April 16, 2024

Oyetola, Minister of Marine, Blue Economy proposes PPP agreements to end charter vessels, eliminate 30 percent freight charges on petroleum products

 

Oredola Adeola

 

The Minister of Marine and Blue Economy, Adegboyega Oyetola, has proposed the use of Public Private Partnership (PPP) agreements to establish a national carrier and eliminate unnecessary fees on petroleum products, including the 30% charge for freight exportation.

 

He made this known during a working visit to the Nigerian Maritime Administration and Safety Agency (NIMASA) office in Lagos on Tuesday, being part of the tour of agencies under the ministry.

Speaking in reaction to the rising rates for crude oil and gas charter vessels, the Minister stated that Nigeria needs to secure stakeholders’ buy-in, as the nation needs a national carrier, especially through a PPP arrangement to overcome the challenge.

 

 

He said, “I am convinced we need a national carrier, especially through a PPP arrangement. We are about the only country that is an OPEC member that still charters vessels to carry our crude, where 30 per cent of the charge goes to freight. We must find a way around it.

 

Minister believed leveraging the expertise and resources of both parties, the PPP model can lead to more efficient and effective outcomes.

 

In the case of a national carrier, Oyetola believed that the PPP agreement could provide the necessary funding and expertise to establish and operate the carrier, while also ensuring that it meets the needs of the government and the public.

 

He said: “I am particularly interested in the NIMASA Modular Floating Dock because of its potential to generate employment and stem capital flight.

 

 

“We are determined to change the narrative by putting in place measures to make Nigeria a major player in that regard.

 

 

“Nigeria makes up about 853 kilometres of the estimated 47,000 kilometres of coastline in Africa. Nigeria has one of the largest wetlands in the world, with its coastal and marine ecosystems covering a total of 70,000 square kilometres.

 

 

“We have the potential to grow our economy and create more jobs through this novel ministry. We must put everything to work to deliver on the Renewed Hope Agenda,” the Minister said.

 

He therefore noted that the Ministry will address internal challenges affecting the smooth operation of NIMASA one by one and immediately take up external challenges.

 

 

Oyetola also expressed confidence in the capabilities and dedication of NIMASA and looks forward to witnessing its continued success in shaping the future of the maritime sector.

 

 

“Together, they can build a thriving blue economy that benefits everyone. There are no relevant search results for this question” he said.

 

EnergyDay therefore gathered that with the plan to eliminate unnecessary fees and reduce the cost of doing business, the industry can become more competitive and contribute to the growth of the Nigerian economy. This will also attract more foreign investment and create more job opportunities for Nigerian.