Nigeria Slashes Diesel Sulphur Content Amid Quality Debates, Industry Controversies
Nigeria has substantially decreased the sulphur content in its imported diesel, according to the National Midstream Downstream Petroleum Regulatory Authority (NMDPRA), as reported by Argus.
This action occurs amidst ongoing discussions about the quality of diesel available in the local market. George Ene-Ita, NMDPRA spokesman, informed Argus that due to enforcement and compliance by importers, the sulphur content has dropped from an average of 173.9 parts per million (ppm) in February to as low as 18.2ppm in June.
In March, NMDPRA started enforcing a 200ppm sulphur limit on gasoil imports, which was further lowered to 50ppm in June. However, the Dangote Group, which runs Nigeria’s new 650,000 b/d oil refinery, and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have recently made conflicting statements about the diesel quality in the country.
On June 21, Devakumar Edwin, Dangote’s vice president for oil and gas, accused the NMDPRA of “indiscriminately granting licences to marketers to import dirty refined products.”
He also claimed that many tankers are waiting in Togolese waters with Russian ultra-high sulphur diesel, which is being released into the Nigerian market. Dangote started producing diesel in April and received a waiver from the NMDPRA to sell gasoil with higher sulphur content because its refinery’s desulphurisation units are not yet operational.
In response, DAPPMAN told Argus that its members only import fuel that meets NMDPRA specifications. The association criticised the regulator’s recent objections to gasoil cargoes from the ship-to-ship transfer hub offshore Lome, Togo, arguing against any attempts to create a monopoly in the sector.
DAPPMAN also mentioned that international trading firms offered them Dangote gasoil at lower rates than those directly from the refinery, with sulphur content exceeding 50ppm and potentially reaching as high as 1,200ppm.
A test conducted on June 13 revealed Dangote gasoil contained 1,030ppm of sulphur. Edwin stated that production of 10ppm sulphur diesel and gasoline would begin in “July/August,” with the refinery’s run rate increasing to 500,000 b/d from the current 350,000 b/d.
Ene-Ita did not address these specific claims but denied allegations that the NMDPRA does not support domestic refineries.
He stressed that the petroleum industry law mandates the regulator to balance the needs of domestic refineries with fostering competition. Consequently, the NMDPRA has supported refiners while continuing to issue import licences.
He also highlighted that Nigeria is a signatory to an ECOWAS declaration that delays the 50ppm sulphur limit for regional refineries until December 31, 2024, by which time Nigerian refiners are expected to fully implement the cap.
