Dangote and Oil Marketers Clash Over Alleged Substandard Fuel Imports

Published by

Ibrahim Fatai

The ongoing conflict between Dangote Refinery and Nigerian oil marketers has intensified.

Dangote Refinery alleges that oil marketers are importing substandard petroleum products into Nigeria.

Oil marketers have categorically denied these accusations, calling them “spurious and unsubstantiated.”

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The Standards Organisation of Nigeria (SON) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) denied these allegations. They both confirmed that they rigorously test all imported fuel before distribution to the Nigerian market.

SON and NMPDR Deny Allegations

Representatives from SON and NMDPRA have countered Dangote Refinery’s claims by asserting the reliability of their certification processes. According to Business Standards, an official from one agency told them that their labs are fully equipped to test fuel products, ensuring they meet regulatory standards.

He stated, “We have our well-equipped laboratory where products are tested and certified before they are pushed out for public consumption,” dismissing attempts by either Dangote or marketers to manipulate the regulatory system.

What are SON and NMDPRA?

The SON and NMDPRA play crucial roles in ensuring the quality and safety of petroleum products in Nigeria. SON is Nigeria’s primary standards regulatory agency, tasked with establishing and enforcing quality benchmarks for products within the country.

Its responsibilities extend across numerous industries, with a mandate to protect consumers and prevent substandard goods, including fuel, from entering the market.

NMDPRA, on the other hand, oversees Nigeria’s oil and gas sector, specifically focusing on the midstream (transportation and storage) and downstream (refining and distribution) aspects. Established under the Petroleum Industry Act (PIA), NMDPRA ensures that all fuel entering the Nigerian market meets stringent regulatory standards.

The agency also conducts comprehensive inspections and certifications, alongside SON, to prevent the distribution of “off-spec” or substandard fuel.

Allegations Against Pinnacle Oil

Dangote Refinery expressed concern, suggesting that some marketers might use deregulation as a cover to import substandard products. In a statement, the refinery emphasized that deregulation should not compromise national interests by allowing “off-spec” products into the market.

Robert Dickerman, Managing Director/CEO of Pinnacle Oil and Gas Limited, strongly refuted Dangote’s accusations, describing them as defamatory and misleading.

He clarified that Pinnacle has a 13-year distribution agreement with Dangote Refinery and that independent inspectors, NMDPRA and SON consistently inspect Pinnacle’s products to ensure compliance with quality standards.

Dickerman called the allegations of importing off-spec fuel “intentionally misleading”. He highlighted his company’s commitment to efficient distribution, stating that they proposed a pipeline project to Dangote to improve cost-effectiveness, which the refinery initially endorsed.

Ibrahim Fatai

Ibrahim Olamilekan Fatai is a young journalist with a Bachelor's degree in Mass Communication from Kwara State University and a National Diploma from Yaba College of Technology. He has experience in writing, social media management, and content creation, and is skilled at producing impactful stories and reports on business and economic trends. Ibrahim is also dedicated to promoting sustainable development and advocating for human rights, aligning his journalism with causes that drive social change.