LAGOS — THE Federal Ministry of Transport has flouted a directive from the presidency asking it to re-open the Ibru jetty to enable petroleum products depot operators there take delivery of imported stock of petroleum products, as a means of encouraging private sector participation in the downstream sector of the oil industry.
It was gathered that the ministry rather decided to grant only Zenon Oil and Gas Company, one of the 13 downstream oil companies operating from the Ibru jetty access to berth and offload imported petroleum products cargo.
Meanwhile demurrage incurred by other petroleum products tank farm operators at the Ibru jetty has exceeded N600 million, posing dire consequences to the price at which products will be sold to the final consumer when cargo vessels are finally allowed to berth and discharge.
It would be recalled that petroleum products tank farm operators who take delivery of imported cargo at the Ibru jetty were stopped from taking delivery early last month over expiration of the jetty operator’s license.
However, investigations revealed that earlier in the week, management of the Nigerian National Petroleum Corporation (NNPC) and Zenon Oil and Gas got in touch with the Presidency over the closure and its impact on deregulation of the downstream sector of the oil industry.
The Presidency in turn instructed the permanent secretary in the ministry of transport to ensure that the jetty is opened to petroleum cargo vessels, and the Nigeria Ports Authority (NPA) was instructed to grant berthing access. However, since Tuesday, Vanguard gathered that berthing access was only granted to vessels belonging to Zenon Oil and Gas Company.
At the ministry, Vanguard gathered that renewal of the Ibru jetty operating license has been delayed because Dr. Abiye Sekibo, the minister travelled out of the country.
On why berthing access was granted to only Zenon, an official who pleaded anonymity disclosed that he was not aware of any reason why berthing access was granted to only Zenon.
The official also explained that besides the minister, no other official of the ministry could handle the issue of license renewal because it was a sensitive one.
A petroleum products tank farm owner at the Ibru jetty disclosed that currently, losses incurred on demurrage was in excess of N600 million.
The tank farm operator pointed out that the continued accumulation of demurrage on imported cargo has a direct impact on the cost of procurement, noting that this will also impact on the final price of the products at the pump.
