PPPRA restructures list of approved international oil traders who supply petroleum products to Nigeria

PPPRA restructures list of approved international oil traders who supply petroleum products to Nigeria

The Petroleum Products Pricing Regulatory Agency (PPPRA) has commenced moves to reduce the list of international oil traders who supply petroleum products to Nigeria.
The Executive Secretary of the PPPRA, Mr. Reginald Stanley, reportedly disclosed this at an interactive forum with journalists yesterday. He also put payouts on petrol subsidy for 2012 at over N1 trillion, as against about N2.09 trillion paid out in 2011.
He reportedly said: “In 2011, every criminal that was sacked in Europe as an oil trader was bringing products into Nigeria. These companies have no integrity. They can bring in off -spec materials, they can bring in sand and declare it as petrol. So what we are doing is to ensure that only credible companies bring in products into Nigeria. Companies that we can attest have integrity.”
He stated that the list would be somewhere around 20, all which are top suppliers, adding that the final number will be ready by the time the agency whittles down the list, using very stringent method.
Mr. Stanley explained that the oil traders would sign a bond with the agency to declare their readiness to do business in line with the rules provided by the PPPRA. “Once the list is published, they will be invited to the PPPRA and we will have a meeting where riot act will be read out, that this is the performing code of conduct, are you prepared to play within these roles, if you are not prepared, take your brief case out of this place”.
According to him, any company that does not adhere to the rules will be delisted, while Nigerian companies that buy products from companies that are not accredited to bring in fuel into Nigeria will not be paid subsidy on the imported petrol.
“The moment the PPPRA says, a company cannot supply Petrol to Nigerian market, it is finished, and if any marketer buys from such delisted company, that marketer will not be paid, so the money is a lost money forever. It is a very powerful tool, we have done it and it works like magic. All these suppliers today, we get them to attest to their deliveries, we get them to provide family trees, and if anything happens, they are tracked, from the point they load and it is perfect”, Stanley added.
He noted that with the tracking device in place, the agency could track every ship all over the world.
“So the ships coming to Nigeria, before they set sail, we know where they are. And we have made it mandatory that every supplier of petrol to Nigeria must provide what is called the family tree. The family tree tells you the level of discharge, right all through the last of the molecule in that vessel and once it finishes, we track your exit out of the system, so it is quite a lot of work in the system,” the executive secretary explained.
He reiterated that oil marketers who bring in product, but do not provide proof of 80 per cent truck out of such product would not be paid subsidy.
“We see people that bring in materials and they store them in their facilities and they want to claim subsidy and we ask them, what are you doing with the product in your tank when that product is meant for Nigerians? And well tell them you cannot claim subsidy without proof that you have 80 per cent truck out of the product of your facility,” he said.
He further stated that the agency does not rely on report by the marketers, but acts on reports from independent inspectors, who monitor the system. “So there are numerous checks and balances that we have actually brought in clear sanity in the downstream. You cannot today discharge without an international independent inspector, which is among best practice anywhere in the world,” .
The list of accredited companies would be made public as soon as it gets the approval of the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke.
Source: Thisday
Oil and Gas Press

#FOLLOW US ON INSTAGRAM