Nigerian Federal Government Approves of Bunkering Activities

The Nigerian Federal Government has just recently confirmed its approval on the resumption of bunkering trade activities in the Niger-Delta area of the country. This development is in line with the government’s decision to strengthen the capacity of its appropriate institutions to manage and supervise this aspect of operations in the oil sector despite the fact that it has continued unabated despite the ban. This development came after a presidential committee was set up to look into the issue of bunkering. The committee filed a report recommending that the resuscitation of bunkering trade activities would ensure increased revenue generation and serve as micro-economic contribution to the nation’s GDP. The activities according to the committee, also has the potential to bring about increased employment opportunities within the Niger-Delta, add value to refinery operations and increase trading activities by capturing several vessels into the country. In a statement made by the Nigerian Minister of Information and National Orientation, Frank Nweke Junior, the Federal Government is expected to rake into its coffers about the sum of $1 billion annually if this decision is embarked upon.
Licensing requirements for Bunkering activities will include payment of $60,000 or its equivalence in national currency, the Naira, as non-refundable application and license fees. The Minister stated that such license will be withdrawn by the government once a company issues a “dud cheque” or a bank draft that can not be cleared by the Central Bank of Nigeria (CBN).