Nigeria losing $3.6bn annually to monopoly in oil, gas logistics

The tendency for players to monopolise the oil and gas logistics services in Nigeria may result in a loss of about $3.6 billion annually for the nation, Leadership reports.

According to the chairman of  Snake Island Integrated Free Zone (SIIFZ), Lagos, Mr Anwar Jarmakani, Nigeria loses between $3 and $5 on every barrel of oil produced daily to monopoly in the oil and gas logistics chain. With Nigeria’s daily production currently averaging 2 million barrels per day, Jarmakani’s loss figure give a daily $10 million, $300 million monthly, and $3.6 billion loss annually.

Jarmakani, who was briefing the comptroller-general of the Nigeria Customs Service (NCS), Col Hameed Ali (rtd), who was on a tour of the LADOL facilities on Snake Island, Lagos, yesterday, said that he condemned such a monopoly in the oil sector, noting that it had been on for over 20 years. Responding, Ali said that he would look into the laws on the discharge of oil and gas related cargoes in the country, stating that the customs was now becoming more knowledgeable about the activities in the zones.

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