary objective is to ramp up the use of gas through various projects and attract investors by alleviating their burden from commercial bank interest rates.

    “The MDGIF is also working to secure multilateral and bilateral funding for gas infrastructure development. The organization prides itself on its strong corporate governance, which is crucial for attracting both foreign and local partnerships,” he noted.

    Adama stated, “We have received considerable encouragement and commendation for our efforts to enhance infrastructure in the gas sector. Our processes are guided by transparency, utilizing top consultants for due diligence to ensure funds are disbursed effectively.”

    The MDGIF has announced six project promoters, as the fund does not initiate projects but promotes existing ones for execution.

    “Among the key projects is a 5,000 MT butane storage facility, expected to support 13,200 MT of NLNG, set for completion by the end of the year.

    Another significant project by one of the beneficiaries of the recent disbursement is targeting the establishment of 20 mobile CNG refueling stations, which will help reduce dependency on traditional fuels as more partners convert their vehicles to CNG.

    Adama further encouraged the private sector to ramp up investments in Nigeria’s gas sector, highlighting its potential as a key driver for the nation’s energy needs.

    He noted that the country’s current gas pipeline network covers less than 10 per cent of what is required to meet national demand, underscoring the urgency for accelerated infrastructure development.

    “Our gas infrastructure will remain crucial for at least the next 20 to 30 years in meeting Nigeria’s energy needs,” Adama stated, calling on stakeholders to invest more and lead the expansion process.

    He emphasised that a comprehensive and efficient gas network is essential for sustainable energy transition, urging the private sector to take bold steps to advance gas infrastructure and solidify Nigeria’s energy future.

  • NMDPRA revokes DPR regulations

    NMDPRA revokes DPR regulations

    …to publish midstream and downstream petroleum fee regulations

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday, October 15, said any regulations administered by the Defunct Department of Petroleum Resources (DPR) in respect of midstream and downstream operations have been revoked in the proposed Midstream and Downstream Petroleum Operations Regulations 2024.

    It also revoked the Midstream and Downstream Petroleum Regulations 2023 and all other regulations published in the Federal Gazette that have been consolidated into the 2024 Regulation and Petroleum Refining Regulations of 1974.

    The draft also says license permit and authorization application and processing fees are moved to the Midstream and Downstream Fees Regulation draft.

    This was contained in the document titled: “Structure of the Midstream and Downstream Regulations 2024,” which the Secretary and Legal Advised, Dr. Joseph Tolorunse presented yesterday in Abuja during a stakeholders consultative forum on the proposed Midstream and Downstream Petroleum Operations Regulations 2024.

    “Any regulations administered by defunct Department of Petroleum Resources in respect of Midstream and Downstream Petroleum operations are hereby revoked,” he said.

    Meanwhile, the NMDPRA Chief Executive, Engr. Farouk Ahmed said the Ministry of Justice will vet the draft and the government office, which gazette regulations will publish it.

    Represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure (DSSRI), Mr. Ogbagu Ukoha, he said: “After today’s job is done, we will have to sit down with the Federal Ministry of Justice who will look at it, cross the ‘Ts’, dot the ‘Is’, and then the requisite government office that gazettes regulations will publish it.”

    He earlier said the NMDPRA has received the approval of the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobri, and that of the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo to publish the Midstream and Downstream Petroleum Fees Regulations

    It is expected that the Midstream and Downstream Petroleum Fees Regulations.

    Read Also: We aren’t aware of other petrol importers apart from NNPCL, says NMDPRA

     He said: “Following a successful stakeholder consultation and having received the approval of the Honourable Ministers of State for Petroleum Resources, will soon be published in the Federal Government Gazette.”

    He said the consultation was held in furtherance of Section 216 of the Petroleum Industry Act 2021 (PIA) which mandates consultation with stakeholders before the finalisation of Regulations made under the Act.

    He said Section 33 of the PIA is to the effect that the Authority may make regulations for all activities relating to midstream and downstream petroleum operations in Nigeria.

    Accordingly, said the Authority boss, the proposed 2024 Midstream and Downstream Petroleum Operations Regulations (Operations Regulations) consolidates twelve of the Authority’s earlier gazetted or published Regulations into a single document.

    He said the consolidation process has enabled the Authority to reduce the complexities of navigating and implementing the Authority’s numerous Regulations and streamline operations in the midstream and downstream petroleum regulatory industry addressing inconsistencies in the regulatory space.

    He added that it engenders further compliance with the PIA and Regulations made thereto.

    Ahmed said the proposed Operations Regulations are also in consonance with President Bola Ahmed Tinubu’s commitment to promoting ease of doing business in Nigeria.

    He said: “These Regulations are to be read in conjunction with other Regulations made by the Authority including the Midstream and Downstream Petroleum Fees Regulations which provide for the prescribed fees for midstream and downstream petroleum activities.”

  • We aren’t aware of other petrol importers apart from NNPCL, says NMDPRA

    We aren’t aware of other petrol importers apart from NNPCL, says NMDPRA

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday, September 18, said it was not aware of any other importer of the Premium Motor Spirit (PMS) petrol aside from the Nigerian National Petroleum Company Limited (NNPCL).

    The Authority said to the best of its knowledge, the national oil company remains the sole importer of the product.

    The clarification came on the heels of a media publication that three marketers have imported petrol owing to the prevailing price of the product from NNPCL.

    Asked to confirm the news, NMDPRA, Head of Public Affairs, George Ita-Ene, said: “You know NNPCL is the sole importer of the product?”

    Read Also: NMDPRA issues license to construct floating LNG

    He added: “I am not aware of that (three marketers importing petrol to Nigeria). I don’t think it is factual.”

    Speaking with The Nation, Independent Petroleum Marketers Association of Nigeria (IPMAN), National President, Alhaji Abubakar Maigandi, said his members were yet to take any decision concerning the petrol market because NNPCL has not informed them of price adjustments.

    He also said NNPCL has not changed the prices at which it offered marketers petrol since Dangote began the production of petrol.

    According to him, the supply of petrol to marketers has been on the increase daily this week.

    He urged Nigerians to be patient with the energy policies of President Bola Tinubu, stressing it would result in a reduction in the demand for the dollar and strengthen the value of the Naira.

    “There is no change in pump price from NNPCL. So, we are yet to decide anything about importation. We want to see how Dangote will go because he promised to partner with us.

    “The supply of petrol is increasing on a daily basis. We Nigerians should be patient with Tinubu on his energy policy because it will reduce the demand for dollars and increase the value of Naira,” said the IPMAN boss.

    The Nation observed yesterday there were still queues in the Federal Capital Territory (FCT) for petrol, especially in relatively cheaper retail outlets such as NNPCL, Total, and Conoil.

    NNPCL has left its pump price unchanged at N897 per litre while others sell as high as N926, N950, N955, and N990 per litre.

    Black marketers who sold in plastic containers vended 10 litres for N12,000 to N140,000.

  • NMDPRA issues license to construct floating LNG

    NMDPRA issues license to construct floating LNG

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a License to Construct (LTC) to UTM Offshore for the First Floating LNG facility in Nigeria.

    In his remarks at the issuance ceremony in Abuja, the Authority Chief Executive, Engr. Farouk Ahmed said the objective of establishing the project in OML 104 in Akwa Ibom was to process 324 Million Metric Standard Cubic Feet per Day of natural gas.

    He said: “The event of today is to issue LTC to UTM offshore for their FLNG  Project which has the objective of establishing a Floating facility offshore Akwa Ibom State (OML 104) that will process 324 
    MMSCFD of natural gas and produce 2.8 million Tonnes Per Annum (TPA) of LNG.”

    The NMDPRA boss recalled that in February 2021, the NMDPRA issued UTM Offshore with a ‘License to Establish (LTE)’ 1.2 MTPA facility by processing 176 MMSCFD.

    According to him, the License to Establish was renewed in August 2023.

    He said due to increase in LNG demand, the project’s capacity was upgraded from 1.2 MTPA to 2.8 MTPA.

    Ahmed added that this  upgrade required an increase in feed gas from 176 MMSCFD to 324 MMSCFD.

    He further noted that the firm  company subsequently applied for a License to Construct (LTC) and submitted relevant Engineering Design Packages for Authority.

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    According to him, the NMDPRA reviewed the submission and found it satisfactory 
    and is hereby granting the company a ‘Licence to Construct’ (LTC).

    He described the event as a significant milestone in advancing the first 
    floating LNG facility in Nigeria.

    Ahmed said the project aligns with the main aspirations of the PIA 2021 
    which include the expansion of Midstream Gas Facilities in 
    Nigeria. 

    It also aligns with the targets of the Decade of Gas Program and other Gas Expansions projects of the current administration. 


    He said the project is projected to be commissioned in the year 2028.


    And the products from the project include LNG, LPG, and condensate.
    He vowed the NMDPRA would continue to guide this project throughout its lifespan, to ensure compliance with all regulatory requirement including the assurance of safety, protection of environment, sustainable operations and overall good governance principles.


    He acknowledged the exceptional leadership of President Bola Ahmed Tinubu, which  has made clear his aspirations for the Petroleum Industry. 


    Farouk said this includes the expedited implementation of the PIA  2021, and the expansion of the Midstream Gas Sector for the industrialization of the Country. 
    He said “Indeed, our Abundant Natural  Gas Resources are expected to provide the country with the catalyst for growth and prosperity.

  • Firm gets NMDPRA nod to operate Edo Refinery

    Firm gets NMDPRA nod to operate Edo Refinery

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has given operational licence to Edo Refinery and Petrochemical Company Limited (ERPCL), located at Ologbo in Ikpoba-Okha Local Government Area of Edo State.

    The issuance of the operational licence by NMDPRA, the technical and commercial regulator of midstream and downstream operations in the petroleum industry was the final stage of approval from the regulatory authority, implying that the plant could now fully operate as a refinery.

    NMDPRA’s Chief Executive Officer, Ahmed Farouk, who handed the certificate to AIPCC Energy, the parent company of ERPCL, was accompanied by NMDPRA’s Executive Director, Hydrocarbon Processing Plant Installation and Transport Infrastructure (HPPITI), Mr. Francis Ogaree, with the operational licence released to Edo refinery’s Head, Technical Operations, Segun Okeni.

    Farouk hailed ERPCL for attaining the feat, and enjoined the company to do more.

    Ogaree, while also speaking, assured the management of ERPCL that the regulatory authority was a business enabler, and would be ready to give AIPCC Energy/Edo refinery all the necessary support in all its projects.

    Okeni, in his response, on behalf of AIPCC Energy, stated that the company was out to make its contributions to the petroleum refining and gas processing sub-sector.

    He disclosed that AIPCC was developing three other projects, while one of them would be completed in the next one year.

    Read Also: Four suspects nabbed in NMDPRA clampdown on petrol black marketers

    Edo refinery’s head, technical operations said: “The processes started with Licence to Establish (LTE), then Licence to Construct (LTC), approval to introduce hydrocarbon, pre-commissioning and commissioning, operate the refinery for some time to ensure it has the capacity to do so, and finally the Licence to Operate LTO.”

    Okeni, while commenting on the non-allocation of crude oil from the Nigerian National Petroleum Company Limited (NNPCL), revealed that Edo refinery was finalising arrangements with an indigenous oil company to access crude oil for optimal production.

    Edo refinery’s head, technical operations also revealed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NMDPRA had been supportive, while stressing that once Edo refinery was able to find a source of crude oil, NUPRC and NMDPRA would give the company urgent approval.

    Okeni added that with the licensing of Edo refinery, NUPRC ought to consider existing local refineries in the bidding round for marginal fields.

  • Four suspects nabbed in NMDPRA clampdown on petrol black marketers

    Four suspects nabbed in NMDPRA clampdown on petrol black marketers

    Security operatives yesterday nabbed four suspects when the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) began a clampdown on black marketers of Premium Motor Spirit (PMS) petrol in the Federal Capital Territory (FCT).

    Leading a team of the Authority, executive directors Ogbugo Ukoha & Dr. Mustapha Larmode in collaboration with security agencies conducted surveillance to some outlets around the metropolis and in the process discovered a couple of illegal fuel dumps and depots around the FCT.

    This was contained in a statement by NMDPRA. It reads: “Four persons were eventually apprehended and taken into custody. The perpetrators were arrested and subsequently handed over to the Department of State Security for prosecution.”

    Read Also: Rivers APC crisis, judgment plots to frustrate Tinubu in 2027 – Okocha

    NMDPRA, said the statement, had hosted a stakeholders meeting involving major retail outlet managers in the FCT.
    The meeting was aimed at reiterating Authority’s standing regulations against illegal peddling of petroleum products particularly PMS (petrol) in jerrycans. Marketers were warned that henceforth,
    The statement noted that NMDPRA will ensure strict compliance by increasing its surveillance monitoring routine and would seriously clampdown on erring marketers who are seen to be aiding and abetting this practice by suspending their retail licenses.
    The Authority is taking this decisive step to safeguard lives and properties of Nigerians that are usually at risk of fire outbreaks through improper handling of the volatile & highly flammable product. The Authority is also mindful of the nefarious practices of cross border smuggling of the products with the use of jerrycans.

  • How Esosa Iyawe’s motion on NMDPRA CEO raised urgent health &environmental concerns in Nigeria

    How Esosa Iyawe’s motion on NMDPRA CEO raised urgent health &environmental concerns in Nigeria

    Hon Esosa Iyawe, member representing Oredo Federal Constituency, has raised a serious health and environmental concerns on the floor of the green chamber.

    Iyawe, who is one of the youngest and most active members of the house, raised the motion of “Urgent need to address the outrage resulting from unguarded comments by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Authority”, in which he addressed the economic sabotage by Faruk Ahmed, the Chief Executive Officer (CEO) of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), over what he described as his “unguarded comment” regarding  Dangote refinery.

    The NMDPRA CEO publicly claimed that the diesel produced by the Dangote refinery is inferior to the ones imported into the country, and that their fuel had a large content of Sulphur, which he put at between 650 to 1,200ppm ppm.

    The comment was met with a huge national uproar, with Aliko Dangote, Chairman of Dangote Group, suggesting a test of petroleum products at his $20billion refinery located in Lagos, and those imported into the country by those licensed by the NMDPRA boss.

    Iyawe said on the floor of the hallowed chamber, that Sulphur dioxide has dire environmental and health consequences, as it can damage the human respiratory system, compromise lung function and even cause cancer. 

    The lawmaker stressed that members of the house who supervised the test process discovered that the sulphur emission to the environment in the fuel imported by NMDPRA-licensed contractors constitutes serious environmental danger and health implications for Nigerians, as well as the well-being of vehicles which uses Premium Motor Spirit (PMS).

    “Further aware that in their defence, Dangote called for a test of their products, which was supervised by Members of the House of Representatives, wherein it was revealed that Dangote’s diesel had a Sulphur content of 87.6 ppm (parts per million), whereas the other two samples diesel imported showed Sulphur levels exceeding 1800 ppm and 2000 ppm respectively, thus disproving the allegations made by the NMDPRA boss,” Esosa Iyawe said while moving the motion for the suspension of the NMDPRA CEO..

    “Concerned that allegations have been made that the NMDPRA was giving licences to some traders who regularly import high-Sulphur content diesel into Nigeria, and the use of such products poses grave health risks and huge financial losses for Nigerians.

    “Also concerned that the unguarded statements by the Chief Executive of the NMDPRA, which has since been disproved, sparked an outrage from Nigerians who tagged his undermining of local refineries and insistence on the continued importation of fuel an act of economic sabotage, as the imported products have been shown to contain high levels of dangerous compounds.

    Read Also: Lokpobiri wades in NMDPRA, Dangote Refinery feud

    “Worried that the careless statement by the Chief Executive of the NMDPRA without conducting any prior investigation is not only unprofessional, but also unpatriotic especially in the face of the recent calls for protest against the Federal Government.”

    Esosa Iyawe added: “Mr Speaker, the house notes that the high sulphur content causes damages to engines and contributes to air pollution. Mr Speaker, the house resolves to call on the Federal Government to suspend the Chief Executive of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) pending conclusive investigations into the allegations against the Authority.”

    Subsequently, the House of Representatives adopted the motion, urging President Bola Tinubu to suspend Ahmed.

  • NMDPRA to make CNG sale compulsory in petrol stations

    NMDPRA to make CNG sale compulsory in petrol stations

    Arising from a meeting with high-volume suppliers of petroleum products on Tuesday, May 14, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said there will be a new requirement for Premium Motor Spirit (PMS) petrol stations to have the Compressed Natural Gas (CNG) points of sale.

    This is to align with President Bola Tinubu’s CNG initiative and also make the CNG available to Nigerians.

    The Authority, Chief Executive, Engr. Farouk Ahmed broke the news to reporters in Abuja.

    “We will require that CNG add on to be put in point of the petrol stations. And the new applications will be one of the requirements that you must have a CNG add-on in your petrol station,” he said.

    He appealed to partners in the industry to invest in the business to ensure that there are points of sale of CNG available to consumers.

    According to him, as soon as the Authority is through with engagements and deliberations with the stakeholders for an alignment with the decision, there will be the rollout of this regulation.

    Ahmed said, “Plans for CNG:  You heard what Mr. President said yesterday that all government agencies, ministries and departments are to patronize or refocus their mobility on the CNG power.

    “What we are saying from NMDPRA is to make it available to the consumers, we are appealing to our partners in the industry to also invest in ensuring that that point of sale is available to the consumers.

    “By so doing we are going to roll out once we finish our engagement and discussions with them, we align.”

    The Authority Chief Executive also revealed that the meeting also discussed the requirement for petrol stations to have trackers which monitor their consumption.

    This, according to him, is to ascertain the actual national consumption volume figure in the country.

    He disclosed that the industry now wants to move from simply relying on trucking figures to actual consumption volume figures.

    Ahmed said: “We also talked about our National Consumption: the requirement for petrol stations or retail outlets and the trucking industry to put some trackers that monitor the movement of the product as well as the dispensing and accounting for the volume sold or the volume transported so that we can have a very good estimate of our actual consumption.

    “Because currently what we do, we rely heavily on the trucking rather on than on the actual delivery into retail outlets or other consumption areas.”

    He said one of the other issues that is of concern to marketers is the ability to import petroleum products especially diesel and ATK, which is Aviation Turbine Kerosene or Jet kero in the advent of the new refinery that came on stream that is the Dangote Refinery.

    Ahmed noted that it is a commercial decision for Dangote Refinery to sell its products at any price, based on market forces, adding that it is also the decision of the marketers to patronize him or not.

    The Authority Chief Executive said the primary concern of the NMDPRA is to ensure an adequate supply of products and to bridge the supply gap.

    He, however, appealed to patronize the indigenous firm, which is a major achievement in the country which has been importing virtually all its petroleum products.

    Ahmed said, “And we allayed all the fears of the marketers that Dangote Refinery is a major achievement in our country because in the past we were importing every litre of petroleum product that we required except those supplied by modular refineries.

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    “And as oil producing country, we believe NMDPRA that we should support our local industries and that is why we encouraged our marketers to patronize our local industry. At the same time, it is a commercial decision that they have to make themselves between the supplier and the consumers or the marketers or the client.

    “NMDPRA will not determine how much is sold, the price you are selling and the price you are buying but just like any other market, it is a matter of supply and demand. It is your own decision to go to Dangote Refinery and purchase or for Dangote Refinery to determine the price they sell.

    “But we as the regulator are only interested in ensuring that the nation is well supplied to prevent any supply gap.”