For Nigeria to effectively tap into the $150 billion global oil
bunkering business formerly embargoed by government, there must be
stringent regulations on licensed firms and operators, analysts say.
In 1984 the bunkering business in Nigeria was restricted to five
major oil marketing companies on account of abuses which led to huge
losses to the economy. Then in the year 2000 the business was put on ban
for 13 years for the same reason.
With the recent lifting of the ban the business of bunkering is
expected to yield over N250 million annually into the Federation Account
as license renewal and registration fees for bunker vessels, says
George Osahon, director, Department of Petroleum Resources (DPR)
Bunkering is an international business that allows licensed firms to
supply Automotive Gas Oil (AGO) or diesel, Low Pour Fuel Oil (LPFO) and
Liquefied Natural Gas (LNG) to oceangoing vessels, including container
carriers and oil tankers that trade within a nation’s maritime domain.
The resumption of bunkering services in the country will save oil,
gas and marine operators the stress of going to Senegal, Cape Verde and
Cote D’Ivoire to fuel vessels operating in Nigerian territorial waters
and also earn the country some foreign exchange, analysts say.
BusinessDay checks reveal that the business, properly handled, has
the potential to take more than 10,000 Nigerians off the employment
market. Much of these opportunities are for jobs on Nigerian flagged
bunker vessels and licensed firms in a country, where over 5,000 ocean
liners shuttle cargoes annually.
Following government’s approval of the resumption of bunkering
operations, Navy Captain S. O. Ayeni, the head of the Directorate of
Marine Services, Nigerian Navy, recently warned that any ship that must
bunker in the country’s territorial waters must fulfill the requirements
of the Navy.
“The operator will be expected to present to the Nigerian Navy
headquarters, an application for bunkering clearance, detailing the
vessel involved, location of bunkering operation, or discharge point,
quantity of bunker fuel and duration of the operation.”
Ayeni further explained that the operator must disclose the source of
his bunker fuel, adding that in view of the poor state of the
refineries, the product must not come from the country, otherwise it
would be regarded as stolen oil.
Operators must obtain licences and certifications from the DPR and
the Nigerian Maritime Administration and Safety Agency on the quality of
the products and the vessels.
Speaking with BusinessDay on telephone, Adewale Ishola, a renowned
master mariner, who described the lifting of ban on oil bunkering in
Nigeria as a good development, observed that bunkering is an
international business that can fetch the country huge foreign exchange,
from ships trading in the nation’s territorial waters.
The Federal Government, Ishola suggested, needs to create designated
taxes in all Nigerian ports for vessels used for bunkering, so as to
achieve transparency in the business. “This is what is obtainable in the
international bunker market.
“Also, our refineries need to be resuscitated for bunker vessels to
load their fuel directly from the refineries instead of depending on
imported fuel. Loading from the refineries will help to create
competitive pricing in the bunker market, thereby reducing the market
price for operators”,he added.
Bolaji Akinola, a maritime practitioner, said negligence in
regulation of the operations of bunkering firms led to flagrant
disregard of standards and abuse of the business ethics in the past.
He suggested that government agencies supervising bunkering
operations must be alive to their responsibilities by granting licenses
to companies that fulfill set guidelines and have track records of
operating within the ambits of the law.
Akinola further suggested that licensed operators should come
together and form a formidable association to protect their operations
from quacks and hoodlums. “They must also ensure that their workers are
well groomed in the trade, while their operations must be in line with
international best practices”.
“The Nigerian Navy and the Nigerian Maritime Administration and
Safety Agency (NIMASA) must also ensure that only licensed operators are
granted access to vessels. All bunker vessels must be certified and
duly registered for effective monitoring and control”.
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