FG To Crack Down On Unlicensed Petroleum Product Dealers

The Nigerian Midstream and Downstream Petroleum Regulatory Authority issued a warning on Monday, stating that starting from June 1, 2023, unlicensed petroleum product dealers will not be permitted to load products.

The announcement was made during a stakeholders’ engagement on gas utilization held in Abuja.

The Federal Government emphasized that it is determined to shut down such businesses, and henceforth, obtaining a license will be a prerequisite for engaging in the trade of petroleum products.

The government firmly stated that without a valid license, no loading of any petroleum product will be allowed.

The objective of the engagement was to enlighten operators on the need to urgently obtain the requisite petroleum storage licence and to engender the transition from white products to gas.

“No licence, no loading. We still have like nine days to do the right thing and comply. As the scripture says, obedience is better than sacrifice. As a regulator we prefer that people comply so that it doesn’t have adverse effects on your businesses.

The Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, stated “If there is no compliance, we can assure you from the authority that from 1st of June, there will be no licence, no loading. Any depot, any licensed operator who supplies petroleum products to an unlicensed facility, we will shut down that operator.

“I want to make a special appeal that anybody who wants to handle petroleum products in excess of 500-litre storage, is required to obtain a licence. Our licensing procedure includes going through what your equipment is, the distance, hazards, procedures and everything.” he added.

During the engagement, Ukoha, a representative from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, encouraged operators to capitalize on the emerging opportunities within the gas value chain. He urged them to adapt their energy requirements to incorporate gas derivatives.

Ukoha specifically highlighted several gas derivatives, including Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Autogas, propane, and butane.

He emphasized that investing in these derivatives would serve as a safeguard against potential future uncertainties in the global supply of petrol and diesel.

Okoha said the authority’s 12 gazetted regulations had defined the licensing regime, procedures and standards for handling petroleum products, which when breached posed increased risks.

Earlier, the authority’s Chief Executive Officer, Farouk Ahmed, said the Federal Government had put in place various initiatives and policy frameworks including the National Gas Expansion Programme and the Decade of Gas Programme to deepen the use of gas in Nigeria.

“It is our hope that this engagement will create the necessary awareness and make the compelling case for industry operators to foster a compliance culture, which alone guarantees safer and sustainable facilities,” Faouk, who was represented by the Executive Director, Health, Safety, Environment and Community, NMDPRA, Mustapha Lamorde, stated.

In his remarks, Ukoha highlighted the significance of the Midstream and Downstream Gas Infrastructure Fund, which was established under the provisions of the Petroleum Industry Act of 2021.

He emphasized that this fund would play a pivotal role in stimulating investments in the gas sector noting that the ongoing efforts to expand gas infrastructure were already demonstrating positive outcomes.

However, he stressed the need for increased collaborations to further enhance the utilization of domestic gas resources.