…. black marketers fill gaps created by NNPC motorists
Sales of Premium Motor Spirit (petrol) in jerrycans have become a normal trade across Nigeria, especially when the product becomes scarce to get in accredited retail stations. This according to experts is an illegal trade of petrol which showcases the poor regulatory activities of the government.
Marketers who are mostly positioned around filling stations sell their most far higher than the prices sold by marketers.
BusinessDay checks have shown that while filling stations sell petrol at N617-N690 per litre, black marketers who are mostly positioned around filling stations, sell theirs far higher than the prices sold at filling stations. For example, opposite the NNPC towers, Lokogoma Junction, Garki, in the federal capital territory black marketers sell at N1000 per litre.
This trend of unregulated sales has continued and has become an escape route for motorists who may not want to join the long fuel queues in filling stations.
This is despite the provision of Section 174(5) of the Petroleum Industry Act 2021, which states that except by an appropriate license or permit issued by the Authority, a person shall not undertake the distribution, marketing, or retail trading of petroleum products. It also stated that offenders are liable on conviction to imprisonment.
Speaking with BusinessDay, Etulan Adu, an oil and gas production engineer, said that the street trading of petrol has become a complex issue with positive and negative impacts because it provides easy access to scarce petrol which most times becomes difficult for Nigerians to access via the official channels.
“The legality of such operations contravenes Nigeria’s downstream petroleum marketing regulations. It’s the responsibility of legitimate marketers with licenses from regulatory authorities such as NUPRC and NMDRA that operate and sell petrol.
“Unfortunately, the long queues and lack of spread of petrol stations in rural areas would continue to keep the patronage of black marketers ongoing for now. Despite the benefits of black marketers of petrol to the general public, on the other hand, there are concerns about the potential risks they pose, including contributing to insecurity, price manipulation, and the circumvention of regulatory measures,” he said.
He explained that the regulation of black marketers even though a huge challenge to government agencies, is not an impossible task, adding that it will be essential to implement small-scale licensing and oversight of such operations to ensure safety and quality standards are met. Maybe a small-scale vendor license for sales of petrol and monitoring mechanisms.
He stressed that an effective collaboration between law enforcement agencies, government regulatory departments, industry stakeholders and the informal sector is important to properly regulate and ensure the issue of black marketers is seriously addressed for the safety of the masses.
“In Nigeria, the sale of petroleum products by unauthorized vendors, including black marketers, is illegal under the law. The Nigerian National Petroleum Corporation (NNPC) is responsible for the distribution and sale of petroleum products in the country, and unauthorized sales contravene these regulations.
“Monitoring and enforcement to ensure compliance with standards would drive out the black marketers in urban areas, for rural areas it will be difficult due to lack of personnel,” he added.
Also speaking with BusinessDay, Ayodele Oni, Broomfield LP partner, blamed the activities of black marketers on poor enforcement of the law.
According to Oni, the hawking of petrol is illegal under the law. “Under the provision of section 174 of the Petroleum Industry Act 2021, any person that intends to engage in the distribution, marketing or retail trading of petroleum products is expected to have a licence issued by the Nigeria Midstream and Downstream Regulatory Authority (the “Authority”). Section 174 (5) of the PIA provides that any person who engages in operation without a licence or permit commits an offence and is liable on conviction to imprisonment
“There is no serious enforcement of the law and that is why the trade is booming, when there is no enforcement of the law, people do what they like,” he said.
For Uwaye Omijie, a petroleum production engineer at Midwestern Oil and Gas Company, Delta State, the black market in Nigeria has continued to thrive on corruption, with individuals seeking higher profits. This he said has led to the availability of substandard products that can be harmful to end users.
“The challenge is more of ensuring proper regulation and licensing, as this is a more practical approach to addressing the issue. It emphasizes the importance of maintaining standards and protecting consumers from the dangers of substandard products.
“By creating an open market for licensed companies, the government can reduce the influence of the black market, this approach can also foster competition, potentially leading to better prices and services for consumers.”
He further explained that to address illegal sales, the government needs to stand up to its regulatory role by ensuring that illegal activities in the petroleum industry are addressed and adequately punish those involved.
However, motorists who spoke to BusinessDay in Abuja commended the activities of the street traders, stating that they make the rather scarce product available to them.
Mr Wale, a civil servant who had joined the fuel queue at Oando filling station in Central Business District told BusinessDay that he has been patronising the services of the black marketers in past weeks amidst the persistent fuel scarcity in Abuja.
Wale explained that even though they sell at a higher price, they ease the stress of waiting for hours to buy petrol in filling stations. “With the long queues that have been in every filling station, I have been patronising the black marketers to get the fuel I need.
“The filling stations are not selling, even most of the NNPC Retail stations are always shut down. Any day you decide to get fuel in Abuja, just be prepared to join a queue but these black marketers always have fuel to sell.”
Also, Mr Chinedu, a taxi driver en route Airport to the federal secretariat explained to BusinessDay how the high cost of getting fuel has made him increase the fares for passengers.
“The government should focus on ensuring that we have fuel to buy at filling stations and not disturb these black marketers. I bought fuel from them several times in this few weeks when the filling stations were not selling.
“Taking them away from road will make things more difficult for Nigerians, ” he added.
Ogbugo Ukoha, Executive Director, Distribution Systems, Storage, and Retailing Infrastructure, of the Nigerian Midstream, Downstream Petroleum Regulatory Authority (NMDPRA) had recently warned marketers to desist from selling petrol to black marketers, stating that they were a source of security concerns to Nigerians.
Ukoha who addressed a manager at one of the Total retail stations in Abuja, warned that petrol marketers may risk losing their licenses if caught selling petrol for buyers in jerrycan or underselling the product to customers.
He said, “Our understanding is that they buy this fuel from here and there is no other place they manufacture it from. As of tomorrow, if we see peddlers around, we will not ask any questions, but withdraw your licence.
“Please take it serious, it is posing security concerns to Nigerians. No selling in gericans, no under-dispensing and ensure and that peddlers are not within your vicinity, this include across the road and around here. We will hold you responsible from today, if we see that going on,” he said.
