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Indigenous Ship-owners On Verge Of Inclusion To lift Nigerian Crude

Stakeholders have unanimously agreed on the need for a change in the nation’s trade terms from Free On Board (FOB) to Cost Insurance and Freight (CIF), which will allow Nigerian ship owners participate in the lifting of the country’s crude.
This position was reached at a forum Tuesday in Abuja on changing Nigeria’s crude oil affreightment trade term from FOI to CIF, which was organized by the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Maritime Administration and Safety (NIMASA).
President, Ship Owners Association of Nigeria (SOAN), Engr. Greg Ogbeifun, in his remarks stressed that all Nigeria needs to institutionalize the CIF trade term, a far more beneficial policy to the country than the present FOB, is political will.
Analysts say the move to CIF, from the present FOB, would not only enable stakeholders to participate in the lifting of Nigerian crude but would also significantly change the current unemployment equation, including the capacity to provide sea-time training to cadets.
Iran, Indonesia, Algeria, Kuwait, Angola, Venezuela, UAE and Libya allow indigenous operators to participate actively in shipment of their crude oil.
Minister of State for Petroleum Resources Dr. Ibe Kachikwu said various attempts in the past to transit from the FOB to CIF system of exporting the nation’s crude had failed adding 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.
Presenting a paper titled ‘The Imperatives of Changing Nigeria’s Crude Oil Affreightment Trade Terms From FOB to CIF’, Director General of NIMASA, Dr. Dakuku Peterside, said the changing landscape of Nigeria’s maritime sector viz-a-viz its security architecture, capacity and other determinants had necessitated the need for change now, more than ever before.
“The CIF if implemented will encourage indigenous fleet expansion, lead to job creation for qualified Nigerian Seafarers, create opportunities for mandatory sea time experience for Nigerian cadets and build expertise and competence in international shipping trade,” Dakuku said.
Also speaking, Group Managing Director of the NNPC Dr. Maikanti Baru, who said the NNPC sees benefits in the CIF trade term, however, noted but processes have to be followed which may include a transition period, before the country can finally opt for the CIF trade term.

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