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NIMASA, Dangote Port tidy cabotage modalities ahead product freighting

* Agency to lose huge revenue from drop in product import shipment

Metro File by Metro File
January 26, 2024
in Business
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NIMASA, Dangote Port tidy cabotage modalities ahead product freighting
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  • Director-General, Nigerian Maritime Administration and Safety Agency, Dr. Bashir Jamoh (right), presenting a souvenir to the Managing Director, Dangote Port Operations, Akin Omole, during the company’s courtesy visit to the agency in Lagos

By Anthony Nwachukwu 

Ahead the imminent freighting of petroleum products from the Dangote Refinery and Petrochemicals, the Nigerian Maritime Administration and Safety Agency (NIMASA) and Dangote Port Operations have agreed on a joint working committee to adddress the operational concerns at the refinery within 14 days. 

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Though the NIMASA Director-General, Dr. Bashir Jamoh, has assured that the agency would not allow the implementation of the provisions of the Cabotage law to hinder the refinery’s business operations, the concerns include the agency’s impending huge loss of 3 per cent afreightment as importing ships are bound to reduce. 

Speaking during a courtesy visit by a delegation from Dangote Port Operations, led by the Managing Director, Mr. Akin Omole, Jamoh said that the agency would work with the company to assist it keep with government regulations on wet cargo freighting.  

“I suggested a joint committee with membership from NIMASA and Dangote to look at issues objectively. Our priority is to ensure regulatory implementation does not impede the operations of Dangote Ports, and by extension Dangote Refinery,” Jamoh said. 

“Though the coming on stream of the Dangote Refinery would lead to a drop in NIMASA revenue, because ships importing petroleum products would reduce drastically, thus reducing the 3 per cent freight levy collected by the agency, Nigerian economic growth and long term benefit to the Nigerian masses are far better than immediate revenue for NIMASA.” 

On his part, Omole said his team would ensure that the refinery does not breach the Cabotage Act, stating: “We talked about business being done in a way that there is no obstruction, no delay.  

“In shipping, a day’s delay is a huge cost. We have an average of $50,000 demurrage on a ship per day, so we want to be sure that these kinds of delay are not experienced.  

“All bottlenecks, hindrances that will cause the delay will be addressed jointly and collaboratively with our team and NIMASA team.”

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