FG To Crack Down On Unlicensed Petroleum Product Dealers
The Federal Government of Nigeria has issued a stern warning to unlicensed petroleum product dealers, stating that they will be prohibited from loading products starting from June 1, 2023.
The government emphasized that obtaining a license is a mandatory requirement for anyone involved in the trade of petroleum products.
The announcement was made during a stakeholders’ engagement on gas utilization in Abuja, organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
No License, No Loading: Government’s Firm Stand
The Nigerian Midstream and Downstream Petroleum Regulatory Authority stressed that compliance with the licensing requirement is crucial, and failure to obtain a license will have serious consequences.
The Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Ogbugo Ukoha, reiterated that from June 1, 2023, unlicensed facilities will be shut down, and licensed operators supplying petroleum products to such facilities will face consequences.
The Importance of Licensing and Safety Measures
Ukoha emphasized that obtaining a license is essential for anyone handling petroleum products exceeding 500 liters of storage.
The licensing procedure involves a thorough evaluation of equipment, distance, hazards, and safety procedures. By adhering to the licensing regime, operators can ensure their businesses comply with regulations, thereby minimizing risks and maintaining operational safety.
Embracing the Opportunities in the Gas Value Chain
In addition to highlighting the licensing requirement, Ukoha encouraged operators to explore the possibilities within the gas value chain.
He emphasized the importance of diversifying energy sources and embracing gas derivatives such as Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Autogas, propane, and butane.
Investing in these alternatives not only helps mitigate future uncertainties related to petrol and diesel supply but also aligns with the government’s efforts to transition to cleaner energy sources.
Government Initiatives to Boost Gas Utilization
The Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Chief Executive Officer, Farouk Ahmed, highlighted the various initiatives and policy frameworks put in place by the Federal Government to promote gas utilization.
Initiatives such as the National Gas Expansion Programme and the Decade of Gas Programme aim to deepen the use of gas in Nigeria.
Ahmed also mentioned the Midstream and Downstream Gas Infrastructure Fund, established under the Petroleum Industry Act 2021, which will catalyze investments in gas infrastructure.
However, collaboration between stakeholders is essential to further enhance domestic gas utilization.
As the deadline for compliance approaches, operators in the petroleum product industry are urged to obtain the necessary licenses promptly.
Embracing the transition to gas derivatives not only ensures compliance but also contributes to a sustainable and resilient energy future for Nigeria.
The government’s commitment to promoting gas utilization signifies a positive step toward energy diversification and environmental sustainability.