Oil & gas Logistics: Nigeria govt loses $1.5bn revenue to monopoly

*Retired Col. Hameed Ali, CG of the Nigeria Customs Service and Mr Anwar Jarmakani, Chairman of the SIIFZ, flanked by officers of the Customs Service

*Retired Col. Hameed Ali, CG of the Nigeria Customs Service and Mr. Anwar Jarmakani, Chairman of the SIIFZ, flanked by officers of the Customs Service.

05 April 2016, Sweetcrude, Lagos — The management of Snake Island Integrated Free Zone, SIIFZ, has decried monopolistic practices in Nigeria’s oil & gas Logistics and supply service, noting that it costs the government revenue losses in excess of $1.5 billion annually.

Mr. Anwar Jarmakani, Chairman of the SIIFZ made the disclosure in a welcome address he gave during a courtesy visit of the Comptroller General of the Nigeria Customs Services, NCS, retired Col. Hameed Ali, adding that the sector has become uncompetitive.

Jarmakani said the monopoly had forced the oil & gas industry and the nation into capitulation and called on the Federal Government to stop it.

“The Nigeria oil and gas supply and logistics services in Nigeria is the most expensive in the world because of its entrenched monopoly. This monopoly adds an extra cost of $3-$5 per barrel produced in Nigeria which translates to over $1.5 billion per annum.”

“They have driven away investments from Nigeria and have seriously damaged the International reputation of Nigeria,” he enthused.

Mr. Jarmakani disclosed that the monopoly has consistently and aggressively used different government institutions to compromise, maintain and entrenched it’s monopolistic agenda with impunity.

“Regrettably, attempts have been made in time past to use the Customs. We, therefore, appreciate the fact that the present administration is aggressively doing away with such impunity.”

The Chairman stated that both the SIIFZ and Nigerdock are ready to compete favorably in the market and reduce the cost to Nigeria.

“Snake Island integrated Free Zone and Nigerdock are open for a competive business and we are determined to bring down your operational costs by at least 30%,” he said.

Mr. Jarmakani commended the new Customs Comptroller General and his team for the renewed sense of professionalism, diligence, dedication to duty and customer service orientation in the Customs Services

He described the Nigeria Customs Service as one of the critical sectors where the change agenda of President Muhammadu Buhari has been evident.

“The Nigeria Customs Service is a fundamental fabric of the Nigerian economy being one of the three largest revenue contributors to the country. Snake Island Integrated Free Zone prides itself on its working relationship with the Nigeria Customs Service and all other relevant government agencies, and we greatly recognize the importance of your support for the effective implementation of the Free Zone mechanism in Nigeria,” he added,” Mr. Jarmakani stated.

Following a tour of the facilities on the Snake Island Integrated Free Zone, Col. Hameed Ali (Rtd.) described Nigerdock, one of the companies operating on the Island as a great company.

He said the visit was being undertaken as part of his efforts to know more about entities operating within his area, adding that government will continue to support Nigerdock and Snake Island Integrated Free Zone.

While reacting to the issue of monopolistic practices raised by the Chairman of SIIFZ in his presentation, the Customs’ CG said the government would look into it to ensure that the laws of the land are strictly adhered to, adding that anything contradictory to the law would be rectified.

“We want you to grow and anything that inhibits your operations would be addressed,” he said.

He thanked the workers and the management of Nigerdock and Snake Island for their hospitality and assured them that efforts would be made to support their growth aspirations.

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