Operator urges FG to check sabotage in Oil and Gas Logistics sector

Col. Hammed Ali(Rtd.) inspecting works at the Snake Island vocation training centre

Mr Anwar Jarmakani, the Group Executive Chairman of Jagal, has appealed to the Federal Government to check monopoly and economic sabotage in the Oil and Gas Logistics and Supply Service sector in line with government’s vision for free and fair competition among investors.

 Jarmakani made the appeal while addressing Col. Hammeed Ali (Rtd.), the Comptroller General of the Nigeria Customs Service during an inspection of the facility of Snake Island Integrated Free Zone recently in Lagos.

The Group Executive Chairman alleged that the sector and its regulating government institutions had been manipulated through “a non-existent law to justify the assertion and false claim that all Oil and Gas cargo must be first discharged at their ports of preference” in the past 20 years.

He said that as a result of this “ghost law”, the country has been held ransom as the absence of a free enterprise market in the sector has made it the most expensive in the world.

 He disclosed that Nigeria had been short-changed by the monopoly to the tune of $1.5billion annually and warned that as a result of this faux pas, investors were beginning to boycott the nation.

 “This monopoly seriously damages the international reputation of Nigeria. They have driven away investments.

 “The Oil and Gas Supply and Logistics Service in Nigeria is the most expensive…the Monopoly adds an extra cost of $3-$5 per barrel produced in Nigeria which translates to over $1.5billion per annum,” Jarmakani stated.

Jarmakani stated that the said law was a scam and that if such a law really existed, the Federal Government would not have encouraged other critical players to make huge investments in the country.

 He added that the Snake Island Integrated Free Zone, which currently employs over 6,000 persons, is open to competitive business as it is focused on cutting down the operational cost of its clients by 30 per cent.

In his response, the CGC, Col. Hammed Ali promised to look at laws that exist so as to address the lingering controversy.

He said, “Let me assure this great company that the government of President Buhari is the government of fairness, equity, and transparency.

“In the past, certain things were done not in accordance with the laws of this great nation; the idea of change is to get back to doing business with the right framework.

 “I want to underscore the fact that we as Nigeria Customs Service have no choice but work along that path.

 “I want to assure you that all issues that have been raised, we will go back and look at the laws that exist. I can assure you that if we find something contradictory to the law, we will address it.”

 Col. Ali (Rtd.) also pledged support of the Service for all law-abiding businesses.