The Federal Government has broken the monopoly of some oil and gas logistics firms over the discharge of cargoes at the ports.

Importers, according to a presidential approval, can now pick ports of their choice for the discharge of their cargoes.

The approval followed the request of Nigerian Ports Authority (NPA) Managing Director Ms Hadiza Usman for the liberalisation of the operations of oil and gas free trade zones in the country.

Before she came to office last year, some oil and gas logistics firms were given exclusive contract over the discharge of cargoes at their terminals

In a letter titled: “Conveyance of presidential approval – Re: report on concessioned terminals in the ports”, the government said: “Following a review of the policy directive over the years in respect of the concessions and applicable legal regime by the Office of the Attorney – General of the Federation and Minister for Justice, touching upon reform initiatives and implementation as a veritable mechanism for the development of the maritime industry, investments made to date, general global practice in designation of terminals, right of importers to choose terminals or ports for discharge of their cargoes, streamlining of shipping and other fees, the President has conveyed approval on 21st April, 2017 to the Minister of Transportation on the final position in the following terms:

“FGN remains guided by the general global practice in the designation of terminal/ports operations into three broad categories of bulk cargo, container cargo and multipurpose cargo. Accordingly, the FGN rejects the categorisation of oil and gas multi-purpose cargo terminal, as this is alien to the relevant concession agreements and inconsistent with global shipping practices.

“The non-designation of the Onne Oil and Gas Free Zone as an ‘Oil and Gas Multi-purpose Cargo Terminal’ does not in any way legally obstruct or compromise the operations of the free zone as an oil and gas free zone, but rather, it merely indicates that all cargoes including oil and gas can be discharged at the terminal.

“FGN reaffirms past presidential directives that all importers are free to choose any terminal or port for the discharge of their cargoes, subject to the presence of all requisite regulatory agencies at such ports as required by extant regulations and in line with its policy of promoting competition and value for money. Consequently, any policy that designates certain ports by cargo type is cancelled.

“The NPA and the Bureau of Public Enterprises (BPE) are to streamline the payment of shipping and other fees at various terminals in a manner that ensures such fees are based on cargo type rather than on the basis of designation of terminals, to ensure that there is no loss of revenue due to FGN based on terminals that importers choose to bring cargoes into the country.”

Before its exit, the Jonathan administration directed that a $500 million oil and gas investment project be relocated from Lagos Deep Offshore Logistics (LADOL) Free Trade Zone (FTZ) in Lagos to Agga in Bayelsa State.

Under the deal, LADOL and Samsung Heavy Industries of South Korea were to build fabrication and integration yards for Egina Floating Production Storage and Offloading (FPSO) facility for the use of local and foreign oil companies.

The relocation order from NPA were contained in two letters, which read: “Please be informed that Mr. President has vide PRES/99/MT/2/22 of April 20 approved the FPSO project be relocated to Agga in Bayelsa State when the facilities to handle such operations are developed.

“In addition, the project can be conveniently located at any designated oil and gas terminal. Please be informed that Mr. President has approved, henceforth, all oil and gas related cargoes must be handled only in the designated terminals in Onne, Warri and Calabar ports.

“In view of this, vessels coming to Nigeria with oil and gas related cargoes, excluding petroleum products, are advised to first go to the appropriate concessioned terminals to be cleared by Customs and other relevant authorities, terminal operators and shipping firms.”

LADOL kicked against the relocation, saying the directive was ill-conceived and capable of destroying the gains made by the project’s partners.

It added: “We got the two letters the same day: a day after the appointment of the new MD of NPA. I want to make it clear that we (LADOL) do not have problems with NPA because they are using our facility.

“NPA has an office in LADOL Free Trade Zone. NPA had severally said LADOL is the largest private investor in its facility. By the end of 2017, LADOL would have invested $500million in NPA facility. Technically, it is not appropriate for the project to be relocated to Bayelsa State’’.