No Special Bunkering Levies in Nigeria

Osahon said the government will address issues that created problems in the past

As Nigeria begins allowing bunkering, George Osahon, director of the Department of Petroleum Resources, said there will be no special government levies on the industry, Nigerian newspaper This Day reports.

Osahon said the nation's crude oil businesses are taxed at 85 percent, but bunkering will be subject to the same 30 percent tax as all other industries.

"If you own a filling station today, the only thing you pay to the government is your tax," he said.

"It is the same thing in bunkering, but in this case you are operating a filling station just for vessels."

Osahon said bunkering had been suspended due in part to problems with the regulation of petroleum prices, with government-subsidised products being sold to ocean-going vessels at unregulated prices, but he said the government is now better positioned to deal with issues that may arise.

"The government is not going to leave anything to chance," he said.

"That is why we are now looking at bunkering a second time and saying that some of the issues that militated against our continuing with the business at that time are no more there."

Osahan also said the government will not categorise bunkering operators based on their size.

"Let the operators have the freedom to establish at their levels," he said.

"If you have a bunkerer that has a vessel that can supply 10 ocean-going vessels, so be it.

"If you have somebody who can buy a vessel that can supply just one ocean-going vessel, so be it."

In response to a question about the potential size of the bunkering industry for the nation, Oshan said it will depend on how well run the sector is.

"Singapore today, is a big hub for bunkering," he said.

"How come? It is simply because they started somewhere and they have the facilities to do it.

"They run it very well; they manage it very well. ... It is not a matter of price now but availability and assurance that you will get what you want when you go there."

DPR announced last week that it would legalise bunkering in an effort to stop the theft of petroleum products and increase oil revenues.