ENUGU, Nigeria (VOICE OF NAIJA)- The Nigerian Maritime Administration and Safety Agency (NIMASA) has indicated that the initiation of operations at Dangote Refinery will result in a 3 per cent reduction in the country’s revenue from freight collection.
Bashir Jamoh, the Director General of NIMASA, shared this insight during a recent visit by Akin Omole, Dangote Port Operations, to the agency’s office in Lagos.
Jamoh mentioned that as the Dangote Refinery begins production, the number of ships importing petroleum products is expected to significantly decrease, thereby affecting the 3 per cent freight levy collected by NIMASA.
Despite the potential decline in revenue, Jamoh noted that the in-country production of petroleum products would contribute to the growth of the Nigerian economy in the long term.
NIMASA and Dangote Refinery have agreed to establish a joint working committee within 14 days to address operational concerns at the refinery.
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Jamoh highlighted the importance of ensuring that regulatory implementation does not hinder the operations of Dangote Ports and, consequently, Dangote Refinery.
He stated, “I suggested a joint committee with membership from NIMASA and Dangote to sit down and look at issues objectively. Our priority is to ensure regulatory implementation does not impede the operations of Dangote Ports and, by extension, Dangote Refinery.
“Though the coming onstream of the Dangote Refinery would lead to a drop in NIMASA revenue because ships importing petroleum products would reduce drastically, thus reducing the 3 per cent freight levy collected by the Agency.
“However, Nigerian economic growth and long-term benefit to the Nigerian masses is far better than immediate revenue for NIMASA.”
Akin Omole echoed the need for streamlined operations, expressing concerns about the daily demurrage cost of $50,000 incurred due to delays in shipping.
He assured that the refinery would adhere to the Cabotage Act, and collaborative efforts between Dangote and NIMASA teams would address potential delays and bottlenecks.
“We talked about business being done in a way that there is no obstruction, no delay. In shipping, a day’s delay is a huge cost; we have an average of over $50,000 demurrage on a ship per day, so we want to be sure that these kinds of delays are not experienced.
“All bottlenecks and hindrances that will cause the delay will be addressed jointly and collaboratively with our team and NIMASA team,” he stated.
Dangote Refinery officially commenced operations in January 2024 and aims to supply petroleum products to Nigeria’s domestic market.