Shipowners Stay Away From Nigeria as Cost of Shipping Crude Oil to Europe, US Increases

• There has been an increase in the price of freighting crude oil from Nigeria to Europe and America
• The cost spiked to $64,000 daily from $16,000 a day, making vessel owners steer clear of the country
• The development is also followed by tax demands from Nigeria tax agency seeking to recover taxes from 2010 to 2019

The cost of freighting oil from Nigeria has skyrocketed the highest in more than a year at the end of a week in which some vessel owners were reportedly said to be staying away from the country.

The payload for ships moving about 1 million barrels of crude from Nigeria to Europe increased by almost $16,000 daily on Friday, the biggest gain since June 2022. It soared to $64,000 daily, according to Data from Baltic Exchange.

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Shipowners desert Nigeria

BusinessDay reports that at least two shipowners said they were keeping their vessels away from Nigeria after a series of tax bills were sent out, seeking to recover unpaid duties dating to 2010.

Some businesses received orders from Nigeria’s Federal Inland Revenue Service (FIRS), covering the period from 2010 to 2019 and range of in the amount from $4o,000 to $1.1 million per vessel. In total, some claims got tens of millions of dollars.

What it means that owners whose ships stay away make it easier for owners to go there and get higher rates for their vessels

The measure says any vessel carrying crude oil, gas, or refined fuels from Nigeria must pay tax there.

Excess crude: 20 ships with Nigerian oil stranded as France, Spain, Ivory Coast and others shy away

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Legit.ng earlier reported that Nigeria is still finding it difficult to find buyers for its crude oil as strikes at refineries in France and maintenance in other places reduce Europe's demands.

Nigerian crude traded last week with more than 20 shipments for April still looking for buyers.

Bloomberg reports that the situation is similar to 10 days ago when 20 to 25 shipments with about 1 million barrels of oil each were in the market looking for buyers.

Source: Legit.ng