ECOWAS Fixes January 2025 Deadline For Adoption Of Cleaner Fuels

Member countries of the Economic Community of West African
States (ECOWAS) have set a January 2025 deadline for the adoption
cleaner fuels and vehicles in the region to reduce air pollution
across the cities.

Speaking at the African Refiners & Distributors Association
(ARDA) 2021 Virtual Workshop Series, ECOWAS Director of Energy,
Bayaornibe Dabire, disclosed that the range of fuel specifications
in the sub-region currently spans 50 Parts Per Million (PPM)
sulphur in some countries to 10, 000 ppm in others.

He said the need for harmonisation led to the issuance of ECOWAS
directive C/DIR.2/09/20 last year, which covers exhaust gas and
particulate emission limits for two-wheeled, light and heavy
vehicles.

Dabire stressed that any improvement in fuel specifications
without alignment with vehicle emission limits would not have the
desired effect, emphasising that member states should prohibit the
import of petrol and diesel which do not comply with the harmonised
fuel specifications.

“From January 1, 2025, only gasoline and diesel that meet the
harmonised fuel specifications can be marketed within the ECOWAS
region. A waiver would be provided for refineries within the region
to remain operational while they introduce measures to comply with
the directive,” he noted.

He stressed that the age limit for importing vehicles into the
ECOWAS region has been set at five years for light-duty vehicles,
two-wheel motor vehicles, tricycles and quadricycles and 10 years
for heavy-duty vehicles, adding that a period of 10 years would be
granted to countries that have not yet adopted the age limits to
gradually comply.

With a population of nearly 400 million, West Africa has one of
the fastest growing car fleets in the world, while majority of
vehicle imports into the region are second-hand and the fuel used
is generally of poor quality.

For instance, in 2016 Onitsha, Nigeria, was designated by the
World Health Organisation (WHO) as the most polluted city in the
world in terms of fine particles, which are very harmful to the
lungs.

Currently, only about 20 per cent of the region’s fuel needs are
refined locally, while 80 per cent is imported.

In his comments, ARDA’s Executive Secretary and Chief Executive
Officer, Anibor Kragha, explained that effective regulatory
frameworks remain critical for development of the energy sector,
especially as Africa’s population is projected to increase
significantly over the next two decades.

He called for clarity from the regulators, individuals and
organisations to which the regulations apply and the consequences
for non-compliance, explaining how a strong regulator can use
data-driven decisions to effectively drive key reforms in the area
of cleaner fuel imports.

Director, Pricing, Planning & Research at the National Petroleum
Authority (NPA) in Ghana, Alpha Welbeck, in her intervention,
called for the need for digital monitoring across the value chain
from offshore to retail, providing end-to-end visibility of
operations and reducing the tendency for companies to cut corners
or make abnormal profits.

Welbeck stated that in Ghana, which currently has the lowest
sulphur content specifications (50 ppm) for fuels in the ECOWAS
sub-region, the Ghana Standards Authority (GSA) periodically
calibrates the fuel dispensers of the 4,300 retail outlets in the
country to ensure that the right quantity of products is
consistently dispensed to consumers.

“The NPA has commenced installation of Automatic Tank Gauging
System (ATGS) at all retail outlets to enhance monitoring of
volumes supplied as well as improve the control of illegal fuel
activities such as illegal imports, dumping and diversion,” she
noted.

Chief Executive Officer, National Oil Ethiopia, Tadesse Tilahun,
stated that effective regulatory support has not yet been fully
addressed in Ethiopia, thereby leaving the downstream sector
vulnerable to unfair trade practices and multiple supply and
distribution challenges.

He added that the different regulatory activities of the sector
have been handled by different government ministries without
adequate coordination or single-point accountability for
responsibilities clearly defined.

“The sector in Ethiopia is faced with scattered regulatory roles
across multiple government organs making decision-making processes
very complex and ultimately increasing the difficulty in ensuring
smooth fuel supply throughout the country,” he said.

Head Strategy & Business Development at Rainoil Limited,
Emmanuel Omuojine also speaking, stated that price controls in
Nigeria had resulted in lost investments in the downstream sector
while smuggling of petrol had persisted due to significant price
differences between Nigeria and its neighbouring countries.

Omuojine said the opportunity cost of funds used for subsidies
had detracted from funding of other key areas of the Nigerian
economy like healthcare, education, transport and power.

Member countries of the Economic Community of West African
States (ECOWAS) have set a January 2025 deadline for the adoption
cleaner fuels and vehicles in the region to reduce air pollution
across the cities.

Speaking at the African Refiners & Distributors Association
(ARDA) 2021 Virtual Workshop Series, ECOWAS Director of Energy,
Bayaornibe Dabire, disclosed that the range of fuel specifications
in the sub-region currently spans 50 Parts Per Million (PPM)
sulphur in some countries to 10, 000 ppm in others.

He said the need for harmonisation led to the issuance of ECOWAS
directive C/DIR.2/09/20 last year, which covers exhaust gas and
particulate emission limits for two-wheeled, light and heavy
vehicles.

Dabire stressed that any improvement in fuel specifications
without alignment with vehicle emission limits would not have the
desired effect, emphasising that member states should prohibit the
import of petrol and diesel which do not comply with the harmonised
fuel specifications.

“From January 1, 2025, only gasoline and diesel that meet the
harmonised fuel specifications can be marketed within the ECOWAS
region. A waiver would be provided for refineries within the region
to remain operational while they introduce measures to comply with
the directive,” he noted.

He stressed that the age limit for importing vehicles into the
ECOWAS region has been set at five years for light-duty vehicles,
two-wheel motor vehicles, tricycles and quadricycles and 10 years
for heavy-duty vehicles, adding that a period of 10 years would be
granted to countries that have not yet adopted the age limits to
gradually comply.

With a population of nearly 400 million, West Africa has one of
the fastest growing car fleets in the world, while majority of
vehicle imports into the region are second-hand and the fuel used
is generally of poor quality.

For instance, in 2016 Onitsha, Nigeria, was designated by the
World Health Organisation (WHO) as the most polluted city in the
world in terms of fine particles, which are very harmful to the
lungs.

Currently, only about 20 per cent of the region’s fuel needs are
refined locally, while 80 per cent is imported.

In his comments, ARDA’s Executive Secretary and Chief Executive
Officer, Anibor Kragha, explained that effective regulatory
frameworks remain critical for development of the energy sector,
especially as Africa’s population is projected to increase
significantly over the next two decades.

He called for clarity from the regulators, individuals and
organisations to which the regulations apply and the consequences
for non-compliance, explaining how a strong regulator can use
data-driven decisions to effectively drive key reforms in the area
of cleaner fuel imports.

Director, Pricing, Planning & Research at the National Petroleum
Authority (NPA) in Ghana, Alpha Welbeck, in her intervention,
called for the need for digital monitoring across the value chain
from offshore to retail, providing end-to-end visibility of
operations and reducing the tendency for companies to cut corners
or make abnormal profits.

Welbeck stated that in Ghana, which currently has the lowest
sulphur content specifications (50 ppm) for fuels in the ECOWAS
sub-region, the Ghana Standards Authority (GSA) periodically
calibrates the fuel dispensers of the 4,300 retail outlets in the
country to ensure that the right quantity of products is
consistently dispensed to consumers.

“The NPA has commenced installation of Automatic Tank Gauging
System (ATGS) at all retail outlets to enhance monitoring of
volumes supplied as well as improve the control of illegal fuel
activities such as illegal imports, dumping and diversion,” she
noted.

Chief Executive Officer, National Oil Ethiopia, Tadesse Tilahun,
stated that effective regulatory support has not yet been fully
addressed in Ethiopia, thereby leaving the downstream sector
vulnerable to unfair trade practices and multiple supply and
distribution challenges.

He added that the different regulatory activities of the sector
have been handled by different government ministries without
adequate coordination or single-point accountability for
responsibilities clearly defined.

“The sector in Ethiopia is faced with scattered regulatory roles
across multiple government organs making decision-making processes
very complex and ultimately increasing the difficulty in ensuring
smooth fuel supply throughout the country,” he said.

Head Strategy & Business Development at Rainoil Limited,
Emmanuel Omuojine also speaking, stated that price controls in
Nigeria had resulted in lost investments in the downstream sector
while smuggling of petrol had persisted due to significant price
differences between Nigeria and its neighbouring countries.

Omuojine said the opportunity cost of funds used for subsidies
had detracted from funding of other key areas of the Nigerian
economy like healthcare, education, transport and power.