Stakeholders in the downstream sector of the petroleum sector industry have raised alarm over the inflow of substandard and fake lubricants into the country. They have urged the Federal Government to halt the influx with legislation that will enable local manufacturers to produce genuine products needed to fast track industrial and economic development.
Stakeholders in the downstream sector of the petroleum sector industry have raised alarm over the inflow of substandard and fake lubricants into the country. They have urged the Federal Government to halt the influx with legislation that will enable local manufacturers to produce genuine products needed to fast track industrial and economic development.
The Lubricants Producers Association of Nigeria stated last week that: "It is worrisome to note that the market is also a dumping ground for sub-standard and off-specification imported lubes of questionable quality. All these infractions are, indeed, a threat to the survival of lube manufacturers in Nigeria."
The indigenous lubricant industry, which currently employs over 5,000 workers, has the potential to generate over 50,000 additional jobs if the plants are working at full installed capacities, the association noted.
The Managing Director, Lubeservices Associates, Mr. KayodeSote, who spoke at the lubricant summit organized in Lagos said that government should use its might to end the influx , provide level playing ground for local lube makers to produce the product urgently needed to fast track the development of the Nigerian economy.
He noted that Nigeria was the third largest consumer of lubricating oils which is over 600 million litres (one per cent of the world total demand), with gross earnings of N150 billion in 2013.
According to him, there are 32 registered blending plants in the country, with total installed capacity of about 965 million litres per annum, all of which are currently producing at a cumulative average of 45 per cent of their total installed capacity.
"The cumulative asset base of the blending plants is about N20bn, generating about N45bn profit margins in 2013.It has been estimated that 75 per cent of the total need of lubricating oils is produced locally, while the remaining 25 per cent comprised, specialised products imported by the marketing companies into the country." he said.
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