(Ecofin Agency) - As part of efforts to resolve the main challenges in the downstream sector and boost returns on investments, the Nigerian National Petroleum Corporation (NNPC) and Total Nigeria Plc are currently considering the transportation of petroleum products via the rail system so as to reduce costs.

The project is believed to be possible, if the government succeeds with plans to renovate the rail sector. This was declared during the Oil Trading and Logistics Africa (Downstream) on Wednesday in Lagos.

According to the General Manager, NNPC Retail Limited, Finance and Account, Jumah Dansure, the organization intends to convey petroleum products through rail in order to free the nation’s road network and ease the challenges in the value-chain. Dansure, added that the company would ensure the proper monitoring of products.

‎The General Manager, Sales and Marketing, Total Nigeria Plc, Adesua Adewole, said transporting oil products via the rail was the best option. She argued that the project would become achievable if the current rail projects in the country become effective.

Adewole stated that the company is in partnership with the Standards Organization of Nigeria (SON), and would continue to ensure that product qualities are met.

For his part, the Director-General of SON, Osita Aboloma, said sharp practices in the system like product adulteration and faking is as a result of ineffective refineries together with lack of adequate public awareness in Nigeria. He noted that some Nigerians intentionally put the lives of the citizens at risk through the importation of fake products into the country, Guardian news reports.

Aboloma, which was represented by the State Head of SON, Dele Ayeni, said the agency has standards for the downstream sector and would collaborate with necessary agencies and stakeholders to guarantee obedience in the sector.

Anita Fatunji