By Udeme Akpan, Energy Editor

A few weeks ago, the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, of aiding the importation of “dirty” diesel and jet fuel into the country, thus raising fears over the quality of products utilized in Nigeria.

The fears were subdued when the Executive Director, Distribution System, Storage and Retailing Infrastructure, Mr. Ogbugo Ukoha, denied the agency’s involvement, adding that NMDPRA remains committed to ensuring that only quality products are imported into the nation.

But many Nigerians became even more anxious, weekend, with the emergence of a leaked document, indicting Matrix Energy, Nigeria’s indigenous energy company for massive importation of  diesel and other products from Russia to Malta, an island in Southern Europe for blending and shipment to Nigeria.

Matrix Energy Group has Abdulkabir Aliu, as the group managing director, who is also a member of the Presidential Economic Coordination Council (PEEC), with the responsibility to bolster Nigeria’s economic governance framework and ensure robust and coordinated economic planning and implementation.

However, “another document has emerged stating that “Matrix Energy imported  fuel, using the vessel “MT Kallos”, which loaded diesel on May 26, 2024 from Novorossiysk, Russia. Diesel from Russia that is typically offspec is often blended with other components in other locations, including Lome and Malta by blending with other components and transloaded into Matrix ships immediately upon arrival at offshore Lome on June 16, 2024.

“Fifteen Thousand tons were  transloaded into the vessel “Matrix Triumph” on June 16, 2024 and discharged into Matrix Jetty in Warri on June 21, 2024 while another 15,000 tons were transloaded into the vessel “Matrix Pride” on June 19, 2024 and discharged into Obat Oil terminal on June 22, 2024. The importation of diesel by Matrix was confirmed during the visit of the House of Reps to the Dangote Refinery when they bought and tested diesel from Matrix filling stations and found the sulphur levels to be above 2,653ppm (vs. requirement of 50ppm) and the flash point to be 61 (vs. requirement of 66).”

Petrol

According to the document, “In July 2024 alone, over 200,000 tons of gasoline from Malta was discharged into the Matrix Jetty, representing about 25 per cent of Nigeria’s monthly petrol consumption through intermediate ships and sometimes through intermediate companies like Poly Pro Trading registered in Dubai Free Trade Zone.

“Malta is now the top European destination for blending and ship-to-ship (STS) transfers of sanctioned Russian oil and petroleum products ever since the Greek navy decided to stop such activities in their offshore zone.

“About 35 per cent of shipment into Malta is naphtha and other components which are blended into petrol to produce  “African Spec” productsand transshipped into various vessels for delivery into Nigeria 

Matrix 

In a press release obtained by Vanguard, Matrix Energy, stated: “Matrix Energy Group is a wholly indigenous and independent oil marketing and trading company, with substantial investments in strategic infrastructure, including vessels, oil and gas terminals, trucks, and retail outlets across 28 states, including the Federal Capital Territory (FCT). Our company is recognized and approved by global international companies, national oil companies, major construction firms, and various end-users. Our consistent ability to deliver on all contracts at competitive prices has solidified our strong position in the industry today.

“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the sole regulatory body empowered by the Petroleum Industry Act (PIA) to issue import licenses and enforce the Standards Organization of Nigeria (SON) product specifications. Matrix Energy has consistently imported products that meet the approved specifications, and we have never been found wanting in this regard. Our commitment to quality is reflected in the fact that none of our customers has  ever rejected our products; indeed, demand for Matrix products often exceeds our capacity to supply, a testament to our reputation for reliability. This success is equally reflected in our fertilizer businesses.

“Our depots boast a storage capacity of 150 million liters of liquid products, including the Liquefied Petroleum Gas, LPG and bitumen. However, contrary to the claims made in the aforementioned publication, we did not discharge 200,000 metric tons of PMS into our facility in July 2024. While we have the capacity and customer base to handle such volumes, Matrix Energy has never imported or distributed any substandard cargo in our two decades of operation. Our quality test has never been doubted by the regulators and Nigerians who have found a partner in us.”

NMDPRA keeps mum

The Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Farouk Ahmed, whose agency provides legal, governance, regulatory and fiscal framework and enforcement of compliance in the sectors, did not respond despite repeated calls and messages.

House of Reps

The importation of low-quality diesel by Matrix was confirmed during the recent visit of the House of Representatives to the Dangote Refinery when they bought and tested diesel from TotalEnergies and Matrix filling stations and established that the sulphur levels to be above 2,653ppm against a requirement level of 50 ppm.

During the visit, the President of Dangote Group, Aliko Dangote, said: “Our quality was one of the best in terms of quality when we started. The sample from TotalEnergies’s diesel showed a 1,829ppm sulphur concentration. The sample from Matrix Retail showed 2,653ppm.”

Experts

However, experts that attended the just-concluded webinar – Nigeria’s Dangote refinery – what it means for trade flows and price benchmarks – organized by Argus Consulting, United Kingdom, said Nigeria would not need to import for some years as the coming onstream of Dangote refinery has changed the direction of petroleum products trade flows between West Africa and other regions while creating many multiplier effects, including jobs while stifling growth in other regions.

Also, as a result of the coming onstream of the refinery, Nigeria’s petrol importation has been projected to drop by 60 per cent to the equivalent of 160,000 barrels per day, bpd by 2025, from 400,000 bpd in 2023.

According to them, the nation is expected to start exporting diesel and jet kerosine from 2025, thus enhancing the inflow of additional foreign exchange into Nigeria