Nigeria Loses U.S.$1.5 Billion Yearly to Monopoly in Oil Logistics

Nigeria Loses U.S.$1.5 Billion Yearly to Monopoly in Oil Logistics
Chairman of Jagal Group, Mr. Anwar Jarmakani

The Chairman of Jagal Group, owners of Nigerdock, Mr. Anwar Jarmakani has said that Nigeria was losing between $3 and $5 on every barrel of oil produced, which translates to $1.5 billion yearly to non-existent laws, which purportedly encouraged monopoly in oil and gas logistics in the country

Speaking during a recent visit of the Comptroller-General of Nigeria Customs Service (NCS), Col. Hameed Ibrahim Ali to the Snake Island Integrated Free Zone (SIIFZ) in Lagos, Mr. Anwar Jarmakani, who is the chairman of SIIFZ, lamented that monopoly had destroyed Nigeria’s reputation in oil and gas logistics.

He said dominant monopoly in Nigeria’s oil and gas, as well as supply services had existed for over 20 years “sabotaging the national economy, conspiring and working against any potential competitors, particularly against Snake Island Integrated Free Zone”.

Jarmakani said the monopoly had consistently and aggressively used different government institutions to entrench its monopoly position with impunity.

“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,” he added.

Jarmakani added that this monopoly has damaged Nigeria’s international reputation, while oil and gas supply and logistics service in the country has become the most expensive in the world because of this monopoly.

According to him, this monopoly has over the last 20 years used a non-existent law to justify the assertion and false claim that “all oil and gas cargo must first be discharged at their ports of preference.”

He noted that the number of ports owned by this monopolist had increased from one to five, adding that “one day, they will buy the Atlantic Ocean.”

“The monopoly has consistently used this non-existent law to coerce the industry and service providers into doing their bidding and thereby undermining the Nigerian economy. If this law indeed exists, the federal government of Nigeria would not have encouraged other critical players like Snake Island Integrated Free Zone to make a huge investment in this industry,” he said.

In his speech, Ali said that President Muhammadu Buhari’s administration would reverse any decision made in the oil and gas sector, which was contradictory to the laws of the country.

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