Nigeria is bracing for a potential three percent drop in freight revenue collection with the imminent start of production at the Dangote Refinery, as revealed by the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh. Jamoh anticipates a significant decrease in ships importing petroleum products, directly affecting the agency’s three percent freight levy. However, amidst the revenue concerns, the expected boost to the Nigerian economy through in-country petroleum production is seen as a silver lining.
During a recent visit by Akin Omole, Dangote Port Operations representative, to NIMASA’s office in Lagos, Jamoh disclosed that NIMASA and Dangote Refinery have agreed to establish a joint working committee within 14 days to address operational challenges at the refinery. This collaborative effort aims to ensure that regulatory implementation does not hinder the seamless operations of Dangote Ports and the refinery.
In light of the impending operational commencement, Omole emphasized the significant daily demurrage costs incurred due to delays at the refinery, highlighting the need for unimpeded business operations. He assured that the refinery is committed to compliance with the Cabotage Act and expressed the intent to work closely with NIMASA to proactively address any potential bottlenecks and delays.
Noteworthy is the announcement made by the Dangote Refinery in January 2024 regarding the commencement of operations and its plans to supply petroleum products to Nigeria’s domestic market. As Nigeria prepares for these transformative developments, the long-term economic benefits are emphasized, despite the anticipated short-term revenue impact on NIMASA.
