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Monopoly hikes cost of oil production by $1.5bn per annum – Nigerdock

BusinessDay
3 Min Read

Nigerdock Plc, a subsidiary of Jagal Group has stated that the logistics operations in the Nigeria’s oil and gas industry has become the most expensive in the world as a result of dominant monopoly  in the subsector.

The management of the company said the monopoly has added extra cost which translate to over $1.5 billion per annum to crude oil production in the country.

The company which claimed it has invested addition to $500 million in its operations to further enhanced local content  development in oil and gas industry asked Federal Government to stop the monopoly and make the Nigeria oil & gas Logistics and supply service  subsector more competitive.

Anwar Jarmakani, group executive chairman of Nigerdock who disclosed this when Hameed Ali,the Comptroller-General of Customs, visited the  Snake Island Integrated Free Zone in Lagos.

Jarmakani who alleged that such monopoly has been sabotaging of the economy, and conspiring and working against potential competitors, adding that the oil & gas industry and the nation  have been forced into capitulation.

“The Nigeria oil and gas supply and logistics services in Nigeria are the most expensive in the world because of its entrenched monopoly. Investments have on account of this situation be driven away from the country,” he said.

He alleged that attempts have been made in time past  to compromise the  Nigerian Custom Service .He stated that he   appreciates the fact that the present administration is aggressively doing away with such impunity.

According to him, the Nigeria Customs Service is one of the critical sectors where the change agenda of President Muhammadu Buhari has been evident

“Snake Island integrated Free Zone and Nigerdock are open for competive business and we are determined to bring down your operational costs by at least 30%,” he said.

The organisation, he said is a fundamental fabric of the Nigerian economy being one of the three largest revenue contributors to the country.  He stated that Snake Island Integrated Free Zone prides itself on its working relationship with the Nigeria Customs Service and all other relevant government agencies.

Jarmakani commended the new Customs Comptroller General and his team for a renewed sense of professionalism, diligence, dedication to duty and customer service orientation.

 

Olusola Bello

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