Indigenous shipowners have raised concerns about being left out of Dangote Refinery’s plans to transport 75% of domestic petroleum products and petrochemicals via sea routes.

Despite the refinery’s operational progress, Nigerian vessels have been excluded from the lucrative product transportation, with foreign firms, notably Trafigura, taking the lead.

In September, Mr. Devakumar Edwin, Vice President of Oil & Gas at Dangote Industries Limited (DIL), disclosed the group’s strategy to use sea routes for the majority of its domestic product supply.

Key locations like Calabar, Port Harcourt, and Warri were identified as the main delivery points.

He also mentioned that DIL could still load 83% of its products via road, but highlighted the cost savings of sea transportation over road distribution.

Sola Adewumi, the National President of the Nigerian Shipowners Association (NISA) and CEO of Equatorial Energy Company, told the Nigerian Tribune that in the past six months, no Nigerian-owned ship has been involved in transporting products from the Dangote Refinery.

“As of now, no Nigerian vessel is involved in product lifting from the Dangote Refinery. What Dangote Refinery normally does is get in touch with international traders to sell their products,” Adewumi said.

He explained that the involvement of foreign firms like Trafigura is a result of the refinery’s sales arrangements with international traders, who have the freedom to select the vessels that will transport the products.

“Trafigura has been moving products on behalf of Dangote Refinery for months now because our Cabotage law is not working,” Adewumi noted.

Adewumi pointed out that the Ministry of Marine and Blue Economy is working to enforce regulations that would ensure Nigerian vessels are used for transporting local cargoes, in line with the country’s Cabotage law.

He emphasized that Nigeria is losing significant revenue due to the dominance of foreign vessels, adding, “The country is losing billions of revenues due to the current pattern of product transportation at the Dangote Refinery.”

As foreign companies continue to dominate the trade, Nigeria faces immense capital flight losses.

Adewumi lamented that, without the involvement of local vessels, these foreign firms repatriate their profits, leaving Nigeria’s maritime industry underutilized.

When reached for comment, Dangote Industries Limited’s spokesman, Mr. Tony Chiejina, promised to provide an official statement.

However, after a week of waiting, no response had been received.

ROAMAN NEWS

Nigerian Communications Commission (NCC) has revealed plans to sanction Elon Musk’s Starlink for increasing its subscription fees in Nigeria without obtaining the necessary approval from the regulator.

Dr. Reuben Muoka, the NCC’s Director of Public Affairs, confirmed this, explaining that the price hike was not authorized by the Commission.

According to Muoka, Starlink’s actions are in breach of key provisions of the Nigerian Communications Act of 2003, specifically Sections 108 and 111, as well as conditions outlined in its operating license regarding pricing.

“We were surprised that the company announced price changes after submitting a request to the Commission for a price adjustment, which had yet to receive a decision,” Muoka stated.

“The unilateral decision by Starlink to increase their subscription packages is in contravention of the Act and its license conditions.”

He went on to stress that the NCC is prepared to enforce penalties against any licensee whose actions undermine the regulatory framework of the telecommunications sector.

Reports indicate that Starlink raised its subscription costs in Nigeria by 97%, hiking monthly fees from N38,000 to N75,000.

Additionally, the cost of its hardware kits for new users increased by 34%, rising from N440,000 to N590,000.

The company cited “excessive inflation” as the primary reason for these price adjustments.

Meanwhile, local telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been advocating for a review of tariffs in response to inflationary pressures.

They argue that the telecom sector is one of the few industries yet to adjust prices to cope with rising inflation and other economic challenges.

However, both the NCC and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have opposed these calls, urging operators to focus on innovative solutions to combat the impacts of inflation and increased operational costs.

Section 108 of the Nigerian Communications Act gives the NCC the authority to regulate telecom tariffs, specifying that no operator can implement charges without its approval.

Additionally, Section 111 empowers the Commission to impose fines on any operator exceeding approved tariff rates.