The Senate on Tuesday urged the Nigerian National Petroleum Corporation (NNPC) to patronise indigenous shipping firms to help build their capacities to participate in the shipment of petroleum products largely dominated by foreign vessels.
The upper chamber expressed worry by reports that the country loses over $120 million yearly to demurrage in view of its exclusive patronage of foreign shipping firms in the transportation of petroleum products.
The Chairman, Senate Committee on Local Content, Senator Teslim Folarin, made these assertions when the Group Managing Director of the NNPC, Melee Kyari and the leadership of the Shipowners Association of Nigeria (SOAN) appeared before the panel at its investigative hearing on a motion entitled: “Urgent need to investigate the breach of Nigerian laws by foreign vessels in coastal shipping of petroleum products in the downstream sector of the Nigerian maritime industry,” in Abuja.
Folarin, who is also a former Senate Leader, said: “The whole essence of this investigative hearing is not to trade blames.
“We understand that they (indigenous shipping firms) don’t have enough vessels; they don’t have capacity and capacity cannot come from heaven.
“The GMD (NNPC) here has capacity to help build capacity. It is very important that we patronise indigenous shipping companies.”
The NNPC’s helmsman had earlier told the Committee that the indigenous firms are being neglected because they lack vessels with requisite capacity to participate in the shipment of petroleum products.
He said most of the ships do not meet international standards required to ferry products in international waters.
