…seeks increased investments to bridge lubricant shortfall

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has launched a digital platform, Lubricant Importation Permit Platform (LOPP), to streamline approval processes, ensure quality compliance, and monitor all lubricant imports into the country

This was as local Manufacturers of lubricants lamented over N10 billion loss occasioned by the unhealthy practice of recycled and fake lubricant oils into the Nigerian market by some dealers.

Authority Chief Executive NMDPRA, Farouk Ahmed who spoke on Wednesday in Abuja at the Import Licence Workshop on the requirements for lubricant importation, said it had become necessary for the Federal Government to introduce stricter regulations on lubricant importation in a bid to curb the influx of substandard products.

Represented by the Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure, Francis Ogare, he disclosed that the initiative was designed in collaboration with the Central Bank of Nigeria (CBN), the Nigeria Customs Service and other agencies.

He said: “This digital platform is integrated with a custom services platform ensuring seamless import clearance, real-time data tracking and improved compliance enforcement.”

Ahmed clarified that the platform was not designed to restrict trade but to strengthen the industry as it would enable faster approvals, better transparency, and clearer expectations for the importers

“Let me be clear, this initiative is not designed to restrict trade rather, it is meant to strengthen our industry, ensure only high-quality products circulate in the market, and align with President Bola Ahmed Tinubu’s industrialisation agenda to reduce over-reliance on imports and promote local capacity.”

The Authority Chief Executive who called for investments in the local production of lubricants, to bridge the gap in the demand and supply for lubricant in the country, however stressed the need to encourage those who have already invested in the importation business of lubricants not to be discouraged, but go ahead.

“To go back to what the President said is to streamline, to meet the shortfalls, like he said, 30-40%. But if people are encouraged to produce, and they know that we can streamline the 60% that is coming, they are now going to be compelled to come and invest.”

Ahmed noted that the workshop was a significant step towards building a more transparent, efficient, and quality-driven lubricant importation process, adding that the the Petroleum Industry Act (PIA) 2021 mandates the NMDPRA to ensure all petroleum products, including lubricants, meet strict quality and safety standards.

The Authority Chief Executive who lamented the practice of adulterated lubricants and it’s adverse effects on both vehicles and the economy, regretted that the unhealthy practice was discouraging investment in the industry.

“But People are bringing in adulterated products. It’s damaging to us, not even to your vehicles, but to our economy. It is not helping the people who have set up industry to gain momentum.

“We take this responsibility seriously as poor-quality lubricants do more than damage engines—they damage trust, hurt productivity, and create unnecessary economic waste

“That is why today’s workshop focuses on the rollout of the Lubricant Importation Module on the Lube Oil Blending Plant (LOBP) Portal—a tool designed to simplify the application, approval, and monitoring process for lubricant imports. This digital platform is integrated with the Nigeria Customs Service BÓdugwu platform, ensuring seamless import clearance, real-time data tracking, and improved compliance enforcement.”

Chairman Lubricants Producers Association of Nigeria (LUPAN) Mustapha Mohammed lamented that the recycled and substandard lubricants being imported into the country were reason for the rising losses and declining production capacity in the sector.

Mohammed who raised concerns that the continued issuance of permits for finished lubricants was pushing indigenous companies out of business, highlighted other challenges affecting members to include electricity and multiple taxations by local government as well as the importation of substandard spare parts in lubricant packages by some dealers to deceive clearing agencies.

“Most of the products that are imported to the Nigerian market today are substandard. They are recycled oils. They use recycled oil in Dubai, which everyone knows is the center of the transshipment of load from Europe to Asian countries to African countries.

“They have a lot of recycled oil which they bring from the ships, oil they are supposed to discard and destroy, but they now sell it at a cheap price to those who buy recycled oil and export it to Nigeria and African markets. Those are the oils that usually lock our cars and trucks because of the cheap price they are selling at. Many of our members have lost from N10 billion, N8 billion, N6 billion, N2 billion capacity. I mean the Naira they lost.

Muhammad who noted that local producers were currently operating at 30 to 40 per cent capacity and risk shutting down further if not protected, sought the support of the NMDPRA to expand production capacity to 70 percent.

“Most of our members today are working from 7 o’clock in the morning to 5 o’clock in the evening. If we have the capacity that we can work three shifts in the day, I’m sure it will expand to 70 percent of our capacity.”

Executive Secretary of LUPAN, Emeka Obidike, stated that the current policy threatens to collapse Nigeria’s lubricant industry saying, “The policy will sound a death to the entire existing plants in the country who are currently producers below 30% of installed capacities. It will kill the growth recorded in the last few years in the sector, and set back the lubricant policy of the Federal Government, which is currently being perfected by the federal ministry of Industry Trade and Investment.

“There will be an increase in breakdown to machineries all over the country, as a result of low quality Lubricant imported into the country, with recycled oils without additives. The new policy will ultimately create serious compromise, similar to what the sector is experiencing in the indiscriminate granting of basic oil import permit licence to none plants,” he added.

Obidike warned that over 200,000 jobs could be affected. “Many companies might slip into bankruptcy and insolvency because of the huge loss. Every country protects the key business that they have due advantage. Same is expected from your esteemed agency rather than to kill the same.”