Dangote Group, NIMASA to Address Operational Concerns at 650,000bpd Oil Refinery, Ports

The Nigerian Maritime Administration and Safety Agency (NIMASA) and the management of Dangote Group have agreed to set up a working committee to address operational concerns that may hinder seamless functioning of the 650,000 barrels per day capacity oil refinery and within the next 14 days.

The Director General of NIMASA, Dr. Bashir Jamoh, disclosed this yesterday, when a delegation from Dangote Ports Operations, led by its Managing Director, Mr. Akin Omole, paid a courtesy visit to NIMASA.

Jamoh, said the agency was committed to ensuring that the business of the Dangote Ports and refinery were not hindered by the implementation of the regulatory instrument under the provisions of the Cabotage law.

The NIMASA boss maintained that the agency would work with Dangote Ports to also ensure that the Group did not breach any regulation of the federal government as regards Wet Cargo afreightment.

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

“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 three per cent freight levy collected by the Agency.

"However, Nigerian economic growth and long term benefit to the Nigerian masses is far better than immediate revenue for NIMASA.”

Corroborating what the NIMASA boss had said, the Managing Director, Dangote Ports Operations, Omole, said his team would ensure that the refinery was not in breach of the Cabotage Act.

“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 over $50,000 demurrage on a ship per day, so we want to be sure that these kinds of delays are not experienced.

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