Crude oil theft: FEC okays electronic cargo tracking for ports

The Federal Executive Council (FEC) has approved the installation of Electronic Cargo Tracking Notes (ECTN) for the nation’s seaports to tackle various challenges faced at the facilities.

The challenges include the under-declaration, concealment and wrong classification of important cargo.

The Minister of Transportation, Mu’azu Sambo, revealed this while briefing correspondents at the end of the council meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja, saying that the challenges are “the primary causes of revenue leakages, insecurity and safety issues at the borders.”

Sambo said the scheme, which is already operational in 26 African countries, will plug revenue leaks and is expected to generate between $ 90-$235 million annually for the FG.

He said 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.

According to him, the revenue-sharing formula will be 60-40 per cent, with the federal government taking the greater share.

He said: “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.

“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 per cent to the government and 40 per cent to the consortium of companies.”

FEC also approved the sum of $53.1 million for the procurement and installation of electrical conductors and transformers that will help boost the power supply in the country.

This was disclosed by Minister of Power, Abubakar Aliyu, who 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.

He revealed 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.

According to him, the new conductors would be used to upgrade existing power lines, with the aim of enhancing their efficiency.

He added: “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.”

Aliyu listed 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.

Similarly, he disclosed that Council approved an N1.46 billion contract for the procurement of 20 transformers ratio analysers for the Transmission Company of Nigeria (TCN).

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