Nigeria will start tracking oil export cargoes in real time

Nigeria’s oil regulator is about to implement a new rule that, according to rules seen by Reuters, will force oil producers to get an export permit, vessel clearance, and a unique identifying number in order to enable real-time cargo tracking.

The government claimed that the new rules will greatly increase government income by allowing for real-time surveillance of oil cargo exports and preventing theft and under-declaration at export terminals.

The former system, which merely needed producers to declare shipments to customs authorities in order for export permits to be issued, has undergone a considerable change with the new regulations.

“A more transparent, accountable, and efficient oil export regime in Nigeria is a step closer with the new guidelines,” the regulator’s spokeswoman stated.

The need for these modifications was emphasized by Ayodele Oni, an energy attorney with the Bloomfield legal company in Lagos, who said that the prior system lacked real-time tracking capabilities.

“This deficiency led to issues such as under-reporting, theft, revenue loss and mismatches in export data,” stated Oni.

The updated framework, called the Nigerian Upstream Petroleum Advance Cargo Declaration Regulation, requires exporters to provide detailed information on the ship and its cargo ahead of time. This includes the consignee, port destination, tonnage, and anticipated arrival time.

Strict adherence to these new rules is required, and failure to do so might result in fines of up to $20,000.