The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been accused of failing to enforce key provisions of the Petroleum Industry Act (PIA), particularly those concerning sulphur limits, fuel‑quality standards, and the regulatory framework for the oil market. Economist Kelvin Emmanuel made this claim on Channels Television’s “The Morning Brief,” arguing that the Authority’s negligence has created an uneven playing field for local refiners and allowed foreign traders to import substandard products into Nigeria.
Emmanuel explained that the NMDPRA has not enforced the PIA’s sulphur limits nor provided a framework for regulating octane levels, distillation points, cloud points for diesel, and flash points for diesel. This regulatory gap has led to unfair competition, as traders import fuels that do not meet the required standards. He also noted that the NMDPRA does not operate standard ASTM laboratories; instead, it outsources product testing to third‑party companies, leaving room for manipulation in determining fuel quality and prices.
The recent federal government directive imposing a 15 % import duty on petrol is intended to protect domestic industries from harmful imports, in line with Article 6 of the World Trade Organization (WTO) charter on countervailing and anti‑dumping measures. The economist highlighted that companies are buying condensate in Eastern Europe, refining it, and sending it to Nigeria—often via Togo, which now controls a significant portion of Nigeria’s energy security. The use of Floating Storage and Offloading Units (FSOs) for blending lacks the hydrotreating capacity needed to remove sulphur, resulting in high‑sulphur fuels entering the Nigerian market. These imports violate the Economic Community of West African States (ECOWAS) sulphur limit of 50 ppm and undermine local refiners, who operate under stricter standards.
The new policy directive from the presidency aims to compel marketers to comply with Section 317(7) of the PIA, which mandates the regulator to provide a backward‑integration plan for midstream refining or require importers to source products from local refiners. President Bola Tinubu’s approval of a 15 % import duty on diesel and premium motor spirits is expected to promote stability in the downstream oil sector and protect domestic refineries. The move is seen as a corrective measure to address the challenges facing Nigeria’s oil industry and ensure compliance with regulatory standards.
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