Fight substandard lubricants to save local industry, manufacturers tell FG

 

The importation of substandard lubricants into Nigeria is killing local industry while negatively affecting its return on investment, manufacturers say.

At the just concluded 2nd edition of the Nigerian Lubricant Summit, industry stakeholders call on both the National Agency for Food, Drugs Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON) to monitor the influx of imported lubricants into the country due to the widely reported cases of substandard lubricants in the market.

“Over four billion litres of lubricant are being imported illegally into the country yearly,” said Kasali A.A, manager, hydrocarbon processing plant, Department for Petroleum Resource (DPR), who represented the director of DPR.

“This is killing the local lubricants makers and their return on investment,” he added.

The stakeholders also stated that there was need for the recycling of lubricant wastes in order to prevent environmental pollution and the threat of used oil to lives.

Jani Ibrahim, chairman, Lubcon International Group,  said: “We need to prevent the country from becoming a dumping ground. Importation of processed lubricants is a big challenge to the sector.

“I think there is a need for us to present a bill to the National Assembly on recycling of used lubricants in the country,” he said.

To address the issue of pollution and recycling of used oil, the stakeholders said there should be public-private partnership investment and consumer education.

“Consumer education is very important. It is the easiest way to reduce environmental pollution and the threat of used oil,” said Kayode Sote, principal partner, Lubeservices Associates.

“Every blending plant should have at least a recycling unit, not only in cutting cost and making profit but also in keeping the environment clean,” he added.

Nigeria’s government expects revenue of N250 billion from the lubricants market dominated by major oil firms.

Local consumption of the product is expected to hit 805,000 metric tonnes by 2022, from 350,000 to 400,000 metric tonnes per annum, which is currently the consumption level. The country’s lubricant market is expected to double by 2022, going by a projected growth rate of 11.1 per cent per annum, 2015 data from Lubcon International said.

According to the stakeholders who participated at the summit, the regulators should be effective enough and help in stopping the issue of lubricant wastage.  Therefore, the stakeholders placed the responsibility of educating its customers on proper disposal of used oil on lubricant manufacturers, stating that it should not be left only for the regulators.

“There is need for a template where manufacturers can work with mechanic association on how to dispose used oil,” Taye Williams, managing director, LUBCON said.

“As blenders we should be able to support an independent body to have a receptacle to collect used oil for recycling,” he further said.

 

Josephine Okojie

 

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