Connect with us

Oil

80% of tank farms in Lagos are illegal-LASG

Published

on

LAGOS-The Lagos State government has revealed that about 80 percent of tank farms owned by independent oil marketers located in the state are illegal.
 
The Commissioner of Energy and Mineral Resources of the state, Engr. Taofiq Ajibade Tijani who disclosed this to Biztellers.com in Lagos said the ministry’s investigation revealed that most of the tank farm owners don’t adhered to the permit given to them by Department of Petroleum Resources, DPR.
 
Tijani explained that some of the these illegal tank farm owners get approval to store only Premium Motor Spirit, PMS, popularly called petrol but end up storing other products.
 
He also stated that further investigation by the ministry revealed that some of them don’t have the Health Safety and Environmental, HSE standards to adhere to as stipulated by DPR.
 
The commissioner added that during the course of its investigation, “we found out that the spacing that was required by DPR and international standard for different tank farms facility are not been adhere to. Some of them are too close and clustered together.
 
“The worst part of it is that most of them did not have Lagos State Physical Planning Permit. This is because after they have gotten their approval from DPR which gives them the permission to construct their tank farm facility, they don’t come to the state which is the municipal regulator for physical planning.
 
“Anything that has to be in the state has to go through physical planning but most of them don’t have that permit.
 
“So if we are going to come down with a big axe as a state on these tank farms almost 80 per cent of them will be pulled down especially those independent tank farm owners.”
 
The commissioner further gave details why tanker farm owners violates the standard given to them by DPR, stating that “what we found out was that once they get their permit, they rush to construct their facility; they don’t keep to regulations because they want to rush and make money. That is the challenge that we have.
 
“After we have made know n our investigation to the governor, he being a considerate man just believes that if we are to come down heavily and chuck off most of these tank farms which I will call illegal tank farms, the whole country will suffer for it.
 
“What that means is that the petroleum products will come but there will not be any place to store them, then there will be another crisis of petroleum product shortage.
 
“Automatically, we will kill the operation of illegal tank farms and then causing another huge crisis for the country. So that is why we are being careful in handling the situation.”
 
To confront the issue headlong, Tijani said the state in collaboration with ministry has short, mid and long term plans for the situation.
 
“The short term plan is first of all to meet with these people and see how they can quickly rap-up their laps such as not keeping to safety. We have a mandate to meet with them to ensure that they keep up with what they are doing and not missing out from their HSE. We have a committee that is working on that.
 
“The mid term is to stop further construction approval because DPR is the one that usually give approval to construct but this time they have to get physical planning permit, with out it we will not approval any construction. We are going to be very alert.
 
“The long term plan is that we have identify the Free Trade Zone in Lekki, we also have areas at Badagry where it is close to deep sea port where government is going to provide facility to people who wants to build tank farm,” he said.
 
He also stressed that the governor has addressed the tank farm owners for them to look inwards and see the possibility of reviving the rail way tank wagon
 
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

Published

on

In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

Continue Reading

Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

Published

on

By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

Continue Reading

Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

Published

on

As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy

This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.