Tendency for players to monopolise the oil and gas logistics services in Nigeria may result in a loss of about $3.6 billion annually.
According to the chairman of Snake Island Integrated Free Zone (SIIFZ), Lagos, Mr Anwar Jarmakani, Nigeria loses between $3 and $5 on every barrel of oil produced daily to monopoly in the oil and gas logistics chain.
With Nigeria’s daily production currently averaging 2 million barrels per day, Jarmakani’s loss figure give a daily $10 million, $300 million monthly, and $3.6 billion loss annually.
Jarmakani, who was briefing the comptroller-general of the Nigeria Customs Service (NCS), Col Hameed Ali (rtd), who was on a tour of the LADOL facilities on Snake Island, Lagos, yesterday, said that there is no aspect of the country’s law that encourages monopoly in the oil and gas logistics. Being the chairman of Jagal Group, owners of the SIIFZ, he condemned such monopoly in the oil sector, noting that it had been on for over 20 years.
He said, “The tendency to monopolise the oil and gas logistics is like sabotaging the national economy, conspiring and working against any potential competitors, particularly against Snake Island Integrated Free Zone. Regrettably, attempts have been made in the past to also use the Nigeria Customs Service. We, therefore, appreciate the fact that the present administration is aggressively doing away with such impunity.”
Responding, Ali said that he would look into the laws on the discharge of oil and gas related cargoes in the country, stating that the customs was now becoming more knowledgeable about the activities in the zones.
“Having listened to your presentations, I would like to assure you that President Muhammadu Buhari’s administration is one of fairness, equity and transparency. It is regretable that in the past certain things were done in the wrong way, but this is the time to stop such. Let me also assure you that the president is all out for equity, justice and fairness and the customs service is working in this direction.
“We know that in the past certain things were done that is not in accordance with the laws, but I can assure you that if we find anything contradictory to the laws, we will correct it. It is our responsibility to ensure that investors and every player succeeds in Nigeria as we look forward to a successful nation. President Muhammadu Buhari’s government is a government of equity, fairness and justice. If we see things that were not done in accordance with the laws, we will correct it,” he said.