Security
By Anthony Isibor.
SOLA Adewumi, President, Bunkers Traders Association of Nigeria, says that bunkering activities are not entirely illegal.
Speaking on opportunity areas and challenges of investment in the petroleum products marketing and bunkering sector at the panel session of the Midstream and Downstream stakeholders summit organized by the Nigerian Content Development and Monitoring Board, NCDMB in Lagos on Tuesday, Adewumi, noted that the industry if proper harnessed can help to grow the economy and make Nigeria the bunkering hub of Africa.
According to him, it is a misconception to associate all bunkering activities to illegality, because “bunker is fuel, and bunkering is just the transportation of the bunker”.
He therefore called on Nigerians to go into the business legally, either as the traders/brokers, or as physical suppliers so as to remove the business from the hands of thieves and also help to maintain the standard quality of bunker products.
“It is only illegal when stealing petroleum products, or pipeline vandalism is involved,” he said.
Adewumi, who also said that streamlining and maintaining the quality of bunker product, was one of the core reasons why the agency was created, noting that some of the products stolen and sold are not refined products or half refined products and “it tarnishes our reputation”.
“There is this erroneous belief about bunkering in Nigeria as a word assisted with illegality. It is even disheartening that senior government officials, journalists do not know the difference between bunkering and stealing (pipeline vandalism).
“There are opportunities for investment in the petroleum products marketing and bunkering sector, but these opportunities are mostly occupied by foreigners due to the harsh government policies and the huge financial requirement needed in the sector.
“Bunkering business is a legalised business all over the world, and is valued at USD 97 billion in 2017 and is expected to reach USD 210 billion by 2027.
Sola urged Nigerians to get involved in the business through the right channels and also urged the government to make the bunkering environment conducive for business, noting that the country has a lot to gain in terms of employment opportunities, and increase in GDP by eliminating the activities of the unprofessional traders/physical suppliers and involve the real operators in the official policies that will make Nigeria the bunkering hub of Africa.
He also enumerated some of the challenges in the business to include the rigid and harsh business environment brought about by the rigid regulations by government agencies like the DPR, NIMASA, NPA and the Nigeria Navy sometimes have negative effects on bunkering operations.
The bad reputation ascribed to Nigeria as far as bunker business is concerned, especially as a result of the activities of many unprofessional majorly centered around the quality of bunkers delivered and the lack of capital needed to start the bunker business is lacking as Nigerian banks are not willing to support the operators of bunker industry, among others.
He therefore called on the government to initiate policies with inputs from the operators in the business so as to expand the sector and tackle unemployment in the country.
KN
Tags: Bunkers Traders Association of Nigeria NCDMB Nigerian Content Development and Monitoring Board Sola Adewumi
