Oil & Energy

Curbing Petroleum Products Adulteration In Nigeria

Published

15 years ago

January 30, 2012

The Standards Organisation of Nigeria (SON) recently announced, its readiness to fight against adulteration of petroleum products. Its Director-General, Dr. Joseph Odumodu who disclosed this at a media briefing in Lagos explained that the exercise which is aimed at curbing adulteration of petrol and diesel would begin with the testing of petroleum products in the country.

According to Odumodu, a nationwide sampling conducted by SON on Petroleum products showed a high level of adulteration at different levels of distribution. He said that though the monitoring and testing of the products had been on for six months, a full scale test would start in February.

Indeed, this is a step in the right direction, though belated. Belated in the sense that several explosions caused by adulterated petroleum products such as fuel, diesel, gas and kerosene had been recorded in this country, most of which claimed lives and properties of the citizens. The Nigerian economy through a deliberate utilisation of human and materials resources and services in the exploration, development, exploitation, transportation and sale of crude oil and gas resources can not compromise quality, health, safety and environmental standards.

The consequences of adulterated fuel, diesel and kerosene are enormous and have been suffered by many in this country and already seen. Such consequences dip into the negative and the acts remain unchanged. Many people are not mindful of the devilish effect of petroleum adulteraton because they want to make quick money.

As part of government, it is pertinent that the Standards Organisation of Nigeria show that it is also sensitive to the yearnings of the average Nigerian, especially now that the price of fuel has gone up to N97 per litre.

The execise will ensure that the consumer actually gets one litre of quality product at the current pump price of petrol.

But it is suprising to note that the SON has been carrying out this test and Nigerians continue to witness incidents resulting from adulteration of petroleum products and the organisation continues to get complaints from consumers, especially in the manufacturing sector of the negative effect of adulterated petroleum products on their equipment.

It is important to check and discourage adulteration of petroleum products such as PMS otherwise called petrol, diesel and kerosene but it is more important to focus on and promote standard while close-marking the marketers and their companies.

This is why the Oil and Gas suppliers in the country in November last year launched on enlightenment campaign to check adulteration of petroleum products with focus on its members. The move, according to the group, was to educate them on the dangers of petroleum products adulteration and the need to identify with the group.The body which is a branch of the National Union of Petroleum and Natural Gas Workers (NUPENG) was reported to have absolved Petrol Tanker Drivers (PTD) from the blame of adultration, saying “It is the Petroleum Suppliers that perpetrate the atrocity because they are the owners of the product that is being transferred”.

The union said: “Adulteration is not the fault of tanker drivers, the fault is from the products owners. It is when you buy the product that you give instruction on what to do. It is the products owners or the suppliers that do the adulteration in order to make more gains”.

According to NUPENG, Zenon chapter Chairman, Mr. Emmanuel Nwadi, “OGS had written to retail outlets in the country to consider any product without OGS seal as having been tampered with, adding that all tanker trucks that are used for distribution of petroleum products usually have their Manholes and outlets secured with numbered seals by depot owners and transport companies, this is the strategy that we are adopting. No tanker driver is allowed to go with his truck without the prescribed seals”.

It is better to draw distinction between genuine and adulterated products to avoid some pitfalls, so with the government’s drive to fully achieve considerable quality in the petroleum industry, it is necessary to enact a law against adulteration of petroleum products. The emphasis should be on value addition to the economy by the industry.

The task ahead of the Standards Organisation of Nigeria in the effort to curb adulteration of petroleum products is to identify those perpetrating the act and make sure that the testing and monitoring of the products are done on regular basis and offenders punished. The professionalism and efficiency of the team in its monitoring and compliance tasks should depend largely on the measures of its autonomy and the extent to which it is guided by the spirit of the law. Considering the dangers inherent in the use of adulterated petroleum products, there should be a law which provides that defaulters are sanctioned by the relevant authority or institution while there is a sound regulatory tone for the industry, petroleum suppliers and marketers.

The law must provide that non-compliance with the provisions of the law would be punishable with a fine or cancellation of the business or withdrawal of the operator’s license. Reduction or total eradication of adulteration in the petroleum industry is one of the milestones the government or Standards Organisation of Nigeria should aim to achieve as the exercise begins in February.

If steadfastly carried out, which is the definite intent of SON and government, the exercise have great impact on the economy. The milestones expected from the exercise include retention of quality of petroleum and gas products, economic growth and raising scale of activities of the industry and increased utilisation of the products, creating good business image for the country, save lives and properties among others.

The Nigerian national petroleum Corporation (NNPC) had been pursuing a policy-based production model of petroleum products in the oil and gas industry and had provided guidance to ensure that the products are strictly guided. SON should build a robust collaboration among all key stakeholders to ensure that the exercise becomes an inimitable reality that forms the strategic framework upon which genuine petroleum products are sold to consumers or Nigerians.

Nigerians should wholly support the organisation in carrying out this exercise which will add value to the oil and gas industry and help to facilitate and encourage exploration and production processes, which will in turn help Nigeria to maintain its leading role in providing energy to the rest of the world. Now that SON is seriously working hard to stop adulteration of petroleum products, it will put Nigeria on the global map of quality petrol and diesel production and boost the nation’s economy as well as put the country on the path to the 20:2020 Vision or target.

Oil and gas companies should now renew their commitment to quality production as that would help to build their market strategies and capacities and also save lives and properties. Production and distribution of quality petroleum products will also enhance their opportunities to develop an in-country capacity and competency, which would aid federal Government realise its aspirations for sustainable growth and development.

The planned exercise by the Standards Organisation of Nigeria will definitely encourage and increase domestic and industrial use of petroleum products in the country and improve oil demand internationally.

Shedie Okpara

Oil & Energy

Civil Society Demands Accountability over N60Billion AKS Oil Producing Communities

Published

1 week ago

August 10, 2026

The Tide

A civil society organisation, the Centre for Human Rights and Accountability Network, (CHRAN) has demanded full disclosure of how over ?60bn allocated to oil-producing communities in Akwa Ibom State has been managed since the inauguration of the Host Community Development Trust in 2024.

The group also threatened to deploy legal measures against trustees who fail to account for projects and other interventions funded from the oil host community development allocations.

In a Statement signed by the Group State Director, Otuekong Franklin Isong, and Secretary, Research and Documentation, Comrade Etimbuk Ekpenyong, the organisation’s demand was prompted by complaints from residents who questioned the level of development in their communities despite the substantial funds accruing to the trust.

According to the statement, Its demand also followed a verification exercise conducted by it’s investigation Team into the activities of the EMOIMEE Host Community Development Trust, which covers seven oil and gas-producing local government areas in the state.

The affected councils in the statement are Eket, Mbo, Onna, Ikot Abasi, Mkpat Enin, Esit Eket and Eastern Obolo.

The statement said, during the CHRAN verification exercise, only the Eastern Obolo Board of Trustees had so far provided satisfactory responses to its requests for information made under the Freedom of Information Act.

The organisation said the failure of other trustees to disclose information had heightened concerns over the transparency and accountability in the management of funds intended for communities affected by oil exploration and production.

The group said it formally wrote to trustees representing Eastern Obolo, Esit Eket, Ikot Abasi, Onna and Mbo on May 25, 2026, requesting details of projects executed, locations, contractors, scholarships and beneficiaries, as well as other interventions financed by the trust.

According to CHRAN, the Eastern Obolo trustees, Rt. Hon. Uduyork J. Aboh and Mrs Lily Evans John, responded with documents detailing 29 projects executed in the local government area and scholarships awarded to 2,000 beneficiaries.

The organisation said it independently fact-checked the information supplied by the Eastern Obolo trustees and found it accurate.

CHRAN commended the trustees for responding to its request, describing the disclosure as an example of the transparency expected from institutions managing public-interest funds.

The organisation, however, said four other trustees had yet to respond to its requests.

Those named were Hon. E. Justus Ntuk of Ikot Abasi, Hon. Bassey Dan-Abia Jnr of Esit Eket, Engr. Clinton Akpan of Onna and Dr Asuquo Edet Inuikim of Mbo.

CHRAN urged the trustees to immediately disclose details of how the funds allocated to their respective host communities had been utilised.

It said failure to provide the requested information would leave it with no option but to pursue available legal avenues to compel disclosure.

On Legal battle over Eket fund, the Human Right Group said its accountability campaign had already resulted in legal action involving the Eket representative.

According to the group, it was earlier written separately to the trustees representing Mkpat Enin and Eket.

While the Mkpat Enin representative responded, CHRAN said the Eket trustee failed to provide the requested information.

The organisation said this led it to institute Suit No. FHC/CS/10/2026, which is currently pending before the Federal High Court.

The Group stressed that its demand was not aimed at witch-hunting the trustees but at ensuring that communities receive the benefits intended under the Petroleum Industry Act.

The group said the EMOIMEE trust was established in pursuant to the Petroleum Industry Act, 2021, with Mobil Producing Nigeria limited as the settler and the Nigerian Upstream Regulatory Commission as regulator.

It said the trust was incorporated under the Companies and Allied Matters Act on July 5, 2023, and formally inaugurated on July 18, 2024.

The organisation alleged that the trust had received over ?60bn from the NNPC/MPN Joint Venture since inception, making transparency in the utilisation of the funds particularly important.

CHRAN said the funds were intended to address developmental challenges in communities hosting oil and gas operations and to improve the quality of life of residents.

It therefore urged all trustees to make their records available for public scrutiny.

“Public accountability is not optional for a statutory trust managing funds meant for the collective benefit of host communities; it is a legal and moral obligation,” the organisation said.

The Human Rights Group further warned that it would explore all lawful measures available to compel trustees who refuse to provide the requested information to disclose how the funds had been spent.

The Group called on residents of the affected communities to remain vigilant and demand accountability for projects, scholarships and other interventions funded from the host community development allocations.

The organisation said the response from Eastern Obolo demonstrated that transparency was possible and should become the standard across all the host communities.

Enoch Epelle

Oil & Energy

NCDMB, BOI Unveil $100m Nigerian Content Equity Fund …Set To Invest $5m In Oil Firms

Published

1 week ago

August 10, 2026

The Tide

The Nigerian Content Development and Monitoring Board (NCDMB), and the Bank of Industry (BOI), Friday in Lagos inaugurated the Investment Committee of the Nigerian Content Equity Fund (NCEF).

The NCEF according to the Directorate of Corporate Communications of the Board is a groundbreaking $100 million financing product designed to avail long-term financing to service companies and provide access to funds in exchange for equity rather than the traditional debt instruments.

In his remarks at the inauguration ceremony of the Committee, Executive Secretary of the NCDMB, Engr. Felix Omatsola-Ogbe tasked the investment committee to carry out rigorous due diligence on every company seeking support and ensure that the objectives for which the Fund was established are fully achieved.

He said the Equity Fund must never be mistaken for a grant, stressing that beneficiaries are expected to deploy the capital judiciously and repay in accordance with the terms of the investment.

He urged the committee to ensure that only credible people with viable businesses benefit from the scheme.

“Our top priority should be identifying people who will use the Fund properly and, most importantly, return our funds back to us so that we can continue the programme for other deserving beneficiaries,” he said.

A statement from the Board’s Corporate Communications Division said the NCEF was inaugurated as a new financing solution to the Nigerian oil and gas service sector, and is also expected to accelerate local content growth.

According to the Boards Division of Corporate Communications, the underlying goal of the NCEF is to reduce per-unit cost of oil and gas products and services locally, create an additional source of income for the Board and play a catalytic role in attracting other investors and lenders to financially viable organizations.

“By providing access to equity financing, the NCEF will enable service companies to expand and increase their market share, which will contribute to the growth of the Nigerian oil and gas industry.

“The Fund size is $100million, while the obligor limit is $5million. The Fund is provided by the NCDMB, while the Bank of Industry serves as the Fund Manager.

“The target beneficiaries are oil field service companies, manufacturers connected to the oil and gas sector, fabrication yards, and connected sectors, with the primary goal being to promote economic growth, job creation, and wealth creation in Nigeria”, the NCDMB said.

The Board added that the impact of the Fund on oil and gas projects could potentially create an estimated 12,500 direct jobs and 7,000 indirect jobs, stating that the inauguration of the investment committee marks another milestone in the evolution of the Nicetizn Content Investment (NCI) Fund which is a flagship intervention established under section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to bridge financing gaps confronting indigenous oil industry firms.

A Statement from the NCDMB’S Division of Corporate Communications further said that while the five NCI Fund products managed by the BOI and two products managed by the Nigerian Export-Import Bank (NEXIM) have provided debt financing to qualified service companies over the past decade, with loans lasting five years and interest rates of 8%, the Equity Fund has carved a new niche.

Meanwhile, Managing Director of the Bank of Industry, Dr. Olasupo Olusi has described the inauguration as a major milestone in the consummation of the NCI Equity Fund, noting that the initiative represents the next phase in the long-standing collaboration between BOI and the NCDMB.

According to him, the partnership, which has lasted for nearly a decade, began with the administration of the US$350 million Nigeria Content Intervention Fund, through which hundreds of indigenous oil and gas companies have accessed financing to expand their operations.

He noted that the introduction of an equity financing window addresses an important gap in the industry’s financing architecture.

“The next step, which I am very impressed with and very thankful to the NCDMB for thinking through with BOI, is the need to fill the finance gap with equity,” he said.

According to him, equity financing offers an entirely different class of financial instrument capable of supporting businesses that may not yet qualify for conventional debt facilities, expressing confidence that the initiative would attract additional investment into Nigeria’s oil and gas sector while strengthening indigenous participation.

Giving further insight into the fund, the Group Head, Equity Investments at the Bank of Industry, Mr. Chike Chukwuelu, explained that the Equity Fund addresses what industry experts describe as the “missing middle.”

According to him, many indigenous businesses struggle to secure senior debt because they lack the level of collateral demanded by commercial lenders, despite possessing viable businesses with strong growth prospects.

Chukwuelu said the equity structure would also enable the fund managers to maintain closer oversight of beneficiary companies, helping them strengthen governance, improve operations and evolve into sustainable businesses.

In his remarks, Senior Technical Adviser to the Executive Secretary, Engr. Austin Uzoka, observed that the Equity Fund represents an opportunity to accomplish what previous financing interventions could not fully achieve.

“The striking thing is that the fund is about doing things the other funds have not been able to accomplish.” He said

The Tide gathered that the committee’s responsibilities are to provide strategic oversight for the Equity Fund, ensure prudent investment decisions and build a portfolio of companies capable of growing into major industry players.

Ariwera Ibibo-Howells, Yenagoa

Oil & Energy

Investment ln Young Engineers Key To Ogoni’s Future -President

Published

1 week ago

August 10, 2026

The Tide

President of the Khana, Gokana, Tai and Eleme (KAGOTE) Organisation and Chief Executive Officer of Giolee Global Resources Limited, Chief Lesi Maol, has described investment in the training and development of young engineers as critical to the future and sustainable development of Ogoniland.

Maol said this during the opening of a four-week Wellhead and Christmas Tree Maintenance Training Programme for selected young engineers from Ogoniland at the corporate headquarters of Giolee Global Resources Limited in Port Harcourt, recently.

He said the initiative was conceived as a strategic intervention to bridge the gap between academic knowledge and the practical competencies required in today’s highly competitive oil and gas industry, while equipping participants with internationally recognised technical skills.

According to him, the future of Ogoniland is inseparable from the development of its human capital, stressing that the region’s greatest resource is not the wealth beneath the ground but the talent, resilience and potential of its young people.

Maol explained that the training programme was designed to produce technically competent, safety-conscious and industry-ready professionals capable of competing effectively in Nigeria’s oil and gas sector as well as the global energy market.

He emphasised that the initiative was not merely aimed at awarding certificates but at developing disciplined professionals who would uphold the highest standards of technical excellence, integrity, safety and service in the discharge of their responsibilities.

The KAGOTE President urged the participants to approach the training with dedication, professionalism and a willingness to learn, expressing optimism that the knowledge acquired would contribute to the economic advancement and sustainable development of Ogoniland.

The programme, organised in partnership with Rick International Services Limited and RickWell Tech UK, features classroom instruction, practical demonstrations using oilfield equipment, competency-based assessments, Health, Safety and Environment (HSE) training, leadership development and project management.

In his remarks, Lead Executive Trainer of Rick International Services Limited, Chief Engr. Ramos Ihekona, described the programme as a valuable opportunity for aspiring engineers to acquire practical industry experience from seasoned professionals.

Ihekona encouraged the trainees to participate actively in every aspect of the programme, collaborate with one another and maximise the opportunity to develop competencies that would enhance their confidence and employability in the energy sector.

The organizers said the training was introduced to address the persistent disconnect between theoretical engineering education and the practical skills demanded by employers, adding that the curriculum covers wellhead operations, Christmas tree systems, mechanical maintenance, pressure control, engineering documentation, equipment inspection, field troubleshooting, HSE and project management.

Some of the participants drawn from Khana, Gokana, Tai and Eleme Local Government Areas commended Chief Maol for sponsoring the programme and ensuring a transparent selection process.

He however , likened the initiative to a life-changing opportunity that would prepare them for rewarding careers in the oil and gas industry while contributing to the development of Ogoniland.

King Onunwor