Fuel Overview 

There are several fuel storage companies in different locations, these are concentrated in the South of Nigeria.

The fuel is distributed throughout the country by the State oil corporation, Nigerian National Petroleum Corporation (NNPC) and by independent marketers including Nigerian businesses and subsidiaries of international companies.    

The NNPC has a distribution network with around 700 stations throughout the country.

Nigerian Independent Petroleum Company Plc (NIPCO), formerly called IPMAN, is an association of Independent Marketers of Petroleum Products across the nation. It has about 6,000 members, each of them owning from two to eight filling stations in different parts of the country, and nearly 75% of the country's total oil distribution is through the IPMAN filling stations. 

The NIPCO/IPMAN cooperative, involving the physical financial participation of about 3,000 independent oil marketing companies, has been acknowledged as the second largest employers of labour after the Federal Government in the sector. 

There are problems in the marketing and distribution of petroleum products in Nigeria and acute shortages occur due to: 

-  location of some depots far from the source of supply of these products 

- inability of supply to equate demand during festive periods e.g. Easter, Christmas and New Year 

- poor transport infrastructure 

- frequent power failures 

- inadequate storage and refining capacity 

- finance inadequacy 

- activities of thieves/vandals 

- non-uniform pricing 

- unforeseen strike action 

There have been instances of Jet A-1 fuel supply crises of low stock due to the inability of marketers to get the foreign exchange to import more Jet A-1 fuel into the country. Airlines have had to postpone flights while waiting for the fuel marketers to source and deliver the product. 

Nigeria is the only member country in the Organisation of Petroleum Exporting Countries, OPEC, that imports petrol. 

According to the International Energy Agency (IEA), the country’s four refineries (two in Port Harcourt, and one each in Warri and Kaduna) produce a combined 445,000 barrels of petrol per day (bdp). It is 120 times less than the country’s daily need, which currently stands at 53 million litres per day (2018 figures). NNPC imports one million tonnes of petrol per month. 

Nigeria was the fourth-largest buyer of Chinese gasoline in January 2019.

For more information on government and fuel provider contact details, please see the following links:

4.1 Nigeria Government Contact List

4.7 Nigeria Fuel Providers Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly.  

Fuel Pricing 

Petroleum Products Pricing Regulatory Agency (PPPRA) is a governmental organisation with responsibility for monitoring and regulating the supply and distribution, and determining the prices of petroleum products in Nigeria. 

The Government established the Petroleum Support Fund (PSF) with effect from January 2006 as an interventionist fund. The PSF is a pool of funds provided in the budget to stabilize the domestic prices of petroleum products against volatility in international Crude and Products Prices. The PSF account is expected to be supplemented with the accruals during the period of over-recovery (over-recovery here refers to the period at which the PPPRA recommended ex-depot is higher than the Landing Cost). 

Seasonal Variations  

Variations in price may occur as a result of shortages that occur during holiday festive seasons when extra usage puts pressure on supply 

Fuel Transportation 

Transportation of fuel is a weak link in the supply chain. It is carried out through pipeline, trucks and railway.  Poorly maintained road networks, decaying railroads and tanker fleet are not sufficient to handle current domestic needs. Direct supply pipelines to airports are subject to deterioration as a result of lack of maintenance and contribute to increased costs due to the necessity of using tankers to transport fuel.    

Standards, Quality and Testing 

Standard of quality is often variable due to deficiencies in fuel transport infrastructure as mentioned above. 

Further contact information on additional accredited laboratories can be found at: https://www.dpr.gov.ng/wp-content/uploads/2019/02/Accredited-Laboratories-2018updated.pdf 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.  

The road transport market is very vibrant as a result of the country’s heavy reliance on this form of transport for all sectors. There are a number of large companies who operate nationwide and many smaller owner operators who are strictly regional. As an approximate guide to proportion of total market it may be roughly divided up by;  

- Largest Operators (200+ fleet size) 20%

- Medium size Operators (100 – 200 fleet size) 15%

- Small operators (less than 100 fleet size) 15%

- Owner Operators (1 – 2 trucks) 50% 

The larger operators generally maintain better quality, more reliable fleets. Communication is by mobile phone. Around 5% of the national fleet have GPS positioning systems. Generally, the service of transport operators is honest and reliable, and security risk is due to factors outside their control, such as accidents and highway thieves. Current capacity is able to meet current demand and would accommodate surge capacity. In rainy season however shortages of covered trucks occur. 

The Nigerian Association of Road Transport Owners (NARTO) is a strong National Union with sub- branches within all states. Trucks may only travel interstate with an annual permit purchased from NARTO and displayed at all times. Foreign transporters are allowed to operate domestically provided they meet Nigerian transportation registration requirements and receive a permit at the border for a round trip to a single destination. 

For more information on transport company contact details, please see the following link: 4.8 Nigeria Transporter Contact List

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

Sources of employment law are the Constitution of the Federal Republic of Nigeria 1999, the Labour Act Chapter L1, federal laws enacted by the National Assembly and State laws enacted by the House of Assembly. 

There are two broad categories of employees in Nigeria. ‘Workers’ defined under the Labour Act as “who are generally employees who perform manual labour or clerical work” and ‘Non-Workers’ - employees who perform administrative, executive, technical or professional functions. The Labour Act which prescribes the minimum terms and conditions of employment applies only to ‘Workers’.  

Section 7 of the Labour Act requires every employer to issue a written contract to an employee within 3 months of the commencement of the employment relationship. The Labour act prescribes minimum terms and conditions of employment that employers must comply with including safety, sick and maternity leave, discrimination, termination and dismissals. Full detail of the act can be viewed at:  http://www.nigeria-law.org/LabourAct.htm 

There are many unions in Nigeria and they wield some power. The Nigeria Labour Congress (NLC) is an umbrella organisation for trade unions in Nigeria, it has 29 affiliated unions. In total, it has around four million members, according to its own figures, making the association one of the largest trade unions in Africa. In the past they have instituted national strikes for worker rights. 

The official current (May 2019) minimum wage is N30,000/month ($ 83.00/month). 

Unskilled manual labour is plentiful and relatively cheap and when there are no time considerations, often used to as an option rather than expending capital on machinery.  

Nigeria has one of the largest telecom markets in Africa. The sector’s regulator is the Nigerian Communications Commission (NCC) operating a unified licensing regime. 

Nigeria has the most competitive fixed-line market in Africa, featuring a second national operator (Globacom) and over 80 other companies licensed to provide fixed-telephony services. The alternative carriers combined provide around 85% of all fixed connections, though in general terms about 80% of all connections are wireless. 

The telecom sector attracts considerable foreign investment, resulting in a strong multinational presence, and government infrastructure programs will further stimulate investment in coming years.  

There is strong price competition among telecom operators on their voice and internet data, and while Nigeria’s data bundle prices are the lowest in sub-Saharan Africa, they are priced below actual costs so smaller mobile network operators find it hard to survive in the market, which leaves an industry dominated by few players. 

The leading players are MTN, a South African-based multinational company with a market share of 37.21%, Airtel (an Indian based multinational telecommunication), Glo (a Nigerian multinational company) and 9mobile (formerly Etisalat). Other than the key mobile network operators, there are a number of additional players operating. 

Several microwave and fibre-based national backbone networks are being rolled out by various companies. The landing of additional submarine cables (supported by improved domestic fibre infrastructure) has delivered a further boost to the country’s developing broadband sector by improving bandwidth. Globacom is building a second cable, Glo-2, to reinforce its infrastructure in the south of the country. 

Registering SIM cards/mobile numbers with or without a data plan is a simple process and all that is required is a recognized form of ID.

For more information on telecoms contacts, please see the following link: 4.11 Nigeria Additional Services Contact List

Telecommunications Regulations 

Importation of humanitarian communications equipment: VSAT, HF, VHF, Thurayas, etc. is allowed, this can be checked on the Approved Communications Equipment List (https://www.ncc.gov.ng/documents/552-list-of-type-approved-communications-equipment-201409/file). 

There is an annual licensing fee for setting up fixed and mobile stations including microwave and VSAT networks and 2-way radio systems (https://www.ncc.gov.ng/licensing-regulatory/licensing/fees-pricing#individual-license).

Existing Humanitarian Telecoms Systems 

There is no formalised humanitarian telecom system outside of the North Eastern region. UNDSS (Abuja) is the focal point for UN Organisations. International NGO Safety Organisation (INSO) is the focal point for all other NGOs.

The Emergency Telecommunications Sector (ETS) is providing shared internet connectivity and security telecommunications related services to the entire humanitarian community in North-East Nigeria.

ETS connectivity services are used by an average of 91 humanitarians in Maiduguri and 25 humanitarians in the field hubs on a daily basis. In 2018, the ETS  provided internet connectivity to over 2,931 humanitarians from 106 organisations across North-East Nigeria. 

Internet Service Providers (ISPs) 

Reliable Internet connectivity is readily available and there are multiple private ISP companies. Businesses can easily connect wirelessly by taking out short- or long-term contracts.    

Mobile Network Operators (MNOs) 

MTN Group Limited, formerly M-Cell, is a South Africa-based multinational mobile telecommunications company, operating in many African, European and Asian countries. Its head office is in Johannesburg. 

Etisalat, headquartered in Abu Dhabi, provides services to 141 million subscribers in 15 countries across the Middle East, Asia and Africa.

Airtel has network presence in all states of the Federation, Local Government Areas, major towns and villages in Nigeria. The company’s mobile networks cover over 70% of Nigeria’s population and its 3G coverage ratio is over 41%. The company’s distribution network spreads across over 40,000 retail outlets with well over 332,042 retailers. 

Reliable countrywide coverage over 80% of all areas is claimed by these companies (see links after table below) and they offer all internationally expected services. 

The regulatory framework for mobile money services in Nigeria can be read here: https://www.cbn.gov.ng/out/2015/bpsd/regulatory%20framework%20for%20mobile%20money%20services%20in%20nigeria.pdf 

For information on MNOs please visit the GSM Association website.    

For detailed coverage information please visit: www.mobilecoveragemaps.com/map_ng#10/11.8445/13.1067 

Also ITU coverage map: https://www.itu.int/itu-d/tnd-map-public/  

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

Ample supplies of staple foods can be procured on the local market. Generally, there is a wide variety of foods and most suppliers stock the same items which tend to keep price competitive. Quality and pace of supply can be limited depending on the timing of procurement. 

Other goods and services are also readily available with varying quality and quantity. There would be the ability to scale-up if required as unprohibited items can be imported reasonably quickly. Albeit at a higher price, for relief items eligible for tax exemptions, it should be noted that items may be procured locally in less time than it takes to obtain the necessary import exemption paperwork from Government offices that generally tend to encourage locally produced products over imports. 

The manufacturing sector is dominated by the production of food, beverages and tobacco, with sugar and bread products generating the greatest value of output. Manufacturing in Nigeria is beset with challenges; chief among them is power supply. Most firms rely on “emergency” power generators to run seamless operations, adding to costs. There are also regulatory issues, a multiplicity of taxes, and trade facilitation issues, and supply variability of rain-dependent agricultural inputs among others. Infrastructure in the transport sector is also a constraint. 

The government is seeking to encourage the sector through port reforms, import bans, facilitation of cheaper funding and ease of doing business initiatives.  

Generic country information can be located from sources which are regularly maintained and reflect current facts and figures. For a general overview of country data related to the service and supply sectors, please consult the following sources: 

The Observatory of Economic Complexity – MIT (OEC): https://atlas.media.mit.edu/en/profile/country/nga/ 

Other relevant links  

https://dataafrica.io/profile/nigeria#CropsByProduction 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

Overview

Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. An agency or organization should be able to meet their programme support needs in terms of equipment and expertise by procurement on the local market. Generally international brands or comparable alternatives are available at realistic prices.

For more information on company contact details, please see the following link: 4.11 Nigeria Additional Services Contact List

Accommodation

The housing market is generally well developed in major urban areas with a large selection of hotels, apartments and guest houses. Levels of security and standard vary widely however, and security clearance from local agencies should be sought for staff accommodation. Whilst Nigerian cities are well able to support any, or a large influx of demand, outlying and rural areas may require the setting up of humanitarian accommodation hubs to provide minimum standards of all criteria required by agencies.

Electricity and Power

Electricity generation in Nigeria is characterised by excess capacity and inadequate supply. It has been observed that peak demand is often about one-third of installed capacity because of the non-availability of spare parts and poor maintenance. Voltage is 240 V.

Nigeria’s transmission network consists of high voltage substations and over 20,000km of transmission lines. Currently, transmission wheeling capacity is far below the total installed generation capacity of 12,522 MW. In recent times, power supply across the country has gone to a little above 2,000 MW amid reports of damaged gas pipelines and comatose power stations.

The entire infrastructure is essentially radial, without redundancies thus creating inherent reliability issues. At an average of approx. 7.4%, the transmission losses across the network are high compared to emerging countries’ benchmarks of 2-6%. Frequent system collapses (as at May, Nigeria’s power grid had collapsed six times in 2019) reflect the critical infrastructure and operational challenges in the transmission subsector of the industry.

There is widespread private provision of electricity by plants set up by a person, association or a company to generate electricity primarily for their own use usually referred to as ‘captive power supply’. Captive electric power supply has been a response to irregular public power generation and transmission.

Nigerian Electricity Regulatory Commission (NERC) is an independent regulatory body with authority for the regulation of the electric power industry in Nigeria.

All generation and distribution companies have been privatised with the Federal Government retaining the ownership of the transmission company, the Transmission company of Nigeria (TCN).

There are

• 6  power generation companies
• 11 power distribution companies
• 1  transmission company

There are presently 23 grid connected generating plants supplying power in the country.

Due to the difficulty of obtaining recent data, the information in the table below is somewhat dated and may not be accurate, however the amount of electricity that can be generated is largely academic, because as mentioned above, the limiting factor with power supply in Nigeria is not with generation but rather with failing transmission infrastructure that cannot cope with demand.

Financial Services

There are over 25 banking institutions in Nigeria regulated by the Central Bank Of Nigeria (CBN), which serves as the country’s central monetary authority. CBN oversees the operations of financial institutions and banks in Nigeria, helping ensure high banking standards and financial stability in the industry, as well as promoting an efficient payment system. An organization can also expect to find other economic services, such as recognized multinational accountancy companies, in Nigeria.

Zenith Bank

Incorporated in 1990. In 2004 it became a public limited liability company and subsequently listed on the Nigerian Stock Exchange.

The bank currently serves more than 1.6 million customers and employs about 7,000 staff. It operates through a network of over 500 branches, as well as subsidiaries and representative offices in Ghana, Gambia, South Africa, Sierra Leone, the United Kingdom, China, and UAE (Dubai).

First Bank of Nigeria

Established in 1894, FirstBank became a public company in 1970 and joined the Nigerian Stock Exchange in 1971.

The bank has subsidiaries in West African countries and the UK, as well as representative offices in Abu Dhabi, Beijing, and Johannesburg. It employs more than 7,000 staff and oversees a network of around 760 branches and over 2,600 ATMs. It maintains the largest branch network in Nigeria.

United Bank for Africa

Founded in 1949 as the British and French Bank Limited (BFB), United Bank for Africa is one of the oldest banks in Nigeria. In 1970, it held an IPO, becoming the first Nigerian bank to list its shares on the Nigerian Stock Exchange.

United Bank employs about 12,500 staff and serves more than 14 million customers around the world.

It operates in 19 African countries.

Clearing and Forwarding Agents

There are many multinational Clearing and Forwarding agent companies available in Nigeria with offices in the port centres and Abuja. They can facilitate international and national freight movements and customs transactions. They operate to international standards of professionalism and reliability.

Freight handling equipment is readily available for purchase, rent or lease from recognised dealers that will maintain the equipment as part of the package. There are agents for handling equipment in all port and major commercial centres. Pallets are readily available.

Postal and Courier Services

The Nigerian Postal Service (Nipost) is the Hub for the West African Sub-region. By this status, all international mail from UPU member countries for the region are routed through Nigeria.

In addition to incoming international mail/outgoing international mail services, other services include mobile money (Nipost serves as cash-in and cash-out outlets), post office boxes, private mail bag, bulk post/hybrid mail (large volume mailings) and pick-up collection and delivery service.

Service delivery times are 24 hours-intracity, 48 hours-intercity and 72 hours nationwide. 

In addition to many Nigerian courier post and parcel companies, international courier companies DHL, FedEx and UPS are present, easily accessible in Nigeria and operate to expected standards of reliability for national and international document and parcel pick-up and delivery.

Printing and Publishing

There are over 100 book publishers in Nigeria, with Ibadan and Lagos as major publishing centres.

Commercial services for printing a wide range of items such as corporate printing, brochures, journals, magazines, event prints, posters, flyers, roll-up banners, labels. stickers etc. are readily available in Nigeria’s commercial centres operating to international standards.

Taxi Companies

There are multiple taxi companies in all key cities in addition to e-hailing-mobile app options (there are over 14,000 e-hailing drivers in Lagos alone). Reliability and security varies widely and it is best to check with local security briefs for up to date recommendations on which companies are reputable.

Vehicle Rental

Rental vehicles are readily available, and an organisation can reasonably expect to meet their initial needs through renting. International franchises Avis and Hertz are both represented in Nigeria in addition to other reputable companies with established business records.

Waste Management and Disposal Services

There are many and adequate Nigerian laws to regulate waste management, however these are not all yet enforced, hence of the more than 32 million tons of solid waste generated annually, only 20-30% is collected. Generally improper waste disposal and lack of reliable transport infrastructure means that collected wastes are most often dispersed to other localities. Only a few states have taken proactive steps in the waste sector.

Waste management and disposal is undertaken by a mix of Government and Federal agencies and private operators.

Recycling is generally performed by private contractors on a cash recovery basis.

WASTE DISPOSAL-NON-HAZARDOUS

As per the narrative above, generally improper waste disposal and lack of reliable transport infrastructure means that collected wastes are often dispersed to unregulated and inappropriate localities. Existing landfills are often not adequately managed and inaccessible, particularly during rainy season when many are closed down.

WASTE DISPOSAL-HAZARDOUS

Waste management Regulations of 5.1.15 of 1991 regulates the collection, treatment and disposal of solid and all forms of hazardous wastes from municipal and industrial sources and gives the comprehensive list of chemical and chemical wastes by toxicity categories.

Section 11 subsection (1) states that the collection, treatment, transportation and final disposal of waste shall be the responsibility of the industry or facility generating the waste

For a compilation of Institutions & Waste Management Regulations in Nigeria go to the following link: http://www.elri-ng.org/Institutions,%20Laws%20&%20Regulations%20on%20Waste%20Management%20in%20Nigeria.doc

While there are laws and statutes in place governing the disposal of hazardous waste, waste electrical and electronic equipment (WEEE) and other hazardous waste, collection in Nigeria is not organised; there are no collection centres and most times, they are dumped along with other wastes.  Currently, treatment/recycling is carried out by the informal sector with little knowledge of the environmental and health effects of improper hazardous waste management.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.