The Nigerian National Petroleum Corporation (NNPC) in conjunction with the Nigerian Maritime Administration and Safety Agency (NIMASA), yesterday convened a meeting of stakeholders in the maritime industry with a view to generating ideas on how best attract maximum benefits from export of the country’s crude oil.
A statement issued by NNPC’s spokesperson, Ndu Ughamadu said the theme of the meeting was: “Free On-Board (FOB) and Cost, Insurance and Freight (CIF) Incoterms Framework for Export of Nigerian Crude Oil and Gas.”
According to the statement, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in his welcome address told participants that various attempts in the past to transit from the Free-on-Board (FOB) to Cost, Insurance and Freight (CIF) system of exporting the nation’s crude oil had failed.
The minister stated that there was no better time than now to revisit the issue holistically to determine which of the systems best serves the interest of Nigeria.
He therefore urged participants to come up with recommendations to help the Federal Government take appropriate decision on the issue with a view to enhancing the nation’s the economy. In his keynote address, the Group Managing Director of NNPC, Dr. Maikanti Baru, said the corporation’s preference for FOB was informed by the prevailing security situation and the need to guarantee steady revenue into the Federation Account.
He explained that under CIF, petroleum cargoes are legally the property of the Federal Government which could pose a danger to the country’s earning as creditors could procure court orders to confiscate crude oil cargoes as a means of securing payment of Nigeria’s indebtedness.
“The experiences of Nigerian Airways and the Nigerian National Shipping Line both of which had their vessels/crafts and cargoes confiscated on court orders obtained by creditors is unpleasant to recall.