PILOT STUDY OF USED OILS IN NIGERIA - PurePath Green Technology

PILOT STUDY OF USED OILS IN NIGERIA

By

Prof. O. A. Bamiro (National Expert) and Prof. O. Osibanjo (Project Coordinator)

Study sponsored by the Secretariat of the Basel Convention, Geneva

November, 2004

 

TABLE OF CONTENTS

 

LIST OF TABLES                                                                                         IV

LIST OF FIGURES                                                                                       V

PREFACE                                                                                                       VI

ACKNOWLEDGEMENT                                                                             VII

EXECUTIVE SUMMARY                                                                            VIII

REFERENCES                                                                                               42

APPENDICES                                                                                                43

SECTION 1: STUDY OBJECTIVES AND CONCEPTUAL FRAMEWORK                  1

1.1          Preamble                                                                                        1

1.2          Study Background and  Objectives                                                       2

1.3          Terms of Reference                                                                           3

1.4     Conceptual Framework for the Conduct of the Study                                 3

1.5     Methodology                                                                                    5

1.6     Report Presentation                                                                           7

 

SECTION 2: THE MARKET OF VIRGIN OILS IN NIGERIA                                     9      

2.0          Preamble                                                                                        9

2.1          Virgin oil production and supply in Nigeria                                               9

2.1.1   Level of base oil importation                                                                9

2.1.2   Level of Production/Supply of Virgin Oils                                               10

 

SECTION 3: GENERATION OF USED OILS IN NIGERIA                                        14

3.1     Preamble                                                                                        14

3.2     Estimates of level of generation of used oils                                            16

3.2.1   Field Survey                                                                                     16

3.2.2   Estimate of used oil generation from virgin oil market size                          20

3.2.3   Motor vehicle registration and estimate of used vehicle crankcase oil            21

 

SECTION 4: MARKET OF USED OILS IN NIGERIA                                              23

4.1     Preamble                                                                                        23

4.2          Dealers in used oils                                                                            23

4.3     Users of used oils                                                                              27

 

SECTION 5: USED OIL MANAGEMENT ALTERNATIVES FOR NIGERIA              31

5.1          Preamble                                                                                        31

5.2     Oil Re-refining Projects in Nigeria                                                          37

5.3     Techo-Economic factors in investing in oil recycling                                   38

 

SECTION 6: LEGISLATIVE ASPECTS OF USED OIL

MANAGEMENT IN NIGERIA                                                                                        39

LIST OF TABLES

Table 2.1:      Major Actors in the Virgin Oil Production and Supply in Nigeria           11

Table 2.2:      Grades/prices of Virgin Oils in Nigerian Market                               13

Table 3.1a:    Used Oil Generation Characteristics in the South Western Zone          18

Table 3.1b:    Used Oil Generation Characteristics in the Northern Zone                 19

Table 3.1c:    Used Oil Generation Characteristics in the Eastern Zone                   20

Table 3.2:      Estimate of Annual Rate of Used Oil Generation                              22

Table 4.1:      Some Dealers in Used Oils in Nigeria                                            24

Table 4.2:      Users of used oils                                                                    28

Table 5.1:      Results from Used Oil/Virgin Oil Analysis                                       32

Table 5.2      Comparative assessment of the three alternative options

of used oil management options                                                 36

LIST OF FIGURES

Fig. 1.0:       Stream polluted by used engine oil                                              2

Fig. 1.1:        Nigerian Oil Market: Conceptual Framework for Analysis                   5

Fig. 1.2:          Used Oil Survey: Locations of Key Actors Visited                             8

Fig. 3.1:        Sources of Used Oil                                                                  14

Fig. 3.2:        A well managed service station bay for oil change                           16

Fig. 3.3:        An isolated service bay polluting the environment                           18

Fig. 3.4:        Total number of Vehicles Registered in Nigeria (1999-July 2004)        21

Fig. 4.1a:       Depot of a used oil dealer                                                          26

Fig. 4.1b:       The polluted environment of a used oil depot                                26

Fig. 4.2:        Another Depot of a Used Oil Dealer                                             27

Fig. 4.3a:       Application of used oil to wood treatment                                     29

Fig. 4.3b:                                                                                               Pallets treated with used oil in block making                                                            29

Fig. 4.3c:      Used oil application as dust suppressant                                       30

Fig. 5.1:        Typical Re-processing and Re-refining processes                            35

PREFACE

At the sixth Conference of the Parties (COP6), the African group requested for the establishment of a comprehensive work programme for a Global Partnership for Used Oil in Africa. The Basel Convention and its Regional Centres (in Nigeria, South Africa, Senegal, and Egypt) were thereafter charged with the responsibility for the development of a close partnership with major oil companies operating in the region, to put in place environmentally sound management practices for used oil in order to protect the environment and human health in Africa, similar to the partnership announced during the COP6 on end-of-life mobile telephones. The principal objective of the used oil project is the development of an African Regional Management Plan for used oil. Towards this end Nigeria was chosen as a case study, to better define a strategy for the management of used oils in Africa.

Presented in this report is the result of the pilot study on used oils in Nigeria conducted by the Basel Convention Regional Coordinating Centre in Nigeria. It is basically a diagnosis of the situation of the management of used oils in Nigeria involving the identification of: the main sources of used oils; an estimate of the quantities and types of used oils produced, stored and disposed of; the main actors in the production, storage and disposal of used oils, and the existing disposal and treatment facilities.

The Report contains an executive summary of the major findings, the details of the study objectives, the framework adopted for the research, the findings, and analysis within the framework of the terms-of-reference for the study.

 

 

ACKNOWLEDGEMENT

The researchers will like to extend their gratitude to the Basel Convention of Geneva for funding this study. Several companies, ministries (Federal Ministry of Environment, Federal Ministry of Health, and the Lagos State Ministry of Environment), organisations (UNIDO, Friends of the Environment (FOTE), Standards Organisation of Nigeria, Nigerian Environmental Society, etc.) and individuals supported the researchers in various ways, including participation in the 23rd September 2004 Technical Workshop which was preparatory ground for the conduct of this pilot study. Worthy of acknowledgement are also the following: Mrs. O.M. Ogungbuyi (seconded from the Federal Ministry of Environment to the Basel Convention Regional Coordinating Centre, University of Ibadan) for her coordinating role and the following researchers who conducted the field surveys in the three zones to which the country was divided for the purpose of data and information gathering: Dr. F. A. Dawodu, Mr. A. J. Odola, Mr. Ayo Shadare, Miss Tolulope Olusoga and  Mr. Yusuf Omosun. Finally acknowledged are Mr. M. E. Jolomi and Miss Folashade Olumide who participated in data analysis.

EXECUTIVE SUMMARY

The major findings of the Study are presented thematically herein within the framework of the terms of reference stipulated for the study, namely:

a)            Identification of the main sources of used oils in the country and
estimations of the quantities and types of used oils produced, stored and
disposed.

b)            Identification of the main actors in the used oil market in the country
(mainly those in the production, distribution, storage, refining and
utilisation).

c)            Identification of existing disposal and treatment facilities and their capacity.

d)            Survey on the informal sector working with used oils.

A1:     Main Sources of Used Oils in the country

A1.1    The main sources of used oils in the country identified in this study are in two main categories: industry and transportation.

A1.2    The industries that generate the most used oils are manufacturing industries including beverages, breweries, food processing, etc; construction companies; metal recycling plants among others using heavy equipment and power generating plants consuming large quantities of virgin engine oils. The used oils are generated from various uses: wear resistance, hydraulic systems, cooling systems, anti-rust, lubrication, etc.

A1.3    Automotive sources of used engine oils in the transport industry include cars, buses, motorcycles, heavy duty trucks and equipment; they all use different grades and types of oils in their engines, gears, transmissions and hydraulic systems. Amounts and types of used engine oil generated depend on the kind, age and size of the vehicles.

A2:     Estimated quantities of used oils generated in the country

A2.1    The quantities of used oils generated in the country have been estimated from a combination of:

*      Field survey of principal sources to establish their characteristics.

*      Estimates based on the size of virgin oil market in the country.

*      Estimates based on the number of registered vehicles in the country.

A2.2    Different grades of virgin oils – SAE 40, SAE 30, SAE 50, SW 50, ISW 50, 20W50, Rubier H, Rubier S, Oleum XL, Oleum HD, Oleum SP (imported blended oil), HD40, Super 20W/50, Super XHP, industrial oils (Delvac Series – 1200,1210,1230,1340, etc., DTE series – 24,25,26,AA,BB, etc. , GARD Series – 430,450,570,448, etc.), etc. – are produced by the major marketers (Mobil, Total, AP, Texaco, Conoil and Oando) with established local plants to blend imported base oils.

A2.3    From the data supplied by the major as well as independent marketers in the industry, a total of 377 million litres per annum (mlpa) of base oils were imported into the country by these major actors. Assuming that at least 80% of these base oils are blended into different grades of virgin oils, the virgin oil market is estimated at about 300 mlpa, including the figures of direct importation of virgin oils.

A2.4    Experiences from similar studies of other African countries (e.g. Egypt) showed that used oil generation could be estimated at 50% of virgin oil while the figure of collectible used oil could be as low as 30%. The latter arises from the reality of unsafe disposals such as identified in this study  as well as alternative uses. Thus, volume of used oils in Nigeria is estimated at about 150 mlpa with a maximum of 90 mlpa being collectible for re-processing or re-refining.

A2.5    The level of generation of used oils was also estimated from the analysis of used crankcase oils based on the total vehicle registrations in the country. From the Federal Road Safety Commission (FRSC), the total number of vehicles registered in Nigeria between January 1999 and July 2004 was 5,828,900. The estimated total number of registered vehicles was 6.0 million.  Assuming 70% of the vehicles are cars and the rest being trucks/buses, the estimated used crankcase oil was 150 mlpa. Industry-based used oil was estimated at 50 mlpa, leading to a total national used oil generating capacity of 200 mlpa.

B        Main Actors in the Used Oil Market in Nigeria

B1:     Dealers in Used Oils

B1:1  There were several small scale dealers in used oils out of which 35 were surveyed in this study. These actors sourced used oils from industry, vehicle service stations and mechanic villages spread over the country. It was apparently a profitable market for the operators. There were also several used oil generators, particularly in the mechanic villages, selling directly to the end-users. Volume of sales varied from as little as 12 litres of used oil per week to as high as 2,500 litres per week.

B1.2.   There were several industrial actors generating large quantities of used oils but internally utilized as boiler or furnace fuels supplement.

B3.3    Grading of used oils by the dealers was based mainly on the perceived quality of the source – oils from companies and established service stations attracting higher premium than those from mechanic villages and others. Sale prices for used oils varied from N20 to as high as N150 per gallon (US $1 = N139).

B1.4:   Treatment of used oils by the dealers did not transcend mere settling to remove particulate matter, and, in limited cases, open air heating to evaporate entrained water.

B1.5.   Oil storage was mainly in metallic and plastic containers (jerry cans and drums). However the surrounding was generally polluted with limited care for the environment by the operators.  Cases of polluted streams and drainages were noted in this study.

B2:     Uses of Used Oils in the country

B2.1    There are lots of reuse practices which are mostly not environmentally friendly. Those that reuse the used engine oils procure them with little or no reprocessing and use oils directly for different purposes.

B2.2    Uses of used oils identified in this study were:

*      Direct reuse as lubricant in vehicles with old and worn engines as engine oil.

*      Boiler fuel – some industries use the used engine oils as fuel for their boilers.

*      Bakery – used in the furnace as fuel.

*      Weed killer – poured on the ground to control weeds.

*      Dust control – poured on the ground and roads to suppress dusts.

*      Block and Balustrade making – used as lubricant in mould equipment.

*      Wood preservation – used to prevent termites from destroying the wood.

*      Gear oil – used engine oil is mixed with grease to produce gear oil.

*      Hair cream – used to protect the scalp from the burning sensation of hair relaxers.

*      Hydraulic oil – used in heavy duty vehicles equipped with tipping mechanism.

*      Road construction – used in addition to bitumen by some construction companies.

*      Rust prevention – used for this purpose by those selling motor spare parts.

*      Ball joint oil – seldom used by some mechanics.

*      Sawmill – as wood preservative.

*      Wound treatment – some people actually use used engine oils in treatment of open wounds as they believe it makes the wound heal better, this is common among motor mechanics.

*      Cooking – used as fuel in cooking with firewood.

*      Diesel production – sometimes kerosene is mixed with used engine oils to produce diesel.

B2.3    The rather harsh economic situation has encouraged some of the above uses. Used oil still with calorific value comparable to that of diesel or LPFO is a welcome candidate as a source of fuel at cost as low as N25 per litre for good quality compared with diesel, for example, at above N60 per litre when available in the market. Such alternative usage is therefore driven by economic consideration with little regard for environmental impacts.

C.   Existing Disposal and Treatment Facilities

C1.     From the pilot study it was noted that there was little or no organized disposal practices. The disposal methods varied from indiscriminate dumping on land, pouring down the sewers, storage in plastic containers like kegs, jerry cans and drums where they were left until a use was found for them or they were eventually sold to dealers or direct users. The handling and disposal of used engine oil is a widespread source of environmental degradation and ecological damage in the Nigerian environment.

C2.     There was no organized treatment facility in the country for oil re-cycling. There was however significant effort by two private companies – the Lube Oils Limited, Otta,   Lagos and Boskel Nigeria Limited, Port Harcourt and in the public sector, the Federal Ministry of Environment.

C3.     In 1996, Lube Oils Limited, with the assistance of UNIDO, assessed the techno-economic importance of refining used lubricating oil. The study recommended the establishment of used oil recycling plants in the country. The detailed feasibility study was carried out by Triple E Associates, an environment and energy consultancy company in Nigeria.

C4.     Suffice it to note that several years after the project conception, it has not taken off for the following reasons, among others:

o   The project, based on an Italian Process design, increased in cost from the initial projection of N500 million to close to N4.0 billion (US $1 = N138).

o   There was problem with getting sufficient quantity and quality of used oils to make the project economically viable.

C5.     Lube Oils Limited, still very much interested in investing in used oil recycling, has decided to invest in the local development of appropriate process technology. Towards this end, it has entered into research agreement with the Department of Chemical Engineering, University of Lagos to develop the process technology in stages: first, a plant to process used oil to fuel oil; then, to diesel oil in the second stage; and finally, a re-refining plant to produce base oils.

C6.     Boskel Nigeria Limited, a thermal engineering company, has completed the testing of its locally designed and fabricated pilot plant for oil re-processing and re-refining.  The plant, with capacity to produce 50-100 litres of fuel oil per hour is undergoing further development prior to launching into the market.

C7.     The Federal Ministry of Environment has also been very much interested in recycling used oils. The Ministry recently invited bids for the fabrication of a refining plant based on the acid/clay process technology. The contract for the fabrication has since been awarded to a fabricator. It is hoped that the Ministry will make provision for the very much needed research and technological backup for such project whose requirements for success transcend mere fabrication.

D.   Legislative Aspects of the management of used oils in the country

D1.      Decree No 58 of 1988 established the Federal Environmental Protection Agency (FEPA) and now Federal Ministry of Environment (FMENV) with full legal responsibility to control and oversee the state of the Nigerian environment.

D2.     FEPA has put in place several regulations among which, of relevance to used oil disposal, is the National Environmental Protection (Pollution Abatement in Industries and Facilities Generating Wastes) Regulations S.I.9 of 1991 which has the following relevant provisions:

§  S 15 (2) stipulates that “no oil in any form shall be discharged into public drain, rivers, lakes, sea, or underground injection without a permit issued by FME or any organisation designated by the FEPA”

§  S11 (1) states that “the collection, treatment, transportation, and final disposal of waste shall be the responsibility of the industry or facility generating the waste.”

§  S 17 states that “An industry or facility which is likely to release gaseous, particle, liquid, or solid untreated discharges shall install into its system, appropriate abatement equipment in such manner as may be determined by FEPA”.

D3.     The existing legislation is adequate for the environmentally sound management of used oil in Nigeria as the Generator’s liability has been expressly confirmed in the provisions. However, it might be necessary to enact a new legislation to take care of the peculiarities of the used oil management practices against the present knowledge of the sector.

 

SECTION 1

STUDY OBJECTIVES AND CONCEPTUAL FRAMEWORK

1.1         Preamble

Oil is a common and highly visible form of pollution. Oil and water are immiscible and even a small spillage can cause significant pollution. Studies have shown that 5 litres can cover a small lake. Oil pollution has three main effects:

Ø  it forms a film on the surface of water, reducing the level of oxygen needed by fish, shell fish and other living organisms that comprise the aquatic food chain;

Ø  it coats plants and animals that come into contact with it; and

Ø  in large quantities, it can make water sources unfit for drinking as hazards from waste oil contaminated water range from mild symptoms of accumulation of toxic compounds in the liver to complete impairment of body functions and eventually death (Noln et. al).

Fig. 1.1 shows a stream heavily polluted by indiscriminate disposal of used engine oil from a service bay for luxurious buses in the country. The cover page of this report also shows a heavily polluted dumping ground for used oil.

There are different types of oils, but of particular interest in this project are used lubricating oils defined as:

Any petroleum-based lubricating oil which, through use, storage or handling, has become unsuitable for the purpose for which it was originally designed, in particular used oil from combustion engines and transmission systems, as well as mineral oils for machinery, turbines and hydraulic systems

 

Fig. 1.0:  Stream polluted by used engine oil

 

 

1.2         Study Background and  Objectives

Several countries in the world have put in place policies and plans to manage the disposal of their used oil to protect their environment. Unfortunately the appropriate management of used oil is a common problem for many African countries, including Nigeria, where much of the wastes have negative environmental and human health risks because of inadequate systems for collection, storage, recycling, disposal etc. The need to put in place policies and plans for the management of used oil in the country informed the present initiative and sponsorship by the Secretariat of the Basel Convention. The Basel Convention and its Regional Centres aim to develop a close partnership with major oil companies operating in the region, to put in place environmentally sound management practices for used oil in order to protect the environment and human health in Africa.

The principal objective of the project is to gather information in the African region using Nigeria as a case study, to better define a strategy for the management of used oils in Africa.

The Basel Convention Regional Coordinating Centre (BCRC) located at the Federal Ministry of Environment-University of Ibadan Linkage Centre and UNEP/SBC are to investigate and develop recycling possibilities and potential uses of used oils in Africa with the University of Ibadan BCRC coordinating the project and working in close collaboration with the BCRCs in South Africa, Egypt and Senegal respectively towards the development of an African Regional Management Plan for used oil.

Although the development of technical guidelines for the management of waste oil in any country is expected to be based on the real situation in such country, the present Regional project has taken off with the present pilot phase study of Nigeria being used as a microcosm of the Africa Region.

The outcome of this study shall be used to undertake estimations with statistical basis of the different indicators of the amounts of used oils and their flows in the formal and informal sectors in Nigeria, the sub-regions and the region. This is basically the information gathering stage which is critical to others stages in the development of waste oil management system. Thus, the experience gained shall be used to identify problems and difficulties with the management of used oils in Nigeria, the sub-regions and the regions leading to the development of practical projects of regional significance. The project will also increase coordination between the BCRCs in Africa and strengthen them to decide on a common approach and a strategy for the BCRCs on the management of used oils in Africa.

 

1.3         Terms of Reference

The pilot study has been carried out against the following identified terms of reference:

a)            Identification of the main sources of used oils in the country and
estimations of the quantities and types of used oils produced, stored and
disposed.

b)            Identification of the main actors in the used oil market in the country
(mainly those in the production, distribution, storage, refining and
utilisation).

c)            Identification of existing disposal and treatment facilities and their capacity.

d)            Survey on the informal sector working with used oils.

Arising from the above, the basic information being sought in this study includes:

  • Producers      of virgin oils/level of production
  • Virgin      oil importers and levels of importation
  • Market      for lubricants
  • Level      of generation of used oil
  • Uses      of the generated used oils
  • Current      sales prices of virgin oils and prices of used oils
  • Legislation      governing the management of used oil, the storage, and the environmental      controls for the collection and recycling
  • Companies      with capacity to invest and operate used-oil recycling plant

 

1.4 Conceptual Framework for the Conduct of the Study

The oil market in Nigeria in terms of the various activities from lubricant production to sales in the different market outlets leading to the generation of used oils is conceptually shown in Fig. 1.1. Due to the rather epileptic operation of the four oil refineries in the country, all the requirements (base oils and additives) for the local lube oil blending processes to produce different grades of lubricants and greases are imported into the country by two groups of actors: the major oil marketers (Total, Mobil, Conoil, African Petroleum, Texaco, Oando) and the so-called independent marketers (including Romi, Ibeto, Pract Oil, Dazzy, A-Z, Zenon, etc.).  Different types and grades of oil to be found in the different market outlets (including petrol stations, service stations, road side points of sales) include engine oils, hydraulic oils, gear oils, and industrial oils for turbines and compressors. Whilst several lube oil blending plants exist in the country, more are being established by the independent marketers. Also, there are small operators producing poor quality lubricants mainly from base oils without any additives. The various uses of oils in the country are in four main categories: crankcase oil; hydraulic system; transmission system; and gears. The users of the virgin oils are in two main categories:

ü  TRANSPORTATION

v  Automobiles

v  Motorcycles

v  Buses

v  Trucks

ü  INDUSTRIAL

v  Chemical and allied products

v  Rubber and plastic products

v  Machines (except electrical)

v  Electrical equipment (transformers)

 

1.5 Methodology

The research, taking due cognizance of the above framework of the oil market in Nigeria, was carried out using a combination of desk study, primary data collection through the development and administration of questionnaires, and field visits.

 

Primary Data Collection

Data Sources

Primary data sources were explored to generate the information required for various aspects of the study. The survey instruments to obtain primary data were sets of questionnaires addressed to the following groups of respondents:

 

i.        The producers/importers of virgin oils

ii.       The sellers of virgin oils

iii.       The users of virgin oils/generators of used oils

iv.      The dealers in used oils

v.       The users of used oils

Five sets of structured questionnaires (see Appendix) were prepared for the five different groups. They were aimed, among others, at the:

·         Estimation of virgin oil production

·         Estimation of levels of usage of the different lubricants

·         Estimation of the levels of generation of used oils from the different uses

·         Determination of the roles of each actor in the management of used oils in the country

Survey Sampling Procedure

The country was divided into three zones: South West (involving Ibadan, Lagos and their environs), South-East/South-South (involving Aba and Port-Harcourt) and the Core/Central North (involving Kaduna, Kano and Jos). These cities were pre-selected based on their established high level of industrial activities coupled with being the highest consumers of petroleum products, by extension, lubricants in the country. The geographical spread of the surveyed cities is illustrated in Fig. 1.2.

 

Data Collection

The survey was carried out by university lecturers and postgraduate students. The researchers visited and administered questionnaires to the five categories of actors indicated above.

 

Desk Study

The nature of information from desk study is as follows:

•           The legislative, economic, technical and environmental aspects of the management of used oils in the country,

•          Main sources of used oils and estimations of quantities and types of oils produced, stored and disposed.

•          Identification of main actors in the used oil market, dealing with any aspect of the management cycle of oils.

•          Identification of existing disposal and treatment facilities and their ownership

 

The above information was sourced from:

•          Governmental Institutions

•          International organisations

•          Private sector

•          Previous Reports on used oils

•          NGOs

 

Analytical Technique

This involved the development of computerised database for data storage as well as computer-based analysis of data and report generation to provide answers to the basic underlying questions of the Pilot Study. Simple statistics such as frequency distribution, percentages and correlation were utilized. Where critical data were unavailable, recourse was made to the best practice as reported in the literature, especially in similar African countries.

 

1.6 Report Presentation

An executive summary is presented to encapsulate the major findings of the study. Section1 is devoted to the study objective and the underlying conceptual framework of the study. The market of virgin oils in Nigeria is presented in Section 2. Section 3 is devoted to the sources of generation of used oils as precursor to the presentation of market of used oils in Section 4. The used oil management options in Nigeria are presented in Section 5 while the existing legislation on used oil management is covered in Section 6.

 

 

Figure 1.2

USED OIL SURVEY: LOCATIONS OF KEY ACTORS VISITED

(Indicated in Red Circles)

 

SECTION 2

THE MARKET OF VIRGIN OILS IN NIGERIA

2.0         Preamble

There are two categories of actors in the de-regulated Nigerian market for virgin oils: the major marketers and the so-called independent marketers. The major marketers dominate the petroleum and petroleum product markets with established plants for blending base oils and additives to produce different grades of lubricants for the Nigerian market. These companies, basically multinationals, supply branded products to several outlets spread throughout the country. The independent marketers came into being in response to government policy initiative aimed at increasing local participation in the oil sector. They are growing both in number and also in the level of activities. Most are involved with the importation of base oils and additives for sale to blending plants. Some of them have however started investing in the establishment of blending plants to produce lubricants. For example, Romi, an independent marketer, will soon commission its blending plant to produce different grades of lubricants.

It is pertinent to note that whilst Nigeria can probably boast of adequate oil blending plant capacity, a few actors also do import virgin oils into the country.

Our interest in establishing the level of virgin oils entering the Nigerian market in this study stems from the fact that it is a useful basis for estimating the level of generation of used oils. Consequently, the major marketers and the independent marketers were surveyed in this study with the study findings as presented below.

 

2.1 Virgin oil production and supply in Nigeria

2.1.1  Level of base oil importation

The major producers of virgin oils in the country are Mobil Oil Nigeria Plc, Total Nigeria Plc, Texaco, African Petroleum Plc (AP), Conoil and Oando. All these marketers, excepting Oando with its blending plant located in Kaduna, have blending plants in Lagos. These Lagos plants were visited in the course of this study with the data provided by them reflected in Table 2.1. As shown in Table 2.1, all these companies import base oils for blending into different grades of lubricants. The independent marketers, as shown in Table 2.1, are mainly importers of base oils which they sell to blending plants and other users. Oando could not supply any information because they claimed that their production plant is in Kaduna and it is only at the plant that reliable information could be obtained. Total Nigeria Plc could not quantify the amount of base oil being imported because they receive base oil periodically from their headquarters and they also have plants located in other parts of the country. Only Texaco and Conoil sell part of the base oil imported by them.

The level of base oil importation by the major actors covered in this study was 264.4 million litres per annum (mlpa). We have cause to believe that those covered in this study will probably account for about 70% of base oil import. Thus, the level of importation of base oil is estimated at close to 370 mlpa.

 

 

 

2.1.2   Level of Production/Supply of Virgin Oils

Different grades of oils are produced by the major marketers for the Nigerian market. Identified grades of virgin oils in the market include: SAE 40, SAE 30, SAE 50, SW 50, ISW 50, 20W50, Rubier H, Rubier S, Oleum XL, Oleum HD, Oleum SP (imported blended oil), HD40, Super 20W/50, Super XHP, industrial oils (Delvac Series – 1200,1210,1230,1340, etc., DTE series – 24,25,26,AA,BB, etc. , GARD Series – 430,450,570,448, etc.), etc. Mobil alone has an installed blending capacity of 460,000 barrels[1] or 73.1 mlpa whilst its annual virgin oil production was given as 14.6 mlpa (a mere 20% capacity utilisation).

Out of the six major marketers covered in this study, only AP imports engine oil and also produces locally, all the others produce engine oil locally. Level of importation by AP was however only 1.0 mlpa, equivalent to 10% of its local production.  The total of about 60 mlpa of virgin oils entering the Nigerian market through the surveyed actors is indeed much smaller than the actual market size based on the following observations:

  • Not      all the blending plants have been visited in this study.
  • There      are some actors involved with importation, e.g. Coscharis Motors Ltd.      (Petrochemical) which imports close to 3.2 mlpa of virgin oils for sale      and in-house use.
  • If it      is assumed that at least 80% of imported base oils of 377 mlpa is used to      produce virgin oils of different grades, then the market size of virgin      oils is estimated at close to 300 mlpa. [This figure shows a modest      increase from the 1998 by Triple E (a Nigerian consulting with interest in      establishing a used oil re-refining plant) figure of about 230 mlpa demand      for base oil destined for lubrication in Nigeria.]

Table 2.1: Major Actors in the Virgin Oil Production and Supply in Nigeria

Company NameLevel of importation of base oilsBlending plant capacityGrades of lubricants producedLevel of Production/Sales
(Million Litres/Annum)(Million litres/annum)(Million   litres/annum)
Major Marketers
Mobil Oil Nigeria Plc.12.4 73.1Monograde,    Multigrade, Marine lubricant, Industrial lubricants14.6
Total Nig. Plc. n.aPetrol and diesel engine oils, hydraulic   oils11.0
African Petroleum Plc.8.0 n.aAuto transmission oils, industrial gear   oils, automotive engine oils, industrial lubricants.11.0
Texaco9.0 n.aEngine oils, industrial oil   (turbines/compressors), gear oils8.0
Conoil15.0 n.aEngine oils15.0
 Oandon.a n.aEngine oilsn.a
Independent Marketers
Romi30.0Engine oilsn.a
Ibeto60.0                              –
Pract Oil40.0                              –
Dozzy50.0                              –
A-Z40.0                              –
Zenon                              –
TOTAL264.459.6

Source: Present Survey

 

 

Supplies and Prices of virgin oils

Virgin oils are sold in different packages – gallons (4 Litres), jerrycans (25 Litres) and drums (200-209 Litres) as well as bulk sales in tankers. Market outlets include individuals, commercial vehicle operators/transporters, garages/workshops, marketer’s own retail outlets, and distributors. Direct supplies are also made to the big industrial consumers e.g. Cadbury, Nigeria railway Corporation, Cement manufacturers, construction companies.  Prices varied considerably being dictated by the grades of oil and the market outlet. However prices quoted by the marketers for supplies to the different market outlets varied as follows: gallons (N900 to N1,100); jerrycans (N3,600 – N5,880); and drums (N35,000 – N45,000). (US$1 = N138)

 

Market outlets and prices of virgin oils in Nigeria

There are several market outlets for the purchase of virgin oils in Nigeria. Virgin oils are being purchased mainly from petrol stations whilst there are some sellers operating from road side with sales to the less discerning customers such as motor cyclists and old taxi cab operators due to the relatively cheap prices. A number of these outlets were surveyed in the three zones. As shown in Table 2.2, there are several grades of virgin oils in the market with varying prices.  Prices for similar products varied with geographical locations with the South-Western Zone and the Northern Zone having the lowest and highest prices respectively.

It is significant to note that some of the outlets were selling base oils at prices ranging from N700 to N880. Also, since no plant has been established in the country for the production of recycled lubricants from used oils, there was no trace of such oils in the market.

 

Table 2.2: Grades/prices of Virgin Oils in Nigerian Market

 

SECTION 3

GENERATION OF USED OILS IN NIGERIA

3.1 Preamble

Of paramount importance in this study is the determination of the sources, kinds, levels, fates of used oils in the country. Previous studies were of great help in identifying sources, kinds and fates of used oils but were rather inadequate in respect of levels of generation. To provide a practical insight into all the above parameters of used oils of interest in this study, due cognizance was taken of the three principal sources of used lubricants – industrial, transportation, and others – as encapsulated in Fig. 3.1.

 

Industrial Sources

The industries that generate the most used oils are indicated in Fig. 3.1 The types of used oils vary widely according to the specifications for particular applications. Metalworking oils range from 100% oil (so-called neat oil) to oil-water emulsions (called soluble oils) with a low percentage of oil. Both formulations require as many as half a dozen additives, e.g. to reduce wear on cutting and grinding tools. Quenching oils, used to cool hot metals, contain oxidation inhibiting additives (e.g. barium sulfonate, zinc compounds, sodium nitrate).   Steel rolling and stamping oils vary but are often combinations of naphthenic mineral oils and tallow oils, with sulphur and phosphorous additives to reduce wear on the rollers. Hydraulic oils, used for example in die-casting, steel foundry operations and automobile production, usually consist of paraffinnic base stocks with only rust and oxidation inhibiting additives (e.g. a hindered phenol) and sometimes an antiwear additive (e.g. zinc dithiophosphate). Transformer oils are straight mineral oils with no additives. Lubricating oils for turbines are similar to hydraulic oils, although high temperature oxidation inhibiting additives are also needed.

 

Transportation

Automobiles, trucks, buses, motorcycles and heavy machine equipment all use oil in their engines, gears, transmissions and hydraulic systems. Consequently, service stations (see Fig. 3.2) and mechanic villages generate used oils. Amounts and types vary with the kind, age and size of the vehicles. New passenger cars produce a few gallons (4 to 6 litres) of drained motor oil (crankcase oil) due to infrequent servicing. Old cars, of which there are many in Nigeria, are serviced more frequently. Ordinarily such should lead to the generation of considerable used oil, but, the economic situation in Nigeria dictates otherwise with some car owners resorting to fairly used oils during oil change as opposed to virgin oil. Diesel engine oils for large and small trucks are another category of automobile lubricants. Several additives are contained in these lubricants, often making up to 15% by volume.

In used lubricating oils, these additives are physically and chemically changed, and the oil itself is contaminated with rust, soot, dirt, dust, lead, engine wear metal particles and water (condensed from vapour) due to contact with bearings, seals and other engine parts. These contaminants are hazardous to humans. Railroads and airplanes also use lubricants.

 

 

Fig 3.2: A well managed service station bay for oil change

 

Other oils

Other sources of used lubricating oils are refrigeration units and shock absorbers.  These oils are usually made from naphthenic base stocks. Naphthenic base stocks are also used to make process oils used in rubber manufacturing.  Air compressor oils are similar to turbine oils.  They are made from paraffinic base stocks and have low levels of additives. Rock drill oils, used for jack hammers, air hammers and underground drills are similar to industrial gear oils. They contain additives to modify friction as well as anti-wear and extreme pressure additives.

 

3.2 Estimates of level of generation of used oils

Estimates of quantities of used lubricating oils would have to be based on detailed knowledge of the size, location and disposal practices of the above sources.  The following three approaches have been adopted towards obtaining reasonable estimates of quantities of used oils in the country:

*      Field survey of principal sources.

*      Estimates based on the size of virgin oil market in the country.

*      Estimates based on the number of registered vehicles in the country.

 

 3.2.1  Field Survey

Presented in Tables 3.1a, b and c are the used oil generation characteristics of 76 actors in the industrial and transport sections in the three zones surveyed in this study. Fleet operators in the transport industry (e.g. The Young Shall Grow, ABC) generate considerable used oil which is sold. Construction companies also have high level of used oil generation for sale. Noteworthy is Cadbury, a food and beverages manufacturing company based in Lagos, with used oil generating capacity of 830 litres per week from its generating plants and other machines. The company mixes such internally generated used oil with Low Pour Fuel Oil (LPFO) to fire its boilers to generate process steam.  However, this practice is expected to stop with the recent switching over to industrial gas to fire their boilers.

Mechanic villages, often dispersed in cities, are characterized by relatively low level of used oil generation for sale, recycle for use in worn engines without any treatment, mixing with grease to make gear oil, and ordinarily pouring on ground to reduce dust level. However, it is pertinent to note that crankcase used oils are generated in service stations or mechanic villages patronized by motor vehicle owners since do-it-yourself oil changes are not a practiced technique in the country.

Whilst most used oil generators store their used oils in metallic/plastic containers before disposal, there were yet others, particularly in the mechanic villages with no storage facilities. This is particularly so in isolated vehicle repair bays (see Fig. 3.3), several of which exist in the country as there are limited mechanic villages in most cities in the country.

From the survey, it was found that prices for used oil varied from N20 per gallon to N100 per gallon.

Overall, although the levels of waste oils generated by the actors covered in this limited survey could not by any means be meaningfully extrapolated to obtain figures of used oil generation in the country, the importance of the survey findings is derived from the fact that they have helped to establish the following important facts:

Ø  The level of used oil available for re-processing/re-refining is considerably reduced by the present alternative uses, particularly as fuel, in industry.

Ø  Used oil has commercial value in the country and will therefore attract cost as input to any planned re-processing or re-refining plant. This is because whether a used oil producer sells or not will be dictated by the cost-benefit analysis of selling instead of its usage as fuel in-house, for example. The rather high cost of energy in the country may tilt the decision in favour of internal use as fuel supplement for companies with energy-intensive operations.

Ø  Re-processing of used oil to fuel oil will be quite an attractive used oil management option in view of the high cost of energy.

 

Fig. 3.3: An isolated service bay polluting the environment

 

3.2.2    Estimate of used oil generation from virgin oil market size

A fairly reasonable estimate of used oil generation in the country could be obtained from figures of the market size of virgin oils involving figures of local production and import. The total lubricant market was estimated at close to 300 mlpa in Section 2. Experiences from African countries (e.g. Egypt) showed that used oil generation could be estimated at 50% of virgin oil while the figure of collectible used oil could be as low as 30%. The latter arises from the reality of unsafe disposals as well as alternative uses. Thus, the level of used oil generation in Nigeria is estimated at 150 mlpa with a maximum of 90 mlpa being collectible for re-processing or re-refining. And, of course, the latter is dispersed through the system such that any planned re-processing or re-refining will have to be based on a detailed analysis of the geographical locations of the major producers.

 

 

3.2.3    Motor vehicle registration and estimate of used vehicle crankcase oil

A useful method for the estimation of used crankcase oils is by looking at the total vehicle registrations in the country. From the Federal Road Safety Commission (FRSC), the total number of vehicles registered in Nigeria between 1999 and July 2004 was 5,828,900 with breakdown as shown in Fig. 3.2.  The rather high figure of 2,808,000 registered vehicles in 1999 arose from 1999 being set as the deadline for the registration of all vehicles in the country by FRSC. The subsequent years showed vehicles coming freshly into the transport system of the country. However, there are still a very small percentage of vehicles plying Nigerian roads and not yet registered by FRSC.  The total number of registered vehicles by the end of this year is estimated at 6.0 million.

 

Assuming the following scenarios, the total lubricant market was estimated at approximately 200.0 mlpa in Table 3.2:

  • The      total number of  registered vehicles      was estimated at 6.0 million
  • 70% of      the vehicles were assumed to be cars with estimated oil change per annum      of 10 litres.
  • The      estimated oil change per annum for trucks and buses was assumed to be 60      litres.
  • Because      of the rather low level of industrialisation, industrial oils to crankcase      oils were estimated to be in the ratio 1:3 in other words      transportation-related activities are assumed to constitute by far the      largest consumption of lubricant in the country.

The estimated figure of 200 mlpa of used oils is probably an upper bound.

 

Table 3.2:  Estimate of annual rate of used oil generation

No of registered vehicles6,000,000
Percentage of Cars70
Total No. of cars4,200,000
Total no. of Buses/Trucks1,800,000
Estimated Oil change per car (litres/annum)10
Estimated used oil generated by cars42,000,000
Estimated Oil Change per truck/buses/annum60
Estimated used oils generated by trucks/buses (litres/annum)108,000,000
Total used oils by cars/trucks/buses150,000,000
Ratio of used industrial oils to crankcase oils1:3
Estimated used oils from industry50,000,000
ESTIMATED TOTAL USED   OILS (litres/annum)200,000,000

 

 

 

SECTION 4

MARKET OF USED OILS IN NIGERIA

4.1 Preamble

There is indeed market for used oils in Nigeria driven by the increasing demand for different end uses as identified in this study. Also of significance is the existence of used oil dealers collecting used oils from diverse sources for sale. Re-processing by such dealers is very rare and where it takes place it is limited to settling to remove particulate matter, boiling to remove entrained water vapour, and mixing with grease to produce gear oil.

Some dealers and a number of users have been surveyed in this study.

 

4.2         Dealers in used oils

Thirty five dealers spread over the three zones (see Table 4.1) were surveyed during the study. 95% of them admitted that they went into the business to make money as they considered it to be lucrative. Dealers obtained their used oils from different sources with the beakdown as follows: mechanic villages (16); service stations (16), industry (20), and self generation (10).  24 dealers claimed to be grading their used oils on the basis of source while all others did not feel the need to grade. Alhaji Aminu from Orogun in Ibadan did not see the need for grading since according to him ‘used oil is used oil!’ And, in any case, he was selling to less discerning clients such as those involved with application of  used oil for wood treatment and anti-rust.

Most of the dealers stored their oils in metal drums as well as plastic containers. Worthy of note was the high degree of spillage and resultant pollution of the environment (see Figs. 4.1a and b) in the depots operated by the dealers.

Alhaji Aminu with the highest volume of 2,508 litres per week was sourcing his supply mainly from industrial establishments at cost which he was not ready to disclose.  He had to carry out some re-processing to remove water (using firewood to heat the oil in open air) and sediments.

Prices for used oils varied considerably from N20 per gallon to N100 per gallon with variation based on some form of ‘quality’. Most of the buyers were individuals and transporters.

 

Table 4.1:  Some Dealers in Used Oils in Nigeria

Name

 

Location

 

Source

 

Quantity   Sold

Per Week   (Litres)

Price Per

Gallon (N)

Adeoye   Mech EngrgIbadanMechanic   Village/Own Supplier50100
Osimatech   Nigeria Ltd.IbadanSelf   generation50
Oyolorun   OilsIbadanMechanic   Village3280
Hope   MechanicsIbadanSelf   generation50100
Alhaji   AminuIbadanIndustry2,508
Oando   Service StationIbadanSelf   generation12100
Blessed   MechanicsIbadanSelf   generation32150
Dugbe bus   terminal mechanicsIbadanSelf   generation40100
(Roadside)AbaService   Station/Industryn.a20
BENO Oil Nig. Ld.AbaService   Station/Industryn.a20
Daniel Oil & Spare Parts Co.AbaService   Station/Industryn.a
Ogbor Hill Mechanic sectionAbaIndustryn.a
Total OilAbaService   Station/Self generationn.a
Cat Construction CompanyAbaSelf   generation/Industryn.a
(Roadside)AbaMechanic   Village/Service Stationn.a60
Mechanic/Volvo SectionAbaMechanic   Village/Service Stationn.a
AC Okorie & Company Ltd.AbaMechanic   Village/Service Station/Industryn.a40
Edo Nigeria Ltd.AbaMechanic   Village/Service Station/Industryn.a
Fezoy Nig. Ltd.AbaMechanic   Village/Service Stationn.a80
Mba & Co.AbaService   Station/Self generationn.a80

Table 4.1 continued

 

(Roadside)Port-HarcourtMechanic   Village/Service Station/Industryn.a50
Decanal Company Ltd.Port-HarcourtMechanic   Village/Industryn.a45
ABC Oil & Petroleum Mktg Ltd.Port-HarcourtIndustry/Self   generationn.a50
ABM Quaries Ltd.Port-HarcourtIndustryn.a50
MechanicPort-HarcourtMechanic/Service   Stationn.a50
(Roadside)Port-HarcourtMechanic   Village/Service Station/Industryn.a50
King Size filling stationPort-HarcourtMechanic/Service   Stationn.a60
Jetimo Nig. Ltd.Port-HarcourtMechanic/Service   Stationn.a
Kemtech Industry Nig.Port-HarcourtMechanic   Village/Service Station/Industryn.a50
Kinik Co, Nig. Ltd.Port-HarcourtIndustryn.a
Kerry Fonte Nig. Ltd.Port-HarcourtIndustryn.a60
Mohamadu   SaniKanoSelf   generationn.a
Alhaji   Isa IdrisKanoMechanic   Village, Self generation, Industry8080
Condemn   OnlySokotoMechanic   Village20080
Alhaji   Aminu AhmedSokotoSelf   generation5050

 

 

      Fig. 4.1a: Depot of a used oil dealer

 

      Fig. 4.1b: The polluted environment of a used oil depot.

  Fig. 4.2: Another     Depot of a Used Oil Dealer

 

4.3 Users of used oils

The identified uses of used oils from the survey, as reflected in Table 4.2 are:

*      Direct re-use as engine lubricant

*      Fuel for firing boilers and furnaces

*      Hair cream production

*      Dust suppressor

*      Gear oil production

*      Hydraulic oil production

*      Weed killer

*      Lubrication of block making moulds

*      Wood preservative

*      Anti-rust for metallic surfaces

Fig. 4.3a shows the application of used oil on wooden planks to preserve them against termite attack.

The cost of purchase varied from N20 to N150 per gallon. The level of usage also varied considerably.

 

 

 

Table 4.2:  Users of used oils

 

 

Fig. 4.3a:   Application of used oil to wood treatment

 

 

Fig. 4.3b:   Pallets treated with used oil in block making

 

Fig. 4.3c:   Used oil application as dust suppresant

 

 

SECTION 5

USED OIL MANAGEMENT ALTERNATIVES FOR NIGERIA

5.1         Preamble

The principal objective of any waste management plan is to ensure safe, efficient and economical collection, transportation, treatment and disposal of wastes, as well as satisfactory operation for current and foreseeable future scenarios, (Nema and Modak, 1998). Recycling of used oil entails acquisition and processing to regain useful material. In recycling process, a number of stages are possible depending on original source of the used oil, the level of contamination, and the sophistication of technology deployed. Ogbonna and Ovuru 2000 (Table 5.1a) and Adebayo et al 2004 (Table 5.1b) carried out chemical tests on samples of virgin oils and used oils in the Nigerian market.  The test results showed remarkable increase in calcium, lead, copper and iron concentrates in the used oil samples compared with the result for the virgin oil. Of course, qualities of contaminants in used oils depend on several factors including type of original detergents and dilutants added to the virgin oil, storage location, and management practices.

As the country contemplates different options for the management of used oils, it helps to draw lessons from other countries that have advanced in the development of used oil management system. In this context, the following three alternatives of used oil management that seem to be gaining currency and relevant to the Nigerian situation are presented:

ü  Re-processing into fuel oil

ü  Re-refining into lube oil

ü  Destruction

 

 

 

 

 

 

 

Table 5.1:  Results from Used Oil/Virgin Oil Analysis

(a)        Virgin Oil without lead

S/NTEST PARAMETERSUSED OIL (A)USED OIL (B)VIRGIN OIL
1Specific   Gravity @15.6o0.9010.89520.8782
2API   Gravity @ 15.6 o25.5526.5729.63
3Copper   (mg/litre)1.091.181.01
4Chromium   (mg/Litre)0.060.070.04
5Nitrate   (mg/Litre)1044
6Calcium   (mg/Litre)80.680.628.75
7Iron   (mg/Litre)81.872.714.1
8Barium   (mg/Litre)442
9Magnesium   (mg/Litre)000
10Phosphorus   (mg/Litre)0.360.580.34

Source:         Ogbonna & Ovuru 2000

 

(b) Virgin oil with lead.

S/NTEST PARAMETERSVIRGIN OILUSED OIL
1Specific   Gravity @60 o F/60 oF0.8990.903
2Viscosity   (Cst) @ 100 oF171.3101.48
3                        @210 oF16.912.02
4Dynamic   Viscosity (Cp) @ 100 oF152.8790.97
5                                      @ 210   oF15.0810.77
6Ash, %0.20.75
7Sulphated   Ash, %0.350.85
8Flash   Point oC250146
9API   Gravity25.9525.25
10Nitration   products31
11Nitro-compunds30
12Water %514
13Oxidation   products %916
14Glycol %00
15Fe (ppm)1.0498.95
16Cu (ppm)0.3120.09
17Pb (ppm)5.70604.9
18Cr (ppm)0.201.27
19Ba (ppm)604.9608.04
20Zn (ppm)1630.21724.19
21Ca (ppm)12001300.21

Source:         Adebayo et al. 2004

 

 

 

Used oil management options for Nigeria

Re-processing into fuel oil

The unit processes involved in re-processing into fuel oil and also re-refining into lube oil are compared in Fig. 5.1. Used oil used as a direct source of energy must undergo basic treatment to remove water and particulates before it is fit for use as fuel[2]. This is to ensure that it does not clog burners, foul boiler tubes, or cause sediment build-up in customer tanks. As such, the process requires filtration and removal of coarse solids that can pose environmental hazard or operational problems. Treatment options include mainly physical processes like settling, centrifugation, filtration, or a combination of these operations. Unfortunately, these processes alone are not sufficient to remove all chemical contaminants in the oil, and inclusion of further treatment processes such as clay contacting and distillation would place fuel processors at a competitive disadvantage.

In this study we identified some companies that have been utilising unprocessed used oil as fuel for power generation, firing of boilers to generate process steam. Such combustion of used oils has been shown to result in atmospheric pollution and increased hazards to human health as a result of the relatively low temperature combustion of contaminants such as heavy metals and chlorides. Experience from the United Kingdom U.K. showed that higher levels of pre-treatment can remove water, sediments, heavy hydrocarbons, metals and additives.

Re-refining

Recycling falls into two categories: regeneration and laundering. These basically differ only in the degree, and possibly the type of processing or cleaning required to recover reusable material from the waste product. Usually laundering applies to less heavily contaminated materials, which can be returned to original use with production of relatively little by-product. Regeneration applies to more heavily contaminated, or complex lubricating products which, when processed, produce a base stock and, usually, a greater proportion of by-products.

The process typically involves, but is not limited to, pre-treatment by heat or filtration, followed by either vacuum distillation with hydrogen finishing or clay, or solvent extraction with clay and chemical treatment with hydro-heating. The vacuum distillation option followed by clay contacting offers a less polluting and more economic solution to the re-refining process, particularly for small scale plants with a capacity range between 10,000 and 30,000 tonnes (Fadel and Khoury 2001).

A variety of proprietary technologies has been tried for regeneration with mixed success and various yields of base oil and by-products. They all seek to recover the base blending fluid, predominantly mineral hydrocarbon with growing amounts of synthetic petrochemical material, by separating it from additive chemicals and any breakdown products that arise during use. Invariably, there is a trade off between the quality of the recovered base oil and the sophistication of the technology.

The capital outlay for re-refining process is becoming exorbitant due to the fact that lubricant requirements are becoming more severe, particularly in automotive applications as vehicles are subject to longer service intervals, smaller sumps and higher operating temperatures. The proportion of additives and synthetic components in lubricating oil is increasing, thus setting higher standards for recycled base oil.

Re-refining creates by-product streams that, in the case of the lighter components, may be used as fuel. The heavier residual stream, containing additives and carbonaceous species, may be used as a blending component in the bitumen industry, for incorporation into construction products such as road surfaces.

Thus, re-refining requires modern processes which are expensive to operate when all safety and environmental considerations are included into the overall operating system.

 

Destruction

In case the waste oil is highly contaminated, particularly with polychlorinated byphenyls (PCBs) and polychlorinated terphenyls (PCTs), it is preferable to adopt a destruction process rather than re-processing or re-refining. In the absence of hazardous waste incinerators, controlled high-temperature incineration at cement factories is recommended.  Temperatures at the flame end of rotating cement kilns ranges between 2000 and 2400°C. This high temperature is adequate to destroy organics and neutralize acid compounds. The heavy metals content is reduced considerably as their concentrations remain very low compared to those found in the natural material used in the cement production process. However, continuous monitoring of gas emissions at the cement factories would be required to ensure compliance with air quality standards.

 

Overall, a comparative assessment of the three options, from the work of El-Fadel and Khoury (2001) on waste oil management in Lebanon adapted to the Nigerian situation, is presented in Table 5.2.

 

 

 Table 5.2      Comparative assessment of the three alternative options of used oil management options

OptionsAdvantagesDisadvantages
Re-refining   into

lube oil

 

·           Environmentally sound long-term solution

·           Creates jobs locally

·           Reduces the amount of imported base oils for   local blending

 

·           Requires a well-developed waste-oil   collection system to be established

·           Recycled lube oil requires a well-developed   market

·           Requires extensive capital investment

·           The re-refining option requires a reputable   recycling company to ensure the marketability of the product

·           Proper disposal of end-waste residues is   costly and problematic

 

Re-processing

into fuel   oil

 

·           Benefits from a well-established demand in   Nigeria for fuel substitute

·           Creates jobs locally

·           Limits the negative effects of the current   practice of uncontrolled burning of used oil

·           The quality control of the re-processed fuel   oil is monitored by the purchaser

 

·           Requires a well-developed waste-oil   collection system to be established

·           Requires extensive capital investment

·           Proper disposal of end-waste residue is   costly and problematic

 

Destruction

 

·           Economically feasible at lower processing   volumes

·           Cement factories may be willing to procure   the used oil

·           Less capital intensive than the previous   options

·           Concentrates used oil disposal to limited   sites that can be more easily regulated and controlled.

 

·           Air emissions, although minimal, will still   need to be addressed

·           May face stiff opposition by local residents

 

 

 

 

5.2 Oil Re-refining Projects in Nigeria

There is as yet no oil re-refining plant in Nigeria. However there have been significant attempts by three key organizations identified in the study to install such plant. These are the Lube Oils Limited, Boskel Nigeria Limited and the Federal Ministry of Environment.

 

The Lube Oils Limited, Otta

In 1996, Lube Oils Limited, with the assistance of UNIDO assessed the techno-economic importance of refining used lubricating oil. UNIDO has been promoting the sustainable management of used oils through the adoption of industrial cleaner production techniques. A major recommendation was the establishment of used oil recycling plants. The identified derivable benefits from the project included a cleaner environment, cheaper lube oil, job creation and poverty reduction, and foreign exchange savings for Nigeria. The feasibility study for the establishment of used oil recycling plant was carried out by Triple E Associates, an environment and energy consultancy company in Nigeria.  Suffice it to note that several years after the project conception; it has not taken off for the following reasons, among others:

o   The project, based on an Italian Process design, increased in cost from the initial projection of N100 million to over N1.0 billion.

o   There was problem with getting sufficient quantity and quality of used oils to make the project economically viable.

The company, still very much interested in used oil recycling process, has decided to invest in the local development of appropriate process technology. Towards this end, it has entered into research agreement with the Department of Chemical Engineering, University of Lagos to develop the technology in stages: first, a plant to process used oil to fuel oil; then, to diesel oil in the second stage; and finally, a re-refining plant to produce base oils.

Boskel Nigeria Limited

This is a thermal processing engineering company based in Port-Harcourt. The company, established in 1989, now with staff strength of 75 Nigerians, provides to oil companies various technical services, including the handling wastes such as used oils. The desire of the company to recycle used oils led to its investment in the development of a pilot plant to re-process and re-refine used oils. Whilst further developmental efforts are still required, the company has however successfully developed a plant with capacity to produce 50-100 litres of fuel oil per hour. The company hopes to enter the market soon with its plant.

The Federal Ministry of Environment

The Federal Ministry of Environment (FMENV) has also been very much interested in recycling used oils. A few months ago, the Ministry invited bids for the fabrication of a refining plant based on the acid/clay process technology. The contract for the fabrication has since been awarded to a fabricator. It is hoped that the Ministry will be in position to provide the very much needed research and technological backup for such project whose requirements for success transcend mere fabrication. This is particularly important bearing in mind the fact that the process technology is not really yet in the public domain with researches still on-going even in developed economies.

 

5.3 Techo-Economic factors in investing in oil recycling

As the nation contemplates investment in recycling systems, whether in the private or public sector of the economy, there are a few techo-economic factors that must be considered. From the desk study conducted in this project, the selection process of environmentally sound reuse or recycling options of used oils should be based, inter alia, on the following considerations:

 

Ø  Feedstock (upstream) quality: degree and nature of contamination and environmental/health risks associated with handling and processing, volumes and types.

Ø  Treatment processes for getting appropriate quality feedstock for downstream industries or users, impacts on resource conservation, percentage of the product recovered, energy savings.

Ø  Impacts of treatment processes on public health and environmental media.

Ø  Final disposal of end-of-the-pipe output of treatment processes in the framework of environmentally sound management of hazardous wastes.

Ø  Economics (economic viability/sustainable market and commercial feasibility; product value).

Ø  Technology and techniques (treatment capacity, feedstock capability) and their potential impacts on the environment.

Ø  Location of existing or planned facilities.

Ø  Infrastructure for clean and efficient collection, storage, and transport of used oils.

Ø  Public perception.

Ø  Legislation (i.e. on air emissions).

Ø  Socio-economic benefits (i.e. employment opportunities).

Ø  Knowledge of cases or processes which have gone wrong in the past.

Ø  Availability of cleaner production methods and clean technologies.

 

There is no doubt that a proper feasibility study will have to be carried out taking due cognizance of the above factors.

 

 

SECTION 6

LEGISLATIVE ASPECTS OF USED OIL MANAGEMENT IN NIGERIA

The legislative instruments developed by the Federal Ministry of Environment to halt   environmental degradation arising from any pollution source including oil related activities are:-

  • The      National Policy on the Environment Nov 1989 revised in 1999
  • Nigeria’s      National Agenda 21 of 1999
  • The      National Effluent Limitations Regulations 5.1.8 of 1991
  • Pollution      abatement in industries and facilities generating waste regulation 5.1.9      of 1991
  • Waste      management regulations 5.1.15 of 1991
  • Environmental      impact assessment (EIA) Decree No of 1992
  • National      guidelines and standards for environmental pollution control in Nigeria      1991.

The National Policy on the Environment generally describes guidelines and strategies for achieving the policy goal of sustainable development by:

  • securing      for all Nigerians a quality of environment adequate for their health and      well being;
  • Conserving      and using the natural resources for the benefit of present and future      generations;
  • Restoring,      maintaining and enhancing the ecosystem and ecological processes essential      for the preservation of biological diversity;
  • Raising      public awareness and promoting understanding of the essential linkages      between environment and development ; and
  • Cooperating      with other countries and international organizations and agencies to      achieve the above.

The National Agenda 21

Redressing the backlog of environmental problems, however remains a central concern for both the people and the different levels of government of Nigeria; therefore in line with the  global objectives of “Agenda 21”, the blue print of action from 1992 into the 21st century and beyond”, Nigeria fashioned out its own National Agenda 21 which sought to:

(i)           integrate environment into development planning at all levels of government and the private sector;

(ii)          intensify the transition to sustainable development;

(iii)         address sectoral priorities, plan policies and strategies for  the major sectors of the economy; and

(iv)         simultaneously foster regional and global partnerships

 

Specifically, it addresses in section 2.6 the rational use of oil and gas resources through a set of objectives and programmes to generate wealth for development without compromising environmental integrity including inventorising contaminated sites arising from oil-related activities in its bid to ensure the proper use and management of all chemicals for sustainable human development.

The National Effluent Limitations Regulations 5.1.8 of 1991 makes it mandatory

for industrial facilities to install  anti pollution equipment, makes provision for effluent treatment and prescribes maximum limits of  effluent parameters allowed for contravention including oil and grease from various manufacturing/industrial or service sector. It further prescribes limit for discharge of oil and grease into surface water (10mg/l) and for land application (20mg/ml).

The Pollution Abatement in industries and Facilities Generating Waste Regulation 5.1.9 of 1991 among other things imposes restrictions on the release of toxic substances and stipulates requirements for monitoring of pollution to ensure that  permissible limits are not exceeded while unusual and accidental discharge’s contingency plans,  generator’s liability and strategies for waste reduction the safety are put in place. Section (1) stipulates that “No oil in any form shall be discharged into public drain, rivers, lakes, sea or underground injection without a permit issued by the agency or any organization designated by the Agency (Federal Ministry of Environment).

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.

Furthermore section 17 states that “An industry or a facility which is likely to release gaseous, particle, liquid or solid untreated discharges shall install into its system, appropriate abatement equipment in such manner as may be determined by the Agency (Federal Ministry of Environment).”

 

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.

Some non specific sources listed in Schedule 12 of Hazardous /Dangerous waste sources include:

FEK 048 Dissolved Air Floatation (DAF) floats from the petroleum refining industry.

FEK 049 Slop oil emulsion from the petroleum refining industry

FEK 050 Heat exchanger bundle cleaning sludge from the petroleum refining industry

FEK 051 API separator sludge from the petroleum refining industry.

FEK052 Tank bottoms (leaded) from the petroleum refining industry.

 

 

Concluding Remarks

Used oil resources identified in Nigeria are mainly industrial and transportation based.  A national used oil generating capacity was estimated to be 200 million litres per annum (mlpa) in course of this investigation, which are put to several uses from direct use to the bizarre, as additives to hair cream. In recognition of the used oil as a resource, there are reported efforts by private Companies for establishment of treatment facilities and an invitation bid for the fabrication of a refining plant based on acid/clay process technology by the apex ministry on environment in the country being the Federal Ministry of Environment. It is hoped that the Ministry will make provision for the very much needed research and technological backup for such project whose requirements for success transcend mere fabrication.

From the foregoing it apparent that used oil recycling is feasible in the country with the right framework policy from government to stakeholders. The existing legislation is adequate for the environmentally sound management of used oil in Nigeria, as the Generator’s liability has been expressly confirmed in the provisions. However, it might be necessary to enact a new legislation similar to that which exists in the European Union vide Council Directive 87/101/EEC of 22 December 1986 regulating the safe collection and disposal of waste oils.

 

 

 

REFERENCES

M. El-Fadel, R. Khoury, “Strategies for vehicle waste-oil management: a case study”, Resources, Conservation and Recycling 33 (2001) 75-91

EPA: Managing Used Oil: Advice for Small Businesses. Report 530EPA-F-96-004, 1996

Noln J. J, Harris C., Cavanaugh P.O. “Used Oil: Disposal Options, Management Practices, and Potential Liability”, Third Edition Rockville, MD: Government Institutes, 1990.

Ogbonna  J. and Ovuru, S. E., “Pollution Control with a focus on recycling of used luebe-oil”, Nigerian Society of Chemical Engineers’ Proceedings, Nov. 2000, p150-159

United Nations Environment Programme (UNEP), Assessment of used lubricating oils in the Mediterranean Sea and Proposed measures for their elimination”, First Meeting of the Scientific and Technical Committee, Athena 23-27 May 1988.

Proceedings of the Regional Workshop on Waste Oil Management in Africa. Convened by The Basel Regional Centre for English Speaking African Countries, Pretoria, South Africa in Collaboration with ROSE Foundation and The Secretariat of the Basel Convention Geneva.   Cape Town 15-17 October, 2002.

Adebayo A.O., Osibanjo O., and Olonisakin A. Physico-Chemical treatments and Analyses of Crankcase Oil, Ultra Science Vol 16 (1), 19-24 (2004).

Share: