Following a stakeholders’ engagement on the issue, Nigerian shipowners in the maritime sector are on the verge of getting the desired change in trade terms from Free On Board (FOB) to Cost Insurance and Freight (CIF) which would enable them to begin to lift Nigerian crude and ultimately boost indigenous capacity, Tribune Online reports.
The Minister of State For Petroleum Dr. Emmanuel Ibe Kachikwu who declared the event open welcomed the development, noting that the issue on this trade term is an age long challenge that has lingered too far and he charged participants to come up with resounding resolutions that would be of national benefit.
The Director-General of NIMASA, Dr. Dakuku Peterside stated that OPEC nations such as Iran, Indonesia, Algeria, Kuwait, Angola, Venezuela, UAE and Libya allow indigenous operators to participate actively in the shipment of crude oil, adding that with the right policies in place Nigeria can build its own capacity and one of these is the change of terms of trade for Nigeria’s benefit.
Also speaking at the event, the Group Managing Director of the NNPC, Dr. Maikanti Baru stated that the Corporation does not have any reason not to allow Nigerians lift crude but that there were conditions which made NNPC opt for the FOB trade term. He, however, noted that the NNPC also sees benefits in the CIF trade term but processes have to be followed which may include a transition period before finally opting for the CIF trade term.