Nigeria has responded to criticism following its recent decision to increase diesel sulphur content, defending its position.

Nigeria's oil regulator clarified on Thursday that recent adjustments to diesel fuel sulphur content standards are part of a broader regional harmonisation initiative, not a relaxation of regulations for local refineries.

According to an S&P Global report last week, Nigeria's modification of its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm raised concerns about potentially lowering standards to accommodate domestically produced diesel exceeding the 200 ppm cap.

However, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) emphasized that it was simply following a 2020 decision by the Economic Community of West African States (ECOWAS), which mandated a gradual transition to cleaner fuels across the region.

High sulphur content in fuels can cause engine damage and contribute to air pollution.

The current ECOWAS regulation allows locally produced fuel to maintain a higher sulphur content until January 2025. Following this, a uniform standard of below 5 ppm will be enforced for both domestic refining and imports from outside West Africa.

According to NMDPRA chief Farouk Ahmed, these new limits align with the ECOWAS decision made in 2020, which mandated stricter fuel specifications. Enforcement began in January 2021 for non-ECOWAS imports and will commence in January 2025 for ECOWAS refineries.

Ahmed stated, "We are simply implementing the ECOWAS decision adopted in 2020."

"Under the ECOWAS rule, a local refinery producing diesel with a sulphur content of 650 ppm is currently permissible and considered safe until January next year," Ahmed explained. "At that point, a uniform standard will be implemented for both locally refined and imported products outside West Africa."

Ahmed further noted that importers were informed about the gradual reduction in allowable sulphur content, which decreased to 200 ppm this month from 300 ppm in February, well before the commencement of diesel supply from the Dangote refinery. Previously, importers were allowed to bring in diesel with a sulphur content ranging from 1,500 ppm to 3,000 ppm.

This shift towards cleaner fuels not only aligns with global environmental initiatives but also ensures a fair competition landscape for regional refiners.