Wednesday, 6 April 2016

Nigeria loses $1.5bn annually to oil cargo monopoly


Comfort Oseghale
Nigeria is said to be losing an estimated $1.5bn annually to a monopoly, which allows for the discharge of oil and gas-related cargos at a designated terminal belonging to a particular company.
The Nigerian Ports Authority had last year issued a directive, citing presidential order, that all oil and gas-related cargos must be handled only by the company’s terminal in Onne, Warri and Calabar ports. The directive was signed on behalf of the NPA managing director by its General Manager (M&O), A. A. Goje.

The Chairman, Snake Island Integrated Free Zone, Anwar Jarmakani, said this while receiving the Comptroller General of Customs, Hameed Ali, and members of his management team during a visit to Nigerdock, a ship repair, fabrication, supply and logistics facility on Monday.
He said, “Our oil and gas supply and logistics service is the most expensive in the world because of this entrenched monopoly. It adds an extra cost of $3-$5 per barrel produced in Nigeria, which translates into over $1.5bn per annum.
“This monopoly seriously damages the international reputation of Nigeria. It has over the last 20 years used a non-existent law to justify its actions and coerce industry and service providers into doing its bidding and thereby undermining the Nigerian economy.”

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