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FG loses huge revenue at oil and gas free zone

By Abdulwahab Isa

Federal Government is losing huge revenue at Oil and Gas Free Zone, Onne through the practice of loading-out of import and export cargoes at unapproved jetties and midstream discharge by some firms.
The General Manager (Operations) of Intels Nigeria Ltd, a terminal operator at Oil and Gas Free Zone at Onne, Mr. Sascha Kuehl, told the team from the Bureau of Public Enterprises (BPE), that there had been regulations and public notices from federal authorities on the outright ban on midstream discharge of import cargo and importation through private jetties but the practice, he said persisted.
“The financial and security impact on operators and government cannot be over-emphasised. Government loses direct revenue,” a statement issued yesterday by BPE spokesman, Chukwuma  Nwokoh  said.
At the Federal Ocean Terminal, the team was shown the huge Liebherr 600 crane which is the largest in Africa and cost $5.5 million. “We have the berthing facilities; the equipment and the draught are there. So, applications for midstream discharge should be discouraged,” Kuehl pointed out.
He warned that terminal operators/concessionaires will be unable to recoup investments if this trend was allowed to continue and might become lethargic in further investments.
The BPE team was led by its acting Director General, Ms Bolanle Onagoruwa.

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Government Losses Hold Back Investment
It is also essential that the Nigerian Customs service has a unified and state of the art One Stop Shop Customs System which is fully computerised as current practises permit significant losses due the poor practises. Central Govt and Min of Fin should be able to see a day by day - blow by blow account of Daily Customs Collections. But the Customs Territories are reluctant to accept a unified Electronic System. Smuggling is still rampant in Nigeria and this must be stopped to stamp out Billions of Dollars in lost Customs Collections and Taxes.
T P Restall , August 06, 2010

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