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September 28, 2016

Volume 17 Issue 52

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Nigeria to Prosecute Unlicensed Blenders

The Nigerian Department of Petroleum Resources recently raided three unlicensed blenders in the north central state of Kwara for producing substandard products.

The raid, in which 50 persons were arrested, resulted in the closure of three oil blending factories, including Segma Oil Ltd., Manner Business Ventures and Wobles Ventures in Kwara state.

Adunola Kasali, a deputy manager in the downstream division of the DPR, said the blenders were raided because they were unlicensed to operate blending plants and were producing substandard lubricants.

“The three companies were raided because they were producing off spec and counterfeiting lubricant products, which have adverse consequences for legitimate blenders and consumers,” said Kasali.

“The essence of what the DPR is doing is sanitizing the lubricant industry so that licensed blenders who are doing legitimate business can benefit from the sector.”

Lube Report could not reach the parties involved for comment, due to their arrests.

Industry stakeholders, such as Emeka Obidike, executive secretary of the Lubricant Producers Association of Nigeria, lauded the arrest of the blenders, urging the DPR to intensify efforts to rid the industry of unlicensed blenders and counterfeiters.

“All members of Lupan are in support of this action because counterfeiting and substandard lubes impact adversely on both machinery and human and these have consequences on the economy in the long run,” said Obidike. “We cannot have a situation whereby counterfeiting thrives, it is not acceptable. I call on the DPR to carry out more raids in other states of the federation where base oil is being packaged as lubricants. These fake blender’s counterfeit products of Lupan members and supply it to the market, and this is not acceptable.”

“We are very happy with the development because we don’t support fake blending companies,” said Taiye Williams, managing director for Kwara-based Lubcon International Ltd. He added that the three companies were not known to other blenders in Nigeria and said they were blending from a secret location in Kwara state.