President Muhammadu Buhari has ordered that producers and providers of consumable products be held accountable for substandard services and or products sold by them.
He also gave directives to the Nigerian National Petroleum Company (NNPC) and other relevant government agencies to take every step in line with the laws of the country to ensure the respect and protection of consumers against market abuses and social injustices.
In a reaction to the issue of petroleum product shortages linked to the inadvertent supply of products of foreign origin into the Nigerian market, President Buhari said the protection of consumer interests is a priority of the present administration and is ready to take all necessary measures to protect consumers from hazardous products, loss or injuries from the consumption of substandard goods.
The president directed that in line with the law, service providers must make full disclosure of relevant information with respect to the consumption of their products and that dissatisfied consumers were entitled to a proper redress of their complaints.
NNPC on ‘culprits’
Meanwhile, the NNPC Thursday said MRS, Duke Oil, Oando, and Emadeb imported the adulterated fuel causing the present fuel scarcity being experienced in Nigeria.
A statement by NNPC spokesman, Mohammed Garba Deen, quoted the Group Managing Director Mele Kyari as explaining that after investigations, the company discovered the presence of methanol in four PMS cargoes imported by Direct-Sale-Direct-Purchase (DSDP) suppliers.
“Providing a graphic chronicle of the unfortunate incident, the NNPC CEO said that on 20th January 2022, the company received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.
“He noted that cargoes quality certificates issued at loadport (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.
“The NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,” he said.
Kyari noted that as a standard practice for all PMS import to Nigeria, the said cargoes were equally certified by inspection agent appointed by the NMDRA.
“It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for Percent methanol content and therefore the additive was not detected by our quality inspectors’’ he stated
However, in order to prevent the distribution of the petrol, the NNPC CEO said the company promptly ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck & marine).
Similarly, the NNPC further reassured Nigerians of its capacity to restore sanity in the supply and distribution of quality Premium Motor Spirit (PMS) also known as petrol across the country within a short period.
GMD Kyari made the pledge at the end of a meeting with some oil marketers to resolve the issues generated by the recent supply and discharge of methanol blended petrol in some Nigerian depots.
Kyari emphasized that defaulting suppliers have been put on notice for remedial actions and NNPC was working with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) to take necessary actions in line with subsisting regulations.
Emadeb absolves self
However, in a swift reaction, Emadeb/Hyde/Ay Maikifi consortium, one of the companies fingered by NNPC as being responsible for the current fuel crisis, has denied any complicity.
Rather, it said, a member of its consortium, Brittania-U was responsible for the importation.
In a clear-the-air statement issued by Lead Consortium to Emadeb Energy Services Limited Thursday, the Company said “the blanket claim by the NNPC was not only misleading but contradictory as it does not reflect the true picture of what transpired.”
The firm said it was important to state its own side of the story in order to protect its image which it built over the years as a responsible and respected brand in the industry.
According to Emadeb, Brittania-U was the sole supplier of the 90,000MT of PMS delivered via MT Torm Hilde with laycan January 2 to 4, 2022.
“At the formation of the Consortium in May 2021 by NNPC, Brittania-U refused to execute the Service and Consortium Agreement submitted to NNPC in fulfilment of the award of the DSDP Contract. Emadeb as the lead of the Consortium engaged Brittania-U severally and they insisted on dealing with NNPC independently. NNPC was expressly notified about this by the other Consortium members via a letter dated June 2, 2021,” the statement said.
Explaining further, the Lead Consortium said, “Brittania had from the beginning refused to execute the Consortium agreement with the other members preferring rather to deal directly with the NNPC.
“Following the repeated refusal of Brittania-U to work with the Consortium, Brittania-U indemnified the other consortium members – “Emadeb/Hyde/Ay Maikifi” and the resulting agreement was executed by their company on June 16, 2021.”
The statement further said: “The Indemnity clause contained in the aforementioned agreement covers “Emadeb/Hyde/Ay Maikifi’’ against all damages, losses, costs, expenses (including reasonable legal costs, expenses and attorneys’ fees) and liabilities incident to claims, demands or causes of action brought by or on behalf of any person or entity, which claims, demands or causes of action arise out of, are incident to or result from the performance of or failure to perform the Project. The indemnity also covers Shortages in delivery of products, late deliveries, delivery of off-spec cargo or other wrongful performance of their obligations in the DSDP agreement.
In view of the notice of the contaminated product, EMADEB/HYDE/AY MAIKIFI immediately notified Brittania-U via a letter dated February 3, 2022 and also expressly informed NNPC of the sole liability of Brittania U.
“Based on the substantial evidence provided to NNPC and several declarations by Brittania-U to NNPC, Brittania-U is therefore solely liable for the supply of the PMS via MT Torm Hilde. This is also demonstrated by their unwillingness to be part of the consortium; however, all the other parties were duly indemnified by Brittania-U.
“The other Consortium members – EMADEB/HYDE/AY MAIKIFI had performed and delivered 270,000MT of PMS in the last five months and they were certified by the NNPC-nominated inspector without any complaint or adverse issues. Out of the 270,000MT of PMS, 90,000MT is currently discharging via MT Fair Seas offshore Lagos. All records showing our performance are available with NNPC for verification and validation.
“The consortium assured that it will continue to work with NNPC and perform creditably on all our obligations.”
