Stakeholders in Nigeria’s downstream sector are pushing back against the Federal Government’s planned ban on large tankers carrying over 60,000 litres of petroleum products.
The Nigerian Association of Road Transport Owners has expressed concerns that the restriction could disrupt fuel distribution and drive up costs
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria has called on President Bola Tinubu to intervene and cushion the impact on transporters and fuel marketers.
The ban, set to take effect on March 1, 2025, was announced last week.
The decision follows concerns over recurring accidents and explosions caused by overloaded trucks, which have resulted in 493 deaths over the past three years.
NARTO’s National President, Yusuf Othman, said that the restriction would reduce the supply of petroleum products, especially in Northern Nigeria, which relies heavily on products transported from Southern depots.
“The ban, which takes effect from March 1, 2025, will prevent trucks carrying more than 60,000 litres from loading at depots and travelling on federal roads. By October 1, 2025, the restriction will be further reduced to 45,000 litres per truck,” he stated.
Othman stated that the association is reviewing the situation and working with its members to assess potential financial losses, which could exceed N300 billion in investments.
He also raised concerns about the livelihoods of approximately 2,000 drivers, 2,000 motor-boys, and their families, who could be directly affected by the ban.
He added that NARTO is also exploring the possibility of modifying the affected tankers through fabrication to comply with the new regulations.
“We are exploring options such as fabricating smaller tankers to comply with the new regulations. We are also looking into how we can tap into the Federal Government’s policy on Compressed Natural Gas and associated infrastructure development,” Othman said.
“In a few days, we will have a clearer position on the matter, but for now, we have taken the government’s directive in good faith.”
Othman also highlighted the poor state of Nigeria’s roads as a major factor in tanker accidents.
He stressed that while regulating tanker capacity is important, addressing the country’s deteriorating road infrastructure is equally crucial to improving safety and reducing accidents.
“We have asked the government what measures they are taking to improve the condition of our roads, as this is another factor contributing to fuel tanker accidents,” he said.
Othman warned that the ban could reduce fuel supply to remote areas in northern Nigeria, as fewer high-capacity tankers would be available for transportation.
He stressed that this could lead to supply shortages and higher costs, affecting businesses and consumers in the region.
“The deregulation of the sector has already made market dynamics unpredictable. It’s difficult to forecast all the possible outcomes, but there will undoubtedly be an effect on the volume and cost of fuel distribution,” he noted.
In a statement on Sunday, PETROAN President, Billy Gillis-Harry warned that the ban could affect about 100,000 people in the petroleum sector.
He urged the government to reconsider the policy and find a solution that safeguards both livelihoods and fuel distribution across the country.
According to the statement, statement, PETROAN commended President Bola Tinubu for prioritizing Nigerian lives by enforcing the ban on trucks carrying over 60,000 litres of hydrocarbon products to curb tanker accidents and explosions.
“The stakeholders’ roundtable that reached the consensus decision was championed by NMDPRA, bringing together key players in the industry, including the Nigerian Association of Road, Standard Organisation of Nigeria, Major Energies Marketers Association of Nigeria, and Directorate of State Services, the Nigeria police, Nigeria security services, the fire service, among others.
“While the ban aims to reduce accidents, it may lead to significant job losses and financial losses for truck owners. Notably, members of NARTO, DAPPMAN, PTD, NUPENG, MEMAN, and PETROAN collectively own thousands of trucks affected by the ban. These trucks support over 100,000 employees, including truck drivers, conductors, mechanics, haulage personnel, truck supervisors, and many others who rely directly or indirectly on these trucks for their livelihood.
“In light of this, the National President of PETROAN is calling on President Tinubu to intervene and mitigate the impact of the ban on affected stakeholders. Dr Harry urges the President to consider measures that will cushion the effects of the ban, particularly on small-scale businesses and truck owners who will be severely affected.
“Finally, the National President of PETROAN has called on all stakeholders to comply with the ban accordingly,” the statement stated.
Meanwhile, Industry expert, Olatide Jeremiah, criticized the proposed ban, calling it a misplaced priority.
He warned that the policy could cause a surge in petrol prices in northern Nigeria due to reduced supply and increased transportation costs.
