Business
Importers, NNPC Incur N7.5bn Demurrage
About N7.5 billion has been paid by consignees (importers) including the Nigerian National Petroleum Corporation (NNPC) as demurrage to 12 foreign-flagged merchant tankers, which came into Nigeria’s territorial waters with imported petroleum products.
The figure represents findings collated in the last four months when many marketers stepped up efforts to import enough products ahead of the Yuletide and the New year festivities, with an attendant increase in demand for petroleum products by motorists.
A breakdown of the figure shows that $35,000 was paid daily per vessel or $420,000 or N65 million daily for the 12 vessels.
Investigations revealed that the demurrage arose because of the foreign mother ships long wait on the high seas for cargo discharge processes as a result of their preference for foreign operators instead of indigenous ship owners for lighterage contract.
The findings were confirmed by key members of the Indigenous Ship Owners Association of Nigeria (ISAN) in Lagos. They also blamed the management of NNPC and the Nigerian Maritime Administration and Safety Agency (NIMASA) for the poor positioning of indigenous shipping operators in the nation’s lucrative petroleum sector.
The association which has been having a running battle with the regulatory authorities on the strict implementation of the provision of the Coastal and Inland Trade Act 2003 since mid-2009 noted that both agencies have failed woefully in the implementation of the Nigerian content initiative and the Cabotage act.
Top officials of ISAN namely Captain Niyi Labinjo, Engr Akin Olaniyan and Mr Joe Ugo-Emeribe, in a briefing said the cabal has held Nigeria by the jugular and is milking her dry through contrived huge demurrage by the foreign merchant tankers, even as the nation groaned under recurring fuel scarcity.
“Some of the vessels are MT Baltic Merchant and for NNPC. They have been on demurrage at $35,000 per day for as long as three to four months.
Why have these vessels refused to discharge their products even in the face of biting fuel scarcity”, Labinjo asked.