The Monetary Policy Committee (MPC) members agreed last week that the relative stability in the foreign exchange (forex) market provides confidence to foreign investors. The stability was triggered by over $60 billion turnover achieved in the Investors’and Exporters’ (I&E) Forex Window since April 2017 and Central Bank of Nigeria’s (CBN’s) policy to restrict investments in Open Market Operation (OMO) bills auction, writes COLLINS NWEZE.
Not many investors – local and international – gave it any chance to succeed when it was unveiled. But, since April 2017, when the Investors’ and Exporters’ (I&E) Forex window was launched by the Central Bank of Nigeria (CBN), it has attracted over $60 billion to the economy and contributed in stabilising the naira.
The economy has also benefited from the CBN policy restricting individuals and non-bank institutions from investing in Open Market Operation (OMO) bills. The policy has made domestic investors to shift from money market to equities market.
OMO is basically designed to be a short-term market instrument that the CBN uses to control the supply of money to the economy. Whenever the CBN believes the inflation rate is high due to increased money supply, it sells OMO bills at high-interest rates mopping up excess liquidity from the economy.
On the flip side, if it believes there is a liquidity squeeze due to high-interest rates, it buys back OMO bills flooding the financial market with cash. These are short-term bills that should not be more than 90 days, except that these days OMO bills are sold with maturity as long as 365 days competing with Treasury Bills.
The Monetary Policy Committee (MPC) members also noted that lower money market interest rates, reflected the liquidity overhang in the banking system, resulting from the restriction of individuals and non-bank corporate in the domestic economy from participating in OMO bill auctions.
Consequently, the monthly weighted average Inter-bank call and Open Buy Back (OBB) rates fell to 3.82 and 3.24 per cent, last December, from 11.42 and 10.73 per cent the previous month.
The Committee noted the improved performance in the equities market, as the All-Share Index (ASI) and Market Capitalisation grew by 11.61per cent and 18.27 per cent, between last October and January 10, this year.
This was indicative of the shift by domestic investors from the money market to the equities market in response to CBN’s policy to restrict their investments in OMO bills auction.
The MPC also noted the improved performance and sustained resilience of the banking system, evidenced by the continued moderation of the Non-Performing Loans (NPLs) ratio from 6.6 per cent last October to 6.1 per cent last December.
The Committee noted that the improvement reflected the CBN’s continued deployment of heterodox policies to ensure that NPLs fell below the prudential benchmark of five per cent.
I&E Forex Window
The I&E Forex window has also remained one of the key instruments expected to help stabilise the local currency against other currencies in this year.
The naira has remained relatively stable at the official and parallel markets. The local currency exchanges at N362 to a dollar at the parallel market and N306 to dollar at the official market.
The I&E Forex Window, seen as a ‘willing buyer, willing-seller window’, allows foreign investors to bring in dollars at any price of their choice, provided they could find buyers. The figure at the window has also impacted positively on the Purchasing Managers’ Index (PMI).
CBN Governor Godwin Emefiele said the I&E Forex window is one of the policies that sustained the stability of the naira and will continue to raise foreign capital inflows into the economy.
At the 54th Annual Bankers Dinner in Lagos at the weekend, Emefiele said as part of the bank’s priorities for next year, the regulator was determined to maintain its stable exchange policy stance in the near-to-medium term given the relatively high level of reserves.
Emefiele, who spoke on the theme: “Delivering a strong sustainable growth for the Nigerian economy”, added that the dollar inflows through the window has supported naira’s stability.
He said: “With a moderated inflation rate, positive Gross Domestic Product (GDP) growth and improvements in our external reserve position, the naira-dollar exchange rate at the I&E Forex window has remained stable for the past 29 months at N360 – $1 and we have witnessed significant convergence in the exchange rate across the various market windows. Local currency has also remained at N306 to dollar at the official market.”
A report by FSDH Research said that prior to the I&E Forex window introduction, the market and exchange rates were in turmoil. However, in a dramatic turn of events, the acute shortage of forex, which businesses and individuals grappled with, witnessed an unprecedented improvement, with banks and Bureaux de Change (BDCs) desperately looking for forex buyers.
The FSDH Research Monthly Economic and Financial Market Outlook said the positive domestic and external environment would further lead to external reserves accretion in the short-term, a development the report predicted will further stabilise the foreign exchange rate.
Defending the Naira
The CBN injected over $10.97 billion into the forex market between last January and October, to defend the naira against other major currencies, including the United States dollar. Similar interventions were made in the market in same period.
The $10.97 billion was based on weekly compilation of amount released by the apex bank to boost liquidity in the forex market.
The CBN usually intervenes in the foreign exchange market by injecting liquidity about three times weekly.The intervention is provided to authorised dealers in the wholesale segment of the market as well as other sectors of the economy such as agriculture, manufacturing and the Small and Medium Enterprise (SME) segment.
Customers that required forex for invisible things such as tuition fees, medical bills and Basic Travel Allowance are also allocated funds from the intervention.
Before I&E Forex window
Before the introduction of the forex window, the local equities market and the forex market were in a shambles. The All Share Index (ALSI) was shrinking and the naira weakened against other currencies, especially the dollar.
The I&E window has become the attraction, making many of the business concerns to take another look at their exit from the country.
The introduction of the window was followed by continuous interventions by the CBN, which enabled banks and BDC operators to meet forex demand at the retail end of the market.
Thus, the window has become a life-saving pill for the domestic economy as it has attracted about $60 billion into the market, enhanced transparency and made forex available to the end-users.
The operations of companies, especially manufacturing, has been on the upward swing with an improvement in inflation figures as well as equities market performance.
Before the stability in the forex market and naira, the economy witnessed a depressed Gross Domestic Product (GDP) growth, which culminated in a recession in 2016.
“There was also rising inflation, which peaked at almost 19 per cent in January 2017 and a persistently rising unemployment rate to 14.23 per cent in 2016 fourth quarter from 6.41 per cent as at 2014 fourth quarter.
There was also a significant depreciation of the exchange rate, reaching N525 to $1 in February 2017 and witnessed a fast depletion of the reserves, which was drained down from about $23.6 billion in October 2016 from as high as $40 billion in January 2014.
A Lagos-based economist and Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, described the introduction of the I&E forex window as the best policy by the CBN.
CBN’s Director, Corporate Communications, Isaac Okorafor, reiterated the bank’s commitment to ensure adequate forex supply to genuine customers to achieve the goal of forex rates convergence.
Managing Director, Afrinvest West Africa Plc, Ike Chioke, said the window has won the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets leading to impressive appreciation in the equities market and stabilising the naira.
Before the introduction of the window, foreign investors’appetite for local assets waned significantly on the back of currency crisis which in turn fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability.
According to the CBN spokesman, forex supply to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira. The apex bank is a market participant at the window to promote liquidity and professional market conduct.
He said the apex bank assured that the exchange rates of the transactions would be as agreed between authorised dealers and their counterparties.
Besides, he said the regulator reserved the right to intervene as a buyer or seller, as it deems fit, in the window, even as information on transactions between authorised dealers is reported to the CBN on a daily basis. Manufacturers and other forex end-users also seem to be having a great time over the coming of the window.
Barely a month after trading at the window started, international credit rating agency, Fitch Ratings, released a report, stating that the establishment of the I&E Forex window had led to an improvement in banks’forex liquidity situation.
Currency control measures
The CBN has imposed some currency control measures to save the naira. In June 2016, it curbed access to the interbank currency market for importers bringing various goods.
To conserve its dollar reserves, the bank said importers could no longer get hard currency to buy 41 items, ranging from toothpicks and rice to steel products and private jets.
Other measures it took include the first Naira-Settled Over-the-Counter (OTC) Forex Futures Market (FFM) launched with FMDQ OTC Securities Exchange and the planned resumption of dollar sales to the BDCs.
The outbreak and spread of Corona Virus in Far East Asia is creating distortions in global air travel, forcing airlines and airport authorities to escalate emergency management procedures at points of entry. Nigeria is not left out of the move, with a raft of measures unveiled by regulators for air crew, air navigation services providers, passengers and other airport users to detect and curtail possible spread of the deadly virus, KELVIN OSA OKUNBOR reports.
CoronaVirus is dealing a deadly blow on global air travel. Since January 7, 2020 when the first case of the deadly virus broke out in the Central City of Wuhan, Hubei Province in China, its devastating effects have been felt in Japan, Thailand, South Korea and the United States with many people already killed and over 300 reportedly infected.
Besides the harvests of death already recorded as effects of Corona Virus, the pandemic is creating huge distortions in global air travel as airlines have started canceling flights to some parts of the world to curtail the spread of the virus.
Global bodies including World Health Organisation (WHO), International Civil Aviation Organisation (ICAO) and others have escalated containment measures to avert possible spread of the virus and its debilitating effects on global air travel.
At least 25 people are dead in China and more than 800 infected as the Wuhan coronavirus continues to spread throughout Asia and across the world.
To underscore the effects of the virus, three Chinese cities – Wuhan, Huanggang, and Ezhou are under lockdown. The cities are also under travel restrictions.
Affected areas include Wuhan, the city of 11 million people where the outbreak began.
As a consequence, many countries including Nigeria, US, UK and Australia have commenced precautionary measures, such as health screenings at airports.
This is just as the WHO said the virus does not constitute “a public health emergency of international concern.
Global airports have ramped up their screening processes. International travelers arriving in some International Airport have signage on electronic arrival screens informing them of a multi-layered government response.”
Corona virus spreading
Steps by FAAN
As part of efforts by government to step up containment measures, Federal Airports Authority of Nigeria (FAAN) has urged passengers and other airport users to comply with all quarantine procedures at the nation’s airports.
FAAN said the new move became necessary to prevent the spread of such communicable disease into the country.
In a statement its General Manager, Public Affairs, Mrs Henrietta Yakubu, said the authority had already taken proactive steps by ensuring that equipment and personnel used in combating the deadly ebola virus in 2014 were still in place at airports.
She said FAAN had always had thermal scanners in her airports that monitors the temperature of passengers as well as capture their pictures.
She said: ”When passengers walk pass the scanner, it registers their temperature and If too high, they are pulled aside for observation.”
Mrs Yakubu said: ”The Authority, in collaboration with the Federal Ministry of Health, have confirmed the adequacy of the facilities at the nation’s airports to prevent the importation of the virus through the airports.
“Passengers are, therefore, advised to submit themselves for routine quarantine checks whenever they are asked to. ”
Regulator’s alert
In a move to curtal the spread of the virus, Nigerian Civil Aviation Authority (NCAA) has put airlines operating into and out of Nigeria, Air Navigation Service Providers (ANSP) and Aerodrome Operators on alert.
Its spokesman, Sam Adurogboye, said the regulator took the steps to inform aviation stakeholders on the effects of the out break of the virus.
Adurogboye listed the clinical signs and symptoms of the virus are mainly fever and difficulty in breathing, coughing and sneezing.
In a letter dated January 23, this year and signed by the Acting Director General of the Nigerian Civil Aviation Authority (NCAA), Capt. Sidi Abdullahi called for a high level of vigilance by airlines, especially those operating international and regional flights all designated point of entries (POEs) and travelling public.
In the letter sent to airlines operators, the NCAA said they are required to take a raft of measures.
According to Captain Abdullahi Pilots in Command (PIC) of aircraft are to report to the Air Traffic Control (ATC) any suspected cases of communicable disease onboard an aircraft in line with Nigerian Civil Aviation Regulations (NCAR).
He said: ” In case of a suspected case of communicable disease on board an aircraft, the aircrew are to fill the aircraft General Declaration in line with NCAR and Annex 8 of International Health Regulations (IHR 2005).
“Completed aircraft General Declaration are to be submitted to the Port Health Services (PHS) on arrival at the designated point of entry.
“Sick passengers on board an aircraft are to be required by the crew to fill a Passenger Locator form in line with NCAR.
“The completed Passenger Locator Forms are to be submitted to Port Health Services (PHS) on arrival at the designated point of entry.
“Airlines are to have onboard the appropriate number of First Aid Kits, Universal Precaution kits and Emergency Medical kits according to the provisions of NCAR.”
The NCAA has mandated Airlines to update the knowledge of their crew members in the handling of communicable disease on board an aircraft.
Captain Abdullahi: ”Cabin crew should follow the operational procedures recommended by the International Air Transport Association (IATA) and their airlines’ Standard Operating Procedures (SOP) in handling possible cases of communicable diseases on board an aircraft.
“They are to ensure that passengers with symptoms of acute respiratory infection exercises cough etiquette maintain distance, cover coughs and sneezes with disposable tissues and wash hands thoroughly
“Passengers should be encouraged by the crew to self-report if they feel ill.
“Airlines are to contact Port Health Services for clearance before importing human remains into the country.
“Designated Points of Entries are to ensure stakeholders collaboration in the handling of a suspected case of communicable disease in line with their respective Public Health Emergency Contingency Plans (PHECPs).
“Routine measures, train staff, provide appropriate space, stockpiling of adequate equipment including Personal Protective Equipment should be in place at Points of Entries for assessing and managing ill travellers detected before travel, on board aircraft and on arrival.
“Procedures and means are in place for communicating information on ill travellers between aircraft and point of entries as well as between POEs and National Health Authorities.
“Safe transportation of symptomatic passengers to hospitals or designated facilities for clinical assessment and treatment is organised.
Airlines and POEs are to report to the Authority in writing any suspected case of communicable disease observed in flight or at any Point of Entry (POE) – International Airport.
“The Nigerian Civil Aviation Authority (NCAA), therefore, expects strict compliance to the Standard and Recommended Practices (SARPs) as enumerated above. However, failure to adhere to these guidelines will be viewed seriously by the Authority.”
Speaking on ways to manage spread of the virus, FAAN’s Regional Manager, South West, Mrs Victoria Shin Aba said steps were being taking to checkmate its possible infiltration into the country through passengers at the Murtala Muhammed International Airport (MMIA), Lagos.
Shin-Aba said a breakdown of activities was meant to control the Coronavirus if detected at the Port of Entry at the MMIA, adding that the primary screening was ongoing.
She advised passengers and airport users to comply with quarantine procedures and submit themselves for routine quarantine checks whenever they were asked to do so at the nation’s airports.
The FAAN official explained that the airport authority, along with health personnel, were monitoring the temperature of arriving passengers and also carrying out enhanced visual observation for obvious signs of communicable disease.
She said: “Passenger with any of the following fever such as temperature above or equal to 38 degrees Celsius, jaundice, skin rash, persistent diarrhoea and persistent cough would be referred to secondary screening.
“Others are difficulty in breathing, complains of headache, neck stiffness, decreased consciousness, lethargy, unexplained bleeding, as well as persistent vomiting.”
Shin-Aba said passengers would be referred to secondary screening, where the secondary screening form was used.
She noted if there was an obvious public health threat, the passenger would be transferred to the designated hospital (Lagos State Mainland Hospital) following appropriate protocols (SOP) for further evaluation.
Shin-Aba said collaboration and observance of basic infection prevention and control measures by stakeholders was important and being strengthened.
Commenting, a medical official at the Nigeria Civil Aviation Authority, Dr. Wilfred Haggai, explained that the areas for enhanced surveillance included the Point of Entry on board the aircraft and the Passenger Handling Service on the arrival queue.
Haggai added that others were within the terminal building and within 400 metres radius of the POE and outside the POE.
He said at the state and local government levels, health facilities must be informed to always take travel history of patients and the state must do a lot of work with the health facilities.
VICE President Prof Yemi Osinbajo (SAN) at the weekend said social safety net an act of kindness but a product of sovereign obligation, adding that the government remained irrevocably committed to pulling millions of Nigerians out of poverty.
Speaking at the fifth premiere of Airtel Touching Lives at Eko Hotel and Suites, Victoria Island, Lagos, Prof Osinbajo expressed the gratitude of the Federal Government to the telco for “touching so many lives and doing so without fanfare over the past five years”.
Touching Lives is the flagship corporate social responsibility (CSR) of Airtel Nigeria.
He said the lives that have been touched must serve as a reminder that so many lives still remained to be touched.
The VP recalled that while drafting the manifesto of the All Progressives Congress (APC) in 2014 along with Prof Pat Utomi and others, the issue of social safety net was given top priority, adding that the government must support the weak, the poor and the vulnerable.
“The cardinal pillar of the APC must be to provide social safety for the people of this country, that government owed a duty to the poor, the weak and vulnerable,” he said, insisting that social safety net is not an act of kindness but a sovereign obligation the government owed the citizens.
He said social safety net is part of the government’s social investment where the Federal Government is feeding 9.5million in 34 states across the six geopolitical zones.
Also speaking on the occasion, the Minister of Communications and Digital Economy, Dr Isa Pantami, commended Airtel for the initiative, saying the beauty of having wealth is to share with others who do not have. He cited tech billionaires such as Warren Buffet, Bill Gates and others that have set aside a substantial part of their wealth to lift the poor out of poverty.
Speaking to the challenges facing the industry, he assured the Managing Director/Chief Executive Officer of Airtel, Segun Ogunsanya that he had addressed the Governors Forum chaired by Dr Kayode Fayemi of Ekiti State and had obtained commitment from the governors that the issue of right of way (RoW) has been finally settled. He said some governors have even offered waivers to any telco that intends to build fibre optic cables in their states. He also said the issue of multiple taxation was also addressed at the meeting
Lagos State Governor Babajide Sanwo-Olu commended Airtel for touching so many lives through its fantastic CRS project. He said the telco had earlier donated about 200 lines for the Rapid Response Squad (RRS) of Nigeria Police to aid effective communication which he said is crucial to crime fighting in the state.
He said government cannot do it alone, saying the N1.168trillion budget passed into the law by the state House of Assembly is not enough to address the needs of over 20 million Lagosians. He promised to continue to address the challenges of governance and take care of the vulnerable segment of the society.
As a mark of appreciation for the good works the telco is playing, Sanwo-Olu promised to give huge discount to it on RoW, urging the telco to however raise the bar in Season 6.
Earlier in his welcome address, Ogunsanya said the telco has kept faith with the CSR even during the economic recession. He stressed the importance of community, adding that the strong must support the weak while the rich must support the poor. Ognusanya said giving out is not a function of how deep the pocket, adding that the telco could only touch lives since it is only God that can change lives.
As a result of the repeated attacks and explosion along the System 2B Pipeline of the Nigerian National Petroleum Corporation (NNPC) that takes refined products from Atlas Cove Jetty in Lagos to Mosimi, Ore and Ilorin, the NNPC management and all the security agencies involved in the monitoring of the pipeline are in discussion to step up network, expand collaboration and remove the bad eggs among them. According to the Group Managing Director of NNPC, Mallam Mele Kyari, these steps when accomplished, will bring sanity to the NNPC’s pipeline Right of Way (RoW), EMEKA UGWUANYI reports.
The Group Managing Director, the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has said expanded collaboration of all stakeholders is key to stemming incidents of pipeline vandalism and oil theft and the resultants explosions.
Kyari stated this when he visited the Oba of Lagos, His Royal Majesty, Oba Rilwan Babatunde Osuolale Aremu Akiolu 1, in his palace to commiserate with him over the Abule-Egba pipeline fire that killed five and destroyed properties worth hundreds of millions of Naira.
Kyari highlighted the health, environmental, economic and other hazards caused by the vandals, especially the loss of lives, and sued for synergy of security agencies, traditional leaders, residents and all well-meaning Nigerians in curbing the ugly trend.
The royal father said the act of pipeline vandalism and oil theft is driven by desire to make quick money. According to him, people no longer want to work hard to make money but do all manner of illegal and bad things to get easy wealth, which he condemned in its entirety.
Kyari appealed to the Oba of Lagos to rally all the traditional leaders in the state to help secure the pipelines, stressing that collective effort was required to curb the menace. Oba Akiolu pledged his support to organise other Obas in the state to fight pipeline vandals to a standstill.
In the presence of his guests, he sent for Oba of Agege to come, after which all the Obas will have a meeting to discuss how to stop every act of pipeline vandalism and oil theft in Lagos. Oba Akiolu said “enough is enough.”
The NNPC chief said the line was restored on Monday and has begun operation. He said: “However, we are also happy that we have restored the line after the break, we shut down the line to contain the damage it can cause but now we are back on stream.
Petroleum products are flowing all the way from Atlas Cove to Ilorin as we speak. But what is important is to sustain this operation, and to sustain it, everyone should cooperate with us.”
Stemming vandalism and oil theft
On ways to ensure that the nefarious act of pipeline vandalism and oil theft and the attendant disaster are stemmed sustainably and in view of allegations that some members of staff of NNPC, the monitoring security agencies, NNPC contractors and members of the communities collude with oil thieves, Kyari stated that actions are being taken.
The allegations of complicities of these stakeholders in the theft arise because boring the pipeline to steal oil requires a lot of expertise, knowledge and money. Therefore, it is not just business for anybody.
However, the NNPC chief agreed that he shares the same view and explained what the Corporation is doing to stop these illicit activities and to bring the culprits to book.
He said: “We are working with all the security agencies including the NNPC to take out the bad elements in our midst. We agree there are compromises within the NNPC, the security agencies, communities and everyone involved in this.
What we have done in the last two months is work with these agencies and NNPC to make sure that we take out the bad elements out of us, resolve this issue and delete them if we need to do that and that is what we will do.
“For communities that harbour this act, the warning is that this act constitutes danger to all of us. For those who are particularly involved in tapping our petroleum products or laying pipes to their homes, the Governor and Lagos State Government have agreed we must take out these houses no matter who own them or what they do. Once we establish that your property is involved in this, we take it out.
“We are already doing that. So far, the Nigerian Navy has taken out over 300 houses along our pipeline Right of Way (RoW) and we will continue to do this. By the time we are done with this, sanity will come to this line we assure Nigerians that it will be safe for all of us.”
The Flag Officer, Western Naval Command, Rear Admiral Oladele Daji, who spoke on behalf of the security agencies, denied that the security agencies were not being lackadaisical about their job of securing the pipeline.
He was asked why the incidents repeatedly happen without arrests and prosecution but each times it happens, all arms of the security agencies would flood the scene of the incident wielding arms. But after the dust settles, nothing happens.
Daji said: “In line with the directive of the Chief of Defence Staff, General Abayomi Olonisakin, we mobilised under “Operation Awase” involving all the security agencies – the Navy, Civil Defence, Police, Army and Air force to support the NNPC to clear the NNPC pipeline RoW all the way from Atlas Cove to Mosimi. It is an ongoing operation and we will be collaborating with the Lagos State Government to ensure the success of this operation.”
Daji said some arrests have been made. “We are working with the Department of State Security (DSS) to ensure that all the pieces of evidence are gathered to ensure diligent prosecution. It is not just enough to make arrest, so by the time the perpetrators are prosecuted, it will serve as deterrent,” he added.
The United States African Development Foundation (USADF) and All On have officially opened the application window for the 2020 Nigeria Off-Grid Energy Challenge, which will provide up to $100,000 in blended finance per enterprise for successful applicants.
The 2020 application window opened on January 15 and closes on February 29, 2020. The Rockefeller Foundation is also providing funding support for the 2020 edition of the programme.
USADF, a founding member of Power Africa established by Congress to support and invest in African-owned and led enterprises, and All On, an off-grid energy impact investing company seeded by Shell in Nigeria, established the Challenge as a multi-year partnership to identify and help scale innovative off-grid solutions to “power up” unserved and underserved areas in Nigeria.
Now in the third year of the partnership, the parties will jointly provide funding to 100 per cent African-owned and operated small- and medium-size enterprises that improve energy access through off-grid energy solutions spanning solar, wind, hydro, biomass, and gas technologies.
The enterprises may be developers of their own technology and/or acquiring and implementing technologies developed elsewhere.
To benefit, applicants need to be legally registered in Nigeria, demonstrate the capacity to track and manage project resources, and operate in good standing with the local governments in their areas of operation. Up to $50,000 per selected company will be provided in the form of convertible debt, along with up to $50,000 of grant capital.
Sixteen Nigerian companies have been selected through the 2018 and 2019 editions. The winners of the 2019 Nigeria Off-Grid Energy Challenge were ICE Commercial Power, Sosai Renewables, Greenage Energy, Pirano Energy, Sholep Energy, Entric Power Systems, ACOB Lighting, NexGen Energy, and Protergia Nigeria.
In the first edition of the Challenge in 2018, the recipients were Prado Power Limited, Darway Coast, Auxano, Eastwind Labs, Alyx, Creeds Energy, and iKabin.
According to 2018 Challenge winner Ola Abraham, CEO of EastWind Labs, “The USADF-All On blended finance has enabled my company to profitably provide solar-powered refrigeration as a Service (RAAS) to Ile-Ife, touching hundreds of families and businesses daily.
The USADF and All On due diligence process is brutally thorough. You’d think they want to deny you the funding. On the contrary; that’s just the secret sauce for your business success. APPLY, COMPETE, WIN.”
Aaron Esumeh, CEO of Enugu-based 2019 Challenge winner Greenage Energy, added, “The selection process for the USADF-All On Off-Grid Energy Challenge was very detailed and transparent, and winning the Challenge has inspired us greatly. This opportunity will make us more impactful to society, providing electricity to the underserved.”
Nigeria has about 44 commercially viable minerals in 450 locations across the country. If properly exploited, these could be the wedge for an economy in search of alternative revenue source besides oil and gas. Sadly however, much of her mineral wealth is being plundered by illegal miners, said to be operating in about 1,759 mining sites. Stakeholders fear that without reining in illegal miners, hopes of leveraging mining to earn foreign exchange, create jobs and boost the sector’s contribution to GDP to three per cent by 2025 will not be achieved. Assistant Editor CHIKODI OKEREOCHA reports.
The launch in August 2016 of a new “Roadmap for the Development of the Solid Minerals Sector” gladdened the hearts of many Nigerians and industry stakeholders.
For one, the level of detail contained in the Roadmap and its precise ambitions were encouraging; it also re-enforced hopes of positioning mining to dislodge oil as Nigeria’s major revenue earner.
For instance, the Roadmap which built on its predecessor, the old 2012 Roadmap, envisaged a mining sector worth $27 billion in direct and indirect contributions – a figure that represented about three per cent of Gross Domestic Product (GDP) by 2025, up from a meagre 0.33 per cent in 2015- and over $5 billion in new investments in the intervening years.
However, the Federal Government did not stop at expressing its commitment, within the roadmap, to growing the contribution of mining to GDP to three per cent by 2025. It also went a notch higher, identifying seven strategic minerals of commercial quantity to be accorded priority development.
The seven minerals include coal, limestone, lead/zinc, bitumen, barite, gold and iron ore. The new roadmap, which came after the Federal Government in 2015, identified the solid mineral sector as one of the key sectors to drive economic diversification, was followed through with the constitution of the Mining Implementation and Strategy Team (MIST).
The team’s duty is to coordinate the implementation of the roadmap and programme-manage its execution. This, The Nation learnt, came after the Ministry of Mines and Steel Development took series of pragmatic steps to redefine the policy and regulatory framework for the sector.
As leading advisor to the mining industry globally and in Nigeria, PricewaterhouseCoopers (PwC) Nigeria, put it in its report titled: “Unlocking the Potentials of the Mining and Steel Sector in Nigeria,” the new mining Roadmap aspired to “build a world class minerals and mining ecosystem designed to serve a targeted domestic and export market…”
PwC Nigeria’s Head Advisory and Consulting/Mining Sector Leader, Cyril Azobu, and its Associate Director and Head Mining Sector Business Development, Habeeb Jaiyeola, said: “Ultimately, the endgame was to position the sector to contribute three percent to GDP by 2025.”
However, the achievement of this ambitious target by leveraging the 2016 mining Roadmap to force a rebound of the sector has come under serious threat by the activities of informal or illegal miners.
The illegal miners, allegedly with their foreign collaborators, seem to have perfected their own ‘Roadmap’ to pillaging the nation’s solid mineral commonwealth, much to the chagrin of the Federal Government, the Ministry of Mines and Steel Development and Nigerians generally.
For instance, a recent report by the Nigeria Extractive Industries Transparency Initiative (NEITI) put the situation in perspective when it said illegal mining was thriving in six states in the country. The states include Niger, Plateau, Zamfara, Ebonyi Enugu and Imo.
The NEITI report titled: “Improving Transparency and Governance for Value Optimisation in Nigeria’s Mining Sector” indicated that Niger and Plateau states topped the illegal mining list. While Niger State had 10 illegal mining sites, Plateau had seven.
Ebonyi and Imo states had five illegal mining sites while Enugu and Zamfara states had four sites. The exploited minerals included gold, silver, lead, zinc, tantalite, tin, columbite, barites, gypsum, sapphire, emerald, granite tourmaline, sandstone and others.
The Director, Artisanal and Small Scale Mining, Ministry of Mines and Steel Development, Mr. Patrick Ojeka, put the number of Nigerians directly involved in small sale mining operations across the country at over 500, 000.
He gave this figure in Calabar, Cross River State, during a five-day training for 150 registered and performing mining cooperatives and quarry associations in the Southsouth and Southeast regions.
Ojeka said the number was on the increase in view of the Federal Government’s strategy in harnessing the potential of mining to address poverty in rural mining communities.
The Minister of Mines and Steel Development, Mr. Olamilekan Adegbite, brought the reality of the thriving illegal mining business nearer home when he said illegal miners were operating in about 1,759 mining sites across the country.
The minister, who gave this figure at an event that brought stakeholders in the sector together in Ekiti State, had earlier alleged that some governors were behind the illegal mining of some solid mineral resources in the country.
Adegbite, at a recent interactive session, told the Senate Committee on Solid Minerals, Mines, Steel Development and Metallurgy, that illegal mining was allegedly being supported by some state governors, as demonstrated by their provision of police escort for unlicensed foreign miners in their jurisdictions.
Although, the minister did not specifically mention the governors behind the illegal act, he condemned the “unholy” alliance of the governors with some foreign miners who were operating illegally in the country.
Adegbite said: “You will find foreign nationals encouraged by our people. Without naming them, we have some state governments that are encouraging these foreign nationals that we are talking about. That is why you see them with security (operatives).
“When they send them to go and do this, they need police. What do you expect a mining officer to do when the state government is backing illegal mining?”
However, as part of efforts at curbing illegal mining activities, the minister noted that the government had been engaging mining operators in the communities to lure them into formally registered cooperatives for the purpose of safely mining the nation’s resources.
Indeed, the ministry, under Adegbite’s charge, had as part of the re-launch of Nigeria as a mining destination, not only moved to formalise artisanal miners, but also committed to helping artisanal and small-scale miners to access funds.
The move appears to be bearing fruits. For instance, Adegbite said more than 1, 500 Artisanal Mining Cooperatives (AMCs) have been registered nationwide, just as about 250 Private Mineral Buying Centres have been registered to facilitate trading in mineral commodities.
Also, to ensure environmental mitigation in the mine fields, Adegbite said Environmental Laws and Regulations are being enforced to the letters.
According to him, the recent second International Conference on Artisanal Gold Mining with Lead, organised alongside with Medicines San Frontiers (MSF), provided the platform to strategise on how to prevent lead poisoning associated with artisanal gold mining.
The ministry’s efforts have not gone unnoticed. Azobu and Jaiyeola, in the PwC report earlier cited, admitted that efforts to curb illegal mining have been ramped up by the provision of surveillance vehicles for Mines Inspectors across the country and increased inter-agency co-operation.
PwC also said the issue of illegal mining is being tackled through the establishment of the Mines Police Division, as well as the emergence of the Joint Task Force on Mines surveillance including officers of the Police and the Nigeria Security and Civil Defence Corps (NSCDC) working closely with all the state mines offices.
This, according to the multinational mining industry advisor, was “to put an end to criminal activities in the mines and ensure safety of lives and investments including compliance with laid down procedures and environmental standard requirements.”
The company noted that this has led to some arrests of local and foreign illegal miners, adding that there has also been support for revamping the operations of Mineral Buying Centres across the country.
PwC was, however, noted that “unfortunately, solving the menace of illegal mining in Nigeria also requires efforts by the international community in stifling illegal sale cartels majorly driven by foreign interests.”
PwC no doubt, laid credence to fears that the thriving illegal mining activities in the country enjoy the strong backing of some foreign interests. The local perpetrators of the illegal act, The Nation learnt, are mostly poor, unemployed rural dwellers.
They also use crude methods and household implements to exploit the solid minerals. Besides, they do not have the expertise or capacity to go through the sustainable processes of the mineral value chain for the delivery of optimum economic benefits to themselves or the nation.
As a result, much of the mineral commodities illegally mined are exported in crude form to European and Asian countries at give-away prices, without any value addition, to the disadvantage of the national economy.
What this means is that the economies of other nations are being developed, both in terms of revenue earnings and job creation, at the expense of Nigeria’s. The absence of globally recognised mining companies in Nigeria is widely believed to be partly responsible for the upsurge in illegal mining activities.
Digging hole in govt’s purse
Currently, about 80 per cent of mining activities in the country are said to be illegal, depriving the various tiers of government of billions of Naira in supposed royalties annually.
For instance, between 2016 and 2018 alone, Nigeria lost about N353 billion in gold smuggled out of the country and sold in the international market without any revenue accruing to the government.
Within the three-year period, about 18 tons of gold were smuggled out of the country and sold in the international market, according to the former Minister of Mines and Steel Development, Alhaji Bawa Bwari.
Bwari, who confirmed that six tons of gold originating from the country were traded in the international market on an annual basis, said the trade did not benefit the country as it made no impact on the nation’s GDP.
When added the billions of naira government spends on remediation processes on lead poisoning and other environmental hazards caused by illegal mining in various states of the federation, the cost is indeed, humongous.
At various fora across the country last year, Vice President Yemi Osinbajo and chief executive officers of government agencies in the maritime sector restated the Federal Government’s plan to establish a national single window (NSW) at the ports to facilitate clearance and export of goods. OLUWAKEMI DAUDA examines some of the issues inhibiting the implementation of the NSW and efforts aimed at tackling them.
Despite promises made by the Federal Government last year and the previous one, Nigeria remains the only country without a single-window platform in Africa in an age where information technology drives every process. The country has continued to trail behind other African nations in the automation of processes at the seaports.
Stakeholders said for the Federal Government to boost revenue from the non-oil sector, facilitating trade through improvement in the turnaround time for goods, must be taken seriously by the President Muhamadu Buhari-led administration based on its diversification efforts to boost the economy.
The stakeholders, who spoke in separate interviews with The Nation, were unanimous that one of the steps that must be taken to quicken cargo clearance and realise the diversification agenda is the single window system.
One of the stakeholders, Samson Atanda, said: “The implementation of a single window system enables international (cross-border) traders to submit regulatory documents at a single location and/or single entity. Such documents are typically customs declarations, applications for import/export permits, and other supporting documents, such as certificates of origin and trading invoices.
Rotimi amaechii
He lamented that Nigeria is the only country in Africa without a single window platform. In 2018, the Minister of Transportation, Rotimi Amaechi promised to set up a National Single Window platform to be managed by the Nigerian Ports Authority (NPA). It was to be funded from the one per cent Comprehensive Import Supervision Scheme. But up till today, the promise has not been fulfilled.
Atanda lamented that this had resulted in Nigerian-bound vessels being diverted to Benin Republic, Ghana and other neighbouring ports because of the intractable traffic in Apapa and unnecessary delays during cargo clearance at the ports.
The maritime lawyer recommended that the policy on single window on the clearing of goods should be fully implemented to discourage physical examination of cargo by men and officers of the Nigeria Customs Service (NCS).
Lack of implementation of a single window platform is reportedly costing Nigeria N1.08 trillion revenue yearly.
“As of 2017, Ghana had commenced the registration of vehicles doing business at its port in preparation for full automation of the processes this year.
“In January last year, the port welcomed a $1.5 billion fully-automated terminal jointly built by the APM Terminals, Bolloré Africa Logistics, Meridian Port Services and the Ghana Ports and Harbours Authority,” Atanda said, adding that the expanded port could accommodate the world’s largest container ships in their breakwater and access channel. Like Ghana, other ports in Africa have automated their processes, making clearing faster and easier.
Atanda said if the Federal Government can put the NSW in place, Nigerians who patronise other African ports would return to the ports by the time the land borders were reopened.
At the opening ceremony of the 2018 Lagos International Trade Fair, Buhari, represented by Prof Yemi Osinbajo, announced plans by the Federal Government to establish a NSW to cut trade times and costs by making information flows more efficient and streamlining trade procedures and address other issues affecting the transaction cycle in bringing in goods, clearing and exporting it through the ports.
The Single Window
A single window is an organic mixture of parties in a nation’s international trade. It uses the latest information
communications technology (ICT) techniques, international data and messaging standards together with simplified, harmonised and remodelled information systems for data exchange to replace traditional paper-based information.
Why scheme is delayed
Speaking at the Trade Fair forum in Lagos, Osinbajo said the scheme was being delayed due to issues concerning individual Ministries, Departments and Agencies (MDAs) such as the Nigerian Ports Authority (‘NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers Council (NSC), Nigeria Customs Service (NCS), various terminal operators, shipping firms and other government agencies at ports and border stations trying to align their various e-platforms to the NSW platform.
The Vice President (VP), however, expressed optimism on the delivery of the promise by the government in the shortest possible time.
Commitment from govt, stakeholders
A maritime lawyer and university don, Mr Dipo Alaka, said the implementation of a NSW involved many stakeholders and requires long-termcommitment from government and business.
The platform, Alaka said, must fit the environment and level of development in the country.
A clearing agent, Kayode Ogunsanu, said at each phase of port development, the Federal Government needed to look at the prevailing global trends and plan for 20, 30 and even 50 years ahead and make all the necessary adjustments to its plans along the way.
“The introduction of a national single window platform is another key plank in the President Muhammadu Buhari administration’s strategy to make the port a hub of maritime in Africa,” Ogunsanu said.
What CBN has done
Findings revealed that the Central Bank of Nigeria (CBN) had last year established a foreign exchange (Forex) window for investors and exporters to boost liquidity in the market and ensure timely execution and settlement of eligible transactions.
But the country is still faced with challenges with import and export procedures, which the VP said the NSW would address.
Efforts by the FIRS
Tax payments and remittances have also been simplified through the e-filing system by the Federal Inland Revenue System (FIRS), importers and exporters are also not left out with the documentation required for imports and exports.
These have been significantly reduced from 14 to eight and 10 to seven. Since 2016, the Federal Government had so far in the past three budget cycles spent over N3.5 trillion on capital, which he said was mostly on infrastructure.
Speaking with The Nation on the sideline of the Association of African Maritime Administrations (AAMA) Conference in Egypt last year, the Director-General, NIMASA, Dr Dakuku Peterside said to become African maritime hub, Nigeria needs a single window platform to deliver the highest value in terms of efficiency, quality and reliability of service.
“Promoting efficiency is a major challenge confronting many African ports. A global bench-marking study by SAP found that ports that leverage technology to drive productivity improvements enjoy 36 per cent higher operating margins than similar peers and that is why the Federal Government is working tirelessly to institute a single window operation in our ports.
“Port automation and digital solutions are potential game-changers, not only for cargo throughput but also profitability.”
DAKUKU peterside
Peterside told the delegates that the Buhari administration has the vision and determination to make the ports, the hub of maritime in the West and Central Africa through the introduction of a national single window, provision of maritime security, improvement in port infrastructure, formulation and implementation of other laudable programmes.
Peterside, also the chairman of AAMA, said the geographical location of Nigeria will aid its transformation to a regional maritime hub after the introduction of the new platform to boost efficiency and competitiveness.
“Today, we are celebrating Singapore based on the vision of its leaders. And I am also happy to inform you that the Federal Government of Nigeria under President Muhammadu Buhari is doing everything possible to make the Nigerian ports the hub of maritime activities in the West and Central Africa,” he said.
He added that the Buhari administration has a long-term, strategic port planning system that would ensure that the seaports provide adequate capacity to meet the demands of key shipping lines and their alliance partners in sizeable blocks of volume.
The NIMASA chief said Africa needs leaders who have vision and courage to make bold decisions that will enable the Nigerian seaports and other ports in Africa ready for the future, be pacesetters, reap first-mover advantages, and thrive in a dynamic and competitive global maritime business.
Nigeria’s strategic vision for its ports, he said, is being built on the three Cs of Connectivity, Capacity and Competitiveness
African leaders, Peterside added, need to emulate Singapore in taking the right decision and investing in the development of port infrastructure and technology to boost efficiency and economy.
The Federal Government, the NIMASA boss revealed, is emulating Singapore and other maritime nations in terms of short, medium and long-term planning that will assist the ports to compete favourably with others across the globe, urging other African countries to emulate them.
He added that the maritime sector forecast released by NIMASA recently and the training of over 2500 seafarers by the agency were parts of efforts to make the ports competitive
He urged African maritime administrators to identify areas where they have comparative advantage, their weaknesses and the opportunities they have to reduce poverty and the high level of unemployment ravaging the content.
He stressed that there was need for maritime administrators across the continent to come up with beautiful ideas so that people could invest in their programmes the way the World Bank and other financial institutions did for Singapore in 1972.
Paucity of fund, according to him, should not affect the growth of the sector on the continent.
Many stakeholders who spoke with The Nation believe that it would be easier for the carmel to pass through the eye of the needle than to clear goods at the ports within the stipulated 48 hours. To overcome the challenges, some have advocated quick adoption of a national single window( NSW), to remove human contact, reduce corruption, boost efficiency and transform the ports to international standard.
For ports users, the challenges of doing business are almost limitless. Achieving 48-hour cargo clearance at the ports has remained a mirage. It has made doing maritime business in neighbouring countries in the sub-region attractive.
“However, there appears to be a consensus that limited co-ordination among agencies, terminal operators and other stakeholders is the greatest obstacle. Importers, clearing agents and other port users face stringent, overlapping and onerous requirements that have made the adoption of a Single Window (SW) imperative to boost efficiency and reduce corruption,” said the a maritime lawyer, Mr Davis Abraham.
The Nigerian Ports Authority (NPA) Managing Director, Ms Hadiza Bala Usman, told The Nation that the agencies, terminal operators and stakeholders must key into the government’s initiative of promoting the SW platform to meet the 48-hour cargo clearance deadline.
The NPA, she said, has embarked on the establishment of a SW through an intense automation and introduction of Standard Operating Procedures (SOPs).
“There is no doubt that the adoption of a national SW will strengthen the port industry by boosting efficiency and reduce cost and time, which are the major objectives of port concession agreement signed by private terminal operators,” she said, adding that the SW has been used by many countries to facilitate trade at ports.
The adoption of the SW, according to Ms Usman, will make local ports competitive in the international trade network and boost trade facilitation programmes of the Federal |Government. “It will also reduce corruption and entrench transparency and accountability in the port operations,” she said.
The desired reforms at the ports, it was learnt, may not be completed without the full implementation of the SW platform by the ports, the Nigeria Customs Service (NCS) and others in the chain of trade facilitation.
A senior official of the Federal Ministry of Transport (FMoT), who craved anonymity, said the Federal Government would generate additional $800 million yearly from the ports and border stations if government agencies key into the SW initiative.
The official urged the Federal Executive Council (FEC) to compel the NCS, the police and other agencies at the ports to key into the platform to facilitate trade and generate more revenue. He also urged the National Assembly to back the initiative with a law.
The Executive Secretary, Nigerian Shippers Council ( NSC), Mr Hassan Belo, said the single window is a laudable initiative, which a country like Nigeria ought to embrace to transform the ports.
He said the platform would enhance trade competitiveness through improvement in import, export, transit procedures and information sharing system.
The facility, he said, would ensure that there is a paperless Customs declaration, compliance and online approval.
The current 100 per cent physical examination of goods, according to him, would be reduced and all government agencies at ports integrated.
Bello added: “The single window facility will also need to be supported by legislation from the National Assembly.”
“The National Single Window is the ultimate in port operation. But it must be multi-agencies integrated for it to be successful. The port is a transit point and our ports must be seen and used as such. That is why we have dry ports across the country to decongest the port and NPA as the landlord must have a say.”
Merits of NSW
A senior official of the Federal Ministry of Transport (FMoT) who craved anonymity said the purpose of the SW is to provide a platform and processes for a paper-less (electronic) system.
“The ultimate national SW includes all of the information exchanged by traders; government departments (including Customs); maritime, air, road, rail and inland waterway transport systems; port and terminal operators; and a range of other participants in the trade process, including freight forwarders, customs brokers, shipping agents, banks and insurance companies.
The management, or governance system, which oversees this major transition from paper and traditional business processes to electronics-based and re-engineered systems is the major challenge in a comprehensive sequence of conversion and change management activities that are themselves serious challenges.
“The NSW is unavoidable if the country intends to remain engaged in expanded and more efficient global maritime trading activities. And the benefits are considerable and long-lasting.
The reverse is also said to be huge for those countries that delay engagement in single window implementations as they will be increasingly subjected to powerful inhibitors to national trade efficiency and economic growth.
“Those that need to collaborate with the NPA in its drive to have a national SW are importers, exporters (consignors and consignees), trade professionals (freight forwarders, Customs brokers and shipping agents), shipping companies, airlines, road, rail and inland waterways, duty free zones, dry ports and multi-modal cargo depot, ports and airports, container terminals, bulk terminals, port gate operations and Customs and all agencies that have a trade compliance responsibility, licensing, permit issuing and/or inspection responsibilities.
“The need for collaboration has given the requirements for faster information delivery, often in advance of shipping, for security and other purposes, and the growing needs of data harmonisation in international supply chains.
“The ability of government agencies to handle data efficiently and swiftly has, in fact, become a key element in international competitiveness, especially in port operations.
“A single window is designed to overcome this complex system of data submission and regulatory control. It is designed to sit at the national junction of national and international trade data exchange, thereby presenting a single point of access to all other relevant trade systems.
While the primary objective is the single electronic submission of data, establishing a single window necessitates a major rationalisation of current approaches and requirements to trade administration and operations, especially the reuse and elimination of duplication of existing data wherever possible, together with widespread e-Government applications and trade-related ministry.
“The single window evolved as a single physical office that was established to handle all formalities, compliance and payment processes.
This was commonly known as a “one-stop-shop”, or “guichet unique”. Initially, the trade or trade facilitation single window was applied to the trader’s lodgement of customs declarations and ministerial licences and permits.
The concept, being championed by the NPA, has now been extended by the authority to include the complete trade, transport and logistics community to boost efficiency and reduce corruption,” the FMoT official said.
The Vice President, association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said the adoption of the SW will enable importers/exporters to submit documentation and/or data requirement for importation, exportation or transit to a single entry point; ensure onward distribution of documentation and/or data requirements to the participating authorities or agencies through the platform.
After the examination by relevant authorities or agencies of the documentation and/or data, the results, he said, shall be notified to the applicants through the SW timely, and in cases where documentation and/or data requirements have already been received by the Single Window, the same documentation and/or data requirements shall not be requested by other agencies except in urgent circumstances and other limited exceptions, which are made public. “Government agencies must apply relevant international standards and practices as basis for the single window schemes,” Farinto said.
An importer, Mr Yusuf Aladejobi, said the NSW will increase compliance level and see to efficient and productive use of resources, facilitate enhanced fee, duties and penalties’ collection.
Hassan Bello
“ It will institutionalise more comprehensive, streamlined and automated business compliance to government legislative and regulatory requirements. It will also enhance risk analysis, management and improve security.
“There will be reduction in corruption and illegal trade activities, enhanced transparency and accountability. It will equally bring more trader-friendly environment, leading to increased foreign investment, integration and timely flow of information between government agencies and improved business intelligence,” Aladejobi said.
Alaka said, for importers and exporters, there will be cost reductions through minimised clerical efforts, time spent will reduce and eliminate delays. “There will be more predictable, reliable and authoritative decisions, just as there will be faster goods clearance, exceptional handling and dispute resolution, leading to reduced inventory holding costs.
“Also, there will be predictable and reliable consignment clearance and availability of advanced goods release information and reduction in face-to-face meetings, greater transparency and reduced opportunities for rent seeking and corruption.”
Ogunsanu also said the NSW will facilitate faster movement of goods through formalities and trade junctions, leading to better and more productive utilisation of resources.
“There will also be reliable information on timing of goods movement, allowing accurate scheduling, allocation of resources and improved accuracy of information provided to clients; more productive and flexible use of human resources; and ability to accurately schedule goods collection and discharge times and locations. There will also be a better end-to-end audit of port operation,” Ogunsanu said.
An exporter, Mr Chris Christopher, said the NSW is a laudable initiative, which a country like Nigeria should embrace to transform the ports.
’We are aware that the current management of the NPA is not happy over the past failure of 48-hour cargo clearance policy.
Apart from the fact that the delays experienced in cargo clearance disrupts the production schedules of manufacturers as raw materials are not delivered in good time to their factories, they affect their revenue and are responsible for high level of corruption at the ports as importers struggle to clear their cargoes under harsh condition.
This, again exacerbates inflation as goods are not quickly cleared from the ports to meet relevant needs in the economy and that is why the need for a national single window is imperative,”Christopher said.
To him, the Federal Government needs to have the political will to introduce the National Single Window platform to reduce costs and increase the compliance level of importers and exporters.
’The benefits of the single window platform at the ports are immense, because on a micro level, it will boost the competitive advantage of our ports and its traders on the international markets, while increasing government’s revenue, boost foreign direct investment, introduce simpler, faster clearance, and release processes,” Ogunsanu said.
Sector 4 of the joint border drill under the ‘Exercise Swift Response,’ has recorded over N300 million seizures in the last two weeks in some Northwestern states.
The Border Drill Sector 4 comprises Sokoto, Kebbi, Katsina, Zamfara, Jigawa and Kaduna states.
The Sector, led by Aliyu Mohammed, said it achieved the feat in conjunction with the Nigeria Customs Service and Armed Forces of Nigeria.
Mohammed, who was in Yauri, Kebbi State, said a huge petroleum smuggling cartel was trailed and uncovered by his men, adding that tankers of petroleum products suspected to be Premium Motor Spirit (PMS) were discovered at a location where smugglers discharged them into drums to be smuggled through the borders.
The sector also made seizures of Premium Motor Spirit (PMS) in jerry cans last week, including rice, textiles, cars and other smuggled items in the areas under the command.
Mohammed said the operations were carried out in a strategic manner to avoid fire outbreak or explosions that could emanate from petroleum products.
According to him, the tankers, pipes drums, jerry cans and other tools being deployed to aid the smuggling act have become seizures
“When I resumed here, I addressed my men and charged them to be ready to smoke out smugglers and seize their wares. I am happy to disclose that our efforts are paying off. We will never compromise. Wherever they are or operate within our area of coverage, we shall continue to be on their trail to seize their wares and arrest them.
There will be zero tolerance for smuggling and other unlawful behaviours here. We are being very careful and strategic with them. We apply a lot of tact and intelligence to achieve seizures without casualties. You know that petroleum products are volatile and dangerous. It could lead to fire and explosion if we are not careful,” he explained.
Mohammed commended the officers and men of sister security agencies like the Nigerian Army, Nigerian Immigration Service, for their efforts at achieving the results.
He said the smugglers were caught napping by their operations and assured that his men would continue to take them by surprise by storming their storehouses, depot for trans loading and intercepting whatever they are smuggling into or out of the country.
“Illegally taking petrol meant for Nigerian use out of the country through borders is an act of economic sabotage and we must not allow it to stand. These smugglers are enemies of the country and our people.
They divert full petrol tankers to remote places and empty the petrol into drums and jerry cans for ease of smuggling through the borders.
What we are doing in this operation, particularly in Sector 4 is to protect our country from insecurity and protect the economy from saboteurs who do not mean well for us,” he said.
Mohammed assured that his sector will continue to make life difficult for smugglers all the time, promising that the Command is already moving into places smugglers never thought they could be caught.
“I can confirm to you that we are fully deploying our manpower and total logistics to maximum use for us to get these results.” he said.
The introduction of the Practitioners Operation Fees (POF) into the long line of payments for cargo clearance is causing ripples among operators and other stakeholders in the industry. While majority see this as a step in the right direction, others say it is an overkill on the already overburdened freight forwarders, reports MUYIWA LUCAS.
It was not a New Year present some freight forwarders expected to receive, but alas, it has come to stay.
On January 7, at a stakeholders’ meeting in Lagos, the Registrar of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Mr. Samuel Nwakohu, informed the gathering that the Federal Ministry of Finance has approved that only Practitioners Operation Fees (POF) paying freight forwarders will henceforth be allowed to clear their cargoes from the ports. He further informed them that before the year end, the POF regime payment would be digitalised.
Nwakohu was simply informing his colleagues in the freight forwarding business of the approval of the Minister of Finance, Budget and National Planning,Mrs. Zainab Ahmed, vide a letter dated January 6, 2020 and signed by the Director, Home Finance, Okokon Udo, which stated that freight forwarders must show receipt of payment of POF before they could exit their cargoes at the ports.
Under the POF regime, importers will pay N3.50 per ton of cargo imported; N1.50 per kilogramme of every air cargo; N1,000 on every imported 20-feet container and N2,000 per 40-feet container.
Beneficiaries
Stakeholders have expressed divergent views on the benefits that may accrue from the POF. For instance, they estimate that the CRFFN is expected to rake in as much as N10 billion yearly.
But for CRFFN, the regime is a win-win for everybody. Nwakohu said the POF regime will help build capacity for the effective participation in African Continental Free Trade Agreement (AFCTA) regime. He said freight forwarders must compete globally, noting that they were behind time and needed to catch up with the rest of the world. He urged them to conform with the rules and regulation guiding the practice of the profession.
“In the months to come, we shall be spending a great deal of our time on how to complete on the global platform. It therefore becomes imperative that we must raise the financial capital to fund and face the battle,” he said, adding; “The POF is our first point of take-off.”
Nwokohu also noted that the POF regime will enhance an organised collective action against numerous threats, including foreign intrusion and dominance, near absence of local content participation in the oil and gas services, including the need to build real capacity for effective participation in AfCFTA regime.
The support
Like a disunited family, the POF regime has pitted operators, especially freight forwarders, once seen as a united front, against themselves. Support for this regime has come in from some bodies.
For instance, the National President, Association of Nigerian Licensed Customs Agents (ANLCA), Mr. Tony Iju Nwabunike, has mandated members of the association to comply with the directive by the CRFFN over the collection POF.
Nwabunike said the association was established to serve as an umbrella body for customs brokers and freight forwarders in Nigeria in line with the principles and procedures of the CRFFN as provided for under the Act No.16 of 2007. To this end, he charged members to live up to expectations, hence complying with POF as mooted by CRFFN.
He said any statement on POF must be treated as a policy statement, which can only be issued by the President of the association, or the National Secretary, acting in their official capacity.
He explained that the CRFFN being a body established by the Act of the Federal Government is endowed will all the proper organ of government required to adequately and sufficiently operate under the law. Therefore, its members must be properly guided on their utterances and actions to ensure that it does not repress the position of Mr. President.
“ANLCA is in support of this directive as it will help enhance the education and enlightenment of its members and ensure that members are abreast of the dynamics of freight forwarding in the contemporary world and also improve the welfare of its members,’’ Nwabunike said, without stressing further the need to comply with the directive of the Federal Government. ‘’Be assured that this new professional development is for our communal good and for our collective growth as members of a single body,” he said.
Also, the Association of Registered Freight Forwarders of Nigeria (AREFFN) commended the Finance Minister’s approval of the POF regime.
In a statement in Lagos and endorsed by its Board of Trustees, its Chairman, Ejike Metu and Secretary, Innocent Elum, the group described the decision as one that will assist the CRFFN in raising funds for its operations.
“In sync with our National Executive headed by Alhaji Bala Usman Daura, the Board of Trustees (BoT) of the Association of Registered Freight Forwarders, Nigeria (AREFFN) commends the Federal Government’s progressive and unequivocal commitment to the professionalisation and repositioning of the freight forwarding practice in a challenging knowledge-based global economy.
“The recent approval granted by the Minister of Finance to the Council for the Regulation of Freight Forwarding in Nigeria’s (CRFFN’s) proposed Practitioners Operating Fee (POF) geared towards proper funding of the council’s programmes and policies, is yet another welcome development.
AREFFN stands on all fours in support of the POF policy and has directed her numerous members across the country to key into it,” the statement said.
The body expressed her members’ readiness to partner with government in advancing the nation’s economy, and cannot lay back from playing a key role in making the POF policy a success.
“Contrary to the sentiment expressed by few industry players, we submit that POF collection cannot in any way heighten cost of cargo clearance; it will rather reduce same, as practitioners would pay far less to Council than they pay their different Associations as presently constituted.
As a partner in progress with Council, AREFFN encourages her to fast-track commencement of the POF collection in view of the enormous responsibilities waiting for her attention,” the statement read.
Still, the Nigerian Association of Air Freight Forwarders and Consolidators (NAFFAC) also lend support to the POF regime. The air freight forwarding group urged the collecting authority not to derail from the agreed sharing formula for the regulator, declarant and associations.
The President-General of the association, also as a member of the Governing Council of CRFFN, Prince Bakare Adeyinka, called on stakeholders to support the role of the council in dealing with issues of malpractice in the port.
He urged the regulator to increase its campaign in the ports for freight forwarders, importers and exporters to be aware of the role of the council according to the Act establishing it.
“We agree to the commencement of collection of POF by CRFFN and disbursement on the agreed formula of 65 percent to CRFFN and five percent to the declaring and 30 per cent to the associations,” the group said.
Opposition
But some clearing agents and freight forwarders have kicked against the POF payment as one of the requirements for cargo release across the seaports and land borders, regretting that the implementation of the new directive by the Finance Minister will lead to congestion and increase the cost of doing business at the nation’s ports.
They are sad at what they term the CRFFN’s heaping of “unnecessary burden on the end users of the cargoes cleared from the port”, saying they already had a handful of levies and duties to pay and that if the POF is added, it would escalate the cost of clearing goods at the port.
An agent, Mr. Abiodun Adekunle, lamented: “The problem we are passing through in this port is too much, do you want to kill us? If the CRFFN was established to regulate the freight forwarding practice, it is not to come and collect money. This system will lead to more demurrage in the port because they say we must pay before our cargo can exit the port.”
He gave a breakdown of payments already being made to include importation duty to Customs, Value Added Tax (VAT) on all the payments made, shipping company charges on container charges and rent on the container, terminal charges, NAFDAC, SON for cargoes relating to their agencies, Plant Quarantine Service, among others.
CRFFN mandate
Already, some agents are at a loss as to who’s interest the CFRRN is representing. For Yemi Adekunle, the POF is an additional burden on stakeholders. “Everybody is talking about payment of POF but my question is if council was created to protect our interest, I see the payment of POF as adding to our burden.
Other professional bodies like ICAN pay professional dues annually; why not limit our own too to annual payment instead of asking us to pay per shipment. We pay customs duty and other charges; this one you want us to pay, who do we refer it to?” he asked rhetorically.
But Nwakohu maintains that mechanism has been put in place to tackle the divergent opinions of the freight forwarders. For him, it is only a group of few freight forwarders complaining as every other person is in agreement with the POF collection.
“If you want to make an effective law, you must make sure that it is near watertight. If the receipt of POF payment is not a condition precedent to cargo exit, then most of them will not pay.
It will not add to cost of doing business. It is the practitioner who bears the cost, and that is their business, not the end user. POF is law right now and our duty is to enforce it,” Nwakohu said.
Dana Air said it is working hard to hit a 7.2 million passenger mark by the first quarter of this year and hopes to grow its fleet size to nine aircraft.
Spokesman of the airline, Kingsley Ezenwa, disclosed this in an interview in Lagos.
He said the carrier was consolidating on its business plan to deliver on the promise.
Ezenwa said: “ We have been here for the past 11 years doing what we know how to do best passionately and persistently. With a fleet size which we hope to grow to nine aircraft, our target is to hit about 7.2m flown passengers by the first quarter of 2020. We are orderly and we like to take one step at a time. We are consolidating while sticking to our strategic fleet and route expansion plan.’’
Dana Air last year won the Most Stable Airline in Nigeria award organised by Air Transport Quarterly Magazine.
The Editor-in-Chief, Air Transport Quarterly Magazine, Supo Atobatele, said the award was in honour of some of the industry’s finest individuals and corporate bodies whose penchant for hard work, innovation and capacity building has not only greatly improved the business of air transport but enhanced safety of the air space.
According to him, Dana Air bagged the award as a result of her consistency and stable operations offering safe and reliable air transport in the past few years.
Ezenwa said: “ The reward for hard work is more work. There is no better way to end the year 2019 than a recognition like this.’’
He dedicated the award to the airline’s customers for their loyalty and support for the last 11 years and reassured them of the airline’s commitment to continue providing safe, comfortable, on time and reliable air transport.
Meanwhile, Middle East Carrier Emirates Airlines said it will focus on strengthening its business across operational, commercial and customer experience lines in 2020.
Its President, Tim Clark, who disclosed this, said the airline has put measures in place to open doors to global visitors as the United Arab Emirates (UAE) hosts Expo 2020.
On Emirates’ outlook for the year ahead, Clark said: “In 2020, we’ll continue to leverage our partnerships to provide even more connectivity and value for our customers. And we look forward to welcoming the world to Dubai for Expo 2020, where we will showcase the future of aviation at the Emirates Pavilion.”
He said the airline flew close to 58 million passengers in 2019 in over 186,000 flights traveling to more than 885 million kilometers around the globe.
He said : “Emirates also expanded customer choice, connectivity and convenience by growing its partnerships. The airline ended 2019 with 26 code hare partners and 156 interline partners in 200 countries, extending its network by over 1,800 unique destinations. New partnerships forged in 2019 include with China Southern Airlines, Africa World Airlines, LATAM Airlines, SpiceJet and Interjet.
“Emirates and flydubai marked two years of successful partnership, carrying more than 6 million passengers on their jointnetworks to and through Dubai since 2017,’’he added.
Emirates’ passengers benefit from seamless connectivity, accessing 94 destinations on the flydubai network, while flydubai passengers can also access 143 Emirates destinations.
“Emirates expanded its A380 network with the introduction of scheduled services to Riyadh, Cairo and Muscat. The Emirates A380 also operated seasonal services during the summer to Boston and Amman, offering more customers the opportunity to
experience its flagship aircraft.” Clark said Emirates elevated its inflight entertainment experience by introducing playlist synching.
He said : “ Customers can now browse the extensive content on offer, create personalized playlists ahead of their flight,
and sync it to their seats once on board their flight, using the Emirates App. Since its launch, more than 180,000 unique playlists have been created, and the airline is expanding this function progressively across its entire fleet.
“Emirates continues to invest over US$ 27 million annually to operate inflight connectivity systems, serving the
expectations of modern travellers. More than 13 million Wi-Fi connections were made on-board Emirates flights in 2019, as
customers increasingly expect the ability to stay connected to family and friends when they fly.
“Providing a stress-free, end-to-end customer experience, Emirates launched its first remote check-in terminal outside of the airport, to provide smooth connections for cruise passengers in Dubai. These Emirates check-in counters, located at
Port Rashid, allow passengers who are disembarking from their cruise ships to check in for their onward Emirates flight and enjoy a hassle-free stopover visit in the city.
“Emirates launched bio metric boarding and facial recognition technology at its departure gates for customers flying from Dubai to any of its 12 destinations in the U.S., reducing the time taken for identity checks to two seconds or less. More
bio metric technology will be rolled out in the coming year, in coordination with partners at Dubai International airport.
“The Emirates App has become one of the top airline apps with nearly 2 million active users, and is available in 19
languages including Arabic, allowing users to search, book and manage their flights. The airline has also recently
launched a new feature on its app called Airport Maps, allowing customers to navigate seamlessly through Dubai
International Airport including check-in desks, Emirates lounges, shops, restaurants or ATMs in the airport.”
The Nigerian Ports Authority (NPA) Managing Director, Ms Hadiza Bala Usman, told The Nation that the agencies, terminal operators and stakeholders must key into the government’s initiative of promoting the SW platform to meet the 48-hour cargo clearance deadline.