FG’s oil, gas logistics services policy review will catalyse sector – SIFZ

One of Nigeria’s free zones operators Snake Island Integrated Free Zone (SIIFZ) says the recent approval of a policy review in Nigeria’s oil and gas logistics services sector approved by the Federal Government will eliminate monopoly and remove bottlenecks that had inhibited development over the years.

Abdulahi Yusufu, chairman of SIIFZ said, “Free zones operators, investors both local and foreign, terminal port operators will henceforth experience relief while the enormous economic potentials of the sector will positively impact on the economy because of the policy review.

Yusufu, further said, “The policy guarantees importers ‘the right to choose terminals or ports of their choice for the discharge of their cargo.’ This hitherto was impossible due to the monopolistic advantage enjoyed by Intels.”

The SIIFZ Chairman recalled that free zones stakeholders and ports terminal operators earlier this year had raised alarm against the proposed Bill to amend the Oil and Gas Export Free Zone Authority (OGEFZA) which if passed could have entrenched Intels’ monopoly in the sector.

However the policy review stated: “His Excellency, the President of the Federal Republic of Nigeria, has conveyed approval on 21st April, 2017 to the Honourable Minister of Transportation on the final position in the following terms:

“FGN remains guided by the general global practice in the designation of Terminal/Ports operations into three broad categorisations of bulk cargo, container cargo and multipurpose cargo. Accordingly, the FGN rejects the categorisation of oil and gas multi-purpose cargo terminal, as this is alien to the relevant concession agreements and inconsistent with global shipping practices…

“FGN reaffirms past presidential directives that all importers are free to choose any terminal or port for the discharge of their cargoes, subject to the presence of all requisite regulatory agencies at such ports as required by extant regulations and in line with its policy of promoting competition and value for money. Consequently, any policy that designates certain ports by cargo type is cancelled.”

The SIIFZ says it is an indication that the Federal Government was committed to attracting Foreign Direct Investment (FDI), build investors’ confidence and establish the ease-of-doing business in Nigeria through the policy review. It noted that the stakeholders are obliged to collaborate with the new leadership of the Nigeria Export Processing Zones Authority (NEPZA) in order to promote the sector.

 

ISAAC ANYAOGU