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Ex-minister To Build Refinery In Lagos - THE NATION by shaddoww: 5:12am On Feb 23, 2016 |
A former Interior Minister and Executive
Chairman, Genesis Shipping Worldwide, Capt
Emmanuel Iheanacho, is to float a refinery in
Lagos to boost local participation in crude oil
lifting, it has been learnt.
The parcel of land for the facility, it was
gathered, was bought from the Onisiwo
Family of Irede, a coastal town at the back of
Apapa Port, Amuwo-Odofin Local Government
in Lagos.
When The Nation visited the site at the
weekend, some leaders of the area said they
were in support of the project and urged the
government to support it.
A senior official of the Department of
Petroleum Resources (DPR), who craved
anonymity, said Iheanacho, who is also the
Executive Chairman of Integrated Oil and Gas,
had been given permission to build the
refinery.
When the refinery begins operations, the
official said, indigenous shipowners would be
able to participate in the lifting of crude oil
from it. “Foreign vessels involved in offshore
operations, collect a minimum of $5,000 daily.
This is the least amount collected by foreign
vessels on the nation’s waters and that is
why the indigenous ship owners must be
empowered to participate,” he added.
The country, he said, is losing N1.8 trillion
yearly to foreign ship owners and their choice
of insurers over the indigenous companies in
the lifting and importation of fuel.
The project, the DPR official said, would end
foreign domination in the capital intensive
crude oil lifting business and allow indigenous
ship owners to participate in the highly
lucrative enterprise.
The Part II of Coastal and Inland Shipping
(Cabotage) Act of 2003, stipulates that “a
vessel other than a vessel wholly owned and
manned by a Nigerian, built and registered in
Nigeria shall not engage in the domestic
coastal carriage of cargo and passengers
within the coastal territorial inland waters, of
any point within the waters of the exclusive
economic zone of Nigeria.”
The Nigerian Maritime Administration and
Safety Agency (NIMASA) is responsible for
the enforcement of the Act.
“Despite the Cabotage Law, Nigeria is losing
N1.8 trillion yearly to foreign ship owners in
cargo haulage. Under the law, coastal trade
is reserved for indigenous ship owners; their
foreign counterparts are allowed to
participate in the business subject to a waiver
by the Federal Government,” he said.
He continued: “The law is not serving its
purpose because the indigenous ship owners
are not allowed to handle cargoes that pass
through the nation’s waterways.
“When the Cabotage regime came on stream,
the intention was mainly to stimulate the
development of indigenous capacity in the
Nigerian maritime industry, if many years
after, the situation remains the same despite
the despite the efforts by NIMASA.
“In the oil and gas industry, Nigeria has close
to 500 oil wells. For each well, there is a rig,
which is supported by a minimum of five
ships, and they are called oil support vessels.
Each of the foreign ships earn $5,000, while
others earn $150,000 per day.”
He said:“The Cabotage Act seeks to reserve
domestic coastal trade or Cabotage trade
within Nigerian coastal and inland waters to
vessels built and registered in the country,
wholly owned and manned by Nigerian
citizens. Foreign-owned vessels and
companies are, however, allowed to
participate in Cabotage trade within Nigerian
waters, subject to obtaining a waiver and or
license from the Federal Ministry of
Transport.
“More than 10 years after, not much has
changed, as the indigenous vessel owners,
who the law was designed to protect
remained sidelined and impoverished while
foreign shipping companies dominate the
trade, while many Nigerians are jobless.’’
He added:“I can say conveniently that even in
the crude oil carriage that they do today, if
indigenous ship owners are allowed to do 60
per cent of their own allocation, they will be
putting back more than about N1.5 trillion or
N1.8 trillion into the economy and that is
huge contribution to the budget.”
The ex-Minister also told The Nation at the
week-end that the indigenous ship owners are
yet to benefit from the Cabotage shipping
regime.
He said the Act has failed to give the
envisaged financial impetus and active
participation in the nation’s maritime trade to
indigenous ship owners.
Apart from identifying the inclusion of waivers
clause as one of the factors militating against
the Cabotage Act, he said the low
investment in the local refinery has made
indigenous ship owners vulnerable in
competing with the International Oil
Companies (IOC).
Although, he said, he was not against foreign
companies in the country, the Master mariner
said most of the foreign ship owners are
hiding under the provision of waiver in the
Cabotage law to enjoy the lifting of the crude
and use foreign crew instead of employing
Nigerians to man their vessels.
By the time the refinery comes on stream,
many indigenous shipping companies would
be involved in the coastal trade and not less
than 5,000 direct and indirect jobs would be
created through the venture.
Ihenacho said he has since received a licence
to establish the refinery, adding that
construction work would commence once he
gets the government nod to do so.
He said he was not happy that “Nigeria, as
the giant of Africa, still exports crude
overseas for refining and re-import same.”
The former Minister said the planned refinery
would be built in accordance with the
dictates of the Department of Petroleum
Resources and the Ministry of Environment.
Officers of the Ministry of Environment, he
said, had visited the site of the project for
them to receive Environmental Impact
Assessment Certificate.
“We have said it for so many years those
indigenous ship owners should be involved in
crude oil lifting, but nobody seems to be
listening because of involvement of the IOC.
Now, we have resolved to build a modular
refinery in Lagos so that we can add value
and create jobs. This is what we have
embarked upon. I have a licence to establish
a refinery. By the time we commence
operation, the ships we bought with several
millions of naira can now be put to use
effectively.
“Before granting licence to establish a
refinery, DPR must inspect the proposed site.
This they have done. There is a licence for
every stage; to establish, to construct and
operate a refinery, all dependent on your
ability to fulfill stipulated requirements.
“Our focus now is to address the issue of
Environmental Impact Assessment, feasibility
study and all. We have been carrying the host
community along and they are pleased to be
a part of this project. The project will be
financed by Nigerian and international
financial institutions,” Iheanacho added.
He said the country had for years, diverted its
funds by allowing crude to be shipped by
foreign vessels on a Free on Board Basis. He
added that the value on the crude oil in terms
of the refining process by way of jobs
creation had also been lost to other
countries.
“The profit from all these ventures is left in
foreign lands. It is time we invest in our
country and develop it. If we are successful
at this venture, refined petroleum will be
much cheaper than what we are paying for
currently,” he said. thenationonlineng.net/ex-minister-to-build-refinery-in-lagos/ |
Re: Ex-minister To Build Refinery In Lagos - THE NATION by Sacramento4real(m): 6:05am On Feb 23, 2016 |
Nice one. |
Re: Ex-minister To Build Refinery In Lagos - THE NATION by Adonis3: 6:33am On Feb 23, 2016 |
chill, ion get He didn't build when he was in power It's now he knows Nigeria needs one, huh Smh #Adonis3HasSopken |
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