Ex- minister challenges FG on crude oil trade policy

As Nigeria perfect plans to set up a private sector driven national shipping line, Festus Porbeni, a former minister of transportation, has urged the Federal Government to stop selling the nation’s crude oil on free on board (FOB).

Speaking in an interview with SHIPS & PORTS in Lagos, Porbeni noted that lack of cargoes to lift was one of the major reasons for the collapse of the Nigeria National Shipping Line (NNSL). He said that government change the crude oil trade policy to cost, insurance and freight (CIF) to enable indigenous ship owners to participate and benefit from the nation’s shipping business.

Porbeni further suggested that indigenous shipping lines could lease or charter vessels from their Greek counterparts to trade on cabotage waters, instead of having the Greek shipowners do the job with foreign crew.

“As a minister, I tried to make the indigenous ships get cargoes, because our wet cargoes are carried by foreign vessels on FOB. The argument then was that NNPC said the indigenous shipping lines don’t have vessels. I said give the cargoes to the indigenous companies. The Greeks were all over. I suggested that if our people have the contract to lift, they can lease vessels from the Greeks,” he said.

Continuing, he stated: “We are losing money on FOB. We should be the ones to carry our oil, which is the major cargo we have. Nigerians can work with foreign partners. If a Greek man brings two vessels to Nigerians for lease or charter, then Nigerians can now have vessels that can carry the wet cargo and he will employ more Nigerians,” he said.