The Nation Newspaper

Tag: Monopoly

  • LCCI: NNPC’s downstream oil sector monopoly stultifies growth

    The Lagos Chamber of Commerce and Industry (LCCI) at the weekend expressed worry over the monopoly of the downstream oil sector by the Nigerian National Petroleum Corporation (NNPC). It said  the development has stifled the growth of the sub-sector.

    LCCI said the state-run oil firm now solely produces and imports the petrol that runs the engine of the local economy.

    Its Director-General, Mr. Muda Yusuf, said it has become practically impossible for private sector marketers to import and sell products because of the price distortions which the involvement of the state oil firm has created in the industry.

    He argued that the extant policy on petrol pricing has made it impossible for private sector participants to get involved in neither fuel importation nor local refining by way of setting up refineries in the country.

    Yusuf also expressed concerns over the involvement of Marine Police in the clearance of cargo at the ports.  According to him, the Chamber has been inundated with reports of frequent obstruction of the release of cargo by Maritime Police even when the release has been duly authorised by statutory agencies charged with the responsibility of cargo examination.

    He said their involvement in the cargo release process is a needless duplication, causing avoidable delays and huge demurrage payment by importers. He stressed that the frequent blocking of cargo by the Maritime Police is undermining the ease of doing business policy of the Federal Government.

    He said: “The challenges of clearing cargoes at Lagos ports have persisted apart from the problem of poor access roads to the ports and the associated traffic gridlock; there are concerns about the several units of the Nigeria Customs Service getting involved in cargo interception and clearance processes, creating problems for importers and investors. These units include Comptroller General’s Strike Force, Comptroller General’s Task Force, Federal Operations Unit (FOU), Customs Intelligence Unit (CIU) and Comptroller-General’s Monitoring Team.  Others are Enforcement Unit and CAC squad.”

    He regretted that in addition to the officially approved agencies which have statutory functions for cargo examination and release such as the Customs officers of the command, National Drug Law Enforcement Agency (NDLEA), Directorate of State Security (DSS), Ports Police, Nigeria Immigration Service (NIS), Nigeria Ports Authority (NPA), Nigeria Maritime Administration and Safety Agency (NIMASA) and Port Health.

    He sought the urgent intervention of Federal Government to stop the disruption the numerous Customs units are creating for importers, within and outside the ports. This practice is a negation of the ease of doing business agenda of the government and it is hurting investors, he added.

    He said such delay leads to huge demurrage by importers to shipping companies and terminal operators and also affects the production cycle of manufacturers with implications for cost escalation. He urged the Inspector-General of Police to urgently intervene to redress the situation in the interest of the economy.

    Yusuf urged government to prioritise reform in the oil and gas sector; pass the Petroleum Industry Bill (PIB) into law; fix the power sector; give due priority to infrastructure; address security issues in parts of the country; reduce cost of governance; and resolve the Apapa traffic gridlock which is taking a huge toll on the economy.

  • Association urges govt to break meter ownership monopoly

    The Electricity Meters Manufacturers Association of Nigeria (EMMAN) yesterday in Lagos appealed to the Federal Government to break the monopoly of distribution companies in the sale of meters to electricity consumers.

    EMMAN Executive Secretary Muyideen Ibrahim, who spoke to the News Agency of Nigeria (NAN), said it would go a long way in addressing the challenges with estimated billings.

    According to Ibrahim, breaking the monopoly will enable electricity consumers procure and own meters directly.

    He said it would also address complaints over estimated billing and outrageous billing from the distribution companies.

    Ibrahim said that the association had always advocated that government should liberalise the metering arm of the power sector so that everybody could have access to meters.

    He said: “If every consumer has prepaid meter, it will allow them to manage the electricity consumption, and the Discos will collect revenue maximally without billing outrageously. But now the consumers are short-changed because they are being given estimated bills. It presupposes that the Discos are smiling to the bank while the consumers are suffering.

    “Unfortunately, some of the Discos are complaining that they don’t have the fund to invest massively in metering, whereas the meters are available in the various warehouses of the manufacturers.

    “If the telecom sector could be liberalised, why not metering? The only thing is that it will enhance the whole power sector and also add value as well.’’

  • NPA breaks monopoly in oil and gas cargo 

    NPA breaks monopoly in oil and gas cargo 

    With the arrival of the Egina $3.3 billion Floating Production Storage Offloading (FPSO) vessel in Lagos, the Federal Government has broken the monopoly in that line of business, Nigerian Ports Authority (NPA) Managing Director Ms. Hadiza Bala Usman has said.

    Only one firm handles oil and gas vessel cargo at Onne, Warri and Calabar terminals.

    The giant oil and gas vessel arrived in Lagos, after 90 days voyage from Samsung Shipyard, Goeje in the Republic of South Korea.

    Speaking after the vessel berthed at the LADOL Integrated Free Logistics Zone in Lagos, Ms. Usman said it was a feat achieved by the government, NPA, other terminal operators and importers of oil and gas equipment.

    She said the choice of Lagos for the project, was a confirmation of the reason behind the government’s policy to liberalise oil and gas logistics operations to ensure competitiveness, efficiency and boost revenue.

    The Federal Government, she said, had fulfilled part of the subsisting contract it signed with the terminal operators through NPA and the Bureau of Public Enterprises (BPE).

    The FPSO Egina, she said, had a length over aii ( LIA) OF 330 METERS, width of 63 METERS and a Gross Tonagd ( GT) of 219,800 tonnes and it is the first time the NPA and the country would be handling vessel of the size.

    The berthing of the giant vessel by the NPA, she said, was an attestation to the infrastructural and operational preparation of the NPA.

    NPA, she said, has put to rest the protest by some terminal operators over the purported designation of a terminal operator as the exclusive handler of oil and gas cargoes, which, she said, was against the port reforms carried out by the Federal Government in 2006.

    “The successful berthing of this huge vessel testifies to our capacity to provide improved services to the oil and gas industry.

    “We recognise that the magnitude of this project presented the NPA with the opportunity to, once again, showcase our unrelenting efforts at building capacity to meet the needs of customers across board, we are grateful for this unique partnership and look forward  to more of such.

    “This project put a demand on the NPA to facilitate the berthing of the FPSO Egina for the completion of its construction at Lagos Harbour. It also further the Federal Government’s local content policy with multiple effects evident in employment opportunities, capacity building, technological transfer, cost saving, reduction in capital flight as well as the attraction of oil and gas hub to Nigeria for the sub-region,” Ms.Usman said

    She said, the Federal Government,  will continue to ensure that all ports operations are modeled in line with global best practices which recognise only three classes – bulk, container and multipurpose cargo, saying this is the practice globally.

    Ms. Usman gave kudos to President Muhammadu Buhari and the Federal Government for initiating an impressive policy that empowered the authority to return to the three classes as it is done across the globe.

    She assured prospective local and foreign investors, operators, importers, shipping companies, clearing agents and other port users that the misnomer in the oil and gas designation which has been corrected by the Federal Government through the NPA to enthrone competitiveness and end the unwarranted monopoly would not be allowed to resurface again  in the country.

    “Our plan is to ensure a regulatory environment that promotes the maritime industry. We are looking at ensuring that there is competition; we know the problems confronting most of the terminals at the various ports, we feel the need for the government to ensure that local content for example is adhered to.

    “Businesses are coming into the country, we are doing our best to encourage them to ensure that the utilisations of their operations are domiciled in Nigeria, we also encourage operators to ensure that they have Nigerians within their ranks, employment for Nigerians is very important. We also believe that wherever enabling environment is required we will provide.

    “We believe in stakeholder’s consultation, we will continue to bring everyone to the table for us to seat down and ensure that there is need for us to work together. As an authority, we are going to lead and ensure that local content is provided. We will step beyond the things that we historically used to do so that whatever is required for the operators to work together for Nigeria to have the maximum benefit that it can attract for itself within this environment.

    “We are looking at making Nigeria the hub for West Africa; working to ensure that there is operational efficiencies and make effort to improve the ease of doing business and the competitiveness of our port operations; we will work with the operators and look at areas where there is overlapping among the operators and agencies within the Ministry of Transportation and ensure that we work together to ensure that there is synergy,” she said.

    Importers said the dominance of the nation’s oil and gas logistics business at the ports has ended with the arrival of the FPSO vessel in Lagos.

    One of the importers, Mr Kenneth Anderson, gave kudos o the Federal Government and the NPA for guaranteeing the right of importers to choose terminals or ports of their choice for the discharge of their cargo.

  • Kwese TV may break Supersports’ monopoly

    Kwese TV may break Supersports’ monopoly

    Kwese TV, owned by Zimbabwean billionaire Strive Masiyiwa, started operations in Nigeria about a week ago.  Kwese TV came to the country with decoders and satellite dishes available to subscribers, indigenous family contents, and the biggest sub-saharan sports channel, Kwese Sports.

    Kwese Sports is the largest sub-Saharan sports channel with 100 million viewers in 25 countries. It is free-to-air and aims to break the monopoly of SuperSports channels. Kwese Sports has acquired the rights to beam the 2018 FIFA World Cup live to Africa and beyond. According to Chichi Nwoke, General Manager, Kwese Sports, ‘’the matches will be live on both the free-to-air stations and those that will subscribe”.

    The company introduces flexible payment plan, which include three and seven day subscriptions at N990 and N1,850 respectively, as well as a 30-day subscription option for N6,275. Nigerians have yearned for pay-as-you-view plan since DSTV pioneered the market.

    Kwese TV is an entertain-ment-sports Pay TV operated by Econet Media, a subsidiary of the giant pan-African telco, Econet Wireless.

  • NIPCO has broken gas business monopoly, says marketers

    NIPCO has broken gas business monopoly, says marketers

    The Nigerian Independent Petroleum Company (NIPCO) has broken the monopoly of International Oil Companies (IOCs) in the gas market, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), President Nosa Ogieva-Okunbor has said.

    During a visit to NIPCO in Lagos, he said the IOCs hitherto had almost total control of the market before the company came in 2009.

    He noted that NALPGAM as an important value chain in the LPG distribution process appreciate the contribution of NIPCO in the chain and will forever be grateful to the organisation.

    According to him, the company’s recent expansion project which will make her the biggest LPG plant in Nigeria awesome and a delight to them as it will have a positive impact on storage and availability of LPG in the domestic market.

    Barrister Ogieva –Okunbor noted that as a key stakeholder in the business, it is imperative of them to associate with market leader like NIPCO as a form of encouraging  the company in its investment drive to grow LPG sector in Nigeria.

    He informed the NIPCO management of the setting up of a human resource development centre by the association to grow technical know-how in the industry and offer avenue for exchange of ideas in the interest of the stakeholders.

    While promising increased business relationship on behalf of its members who own hundreds of bottling plants across the country, Barrister Ogieva–Okunbor said:‘’ the partnership of NALPGAM and NIPCO is key to the smooth transition of gas to the end users’’.

    In his remarks, Managing Director, NIPCO, Mr Sanjay Teotia, said the ongoing expansion in its LPG plant is geared at improving the gas distribution value chain by providing veritable avenue for storage and dispense to bottling plants owners and other ancillary operators in the LPG market.

    He restated the company’s commitment to high safety standards and accurate loadings, a feat that has been NIPCO key objectives in its operations since inception.

    The MD will cooperate with the association in ensuring that its gas prices are affordable and poised to increase avenue for more meaningful business for  marketers even as he urged NALPGAM to ensure that bottling plant owners consider the end users in pricing as well as accuracy in quantity dispense.

    He told the visiting LPG marketers that quality certificate of each consignment being loaded to their members will be sent to the association for onward passage to their members.

    The highlight of the visit was the presentation of an award to NIPCO as the 2017  best LPG marketer identifying its   LPG  sales  head ,Harjeet Tuteja as the best salesman of the year.

  • Ports: Which monopoly?

    I was at a dinner last week when a reputable journalist shared a local Nigerian adage that succinctly captures the state of those who have appropriated to themselves some power founded on shallow knowledge of the reality: “The man that travels far tends to know more than the man who lives long”.

    The import of this adage is that the number of years one spends on earth does not necessarily bestow significant knowledge. Yes, with age comes experience, but not necessarily knowledge. On the contrary, the man that travels far is likely to know more about the world than the man who has lived long in one place.  This is the reality of those who have found a new career path in misrepresenting the truth about INTELS Nigeria Limited and its operations in Nigeria. They do this without stepping a foot on the geographical exploits of the company to at least, have a first-hand understanding of the value the company is adding to the Nigerian economy.  But the more they talk, the more manifest the baselessness of their argument.

    It is quite unfortunate to see that a country that is acutely challenged economically is engulfed in unnecessary economic in-fighting. Whilst the government at the federal level appears to be pushing efforts to support businesses and stimulate growth that will generate employment, some individuals are tirelessly strategizing to make the business climate unfriendly for reasons best known to them and their cohorts.

    Until I visited the Onne office of INTELS, Rivers State, I was completely indifferent about this ongoing media campaign against INTELS. The major theme of this smear campaign has been about breaking the monopoly of INTELS. Before I delve into what I saw on ground at Onne, let me briefly expound on this unending chorus about monopoly, which does not exist anyway. Let us for the purpose of argument admit that INTELS is monopolising the oil and gas services business in Nigeria; if that is done legally, how is it a problem when there are unrestricted opportunities within the same industry for other investors to explore?

    To the best of my knowledge, the Nigerian economy is largely a free market economy that allows free entry and exit. The oil and gas services sector is no different from the other sectors of the economy in that regard; all that is required is for the intending company to meet all the necessary requirements. And in a competitive environment, if a business entity is able to present superior business model to the government and obtains the support of the government, how is that a problem?

    Some individuals with kindergarten information talk about INTELS as if the company started operations in Nigeria 30 days ago, when it has actually been in the country for 35 years. This is a company that commenced business in a completely swampy land with just one container as office space. Today, that one container business has grown into a major employer of labour and the rallying point of hope for the Onne community. Now, if a company that started with one container in this country has grown and obtained the status of a major investor in the oil and gas services sector in 35 years, how then can that be categorised as a monopoly?  These investors saw opportunities where some people only saw swamp and monkeys; they saw possibilities when others were complaining; daring enough to borrow and invest when others were escaping the country, yet we accuse the company of running a monopoly. Instead, I believe it is the ingenuity of the people behind the company that is actually louder than their voice. On the contrary, the voices of those that lack the same ingenuity have been louder than their contribution to the Nigerian economy.

    Now let us take a look at INTELS and the oil and gas services industry in Nigeria. INTELS is an integrated logistics facilities and services company. The company services the oil majors and also runs port management services as a concessionaire of the federal government. The company operates in this sector with other companies like Brawal and Julius Berger. And the Nigerian government has not made any law to close entry into this sector of the economy for intending investors, which presupposes that it is a free market that allows investors to blossom in proportion to their ingenuity and business dexterity. If INTELS truly operates with other top companies like Julius Berger in the same sector, then the company definitely cannot qualify as a monopoly. It only shows how committed and loyal the company is to the Nigerian state by committing huge investments into the economy. It is sheer mischief to impugn that there is a monopoly in an industry where the paymasters of mischief peddlers earn their living.

    Contrary to the deliberate manipulation of sacred facts by some, INTELS is a highly reputable Nigerian company that is adding tremendous and significant value to the Nigerian oil and gas value chain, and helping to retain value that could have been lost to other countries through provision of world class logistics services, constituting about 30 per cent of the value of oil and gas cargo. Every activity of the company is carried out with a commitment to meeting and surpassing international best practices. A visit to the Onne Oil and Gas Free Trade Zone managed by INTELS will completely blow every discerning mind. There is hardly any service in the oil and gas services sector that cannot be provided by INTELS. In fact, without the Onne Free Trade Zone and INTELS’ One Stop Shop Service concept which helps in the optimisation of time, space, and resources by oil companies, oil production cost in Nigeria would have been higher than what it currently is.

    Beyond the business exploits of the company, INTELS’ relationship with its host community is highly impressive. For a company that has operated in the Niger Delta for 35 years yet does not have a single demonstration against its activities deserves a grand applause. And the reason is not far-fetched. This is a company that invests extensively in its Corporate Social Responsibility (CSR) obligations to the community with visible and impactful results to show. Just a visit to the Women Empowerment Project Scheme Synergy (WEPSS) Centre, will provide an idea of the impact of this company in Onne and environs. The scheme provides 18 weeks of intensive training in cloth making for young women completely free of charge. In addition, the trainees are provided stipends in the course of their programme; and some of them are also awarded starter packs at the end of the training to start their personal businesses. So far, the scheme has trained 700 women, some of whom have been employed by the company, with others advancing in their personal business. The more fascinating angle to this is that WEPSS produces all the work wear worn by technical workers at the Onne Free Trade Zone.

    In actual fact, the success of INTELS is the model and pillar of privatisation in the Nigeria’s maritime industry. Perceptive minds should be happy that this model is working and advocate for the replication of same in other sectors of the economy. It is rather unfortunate that some people in high places and government circles, for their political expediencies, have become willing tools in the hands of competitors to give credence to this campaign clothed in untoward falsehood. INTELS is evidently one of the highest employers of labour in Nigeria with proven and sterling track record that is there for all to see. It is not one of those companies that are more visible in the media than the real business sector.

    The oil and gas business sector is capital intensive and requires huge funding for business excellence. Those who can dare the challenge should source for funds and invest the way INELS has done. If any individual or business truly believes in the Nigerian project as they claim, then invest huge money in the country. That is the only way to display your faith in the country, and not by running a campaign of calumny against an entity that believes in this country. Nigeria is big enough to accommodate every willing investor.

    Let everyone compete squarely and do so fairly without spreading lies about the other companies. Spreading lies is not fairness and definitely not a proven business strategy; it is simply what it is – a campaign of calumny! Let us support our economy by supporting the businesses that are doing well; collaboration is actually more beneficial.

     

    • Goodluck writes from Lagos.

  • Cost of monopoly at Nigerian ports

    In 2006, President Olusegun Obasanjo carried out a concession exercise to save the ports from total collapse. The concession was conceived to break the monopoly of Nigerian Ports Authority, NPA, increase efficiency of the ports through promoting competition on level playing fields; decrease cost of port services to users and also reduce the cost of support of the port sector to the government and to attract foreign direct investment, FDI.

    The post-concession era had hardly taken off when NPA brought a storm to bear on the smooth sail of the vessels. Without any official pronouncement or change in the agreement between government and concessionaires, NPA began to divert vessels carrying a class of cargo known as General Cargo to Intels terminal at Onne, Rivers State. This was irrespective of the importers’ port of preference for the discharge of their cargo.

    These cargoes which include pipes, steel pipes, dismantled rigs and so on were classified by NPA as ‘oil and gas cargo’, a nebulous term that was neither in the concession agreement nor in maritime lexicon anywhere in the world. Obasanjo could not understand where this impunity sprang from. Having set up a panel to investigate this odious arrangement, he suspended Intels, one of the concessionaires, from Nigerian ports after its indictment by the panel.

    The oil and gas cargo invention made another stormy appearance on November 7, 2007 under President Umaru Musa Yar’Adua and without any government policy supporting this resort to private monopoly, the Minister of State 2, for Transport, Prince John Okechukwu Emeka issued a directive that all ‘oil and gas cargo’ should be routed through the oil and gas cargo terminal in Onne. The ‘oil and gas terminal’ was a strange cook up to Yar’Adua as it was to the concessionaires whose businesses were beginning to emaciate fast. Miffed by this impunity, Yar’Adua fired the minister after the infamy of compelling him to reverse his directive on the pages of national newspapers.

    It is important to note that Yar’Adua’s family held shares in Intels. But after a critical examination of the huge negative impact of Prince Emeka’s directive which was crippling the maritime sector and driving investors out of Nigeria, Yar’Adua had no choice but to reverse the directive and sack the minister, a clear statement in patriotism.

    The death of Yar’Adua again saw the irrepressible oil and gas cargo issue loom even larger than ever. Once again a letter with the reference number EP/AGM/OPTS/034 dated March 18, 2013 from NPA and another dated November 8, 2013 from the Ministry of Transport ordered all vessels carrying ‘oil and gas cargo’ to be diverted to Intels terminal.

    From now on, the battle to exterminate the siege of the oil and gas cargo cabal and end private monopoly in Nigerian ports would rage and simmer for some years to come. Battles were fought in court and from the House of Representatives to the Senate, with committees of the National Assembly cancelling one another under extraneous influences.

    The cost of these battles is almost incalculable. Between November 15, 2007 and August 8, 2008, an estimated US$150 million was lost to neighbouring countries and about US$3.8 billion in the next eight years.

    The Board of Schlumberger, an oil and gas multi-national company which approved US$125 million investment into a new facility in Lagos moved the investment to Ghana after learning of the compulsory diversion of oil and gas cargo bearing vessels to Onne.

    A Senior Advocate of Nigeria, SAN, Femi Atoyebi, a lawyer to Ports and Terminals Operators Limited, PTOL, in a paper presented before the Senate on the occasion of the Public Hearing on the Act to Amend the Oil and Gas Export Free Zone Authority Act (OGEFZA) to Provide for the Designation and Establishment of Oil and Gas Free Zone and Special Investment Areas and Related Matters, captured the huge costs the concessionaires paid and were likely to lose due to monopoly. In his words, “the terms, tenure and amounts of the yearly lease ranged from US$1.25 million to US$10 million and later up to US$12 million”. Some of the concessionaires, having lost the most lucrative cargo, which is General Cargo that includes pipes, dismantled rigs and so on, now dubbed oil and gas cargo, could not continue with their businesses after seven years while many struggled and could not meet their financial obligations to government in terms of lease, throughput fees and taxes. Indeed the government is said to have lost well over US$2.1 billion by the beginning of 2017 in lease, throughput fees and taxes.

    The Managing Director of PTOL, Mrs Lizzie Ovbude, a fierce opponent of monopoly at the ports and a resilient advocate of the concession agreement lost three vessels carrying her cargo to the monopolistic directive in quick succession. Due to the diversion of these vessels, MV Kota Berlain, MV Kota Bakti, and Cosco Jing Gang Shan among others, her company lost millions of dollars.

    A lawyer, with focus on maritime stated unequivocally that “Nigeria’s economy must have suffered a loss of over US$7 billion due to the monopoly squabbles at the ports”. Expatiating, he argued that the colossal loss of revenues to neighbouring countries, the massive losses due to stunted investment and development of the ports and terminals, leakages, tax evasion and shedding of employees due to skeletal finances, all these he affirmed were far more than the estimated US$7 billion the government must have lost due to the heinous activities of the oil and gas cargo syndicate.

    Continuing, he added that “government is paying one concessionaire US$5.2 billion which it claims is “reimbursement” for construction of facilities at Onne, Warri and Calabar. My worry about such claims is that there have never been any reputable Quantity Surveyors to independently verify these claims and I guess too, that there is no Engineering, Procurement and Construction, EPC, or similar agreement between the concessionaire and NPA, to make auditing of the construction possible. So there are no checks and balances. And despite having their money refunded with interest in dollars, this concessionaire will still have exclusive use of the facility for 25 years. Quite hard to believe that this is happening in Nigeria in this age”, he lamented.

    Another maritime close observer adds that the role of NPA and government at the ports defeats and indeed perverts the whole essence of the concession. “How, for instance, can the tariff regime not be regulated”, he asked.

    “The concessionaires clearly negotiated with the government and agreed on a flat tariff regime to ensure a level playing field. How is it that the same government now allowed one company to charge much higher tariff? Why is it that while 25 concessionaires charge US$7.40 dollars per tonne for discharge and loading of cargo and pay US$1.12 to the government, one single company and a concessionaire like others, that is Intels, charges US$65 per tonne and pays US$5.8 to NPA? This simply defeats the whole idea of reducing cost of doing business at the ports, one of the cardinal reasons for the concession. And that was why a lot of our importers turned to neigbhouring countries. So it becomes penny wise, pound foolish”, he concluded

    This was the cloudy situation at the ports when on April 27, 2015, President Goodluck Ebele Jonathan gave the unintelligible directive that legitimized monopoly. Jonathan’s directive signed by a certain Engineer David Omonibeke, Executive Director, Marine and Operations, requested that all oil and gas related cargo must be handled only at the designated terminals at Onne, Warri and Calabar, three terminals operated exclusively by Intels. The same directive also instructed LADOL Integrated Free Logistics Zone Enterprise to relocate its US$500 million fabrication and integrated yards in Apapa, Lagos, South West Nigeria, to Agge in Bayelsa State. It was one directive that instantly put at risk over US$5 billion projects, 70,000 jobs and further cast an ominous cloud over Nigerian Content, a revolutionary edict that had attracted over US$5 billion investment in Nigeria’s petroleum industry since its signing in 2010, with a projection of another US$10 billion by 2016.

    Buhari’s recent counter directive that restored the concession agreement of 2006, saved Nigeria from an avoidable home-grown economic catastrophe.

     

    • Tare-Johnson writes from Port Harcourt.

  • Braimoh wins Lagos Monopoly Championship

    Elizabeth Braimoh, of Topfield Schools, has been declared winner of the City of Lagos Monopoly Championship.

    One hundred schools and 1,300 participants attended the event.Miss Braimoh won N600, 000 worth of education grant after earning N17,614 in the tournament.

    Ojo Aliu, of Boys Junior Academy, who earned N13, 599, came second, and he got N500,000 grant.

    Nwabueze Precious, of Topfield College, Apapa, who earned N13,557, came third.She won N300,000. Robert Stanley, of Ajeromi Ifelodun Secondary School, clinched the fourth position, after earning N12,232.

  • Monopoly adds to cost of oil production, says Nigerdock chief

    Monopoly adds to cost of oil production, says Nigerdock chief

    The monopoly in the oil and gas logistics and supply services sector is largely responsible for high cost of oil production, a stakeholder has said. It also adds an extra $3-$5 to per barrel of crude produced, Nigerdock and Jagal Group Chair, Anwar Jamarkani said.

    He spoke when the Comptroller-General of the Nigeria Customs Service, Col. Hameed Ali (rtd) , Customs Deputy Comptroller-General and other senior officers of the service paid a working visit to the Nigerdock and Snake Island Integrated Free Zone on Snake Island, Lagos.

    According to Jamarkani, the dominant monopoly in the Nigerian oil and gas logistics and supply services has existed for over 20 years, sabotaging the national economy, conspiring and working against any potential competitors and against Snake Island Integrated Free Zone (SIIFZ).

    He noted that the monopoly has consistently and aggressively used various government institutions to compromise, maintain and entrench its monopoly with impunity. Regrettably, attempts according to him, have been made in times past to also use the customs. “We, therefore, appreciate the fact that President Muhammadu Buhari’s administration is aggressively doing away with such impunity,” he said, urging the Customs chief to encourage investors by creating a level play ground for them.

    Jamarkani said: “The net effects of the monopoly’s actions are numerous. This monopoly adds extra cost of $3-$5 per barrel produced in Nigeria, which translates to over $1.5 billion per annum. This monopoly is a  toll gate. They have forced the oil and gas industry and the nation into capitulation, and driven away investments from Nigeria.

    “The oil and gas supply and logistics service in Nigeria is the most expensive in the world because of this entrenched monopoly. This monopoly seriously damages the international reputation of Nigeria. The monopoly has over the last 20 years used a non-existent law to justify the assertion and false claim that “all oil and gas cargo must first be discharged at their ports of preference.”

    He continued: “The monopoly has consistently used this non-existent law to coerce the industry and service providers into dosing their bidding and thereby undermining the Nigerian economy. If this law indeed exists, the Federal Government would not have encouraged other critical players like SIIFZ to make huge investment in the country. SIIFZ and Nigerdock are open for competitive business and we are determined to bring down your operational costs by at least 30 per cent.

    “In line with the Federal Government’s vision for free and fair competition, there is no room for the continued monopoly in Nigeria as it is sabotaging the industry and the national interest.”

    Jamarkani said SIIFZ and Nigerdock have created more than 6000 direct jobs, delivered landmark projects for Shell, Chevron, ExxonMobil, Total, Hyundai and Samsung, as well as first fabrication for Total/Samsung Egina floating production, storage and offloading (FPSO) vessel. “The facility has also trained over 6000 people for the oil industry and delivered over 27, 000 training programmes. It is the largest shipyard facility in West Africa,” he added.

    The Customs chief, while addressing the workers, said: “No business can grow without committed workers. You have added great value to this company. On behalf of the Federal Government, I congratulate you and appreciate what you are doing. I assure you that whatever we can do as a government to support this company, we will do it. There is need to encourage companies like this to create more employment and assure you of government’s readiness to provide the enabling environment.”

    He added that with the presence of a company like SIIFZ, Nigeria will not have to carry its vessels and machineries to Korea for repair, painting and maintenance.

  • Reps pass bill to break monopoly of DSTV

    Reps pass bill to break monopoly of DSTV

    A bill meant to make broadcasting more competitive in the country was passed through second reading in the House of Representatives Thursday.

    The bill sponsored by Chairman of the House Committee on Foreign Affairs, Nnena Elendu- Ukeje is titled ” a bill for an Act to amend the National Broadcast Commission Act cap N11, laws of the federation of Nigeria, 2014, to provide for competition in Nigeria, promote efficiency and Expand opportunities for Nigerians’ participation in world markets while at the same time recognize the role of foreign completion in Nigeria, and for other matters related thereto.”

    Elendu- Ukeje while speaking on the bill said it is meant to strengthen the National Broadcast Commission as an independent regulator.

    According to her, the bill will also create room for competition through deregulation, liberalization, privatization, ensuring free market operation and also enforce penalty(s) to parties that go against the provisions of the law.

    The piece of legislation, she said, will prevent price or rate fixing, price discrimination , restrictive exclusive content, abuse of dominant market position, and unconstitutional boycotting.

    The proposed law, she said, is a remedy to the obvious lacuna in the NBC Act and strengthens the NBC as Nigeria has no set of codified laws that speaks to the subject matter.

    Her words: “this is one sector that does not suffer from customer ignorance as this sector has been subject to motions/ petitions on the floor of parliament and litigations in the court of law.

    “Justice Chukwujeku Aneke of the a federal High Court had on May 28th 2015 dismissed a suit against DSTV over increase in subscription fees as Nigeria is yet to have a codified set of rules promoting competition in that market.

    “Competition laws exist under different names in different climes. From antitrust law in the US to anti monopoly laws in China and Russia, and Trade law in the UK and Australia, the underlying factor for these laws us consumer protection.”

    According to her, Fourth Schedule, Section 39(1) of the constitution of the federal republic of Nigeria states expressly that every person shall be entitled to own, establish and operate any medium for the dissemination of information.

    She said the institution went further in Section 16(2c) that “the state shall direct its policy towards ensuring that the economic system is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of few individuals or groups.

    “The intendment of these two provisions is that by liberalizing communication and media, that the sector be competitive in line with our economic policies.”

    The bill passed through second reading without debate when the Speaker, Hon. Yakubu Dogara called for a voice vote.