Business

Kerosene Scarcity: IPMAN Wants Direct Supply From NNPC

Published

14 years ago

July 4, 2011

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Nigeria National Petroleum Corporation (NNPC) to ensure that kerosene is distributed through its members.

Mr Chinedu Okoronkwo, the Chairman of IPMAN’s Products Allocation Committee, made the call shortly after an inaugural meeting of the committee in Lagos.

Okoronkwo said the meting was to ensure that NNPC’s kerosene allocations to IPMAN were given to genuine members to ensure effective distribution and availability.

“NNPC should allocate IPMAN products strictly to its members to avoid diversion by un-recognised marketers.

“The only time we can checkmate mischievous marketers is when all follow due process,’’ he said.

The chairman said that IPMAN was ready to partner with NNPC in addressing the scarcity of petroleum products.

The Secretary of the committee, Mr Olumide Ogunmade, expressed the hope that the committee would ensure equitable distribution of products to IPMAN members.

“We are not fighting the NNPC but want to set records straight so that our valued members who have invested their money in products will get them.

“If we are given 76 per cent allocation for our members, what we are witnessing today on kerosene won’t have occurred because we are widely spread in term of retail outlets and number,’’ he said.

Ogunmade said the committee desired that all petroleum products allocation by the NNPPC/PPMC should go to genuine marketers for effective distribution and monitoring.

Our correspondent reports that IPMAN on Wednesday set up a 22-man committee to oversee the union’s allocation of products from the NNPC.

The committee was mandated to recommend solutions to the lingering scarcity of kerosene.

Meanwhile, some major and independent marketers have alleged that the NNPC, and Pipelines and Products Marketing Company (PPMC) are under-supplying them kerosene.

Some of the marketers, who spoke with newsmen yesterday in Lagos on condition of anonymity, said the situation had resulted in the artificial scarcity and hike in the price of the commodity.

“The inability of NNPC and PPMC to flood the market with the commodity caused the scarcity, and hike in the price of the commodity,’’ one of them said.

The source said that less than five million litres of kerosene were being distributed to the marketers daily, as against 12 million litres the NNPC claimed were being supplied.

The marketers alleged that 30 of them were being allocated a truck of 33,000 litres daily.

They, however, suggested that they should be given licence to import the commodity as part of efforts to address the lingering scarcity of kerosene.

“We urge the government to put in place appropriate mechanisms to ensure that the product is available throughout the country.

“Importation of kerosene by NNPC alone cannot solve the problem of scarcity; government should give licence to independent marketers to fast-track the importation of the commodity to ease scarcity,’’ a marketer said.

A source in the Department of Petroleum Resources (DPR), who preferred anonymity, also advised the NNPC to flood the market with the commodity, and publish daily and monthly allocations to the marketers.

The source said NNPC should increase supply of kerosene to the marketers and other depot owners to ease scarcity as well as reduce the price of the commodity.

Dr Levi Ajunoma, Group General Manager, Public Affairs Division of NNPC, said about 50,000 metric tonnes of kerosene had been allocated to major and independent marketers, as well as depot owners within the last one month.

Our correspondent, however, reports that in spite of this, kerosene still sells at between N120 to N135 per litre in some filling stations.

In spite of announcements by the NNPC that it had distributed sufficient kerosene to oil marketers nationwide, the product has remained scarce and expensive in Asaba.

Our correspondent reports that between June 27 and yesterday, not more than five out of more than 40 petrol filling stations in Asaba had the product for sale to the public.

An investigation showed that the stations that sold the product were only those owned by independent oil marketers.

Not even NNPC Mega station or its grade B type, both in Asaba, had the product for sale.

For instance, out of the more than 15 filing stations on Onitsha high way, only two, King’s Petroleum and Emmy and Sons Oil Ltd, sold the product during the week at exorbitant rates.

Anioma Petroleum and Odims Global Resources Ltd., both oil dealers located on Anwai Road, sold the products too.

No major oil marketer in the city sold kerosene during the period in spite of allegation by Independent Petroleum Marketers Association of Nigeria (IPMAN) in the state that greater percentage of kerosene allocation went to them (major marketers).

According to IPMAN Chairman in the state, Chief Akpos Edafevwotu, NNPC allocates about 70 per cent of kerosene to its mega station in Asaba and the smaller ones around the cities.

He said the corporation also gave greater share of the remaining 30 per cent to major marketers, leaving little for his association’s members.

Edafevwotu, however, said that kerosene allocation to IPMAN by NNPC during the period of scarcity was raised to 16 trucks daily as against seven previously but noted that the supply was still inadequate.

The situation in Asaba has again boosted black market operation in the sale of the product.

A litre of the product at such market costs between N200 and N240.

One of the operators who pleaded anonymity, told newsmen that the price of a litre at the “illegal” spots depended on the sources of the stock.

Automated Gas Oil (AGO), known as diesel, has also remained scarce in the Delta capital for a long time and has led to high price of the product.

Currently, a litre sells for between N155 and N165 at filling stations.

In a related development, the NNPC (Retail Products Section) is collaborating with the Capital Oil and Gas in a nationwide kerosene distribution in tankers.

The aim is to ease scarcity.

Our correspondent reports that the pilot scheme began on Saturday in Lagos with 200 tankers loaded with the product.

The vehicles are to be taken to all the nooks and crannies of Lagos State for kerosene sales to residents.

Mr Ifeanyi Ubah, the Chief Executive Officer of Capital Oil and Gas, said at the unveiling of the pilot scheme that the idea was to boost NNPC’s efforts to end kerosene scarcity.

Ubah said the distribution would eliminate long queues at NNPC fuel stations.

“Tankers will be stationed at some locations in the city and rural areas to sell to individuals who want to buy kerosene; the best method to address panic buying of kerosene.

“The product will be handled and sold to Nigerians by sub-dealers who must have paid for them through the banks to avoid sharp practices,’’ he said.

Ubah said the method would go a long way in addressing kerosene scarcity.

He said that the schemes would be conducted in Abuja, Kano and Port Harcourt.

Dr Levi Ajuonuma, the Group General Manager, Public Affairs Division in NNPC, said the corporation on Thursday allocated 25,000 metric tonnes of kerosene to major and independent marketers to ease the scarcity.

“Distribution bottlenecks have been our major challenge but we have finally addressed that, and we believe all marketers will ensure the circulation of the product across the country,’’ he said.

Ajuonuma also said that the truck distribution would effectively address the lingering scarcity.

“We implore both regulatory bodies and the media to assist in monitoring the distribution of the product at the official pump price of N50 per litre,’’ he said.

Mr Victor Enilama, the Operations Officer at the Department of Petroleum Resources, urged the NNPC to publish all kerosene allocations to marketers to guide the department in monitoring their sale.

Enilama said the DPR would not seal a fuel station or prosecute its owner when there was no product in the station.

“Kerosene is under-supplied; the NNPC should beef up supply to marketers and depot owners to ensure adequate distribution and sales at the normal pump price,’’ he said.

He urged the corporation to ensure sustainability of the kerosene distribution, warning that if not properly monitored, it would be mismanaged and abused.

Our correspondent reports that kerosene is still sold for between N120 and N135 per litre in some filling stations in Lagos State.

Business

NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

Published

3 days ago

July 11, 2025

The Tide

The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemical Company have inaugurated a Joint Technical Committee (JrefineryTC) aimed at advancing local content implementation during the operational phase of the 650,000 barrels per day plant.

A statement from the Directorate of Corporate Communications of the Board noted that the inauguration ceremony took place at the Dangote Free Trade Zone, Ibeju-Lekki, Lagos State.

The statement also said the inauguration marks a pivotal moment in fostering strategic collaboration between the both institutions, and was a significant move to reinforce local content development in the oil and gas sector.

Presided over by the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, and the Group Vice President, Oil and Gas, Dangote Group, Chief Edwin Devakumar, the event featured the formal sign-off of the Committee’s Terms of Reference (ToR), a guided tour of the refinery, other critical facilities, and the official commencement of the JTC’s responsibilities.

According to the Board, the visit also featured the presentation of the certificate of the Nigerian Content Downstream Operator of the Year Award won by the Dangote Petroleum Refinery and Petrochemical Company at the inaugural ‘Champions of Nigerian Content Awards’ held recently in May.

The NCDMB’s boss made the presentation to the President of the Dangote Group, Alhalji Aliko Dangote, who expressed delight at the recognition, noting that he would display the certificate proudly at his office.

Ogbe congratulated the Dangote Group on the successful development and commissioning of the largest single train refinery in the world, as well as petrochemical and fertiliser plants, describing the projects as a historic milestone not for Nigeria alone, but for the entire continent.

He emphasized that the Dangote Refinery stands as a testament to the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the transformative potential of Nigerian-led industrial projects.

“At an optimal daily production capacity of 650,000 barrels, this refinery will significantly enhance Nigeria’s energy security and contribute to the supply of refined petroleum products across West Africa.

“Nigerians, have to own the plant, we have to make sure that the plant works well. We have to secure it, we have to maintain it. The NCDMB would continue to collaborate with Dangote Petroleum Refinery”, Engr Ogbe said.

Highlighting the need to ensure more value retention in the sector, as mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010, the Board’s helmsman demanded compliance with Sections 32 and 33 of the NOGICD Act, with particular reference to local manpower utilization and requirements for NCDMB’s approval prior to the engagement of expatriates.

“The NOGICD Act stipulates that no expatriate can be employed in any organization in the oil and gas industry without the prior approval of the NCDMB. We will work with you, We’ve to protect jobs for Nigerians. It’s critical to job creation, skills development, and national capacity building in line with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu”, he said.

He commended the firm for training and employing Nigerian engineers, saying the collaboration will ensure that qualified Nigerians were given opportunities across all operational roles, while also urging the Dangote Petroleum Refinery and Petrochemicals to support the Board’s initiative which aims at developing oil and gas industrial parks across the country to foster local content and manufacturing in the sector.

He noted that the Nigerian Oil and Gas Parks Scheme (NOGaPS) seeks to create an enabling environment for Small and Medium Enterprises in the sector.

“NOGaPS was conceived by the Board to develop facilities close to oil fields where manufacturing of oil and gas components, as well as research and development, can be carried out.

“We would like Dangote to support one of our major activities, which is the oil and gas industrial parks scheme. The parks are aimed at creating an enabling environment for SMEs in the industry to do fabrications and create more jobs for Nigerians”, the NCDMB’S boss stated.

In his welcome address, the Dangote Group Vice President, Devakumar, highlighted that the refinery project and NCDMB have been working together, promoting local content development during the construction stages of the project.

“We can’t say we have achieved everything, because there is opportunity to do more. We’re grateful to the NCDMB for all their support and advice. As entrepreneurs, we’re trying to optimise costs. It’s a Nigerian company, it’s also an entrepreneur-driven company. As a Nigerian company, the focus will be on Nigerian content. As an entrepreneur-driven company, it will be cost-focused”, he noted.

Devakumar underscored the long-standing commitment of the Dangote Group to national development and capacity building, saying that the Group’s vision is to grow Nigeria’s industrial landscape.

High points of the visit, according to the Corporate Communications Directorate of the NCDMB, was the inauguration of the Committee members.

The statement from the NCDMB further added that the committee is to ensure the implementation of local content in the refinery’s operations, while its core objectives include promoting the use of Nigerian skilled manpower, services, and locally sourced materials in compliance with Section 3 of the NOGICD Act.

The Tide learnt that the committee will also support Dangote Refinery in aligning its operational procedures with the Act’s requirements.

In his acceptance remarks, Director of Corporate Services at NCDMB and Chairman of the Committee, Mr. Abdulmalik Halilu, expressed gratitude to the leadership of both organizations, reiterating the Committee’s dedication to upholding the highest standards of local content enforcement and fostering measurable outcomes that will benefit the nation’s economy.

Ariwera Ibibo-Howells, Yenagoa

Business

Food Security: NDDC Pays Counterpart Fund For LIFE-ND Project

Published

3 days ago

July 11, 2025

The Tide

The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.

The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.

Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing in Asaba, Delta State.

He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.

According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.

“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.

The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.

He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.

Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.

According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.

He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.

Business

Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

Published

3 days ago

July 11, 2025

The Tide

A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.

The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the inspection and survey of the creeks and coastlines of affected communities.

The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.

Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.

The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.

The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.

“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.

“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”

The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.

They called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.

“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.

They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.

Bemene Taneh