N300bn investment in jeopardy over ban on high-capacity fuel tankers

•2,000 trucks to be affected

By Adewale Sanyaolu

The federal government’s decision to ban fuel tankers with a carriage capacity of 60,000 litres from operating on Nigerian roads has thrown the downstream petroleum sector into confusion, just as it raised concerns over potential disruptions to fuel distribution across the country.

In a directive issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPR   A), operators have been given until March 1, 2025, to phase out these high-capacity tankers. According to the regulatory body, the move is aimed at addressing the alarming frequency of road accidents involving petroleum-laden tankers, which have resulted in catastrophic loss of lives and property.

Over the years, Nigeria has witnessed multiple tragic incidents caused by fuel tanker crashes, often leading to devastating explosions. The nation is still reeling from the recent disaster in Niger State, where a tanker explosion claimed over 98 lives, leaving families shattered and communities in mourning. That tragedy was swiftly followed by another deadly incident on the Enugu-Onitsha Expressway, where at least 18 people lost their lives and many others suffered severe injuries after a petrol tanker erupted into flames.

The accident, according to the Federal Road Safety Corps, happened after the tanker, laden with petrol, lost control and rammed into 17 vehicles and burst into flames immediately.

Prior to these two recent incidents, there was the Otedola Bridge incident in  2018, the Onitsha fuel tanker fire in 2019, the  Kogi tanker explosion in 2020 and the  Lokoja explosion that killed several people, the story has been the same. In 2021, there was the Benue tanker explosion as well as the Ogun state tanker accident in 2023 and in recent times, the deadly incidents in Niger and Enugu states. In all the indents, among others, overloading has been fingered.

Executive Director, Distribution Systems, Storage, and Retailing Infrastructure at the NMDPRA, Ogbugo Ukoha, while making the announcement in Abuja, said the ban was one of the 10 resolutions reached by the stakeholders’ technical committee on how to tackle the significant increase in crashes that had been observed in relation to trucks and transit incidents and fatalities.

“It was decided that beginning March 1, any truck with an axle load that is carrying more than 60,000 litres of hydrocarbon will not be allowed to load at any loading depot. By Q4 of 2025, we will also preclude the loading or transportation of petroleum products on any truck in excess of 45,000 litres.

“So that is the breaking news for today. This is just one out of 10 measures that stakeholders have agreed that need to be addressed if we want to mitigate the high level of trucks in transit accidents. The important thing about this is that for the first time consensus was built amongst all stakeholders and we are continuing to encourage that we work together cohesively to deliver a safe transportation of petroleum products across the country,” Ukoha stated.

However, the National President of the National Association of Road Transport Owners (NARTO), Mr. Yusuf Othman Lawal, in a telephone interview with Daily Sun, said the decision by the FG would put over N300 billion in investments in jeopardy.

Othman added that it cost an average of N150 million to procure a truck, saying the number of vehicles to be affected with this new directive was in the region of 2,000 trucks.

He added that NARTO members own and control more than 10,000 trucks involved in the haulage of petroleum products across the country.

He lamented that some its members have sourced funds from the banks to purchase the vehicles and were still servicing the loans as the time the directive was unveiled.

“As a law abiding association, we have no choice than to comply with the directive of the Federal Government. We are still studying the implication of the directive on our members and at the appropriate time, we shall make a full pronouncement”.

In his reactions on the latest directive by NMDPRA, energy policy analyst and Team Lead, Platforms Africa, Mr. Adeola Yusuf, acknowledged the government’s intention to curb fuel tanker mishaps but argued that the measure alone would not eliminate the problem.

“Even though that may have some kind of effect, I don’t think that alone will stop fuel tanker explosion and accidents on Nigerian roads,”.

Yusuf, attributed the accidents to the poor state of Nigerian roads, saying: “Part of what contributes seriously to tanker accidents is the bad roads. The NMDPRA ought to have provided an alternative.”

He suggested that the NMDPRA should focus on fixing the country’s pipelines, which would enable easy transportation of fuel products rather than trucks.

“What the NMDPRA should be doing now, in addition to the effort made to stop loading of 60,000 litres trucks, is to ensure that those pipelines are fixed”.

He further proposed the use of trains to transport inflammable products, as it is done in other countries pending when the pipelines are fixed. The analyst also stressed the importance of ensuring the good condition of trucks and collaboration with road safety agencies to minimize accidents.

“Beyond adopting other means like train transportation, they should see more to the state of the engines of those trucks. They need to engage in serious collaboration with road safety agencies like the FRSC, the VIO, even the police to ensure accidents of fuel tankers on Nigerian roads are totally stopped.”

But the National President, Petroleum Tankers Drivers (PTD), a branch of the National Union of Petroleum and Natural Gas Workers (NUPENG), Mr. Augustine Egbon, in a telephone interview with Daily Sun, said the decision is a welcome development.

Egbon said investors in fuel tankers were only interested in maximising profit without adequate consideration for his members’ safety. He lamented that PTD have lost several of its members to explosions occasioned by the heavy weight of tankers conveying petroleum products.The PTD boss explained that about 30 to 40-years, fuel tankers could only convey 27,000 liters of petroleum products but gradually they moved to 30,000, then to 45,000 and now 60,000 litres.

Egbon dismissed claims that the directive would lead to job losses, explaining that it was better to remain alive and seek opportunities with light weight trucks than to be dead.

While safety concerns remain paramount, industry stakeholders worry about the ripple effects of the ban on fuel supply chains, as high-capacity tankers play a critical role in bridging the energy gap across Nigeria.