FEATURE COVER


PROFESSIONAL ASSOCIATIONS


LUPAN; Commited to Nigeria Lubes market growth


I


By Miriam Wangari n every


industry, cooperation


among industry players is key in having a healthy working envi- ronment. One way of promoting this cooperation and partnership


is through forming associations and unions. Associations are created to es- tablish strength and unity in working toward common goals in virtually every profession. These alliances are nonprof- it organizations formed to promote the economic or social well-being of their members.


In the lubricants industry, Oil Market-


ing Companies (OMCs) in different coun- tries have formed organizations that ca- ter for their needs and goals. Lubricants Producers Association of Nigeria (LUPAN) is one of such organizations. Nigeria is Africa’s most populous country and is a huge market for lubricants. It is estimat- ed that Nigeria consumes about 364 mil- lion liters of lubricants every year. This consumption grows by more than five percent each year due to the addition of new vehicles and machinery. LUPAN is made up of lubricant blend-


ers operating in Nigeria and it was started with the vision to develop and promote the lubricant industry as it affects the na- tional economy. Formed in 2009, LUPAN has grown to have close to 40 members. The membership of LUPAN is exclusive to corporate bodies licensed to carry on the business of lubricant blending, by the regulatory body of the Nigerian pe- troleum sector; the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). These corporate bodies must be indigenous and operate a standard blending plant accredited by the Agency. Some of the members are; Conoil PLC, Oando Petroleum, MRS Oil & Gas Company Ltd, Forte Oil, Grand Petro- leum, Eterna and Ammasco Internation- al.


The Nigerian lubricants market was SEPTEMBER 2023 | LUBEZINE MAGAZINE


LUPAN is made up of lubricant blenders operating in Nigeria. Its membership is exclusive to corporate bodies licensed to blend lubricants by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.


deregulated in 1991 leading to the setting up of the first indigenous blending plants in the country. Close to two decades lat- er with more players and more blending plants set up, it was imperative to form an organization like LUPAN,


these companies. The aims and objectives of LUPAN are: • To provide a forum where members can meet and exchange ideas with the aim of improving the economic fortunes of member-companies.


• To formulate policies affecting the objectives of the association.


• To analyze national policies and stakeholders’ opinions on such poli- cies as they affect the common inter- est of the association.


• To interact with other recognized and influential trade associations and other bodies whose objectives are consistent with the interest of the association.


• To encourage members to operate their business within the laid down rules and regulations guiding the lu- brication industry.


• To effectively liaise with the govern-


ment regulatory agencies such as (Department of Petroleum Resourc- es (DPR), Standards Organization of Nigeria (SON), Petroleum Products Pricing Regulatory Agency (PPPRA) and other interest groups.


• To encourage compliance with lo- cal and international standards and specifications.


• To undertake or execute programmes which will promote the interest of the association.


• To develop and promote the lubri- cant industry as it affects the nation- al Economy.


to unify


Over the years LUPAN has taken major strides in achieving these objectives, and especially being vocal about the interests of its members. In terms of liaising with government regulatory agencies, LUPAN has been keen on constantly holding meetings with the government bureaus tasked with ensuring compliance to stan- dards such as DPR and SON. DPR is the statutory body responsible for granting licenses to blenders and the importa- tion of petroleum products in Nigeria, while SON, which is responsible for the enforcement of standards and products specification.


In one such meeting with SON in 2021,


LUPAN had a chance to interact with its Director General (DG) Mallam Farouk Salim who acknowledged SON’s existing collaborative relationship with LUPAN and appreciated the Associations’ efforts in the facilitation of a conducive business environment for its industry. One out- come of this meeting was the presenta- tion of three Ford Pickup Utility Vehicles by LUPAN to the Director General of SON, to boost SON’s operational efficiency in the fight against substandard lubricants in the country. SON certifies products through a co-


ordinated operation that involves plan- ning and implementation of factory/port


21


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