An economist has attributed the poor performance of imported Premium Motor Spirit (PMS) in Nigeria to weak regulations, poor quality control, and the importation of substandard blended fuel products. Kelvin Emmanuel made this claim on Channels Television’s breakfast programme, The Morning Brief, where he questioned the effectiveness of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to Emmanuel, the Petroleum Industry Act (PIA) mandates the regulator to maintain functional laboratories at ports of entry to test imported petroleum products before discharge. These tests are meant to cover critical parameters, including distillation levels, cloud point, flash point, octane rating, and sulphur content. Emmanuel noted that pricing in the petroleum industry is directly linked to product quality.
He questioned the authenticity of certificates of quality issued for imported products, arguing that a forensic audit of such documents may not stand scrutiny. Emmanuel alleged that a significant portion of imported products originates from Russia, following the 2022 invasion of Ukraine and subsequent sanctions. He claimed that Nigerian traders, working with international partners, purchase crude oil and condensates from Russian ports, which are then blended and refined into naphtha, a base compound not fit for direct consumption.
Emmanuel stated that this poor-quality fuel is the reason many Nigerians observe that petrol burns faster than expected and causes frequent engine problems. He referenced a 2020 ECOWAS agreement, which set a harmonised sulphur limit of 50 parts per million for petrol sold within the sub-region, questioning whether imported products meet this standard.
The economist called for an independent, third-party audit involving regulators, external auditors, and industry players to test petroleum products and determine whether they comply with standards stipulated under the PIA. This allegation comes on the heels of recent comments by entrepreneur Aliko Dangote, who accused oil marketers of importing low-quality petrol.
Dangote highlighted quality differences between locally refined fuel and imported products, stating that Nigerians have a choice to buy better-quality fuel at a more affordable price or blended PMS at a higher rate. The issue of poor-quality fuel has significant implications for Nigerian consumers, who may be paying more for inferior products. As the debate continues, it remains to be seen how regulators and industry players will respond to these allegations and work towards ensuring that imported petroleum products meet the required standards.