The Maritime Workers' Union of Nigeria (MWUN) has alleged that the Federal Government is being shortchanged of collectable revenue running into billions of Naira through the Nigerian Ports Authority (NPA) because a firm; Tropical West Africa, is allegedly currently carrying out Ship-to- Ship transfer of Petroleum Products offshore Lagos-Cotonou, without paying normal revenue into government coffers.
NPA branch president of the union, Comrade Ifeayin Mazeli told journalists on the sideline of an event in Lagos yesterday that the Managing Director of NPA, Hadiza Bala Usman has allegedly granted the firm waiver to pay its dues in local currency instead of paying in Dollars.
He subsequently called on the NPA boss to mandate Tropical West Africa, an offshore company to pay its normal dues to the federal government as required by the law.
Mazeli said that the oil company being allowed to pay its dues in local currency negates the rule of the game and this amounts to revenue leakage.
The MWUN boss alleged that the company is operating both at Lagos and Cotonou offshore and engages in Ship-To-Ship (STS) trans-loading of petroleum products, adding that whether it does so with small or big vessel does not matter, but should pay the federal government its normal charge as others.
He stated that since there is no refinery in Lagos and Cotonou, the vessel trans-loads products from foreign vessel that comes from outside the country, hence, it should be made to pay the regular fee.
Mazeli said, "In fact, there is one issue we just addressed during the National Executives Council meeting and that is the issue that will lead to financial leakage"
"There is this Tropical West Africa, they claim to be offshore whatever and they are using Lagos offshore and Cotonou offshore, the truth is that there is no refinery in Lagos midstream and Cotonou mainstream, we know that one and every vessel that comes in, comes in from outside the country and these people are trying to say that they will not pay in foreign currency because they do Ship to Ship (STS) trans-locating and the product comes from abroad whether bigger vessel brought it and smaller vessel carried it, it is the same thing"
"We have been saying it and asking the Managing Director of NPA does not have the power to give waivers to Tropical West Africa"
"Tropical West Africa should pay their normal charges and in foreign currency. If they are seeking for waiver, they should go to the federal government and if they get it from there, the NPA has no authority than to obey"
"If you are doing STS, what matters is not the size of the ship that came to trans-load from the midstream, but the fact that the product was not refined in Nigeria and so it should pay the normal due" he argued.
Discussion about this post