$500m investments threatened, as oil, gas logistics sector crisis deepens

Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala Usman

Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala Usman

Oil and gas logistics operating firms have enjoined the Nigerian Ports Authority (NPA) to save the multi-billion naira investments threatened by the monopolistic tendencies in the sector.The companies, such as Nigerdock Nigeria Plc and Lagos Deep Offshore Logistic (LADOL) Base, are calling for a level-playing ground and effective regulation in a way that will eradicate rivalry among the operators.

Chairman, Nigerdock Nigeria, Anwar Jarmakani, who made the call during an official visit of the Managing Director, NPA, Hadiza Usman, in Lagos yesterday, bemoaned the alleged moves to monopolise the sector by some operators.Jakarmani said the intrigues in the sector threatened about $500 million investment committed by the shipbuilding and logistics firm.

He added: “We need consistency of government policy as investors. It is not all about the money we have invested but about the legacy we will leave. Since 2006, we have seen different forms of harassment even as we handle projects for major players in the oil sector.

“We were awarded projects by Shell, Chevron and ExxonMobil, In order to reduce our production, hell was raised on us, the project sabotaged and killed it with every possible accusation, which has brought us to a standstill but these are just history.

“We have sunk in $500 million. We have invested; we have produced and proved to every oil company that we would serve the country. We were told that we are shipyard company and not to bring in topic of logistic. We have been in logistics, ship repair and maintenance, fabrication and we want to be allowed to do our business. We are working in compliance with the Federal Government.

“The monopoly created is forcing a go-slow in the sector. Where is the law that says only certain facility must receive products before it can come to any other facility? This facility has been receiving cargo since 1986. We are in the 21st century and under the Buhari administration, which is committed to fighting corruption. We cannot compromise our business and watch our investment and people choked.”

Meanwhile, Usman has promised to look into the issue of creating an enabling environment and implement across board regulation, which will promote competition and encourage more investments into the country.

She said: “Government will create a level-playing field for all operators. We appreciate the need for local content development. Within the next few months, we would look at all the enabling legislations.”

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