Group Bemoans Huge Revenue Loss From Illegal Discharge Of Oil, Gas Cargoes

A group; Nigerians Against Theft in the Maritime Sector (NATIMS), has raised alarm that the Federal Government will continue to lose huge revenue if it allows illegal discharge of oil and gas cargoes in undesignated terminals.
The group stated this in a statement made available to newsmen in Lagos.
It expressed disappointment with the comments made by terminal operators at the Tin Can Island, Lagos against other operators outside Lagos, when the Comptroller- General of Nigeria Customs Service (NCS), Retired Col. Hameed Ali, recently toured their facilities.
The terminal operators alleged that Nigeria was losing billions of naira due to a monopoly which allowed for the discharge of oil and gas related cargoes only at designated terminals.
The Chairman of NATIMS, Dr Jonas Bankole, had repeatedly said that some private jetty operators still allowed illegal discharge by ships in their terminals.
“NATIMS in the statement, said that, “Two of the companies that complained about monopoly are notorious for the illegal diversion of vessels.’’
It said that while one of them was closed for 36 days between December 2015 and January 2016 for illegally diverting a vessel, the other paid N2.5 billion in February, 2016, before a ship which was diverted to its terminal was released.
“It is the same group of companies that were dealt a blow in March 2016 when a Federal High Court in Lagos struck out their suit against the Federal Government on grounds of lack of jurisdiction.
“In the suit, Ports and Terminal Operators Nigeria Ltd. (PTOL) had alleged that vessels meant for their jetties were being diverted to other terminals since October 2013.
“During the comptroller-general’s visit, the companies accused government agencies of short changing the Federal Government in terms of expected revenue from the maritime sector,’’ NATIMS said.
According to the group, it is a known fact that any ship carrying oil and gas cargoed and illegally diverted to a private jetty instead of an appropriate terminal as required by law, translates into a huge financial loss to the Federal Government.
The statement said that, “Instead of discharging at the rate of 5.8 dollars per tonne of cargo at the appropriate terminal, same transaction goes for one dollar at the private jetties’’.
NATIMS noted that over the years, NPA had offered technical explanations on why private jetties would not be allowed to receive Floating Production Storage and Offloading (FPSO) and ocean-going vessels.
It said that the reasons had to do with the shallow nature of the depth of the water where the jetties are located, space required for large vessels to manoeuvre and the need to avoid any mishap which would have dire consequences on the movement of other vessels.
“Furthermore, there is a Presidential order banning private jetties from receiving ocean-going vessels at their terminals directly without such vessels first berthing at the concessionaires’ ports.
“Obtaining all clearance before proceeding to final destination for discharge,’’ the statement said.
NATIMS said that the visit of the comptroller-general to the Tin-Can Island was “aimed at standardising Customs procedures, harmonising operations and enhancing revenue collection’’.
The group urged the government to investigate all the issues raised before considering the demands made by the terminal operators in Tin Can Island.
The NCS, however, said it would look into laws concerning the discharge of oil and gas related cargoes in some terminals in the country.
The Comptroller-General recently went on a tour of facilities of Snake Island Integrated Free Zone (SIIFZ) and Lagos Deep Offshore Logistics Base (LADOL), against the backdrop of controversies surrounding the discharge of oil and gas related-cargoes at designated terminals.
After the visit, Ali said: “I have listened to your presentations. I would like to assure you that President’s Muhammadu Buhari’s administration is one of fairness, equity and transparency.’’
The Customs chief said that in the past, certain things were not done in accordance with the laws.
He noted that the administration believed in doing business in accordance with the law.
“We as the Customs Service have no choice but to toe that line. We have to walk the path of equity and justice.
“We will look at the laws that exist. If we find anything contradictory to the laws, we will address it but if it is in accordance with the law, we are also in a position to let you know,’’ Ali added.
The Chairman of the SIIFZ, Mr Anwar Jarmakani, said that Nigeria was losing billions of naira due to a monopoly which allowed for the discharge of oil and gas related cargoes only at designated terminals in the country.
The SIIFZ is the location of Nigerdock, a ship repair, fabrication, supply and logistics facility offering maritime, logistics and oil and gas services.