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In Nigeria’s northeast, more than 1,800 gas stations shut over smuggling

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Nigeria’s local head of petroleum marketers stated that around 2,000 gas stations in the northeastern part of the country were closed over an anti-smuggling operation that targeted particular operators, forcing drivers to purchase gasoline on the black market.

The Nigeria Customs Service impounded tanker trucks and closed some fuel outlets on suspicion that they were smuggling gasoline to neighbouring Cameroon. This led to the suspension of operations at gas stations, according to Dahiru Buba, the chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) for the states of Taraba and Adamawa.

For years, low-cost gasoline smuggled from Nigeria has been the main source of income for black-market fuel merchants in Cameroon, Benin and Togo.

That black market commerce collapsed when Nigeria eliminated its petrol subsidy last year, but since June 2023, Nigeria has capped the price of the commodity, even if its currency has sharply declined. As a result, the product is now once again cheaper.

Under “Operation Whirlwind”, Customs initially impounded some tanker trucks belonging to IPMAN members and released them after the association protested. But more trucks were seized and several fuel stations were shut, forcing fuel station operators to close outlets en-masse in protest, said Buba.

“We wrote to them (Nigeria Customs) again but there were no responses that is why we decided to go on strike,” he said, adding that over 1,800 outlets had ceased to operate.
“This is our business and we cannot be quiet when our members are treated this way.”

According to Taraba and Adamawa Customs spokeswoman Mangsi Lazarus, tanker trucks were impounded because they were being used to transport gasoline.

Black market dealers swiftly capitalized on the shortages in Adamawa’s capital city of Yola, selling gasoline for 1,400 naira ($0.9459) per liter instead of the 650–750 naira it was selling for at the pump.

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After decades of imports, Nigeria ends oil importation

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The Nigerian National Petroleum Company Limited (NNPC) has declared that it has finally stopped the long-standing practice of importing petroleum products after decades of doing so.

 

Nigeria’s national oil corporation stated that it now purchased from the 650,000 barrels per day Dangote Petroleum Refinery in Lagos, which is estimated to save the country up to $10 billion in hard currency each year.

 

This was revealed by Mr Mele Kyari, Group Chief Executive Officer of NNPC, in Lagos during his keynote address at the 42nd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

 

The statement coincided with the Independent Petroleum Marketers Association of Nigeria (IPMAN) announcing another positive development: the organisation had agreed to purchase goods directly from the $20 billion Dangote facility.

 

The oil dealers had fiercely protested the prior arrangement, which called for independent marketers to purchase from the NNPC rather than the Dangote Refinery.

 

However, Kyari also stated that all of the nation’s oil producers are required to send crude to the four NNPC refineries upon their return to the grid, citing the Domestic Crude Oil Obligation (DCOO) as outlined in the Petroleum Industry Act (PIA) 2021 as support.

 

He denied rumours that local refineries were being harmed by the national oil company’s refusal to supply them with crude oil.

 

As a proud co-owner of the Dangote Refinery, Kyari described NNPC as having recognised an opportunity in the $20 billion refinery as a clear market for at least 300,000 barrels per day of production, which would allow it to avoid being caught in the rapidly contracting crude oil market.

 

“Oil is found in very many unexpected locations across the world and people have choices. And therefore, we saw an opportunity to now supply to not just Dangote, but every refinery that operates in the country. So, it’s a well-informed business decision. Therefore, from day one, we knew that it was to our benefit to supply crude oil to domestic refineries.

 

“So, we don’t need to be persuaded. We don’t need anyone to talk to us. There is no need for any pressure from the streets for us to do this. We are already doing this”, Kyari stated.

 

Nigeria saw a decrease in petrol imports according to the National Bureau of Statistics, after President Bola Tinubu eliminated the gasoline subsidy in May 2023. Additionally, the report revealed that petroleum imports decreased by 13.77 percent year over year to 20.30 billion litres in 2023 from 23.54 billion litres in 2022.

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Nigeria signs deal for aircraft maintenance facility

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To build an aircraft maintenance, repair, and overhaul facility, the Nigerian government, acting through the Ministry of Aviation and Aerospace Development, has partnered with a private company in a public-private partnership.

Details of the agreement were given by a Ministry of Aviation representative, who spoke on condition of anonymity because they were not authorised to discuss the subject. The representative explained that the new facility would function as an Approved Maintenance Organisation under the Nigerian Civil Aviation Authority’s regulations.

The representative said, “AMO approved by the NCAA is meant to perform specific aircraft maintenance activities, which activities may include the inspection, overhaul, maintenance, repair, and/or alteration and release to service of aircraft or aeronautical products.”

Nigeria, which is the most populous country in Africa, is a major destination for more than 22 international airlines. Over 78 nations now have bilateral air services agreements with Nigeria.

According to the ministry source, this facility is the first of its kind in Nigeria and is intended to address the increasing maintenance requirements of domestic aircraft, which currently frequently necessitate costly and time-consuming journeys to foreign maintenance facilities.

The actual “date of commercial operations will be the date on which the NCAA grants the concessionaire approvals and licenses as required by the concessionaire in the agreement,” the ministry continued, adding that the exact start date for construction and ultimate operations is still unclear.

The source added that “all necessary activities are underway to make the contract effective.”

The official responded, “I don’t have those timelines,” when questioned about them. Before we discuss the actual building and management of the facilities, we are working quickly to complete a few tasks that will make the contract effective.

Festus Keyamo, the country’s minister of aviation and aerospace development, announced in August that he had finalised plans to start the bidding process for the construction of maintenance, repair, and overhaul facilities.

The minister stated that the action was a component of the government’s endeavour to improve the nation’s aviation infrastructure and lessen dependency on foreign MRO services. Due to the project’s high capital requirements, he also declared his intention to pursue a significant project using a Public-Private Partnership approach.

Nigeria’s economy and transportation sector both heavily rely on civil aviation. Nigeria boasts 23 operating domestic airlines, 20 airports, several regulated airstrips and heliports, 554 certified pilots, 913 qualified engineers, and 1700 cabin crew members.

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