Nigerian Lubricants Industry Capacity Hits 120.6m Tons

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  • Total Nigeria 22.1mt, Oando 15.9mt, MRS Oil 11mt…

By Franklin Ocheneyi & Gilbert Ekugbe

NIGERIAN Lubricants industry capacity is now peaking at 120.6 million tons (mt) per annum.

An investigation by Nigeria Industrial Digest shows that the country now has over 50 lube blending plants spread across the nation with a combined installed capacity of 120.6mt.

One of the Lubes blending plants in Nigeria

Top 10 Blenders

Data obtained by Nigeria Industrial Digest from Department of Petroleum Resources (DPR) one of the Industry regulators and Lubricants Producers Association of Nigeria (LUPAN, reveals that the top 10 lube blending plants in the country are operated by oil/gas giants the like of Total Nigeria Plc, Ocean and Oil (Oando); MRS Oil Nigeria Plc, Conoil Plc, and Fore Oil Plc. Others are Ammasco International Ltd, Lubcon Ltd, Ronald Oil and Gas West Africa; Tonimas Nigeria Ltd and Dozzy Oil & Gas Ltd.

A breakdown of the Industry’s total base-storage capacity of over 120 million liters shows that Total Nigeria leads the pack with 22.1 million tons from across its blending plants in Lagos, Kaduna, and Koko in Delta State. This represents 24 percent of the industry’s controlling or market share.

Oando follows with 15.9 million tons or 17 percent market share; MRS Oil is third on the top- ten charts with 11 million tons, representing 12 percent market share; Conoil 9 million tons or 10percent market control  and Forte Oil 8million tons, representing 9 percent market control.

Ronald Oil and Gas, Imo State, is the sixth largest blender with 6. 7 million tons, while Kano-based Ammasco International Ltd occupies 7th position with 6.6million tons, followed by Lubcon 5million storage capacity; Tonimas Nig whose blending plant is located in Abia State is the ninth largest blender with 4.4 million storage capacity while Onitsha –based Dozzy Oil and Gas is the tenth largest lube blender in the country with 3 million tons of storage capacity.

Local demand

In a telephone interview with Nigeria Industrial Digest, Mr. Emeka Obidike, the Executive Secretary, Lubricants Producers Association of Nigeria (LUPAN) said that out of the total installed capacity in the country, the association’s member companies account for about 650,000 metric tonnes per annum with local demand currently at 550,000 metric tonnes annually. He added that Nigeria has the capacity to meet local demands and even export while calling on the total ban on lube oil, maintaining that this would go a long way to conserve the nation’s hard-earned foreign exchange.

Industry Challenges

He noted that the industry is faced with challenges of multi-licensing from regulatory bodies such as Petroleum Products Pricing Regulatory Agency (PPPRA) demanding for 10 Kobo as an administrative charge.

“They have no right to charge for this because they do not have any role to play in our operations. We want the federal government to address this because it is hindering our operations in the country,” he said.

“The local production of lube oil is about 20 percent while the influx of lube oil from countries like Dubai, Turkey and few countries within that region takes about 80 percent,” he said.

“We will not sit down and watch these people pull down the investment of genuine manufacturers or importers. As long as you are law abiding, we will be there to protect you”

Osita Aboloma, the Director-General, Standards Organisation of Nigeria (SON)  recently engaged in discussions with stakeholders in the industry,  and  he charged  them be producing to international best practices.

“We see your services as life-threatening and life-endangering services. The effect of your product is far reaching and we cannot industrialise without your products. You are formidable partners and stakeholders in the Nigerian project,” he said.

While assuring LUPAN of required support as much as possible, the DG also read riot acts to unscrupulous dealers who indulge in the act of faking and adulterating established and successful brands in order to cheat consumers and undermining the industry.

“We will not sit down and watch these people pull down the investment of genuine manufacturers or importers. As long as you are law abiding, we will be there to protect you,” he said.

Alhaji Mustapha Ado, Chairman / Chief Executive Officer, Ammasco International Limited, expressed the association’s commitment to work with SON to sanitise the industry.

“We want you to come in to support us so that we can invest more and even attract foreign direct investment into the industry. We currently employ more than 2000 people in my company imagine if we can have 10 of such factories in the country, it would go a long way to reduce youth unemployment in the country,” he said.

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