14 September 2016, Sweetcrude, Lagos – The Nigerian Ports Authority, NPA, says it would be tackling reported monopoly in the oil and gas logistics and supply services in the country through which the nation was losing about $1.5 billion yearly.
Ms Hadiza Bala Usman, Managing Director of NPA, made the disclosure while on a visit to Nigerdock and Snake Island Integrated Free Zone, SIIFZ, in Lagos.
According to her, the NPA under her leadership, would provide an enabling environment and a level playing ground for all operators.
Specifically, she said, NPA would put in place necessary legislations to hinder any form of monopoly in the oil and gas logistics business.
Commending the management of Nigerdock and SIIFZ for its commitment to development of Nigerian indigenous capacity, Usman said: ‘‘We appreciate the need for local content development and we would push for their successes in Nigeria. We are keen on proper regulation that will promote transparency in the sector because no monopoly will be helpful to the development of the Nigerian economy.
“We are working to ensure there is adherence to local content policy within the environment while ensuring strict adherence to the employment of Nigerians within their operations.”
Speaking earlier, Mr. Anwar Jarmakani, Chairman of Jagal Group – owners of the Snake Island Integrated Free Zone and Nigerdock – lamented that Nigeria currently loses about $1.5 billion yearly due to the monopoly in the logistics and supply services sector of the oil and gas industry.
According to the Jagal boss, the oil and gas supply and logistics service in Nigeria is the most expensive in the world, with the monopoly adding an extra cost of $3-5 on a barrel of crude oil produced in Nigeria.
This, he said, translated to over $1.5 billion per annum.
Jarmakani disclosed that the monopoly in the Nigerian oil and gas logistics and supply services had existed for over 20 years, sabotaging the national economy, conspiring and working against potential competitors, particularly against SIIFZ.
‘‘This monopoly has consistently and aggressively used different government institutions, which included Customs, NPA, Ministry of Transportation and others to harass, compromise and entrench its monopoly position with impunity,’’ he lamented.
He urged the NPA boss to use her office to ensure a level playing field for all stakeholders in the shipyard, ship-building and