70% of Lubricants Consumed in Nigeria Substandard, Says Ikokwu
About 70 per cent of the total lubricants consumed in Nigeria has been described as substandard, prompting players in the subsector to deploy technological advancement in tackling the menace.
The Chief Marketing Officer, OVH Energy Marketing, Mrs. Lilian Ikokwu, disclosed this while speaking on “Technology as a Tool to Curb Proliferation of Substandard Lubricants in Nigeria”, at the 2022 Nigeria International Lubricant Conference (NILC 2022),themed: “Technology and Its Application to the Lubricants Industry.”
Ikokwu also revealed that out of the 25 per cent of lubricants imported into the country, 64 per cent of the volume was substandard, adding that 75 per cent of lubricants consumed in the country was produced by local manufacturers.
She expressed optimism that in the next few years, Nigeria would be producing 100 per cent of its lubricants demand, saying the 75 per cent produced in-country was encouraging.
“75 percent of the lubricants consumed in this country is produced locally, which is encouraging. We do hope that in very few years, we would do 100 per cent of what we produce.
“Out of the 25 per cent being imported, 64 per cent of that volume is substandard. In total, we have 70 per cent of total lubes consumed in Nigeria being substandard,” Ikokwu added.
Industry data indicates that in Africa, Nigeria consumes about 700 million litres of engine oil, which is just one per cent of the world’s total demand.
This, according to a 2021 Global Trust Consulting report, translated to a gross earning of N150 billion in 2013 and over N450.37 billion at the end of Q1, 2021, making Nigeria the third largest consumer of lubricant in Africa.
The cumulative assets for blending lubricant plant were put at about N20 billion, which in 2013 generated about N45 billion profits and quadrupled this figure in the Q1, 2021, the report had stated.
In his intervention at the conference, General Manager, Sales and Technical, Pacegate Energy and Resources Limited, Mr. Franklin Oranusi, who dissected the presence and causes of adulterated lubricants in the market, blamed the blenders in the country.
According to him: “The reason for having substandard lubricants is not farfetched. Most of the blenders present in Nigeria do not put many factors into consideration during the product formulation process.”
He, however, noted that with an understanding of the right proportions of components, blenders would produce standard lubricants for the Nigerian market.
On his part, the keynote speaker and Managing Director of Lubcon Limited, Mr. Taiye Williams, observed that as manufacturers push the boundaries of engine development, the pursuit of performance has placed new demands on the lubricants required by modern machines.
With the application of technology, according to Williams, the lubricant industry will produce top quality products, build the capacity of the industry and increase output for Nigeria to remain relevant in the lubricant market.