Nigeria has adopted electronic cargo tracking device that will monitor all vessels entering and leaving Nigeria’s water space. The scheme is expected to plug revenue leaks, and generate between $200 and $235 million annually for the federal government.
The approval was secured last week at the last Federal Executive Council meeting in Abuja. Minister of transportation, Jaji Sambo, who spoke to newsmen after the meeting, said the device will help curb the recurring incidents of oil thefts along the Nigerian maritime water.
The devise, he said, is also expected to tackle under declaration at ports and secure imports and exports, provide transparency in cargo invoicing and declarations.
“This scheme includes also the tracking of our oil exports. This way we are going to reduce, if not totally eliminate oil theft,” he said
The electronic cargo tracking is a scheme already implemented in 26 African counties, including Ghana, Senegal, Benin republic and Togo. The project will be co-implemented by a consortium of five Belgian companies and four indigenous logistics firms in a concession that will last 15 years.
The minister further explained that the revenue-sharing formula will be 60-40%, with the federal government taking the greater share.
“The deployment of the state-of-the-art ECTN will ensure the elimination of loopholes in border operations and boost the FG revenue in form of duties, port charges and levies. The platform will be deployed by a consortium of five companies made up of a foreign technical partner and four local companies.
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“This scheme will generate revenue for the federal government ranging from about $90 million per annum to a peak of about $235 million per annum.
“Additionally, this scheme includes also the tracking of our oil exports. This way we are going to reduce or totally eliminate oil theft. Furthermore, it is at no cost to the government, the investments are going to be made by the investing private sector companies and revenues that would be derived from the small margin of charges would be shared in the ratio of 60% to the government and 40% to the consortium of companies.”
Also approved at the same meeting was the the procurement and installation of electrical conductors and transformers that will help boost the power supply in the country.
Minister of power, Abubakar Aliyu, who spoke on the approval, explained that when installed, the conductors will help to address the challenge of constant tripping of circuit breakers due to the overloading of electricity lines.
The four components of the contract including the 173-kilometre Kubotso- Hadeja, line; 105-kilometre Kumbotso-Kankiya line; 90-kilometre Benin-Irrua line; 72-kilometre Irrua-Okpella; 48kilometre Okpella-Okenne, 58 kilometres Okenna-Ajaokuta lines and 394-kilometre Gombe-Biu-Damboa-Maiduguri line.
The minister said the cost of the conductors also includes a naira component of N2.1 billion. “The total amount for these four components of conductors is $53,131, 128.93 plus an onshore component of N2, 127, 068, 626. 45,” he said.
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He pointed out that the new conductors would be used to upgrade existing power lines, with the aim of enhancing their efficiency. “These are existing lines which are being upgraded. The wires will be removed and new ones put in place and the difference is that the new ones will be more efficient because they carry more load than the old ones.
“They will reduce sagging because once the wires are aged, they will sag and they become vulnerable and heavier. So, these ones are lighter and can carry more electricity so it will improve efficiency and address the challenges of constant tripping of the breakers due to the overloading of these lines will be tremendously reduced.”
By Ken Okoye
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