Category: Issues

The Nigerian Maritime Administration and Safety Agency (NIMASA)Director-General, Dr. Dakuku Peterside, has inaugurated Marine Litter Marshals. This is to assist the agency rid the waters of unwanted materials, which can cause environmental degradation and impede safety of navigation on the territorial waters. Maritime Correspondent OLUWAKE\MI DAUDA looks at issues around its formation .

The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, a  few days ago, inaugurated Marine Litter Marshals to assist the agency in ridding the waters of unwanted materials that can cause environmental degradation and also impede safety of navigation.

At  the flag-off of the first phase with 120 marshals, held at the Nigerian Maritime Resource Development Centre in Lagos, Peterside charged Nigerians on the sustainable use of ocean resources, adding that there are so many activities dependent on the ocean. “The state of health of the ocean is related to the state of our health and our economy. Therefore, we must stop the indiscriminate dumping of materials in our ocean,” he said.

 

Why the current move by NIMASA on marine litter is essential?

The current discussions on marine litter, as championed by NIMASA, stakeholders said, are essential because oceans, seas and rivers are the lifeblood of humanity, but they are being turned into rubbish dumps.

A maritime lawyer and university don, Mr Dipo Alaka, said Nigerians have a collective responsibility to support NIMASA to clean the waters, and to act now.

“What NIMASA intends to do with its campaign against marine litter is to turn the tide on plastic and other  waste, protect biodiversity and keep the oceans rich and clean. It is an investment in our own survival, the survival of our children and the future generations and our nation” he said

 

What is marine litter?

Marine litter has been defined by the United Nations as “any persistent, manufactured or processed solid material discarded, disposed of or abandoned in the marine and coastal environment. Marine litter consists of items that have been made or used by people and deliberately discarded into the sea or rivers or on beaches; brought indirectly to the sea with rivers, sewage, storm water or winds; accidentally lost, including material lost at sea in bad weather (fishing gear, cargo); or deliberately left by people on beaches and shores.”

According to Alaka:”Marine litter is found on the beaches and shores, on the water surface, in the water column and on the seabed. It can be found near the source of input but also can be transported over a long distances with sea currents and winds.”

The maritime lawyer said there was a need to support NIMASA in preserving the waters and seas as it holds a lot of opportunities in developing the economy and providing jobs for the people.

“We are in support of the latest move by NIMASA to find effective solutions and required actions to improve litter prevention, recycling, and other waste management infrastructure, along with strong national, regional and international partnerships,” Alaka said.

 

What causes marine litter?

Ocean pollution is not a problem limited to one country, or even one continent. But it’s becoming increasingly clear that what happens in one city can have impacts across the globe. According to the United Nations Environment Programme (UNEP), about 80 per cent of marine litter originates on land. A majority of scientific studies have concluded that plastic in the ocean is the result of poor or insufficient waste management and lack of sufficient recycling and recovery. UNEP identified these sources as the most important:

• Poorly managed or poorly resourced landfill sites
• Sewage treatment and combined sewer overflows
• People using beaches for recreation or shore fishing
• Manufacturing sites, plastic processing, and transport
• Shore-based solid-waste disposal and processing facilities
• Inadequately covered waste containers and waste-container vehicles
• Inappropriate or illegal dumping of domestic and industrial trash or waste
• Street litter that is washed by rain or snowmelt, or blown by wind into waterways

 

Types of marine litter

There are many types of marine litter. Roughly 70 per cent of marine litter, such as glass, metal, and all sorts of marine equipment and other refuse sink to the ocean floor.

Debris and pollution do not belong in the ocean and sea, they are human creation.

While marine litter consists of all sorts of materials, many plastics float or remain suspended in water, making them more visible.

 

Marine litter can harm ecosystems, human

Marine litter, it was learnt, is not only ugly – it can harm ocean ecosystems, wildlife, and humans. It can injure coral reefs and bottom dwelling species and entangle or drown ocean wildlife. Some marine animals ingest the litter and choke or starve. Medical waste (such as syringes), sharp objects, and large pieces of litter can pose a direct threat to humans.

 

A pervasive problem plaguing the world

Marine litter is one of the most pervasive and solvable pollution problem plaguing the world’s oceans and waterways. Nets, food wrappers, cigarette filters, bottles, resin pellets, and other debris items can have serious impacts on wildlife, habitat, and human safety. Successful management of the problem requires a comprehensive understanding of both marine debris and human behavior. Knowledge is key for consumers to make appropriate choices when it comes to using and disposing of waste items. Education and outreach programs, strong laws and policies, and governmental and private enforcement are the building blocks for a successful marine pollution prevention initiative. The plastic industry also has a role to play in educating its employees and customers, and searching for technological mitigation strategies.

 

Working  in partnership with industries, local, state government

Peterside has left nobody in doubt that he was appointed by President Muhammadu Bihari to protect the nation’s ocean and sea.

Findings revealed that ocean pollution is not a problem limited to one country, or even one continent. But it’s becoming increasingly clear that what happens in one state can have impacts across the country.

That is why the stakeholders said NIMASA needs to work in partnership with local, state, the Federal Government,  industry players, NGOs and the United Nations in resolving that good prevention and waste management is the key to keeping waste out of the nation’s territorial waters.

 

Problems and threats caused by

marine litter:

Investigation revealed that there are numerous problems and threats associated with marine litter, which include environmental, social and economic impacts. These problems are interconnected and difficult to solve separately.

Its general implications for the Nigerian economy are also enormous, such as beach cleaning, loss of tourism and tits negative impacts on fishing industry. It poses a considerable threat to the health and productivity of marine ecosystems. No wonder Peterside said, “the presence of marine litter in our waters is impacting negatively on NIMASA’s Strategic Objectives, most notably the drive to make Nigeria a greener, wealthier and fairer, safer and stronger and healthier nation.”

 

Risks to human health

Marine litter can pose significant risks to human health and is considered a public health issue, both as beached litter or circulating in coastal waters

Beached marine litter such as broken glass, medical waste, fishing line, and discarded syringes can harm beach users as well as the risks associated with the leaching of poisonous chemicals.

Findings revealed that In the United Kingdom, between 1988 and 1991, four per cent of injuries by needles reported to the Public Health Laboratory Service (PHLS) in the Southwest of England were sustained on the beach.

Sewage related debris is particularly harmful and is considered a potential biohazard and may act as a vector for viruses and bacteria.

 

Sewage related litter

One of the main sources of SRL is from combined sewage overflows and constitutes sanitary products such as nappies, baby wipes, condoms, tampon applicators and needles.

In Lagos alone, Dr Ayodeji Olufowobi said, not less than 20million sanitary items are deposited in the toilets per year.

“SRL may present serious water quality concerns as with the presence of these items there is increased risk of bacterial (e.g. E. coli) and viral contamination of surrounding coastal waters. Indeed consumption of or contact with contaminated water can pose a risk of contracting hepatitis, cholera, typhoid, diarrhea, bacillary dysentery and skin rashes. Marine litter can also pose a serious threat to recreational users, particularly for swimmers, snorkelers and divers who can become entangled in submerged or floating debris, such as fishing nets and ropes.,” Olufowobi  said.

 

Hazards to vessels, ferries and trawlers

The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala Usman said  that marine litter poses navigational hazards to all kinds of vessels such as submarines, passenger ferries, fishing trawlers and can result in loss of life.

The major risks to navigation from marine litter mostly during poor weather conditions, according to Usman include:

• fouling and entanglement of a vessel’s propeller in derelict fishing gear: reducing stability and the ability to manoeuvre;
• blockage of water intakes by plastic bags;
• subsurface debris can foul anchors and equipment deployed from trawlers and research vessels;
• collisions can damage a vessel’s propeller shaft seal;
• recovery procedures which require divers increases risk of personal injury

“Apart from the normal navigational hazards by pleasure craft and commercial ships, the same risks also apply to military activities which are active in the marine, submarine and inter-littoral zones. Marine litter can disturb the physical environment, affecting the ability to detect certain phenomena many of which are important to the Navy’s defence capability,” she said.

 

Threats to fishermen

A boat operator and fisherman in Ojo Area of Lagos, Mr Sunday Davies said they are are also facing threat from marine litter. Threats to fishermen, according to Davies include the snagging of fishing gear on marine litter, increasing the risk of capsize, and in some circumstances resulting in loss of life of some of their members.

“Remediation and preventative measures are only available for Captains of big vessels and trawler through the deployment of surveillance equipment by NIMASA to identify the location of lost objects; the notification to mariners of the location of floating or sunken containers, cargo or debris; the emergency towing of floating containers; and the transfer of cargo from a stricken vessel, all of which are dependent on the management of the agency,” Davies said.

Impact of marine litter to Nigerian economy

“Marine litter has a fast, direct and indirect impact upon the Nigerian economy. For several years policy makers and communities have experienced the problem of marine litter on beaches, waterways, bays and ports and the subsequent impacts on a range of economic activities.

“For instance, costs for cleaning operations or lost fishing revenue from entanglement are still captured in traditional economic calculations but the economic implications of degraded ecosystem services are still difficult to value,” said a ship owner Mr Fola Badmus.

 

Mandate given to the marshals

Peterside has directed the marshals to go to the ports, coastlines and littoral communities and enlighten them on the need to maintain cleaner oceans; enjoined them to also keep watch and ensure that the right thing is done so that the eco system can be preserved. He further warned that the agency will not condone indiscriminate dumping of waste at sea.

 

What stakeholders say

A university don and maritime lawyer, Mr. Dipo Alaka, said marine litter directly impacts on ocean life, marine habitats, human health, and navigational safety with potential impacts on socio-economic development of nations.

This, he said, necessitated the need for NIMASA to collaborate with UNEP Global Partnership Action (GPA) in 2015 to carry out a scientific study on marine litter challenge in Nigeria, thereby culminating to the development of the national action plan on marine litter and its campaign concept.

Also speaking, a marine environment expert and the President of the Waste Management Society of Nigeria, Professor Osinbajo Oladele, applauded the initiative and described NIMASA as a beacon of hope to the rest of Africa. He stated further that there is the need for inter-generational equity of our resources, which means the survival of the eco system is dependent on this present generation as it will affect the future generation.

“The environment is not a gift from our parents, but a loan from our children. We must therefore do all we can to preserve it”, Prof. Osinbajo said.

 

Employment generation

The issue of marine litters, stakeholders say, has always been a challenge of the nation’s Maritime sector, and that is why  Peterside came up with the strategy of employing locals as marine litter marshals to serve as watchdog around their areas.

Stakeholders say the strategy is worth emulating. Apart from tackling unemployment, it gives youths a sense of belonging as stakeholders in their environment. The initiative is also seen as part of efforts to tackle youth restiveness in the riverine areas, which hitherto was a challenge for the Federal Government.

Findings revealed that a number of youths are in the books of NIMASA serving as marine litter marshals in their respective domains.

 

Convention on the prevention of

marine pollution

It may be recalled that the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972, commonly called the “London Convention” and also abbreviated as Marine Dumping, is an agreement to control pollution of the sea by dumping and to encourage regional agreements supplementary to the Convention. It covers the deliberate disposal at sea of wastes or other matter from vessels, aircraft, and platforms.

 

80 % of marine pollution originates

on land

According to global statistics, about 80 per cent of marine pollution originates on land. To address this, strong coordinated action is needed. UN has championed a course for the Global Programme of Action for the Protection of the Marine Environment from Land-based activities, which NIMASA has also keyed into in order to establish and strengthen voluntary and a multi-stakeholder partnerships on nutrient pollution, marine litter and water wastes.

That is why the coordinator of the project and Deputy Director, Marine and Environment Management of NIMASA, Dr. (Mrs.) Felicia Mogo, said that the agency embarked on the initiative to ensure proper solid waste management and in particular prevent materials like plastic waste and other dangerous items from reaching the waters.

 

NIMASA as the agency of government responsible for marine environment

NIMASA as the agency of government responsible for marine environment management in its continuous quest to reposition the Nigerian maritime sector in line with global best practices has taken the step to engage some young Nigerians as marine litter marshals who are expected to ensure that the oceans are kept clean and safe.

 

Marine litter as a global issue

A former member of the House of Representative, Mr Motif Akinderu Fatai said the Federal Government through the Ministry of Transportation and NIMASA must  strengthen their joint measures to combat marine litter and coordinate its future action plan.

“We need a broad-based package of measures and the creative strength of the government and the civil society to cope with the amounts of litter in our oceans. Which was exactly why NIMASA constituted the Marshall.

“We need a clean marine environment, and this means we must prevent more waste entering the oceans, and wherever possible, remove more of the litter which is already present.

“Most of the marine litter consists of plastics, which makes it a problem of our own doing, in what we produce, buy and how we consume. We must pay more attention to how we deal with plastics. We need close cooperation at local, federal, national,regional and  level to prevent more litter from entering our oceans.

Findings revealed that  between 100 and 140 million tonnes of marine litter exist worldwide. The main input apart from plastic are firstly maritime activities, and fishery and shipping in particular, and secondly, onshore tourism and leisure-time activities. The major offshore source is fishery. Up to 10,000 gillnets are thought to be lost in the Baltic Sea every year, and these ghost nets can go on “fishing” for years and years.

 

What needs to be done

The immediate past President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said NIMASA must ensure that  plastics makers in the country are working with the agency, NGOs and other public and private sector actors in order to develop and pilot systemic interventions that will focus resources where they can have the most immediate and significant impact in areas and economies where the most waste enters the ocean.

 

Those that NIMASA must involve

in its campaign

The discussion by NIMASA on marine litter, Animasahun said, must include: representatives of the fishing and shipping industries, the plastics industry, wastewater management, cosmetics and tyre production, retail trade, science, federal, state  and local government authorities and politicians, the tourism industry, environmental associations and artists among others.

The aims of the discussion, stakeholders said, must include ensuring that fishing gear such as nets are also not discarded at sea.

 

NIMASA to ensure less plastic in the ocean

Plastics are essential to modern life. Plastics can enhance quality of life in ways that other materials cannot. Plastics can help prolong the freshness of food. They can help shield and transport sterilized medical supplies. They can meet resource needs and reduce waste, energy use, and emissions.

One can responsibly enjoy the benefits of plastics while also properly disposing or recycling used plastics. (The same goes for all types of materials that make up marine litter.)

A recent study found that the amount of plastic waste entering the ocean from land each year exceeds 4.8 million tonnes, and may be as high as 12.7 Mt  The quantities of plastic entering the ocean are growing rapidly with the potential for cumulative inputs of plastic waste into the ocean as high as 250 Mt by 2025. Discharges of plastic are spread around the globe from the 192 countries with coastal borders, but 20 countries account for 83 per cent of the mismanaged plastic waste available to enter the ocean. Of course, better marine litter prevention and ocean conservancy begins with better understanding of the root causes of ocean pollution.

 

Effects of marine litter:

Investigation has shown that marine litter causes marine environmental, economic, health and aesthetic problems, including possible transfer of toxic substances and invasive species, destruction of marine habitats and loss of biodiversity. It also threatens marine life through entanglement, suffocation and ingestion as well as poses a risk to human health and life hence, the need to find solutions to it.

 

Solutions to the problem:

“Solutions to this endemic problem must include reduction, reuse, increased recycling, tough litter abatement laws, and well-run municipal waste management systems.

“A voluntary commitment by the retail sector to reduce the use of plastic bags, in addition to a new recycling law with higher quotas for plastic waste, would also ensure the prevention of plastic waste in the oceans and seas,” Shittu said.

Across the globe, findings revealed that about 355 plastics industry partnerships and projects are underway, planned, or completed in communities.

Working in partnership, industry, NGOs and the national governments,  the United Nations  (UN) has concluded that good prevention and waste management is the key to keeping marine litter out of our waters, oceans and seas.

The exit of global giants Michelin and Dunlop from Nigeria was the highpoint of the decline in the rubber industry. The industry, which at its peak created over 54 companies, now has less than 20. Its export capacity also nosedived from about 100, 000 Metric Tons (MT) per year to between 60 and 80 MT, representing about 20 per cent dip. But the sector, which is credited with having immense capacity to drive industrialisation, create jobs and boost economic diversification, may soon bounce back, if the government implements the solutions proffered by experts and stakeholders, AMBROSE NNAJI reports.

Nothing will gladden the heart of the General Manager of Imoniyame Rubber Limited, a rubber plantation/processing company in Ughelli, Delta State, the biggest rubber processing company in West Africa, Mr. Simon Akiewe, than to see the rubber industry bounce back.

Akiewe and, indeed, other operators and stakeholders, believe that revitalising the largely-neglected industry has the potential to drive the Federal Government’s on-going economic diversification campaign and also create jobs.

According to them, the sector, despite its steady decline over the years, has the capacity to create millions of jobs for various players along its value chain and also spur industrialisation.

From farmers who work on rubber estates/plantations to processors, companies producing tyres, and others providing ancillary services, Akiewe said the sector’s capacity to churn out millions of jobs for the teeming youth is too obvious to ignore.

Besides, putting the sector back on track, Akiewe said, it could help fast-track the country’s match to a non-oil economy anchored on export of agro-allied products including rubber. He noted, for instance, that products, such gloves, tyres, plugs and masks are made from rubber. He said rubber is also used for hoses, belts, matting, flooring, and medical gloves, among others.

Rubber is also used as adhesives in many products and industrial applications. The finished products from rubber are also used for tyre manufacturing, bullets for gun, brake pads and other accessories, among others.

Despite its multiple uses and huge export potentials, rubber, according to Akiyomi and other experts, unfortunately seems not to enjoy priority attention by the government under its push for a non-oil economy.

The Deputy Director, Rubber, in the Ministry of Agriculture and Rural Development, Mr. Bernard Ukatta, confirmed this much when he said emphasis had not been laid on rubber even at the ministry level.

Ukatta said this was because rubber was not a food crop. According to him, the government’s emphasis was more on food crops, such cassava, rice, and maize. He said even at the ministry level, rubber is one of the crops that receive the least allocation from the budget office.

This, he said, resulted to the neglect of the sector’s export potential and subsequent decline over the years, including its capacity to create jobs and earn foreign exchange. For instance, its export capacity had declined to about 20 per cent, from about a 100, 000 Metric Tons (MT) of rubber per annum a few years ago, down to between 60 and 80 MT per annum.

He blamed this partly on the fact that rubber is grown where there is crude oil, which forced many youths to turn to the oil industry where, they believe, it is easier to make fast bucks than to work in rubber farms or plantations.

Ukata also said most of the 18 rubber producing states across the country don’t place importance on agriculture. Some of the states include Delta, Bayelsa, Rivers, Akwa Ibom, Cross River, Abia, Imo, Edo, Ondo, Ogun, Oyo, Kaduna, and Taraba.

He said the states pay lip service to agriculture rather than support it with incentives, such as soft loans and improved seedlings to farmers. According to him, a change of attitude by both the states and the Federal Government will help the industry bounce back.

Akiewe agreed that the rubber sector has indeed, been on steady decline. He recalled, for instance, that the sector which, at its peak created over 54 companies has less than 20 companies. Over four million jobs are also said to have been lost in the industry in the last few years.

 

Why the sector declined

One of the issues that forced a decline of the rubber sector was aged rubber trees arising from the lack of replanting by local farmers. Akiyomi said the aged rubber trees across the country, yield dwindled, stressing that  when the yield is low, it creates lack of interest to the tappers.

He regretted that the rubber trees that are being tapped were planted by the likes of the late Michael Okpara and the Chief Obafemi Awolowo. “That will tell you that after the regional government, successive governments did nothing to revive the sector. Except few states, other states are doing nothing,” he said.

He said this was one of the reasons industry stakeholders embarked on what he called ‘Out growers’scheme’to encourage smallholder farmers to own small plantations and plant rubber trees in the hope that yield would rebound once again.

“Because we are giving them high-yielding planting materials, when the yield is high, it will encourage tappers and tapping of the rubbers,” Akiewe said, adding that the intervention was necessary because rubber farming was both complex and highly capital intensive.

The Nation learnt that as part of the programme to replace aged rubber trees, the Rubber Research Institute (RRI) developed improved varieties that would give farmers more latex than what is currently available.

Ukatta, however, said there was need to carry out more campaigns to encourage farmers to go into rubber production. This, he said, was necessary given the export potential of the industry. According to him, one ton of rubber could fetch about $2, 000 in export revenue.

“So, we need a lot of advocacy to encourage rubber production within the rubber producing states. We need to talk to farmers; we need to convince them to replant. We also need a lot of support from the government in terms of grants, but the ones we can do to encourage them is by subsidising their cost of production from our own side,” he said.

Noting that this is the only way to move the rubber sector forward, Ukatta reiterated that the government has to subsidise the business either by giving farmers improved seedlings at very low price or bear 80 per cent of the cost while farmers pay the balance to encourage them to replant with improved varieties.

For National Rubber Association of Nigeria (NRAN) Executive Director, Dr. Sunday Kolawole, the sector’s decline was as a result of unfavourable world market prices. He said the development, which crippled the sector, forced many farmers to abandon their rubber plantation to other more lucrative ventures.

Akiewe agrees with him. He noted that the fluctuating price of rubber at the international market adversely affected the sector’s fortunes. This is because the country lacked local capacity to produce rubber. He said unlike India, Nigeria does not have the capacity and market to absorb whatever she produces.

He said: “If Nigeria has the capacity, she will have the market. All the tyres we use are imported. If we have industries that produce tyres here in Nigeria, they will absorb our rubbers. This means that with or without the fluctuation in the international price of the product, production will continue and operators will still make profit.”

He, therefore, urged the government to establish auto industries that would do the manufacturing of all the basic auto parts here in Nigeria, adding that this will create employments by creating ancillary industries that would help sustain the main industry.

Akiyomi said the abandonment of the Export Expansion Grant (EEG) by the government added to the sector’s woes. According to him, the EEG had the capacity to boost the competitiveness of exporters and ultimately, grow the rubber industry.

The Federal Government introduced the EEG to accelerate export volume and enable exporters to diversify their export products and market coverage.  Negotiable Duty Credit Certificates (NDCCs) were used to pay for import and excise duties and could be sold for cash.

It was expected to act as a cushion to the high cost of production that makes Nigeria’s export products less competitive in the international market. But Akiewe expressed regrets that millions of jobs have been lost in the industry in the last few years as a result of government’s failure to pay up the outstanding EEG owed rubber processors.

He, therefore, urged the government to pay up the outstanding export grants due to operators  to enable them pay off their backlog of debts, noting that government has lost a lot of foreign exchange earnings by not paying the EEG.

Such grant, he argued, would encourage capital injection and production and could be used as a mark-up in buying materials from local farmers which, according to him, will boost production, generate jobs and revenue to the government in terms of foreign exchange inflow.

Akiyomi said the low rate of consumption of the local material is compounding the sector’s woes. He blamed the government, which he said failed to establish local industries that would make use of the end products of rubber.

He argued that had this been done, there still would have been market to encourage local production despite the crisis in the international market.

 

Challenge of power supply,

smuggling

Akiewe also blamed the sector’s collapse on the lingering crisis in the power sector where lack of steady and reliable electricity supply has continued to affect the competitiveness of local manufacturers, particularly rubber processors and farmers.

He said unreliable electricity supply was one of the major reasons two global manufacturing giants namely, Michelin and Dunlop exited from Nigeria. He recalled, for instance, that both companies were not only producing tyres in Nigeria, but also exporting to other parts of the world.

He, therefore, urged the government to do everything possible to make the companies return to Nigeria. According to him, this will force a rebound of the industry and in turn, create jobs for the teeming population.

“If we have these industries (Michelin and Dunlop and others) here, they will be exporting from Nigeria and there will be jobs for many Nigerians. Let them come back and start producing from here,” he reiterated, adding that the tyres being used in the country at present are imported.

Indeed, the unbridled importation of cheap and sub-standard tyres, allegedly from China and other Asian countries, has been cited as another reason Michelin and Dunlop relocated their operations to other climes where the operating environment was considered friendly, because of the availability of supportive infrastructure especially electricity.

 

Pain of policy inconsistency

Akiewe also said the government’s policy inconsistency contributed to the sector’s comatose state. He recalled, for instance, that the former President Olusegun Obasanjo administration had recommended that about 20, 000 hectares of rubber be planted yearly, while also providing the necessary incentives to farmers.

He, however, regretted that successive administrations failed to sustain the policy. He maintained if that plan had been sustained by successive governments, the rubber sector would have flourished and more jobs created.  The government would have smiled to the bank with increased revenue from the sector.

He said: “Really we worked hard to get result under that scheme, but the problem of Nigeria is that of policy continuity and implementation. Once a government goes and another comes, old projects are abandoned and forgotten. Otherwise, the initiative of 20,000 hectares of rubber to be planted each year would have made the industry to grow.”

According to him, when the new government came, it said it didn’t want tree crops but  was interested in food security. The government also abandoned the project, leading to the demise of the dream.

He, therefore, advised the Federal Government to revisit the scheme, arguing that policy inconsistency and project abandonment by successive governments were antithetical to the nation’s economic growth and development.

“Let there be a system whereby a target is given that each year a number of rubber trees will be planted. The government should revive that scheme and let us continue from there. It is in line with the Federal Government’s initiative to diversify the nation’s economy into the non-oil sector, including agriculture,” Akiyomi said.

 

New dawn in the offing

If statements by Kolawole are anything to go by, the rubber sector may soon bounce back. According to him, the Nigerian Export Promotion Council (NEPC) was already working on the possibility of re-introducing the EEG and paying the outstanding backlog.

Relying on sources from the Council, he said it was included in the 2018 budget. He expressed optimism that if and when the 2018 budget is passed by the National Assembly and the EEG implemented, it will help revive the comatose rubber industry.

NEPC Product Development Director Mr. William Ezeagu, also reportedly said the implementation of the EEG by the government was in process. He said the scheme, which was suspended for about years, was being revitalised and redesigned. He said the first set of beneficiaries would soon receive their payment.

Kolawole also said as part of efforts to revive the sector, the NEPC organised a stakeholders’ forum with NRAN in collaboration with the Raw Materials Research and Development Council (RMDRDC) to encourage farmers to go back to rubber production for export purposes.

He said at the forum, the association made it clear that it was not getting enough support from the government. He reminded the organisers that the association’s members were being challenged by the fact that rubber takes as much as seven years before tapping can start.

According to him, the long gestation period for rubber production was partly responsible for why farmers are running away from the business because they don’t have money. “So, we are saying it should be well funded, the government should fund it, that’s what we are saying,” he said.

An stakeholder, Mr. Abel Ovbije, lamented that the industry is down. According to him, the few local companies in Kano and Lagos states are unable to absorb the production of crumb rubber in the country, adding that there is an urgent need to reverse the trend to create jobs and encourage industrialisation.

This was why Akiewe recommended that the government through the Ministry of Agriculture should come up with a policy that would encourage rubber production in the country through the provision of finance, farming input and public enlightenment for people to go into farming, including rubber.

He also urged the government to support manufacturers through the provision of supportive infrastructure such as reliable electricity, good road network, etc. He said his company, on its part, has rubber plantations in its area of operation where small growers are allowed to have small plantations.

“We support the small growers with planting materials. That way, we expand the capacity of the industry,” he said. He hopes that state governments will complement the gesture by supporting the farmers.

Akiewe further hopes that the government will rethink its emphasis on food crops alone to drive diversification, neglecting the huge export potential of tree crops, such as rubber. He said other African countries, such as Ivory Coast and Cameroon depend mostly on tree crops production for their foreign earnings.

“Rubber, cocoa, oil palm and other tree crops have been sustaining Ivory Coast, Cameroon and other African countries. The majority of their exports are agricultural products,” he said. He advised Nigeria to take advantage of the bountiful opportunities in the sector.

 

 

Organised labour is not happy that the National Assembly has not passed the 2018 budget. The delay, according to the Nigeria Labour Congress, Trade Union Congress and their affiliates is unhealthy for the economy. TOBA AGBOOLA reports.

About four months after President Muhammadu Buhari presented the 2018 budget to a joint session of the National Assembly, it has yet to be passed. This has drawn the ire of organised labour, which says that the delay has severe consequences for the economy.

The government’s intention when it presented the budget to the assembly was to return the country to the financial year that starts in January and ends in December, a move that enjoyed the overwhelming support and buy-in of operators and stakeholders in various sectors of the economy.

The expectation was that returning the country to the normal financial year would mark a clean break from the past when delay in budget presentation and passage was a common feature in the nation’s fiscal planning.

But the way things stand, it appears that the expectation was misplaced, as this year’s budget may go the way of previous years,’ with far-reaching implications for the economy.

The budget, it was, learnt, has yet to get to the Appropriation Committee of the both chambers, which is supposed to harmonise what has been done by the various committees. This implies that Nigerians will have to wait longer before this year’s budget can be passed.

Labour and, indeed, Nigerians are worried over the development. Some of them, who spoke with The Nation, expressed displeasure, stressing that the continued delay in passing the budget, caused by the lingering impasse between the executive and legislature, was affecting the nation adversely.

For instance, the Nigeria Labour Congress (NLC) General Secretary, Dr. Peter Ozo-Eson, said the delay was unfortunate. According to him, this is a budget for the year, which ought to have started on January 1.

“We are in April, already into the second quarter and the budget is still not passed. So, we cannot even say definitely when it will be passed. The budget is supposed to, among other things, show the direction of the economic policies for the year, which will then influence economic planning by economic agents, both in the private and the public sector,” he said.

According to the labour unionist, operators in various sectors respond to the economy based on the budget, “so if by the beginning of the second quarter, we still have not had the budget passed, it means that they are having economic function without direction.”

Insisting that this would not help the economy, Ozo-Eson described the situation as sad. “Whatsoever or whosoever is responsible for the delay, I think he or she has to be called to order in the interest of the country and the budget needs to be passed,” he said.

The NLC scribe also said the Federal Government should break away from the usual delay in budget passage by instituting a sacrosanct budget circle. He said if the budget circle was in place and the budget passed at the beginning of the period, it would be healthy for the economy.

He said the circle would also encourage growth and allow people to plan. Oson-Eson, however, called on the Federal Government to ensure the quick passage of the budget to savage the economy.

Ozo-Eson added that the delay would affect its performance. “By the time the budget is passed either in May or June, the implementation will then roll over to the next year and this does not allow for smooth execution,” he said.

The Nigeria Textile Union Secretary-General, Comrade Issa Aremu, said the implication of this was that the economy may not grow as fast as it should, while some of the gains of the past may be reversed if the government was not able to back its policy with action.

He said this could hinder implementation of projects critical to economic diversification. According to him, the release of funds for execution of capital projects is also delayed when budget approval is delayed.

Aremu said: “Businesses attach a great deal of importance to government budget. It gives businesses the strategic direction of government. Budget delay gives a wrong signal to investors and creates an impression that the country is not a serious place to do business. When government budget is delayed, business activities are also delayed.”

He noted that most counties ensure that the budget approval and implementation take place on scheduled dates, and Nigeria has full time legislators whose key mandate is budget approval, aside law making and other oversight functions.

Aremu advised that the executive and the legislative arms of government should meet and agree on a fixed date for budget approval, and that the agreed timetable be made public.

Similarly, the Nigeria Employers Consultative Association (NECA) said the development was dragging the nation into a state of inertia. Its Director-General, Mr. Segun Oshinowo said such development gives Nigeria bad image before the comity of nations.

Oshinowo wondered why those responsible for drafting and passing the budget would not complete and pass the budget before the beginning of any fiscal year.

He said: “It appears to have become a tradition in this democratic dispensation for the budget to be unduly delayed thereby plunging the economy into a state of inertia, particularly in the first quarter of the year.

“In December 2016, the President presented the 2017 Appropriation Bill to the National Assembly. However, National Assembly did not pass the bill until May 11, 2017, almost six months after it was presented. We recollect that Buhari presented the 2018 budget to legislators in November, 2017.

“The inability of the National Assembly and the executive to produce the 2018 budget is saying something silently loud about our country. I think it is shameful that there is no budget four months into the year.”

Oshinowo, therefore, implored the two arms of government to mutually agree on a time frame that would ensure that the budget for the following year is passed into law before the end of every fiscal year.

Centre for Social Justice (CSJ), a Civil Society Organisation (CSO) Lead Director, Mr. Eze Onyekpere, said the delay in the passage of the 2018 budget was impacting negatively on the economy.

According to him, the budget was required by public and private sector stakeholders to plan and manage their economic activities.

“The delay compounds the already parlous economic situation and shows a country that is afloat and without a focused leadership at both the executive and legislative levels,” he said.

Similarly, the Head of Research, BudgIT Nigeria, Mr. Atiku Samuel, said lack of a budget calendar, lack of coordination and lack of planning were the major reasons for the setback.

According to him, during the budget formation phase, the executive and legislators and other stakeholders should have been consulted and actions point agreed on to avoid such delay.

“However, not much is done by the executive to carry the legislators along. As such, issues on the budget framework, lack of details, frictions between the legislators and executive and how the legislators process information differs from how the executive process information.

“In all, the lack of coordination cumulates into a bigger issue that has delayed the passage of the budget among other issues,” Samuel said.

NLC President, Comrade Ayuba Wabba called on the Federal Government and the National Assembly to expedite action on the passage of the national budget in the interest of the nation, pointing out that the passage of the budget was over delayed.

He blamed the delay in the passage of the 2018 budget on lack of synergy between the Executive and the National Assembly.

According to Wabba, the implication of not passing the budget four months into the year translates to delay in delivering on infrastructure development and dividends of democracy.

“Based on facts in the public domain, the position of both arms of government was wrong-headed and does not warrant holding the nation to ransom.

“We find it rather unwarranted to play politics with such issue and refuse to carry out their statutory functions.

“We call on the Senate and the Federal Government to bury their hatchet to expedite the passage of the budget and the screening of the electoral officers,” he said.

Wabba said for democracy to work, there must be synergy in the work of the three arms of government through meaningful consultations, constant communication and collaboration for the common good of the people.

Trade Union Congress(TUC) President, Bobboi Kaigama also decried the delay in the passage and implementation of the 2018 budget.

“We have observed that politicians have a tradition of taking advantage of our annual fiscal plans to loot the nation’s treasury. There is urgent need for serious restructuring and overhauling of the whole system.

“We need policies designed to permanently put the economy on the path of suitable growth,” he said, adding that the Federal Government should marshal out strategies to diversify the economy and take advantage of the natural resources to boost revenue.

A Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Sheriffdeen Tella, said fiscal and monetary policies were important in driving major economic activities.

Tella said the blame game between the executive and the legislature in budget passage and Monetary Policy Committee (MPC) members’ confirmation were not in the nation’s interest.

His words: “The fiscal policy side is held to ransom, the monetary side is also in limbo by not approving members that should consider and approve the CBN monetary policy proposals. These are the two major economic policies that drive economic activities.”

Tella observed that further delay in the passage of the 2018 budget, and by implication delay in implementation, would have negative effects on the country’s economic growth.

He said the nation’s interest should be of paramount interest to elected public office holders.“There is the need for a change of attitude for the economy to move forward, and in the right direction,” he stated.

The don lamented that it was disheartening that the budget had not been approved since last November, because of budget defence by ministers and directors.

He said the nation should not be held to ransom because of budget defence, noting that the Minister of Budget and National Planning, Senator Udoma Udo-Udoma, and his officials be invited for clarification if the need arises.

APT Securities and Funds Limited Managing Director, Mallam Garba Kurfi, noted that the nation’s recovery from recession would have been accelerated if the 2018 budget was passed on time.

Kurfi said budget approval and implementation were critical to investment decisions and enhanced economic activities.

He said the second quarter would soon end without budget approval, noting that it was not good for the country’s quest for both local and foreign investors.

Kurfi called for urgent political solution to the looming crisis, saying the economy was suffering with the muscle-flexing between the executive and the legislature.

Recently, the lawmakers accused the Executive of refusing to submit the 2018 Finance Bill, which it said traditionally accompanies the budget proposal.

The Parliament had requested submission of the finance bill as part of its working tools, saying that it was necessary as it guards against revenue leakages and inconsistency in government fiscal policy.

The position was aired at the second Joint Public Hearing on the 2018 National Budget by the Joint Committee on Appropriation.

Senate President Bukola Saraki while declaring the hearing open said the NASS has noticed that non-oil revenue performances have been impacted by policy inconsistencies and leakages.

He said: “In addition to our call for improved systems and processes to plug revenue leakages, we had required that the 2018 budget proposal be accompanied by a 2018 Finance Bill, which has so far not been received by the National Assembly.

“Let me, therefore, use this opportunity to, once again, emphasise the need for the Finance Bill. We want government to show clarity and consistency in its policies and to see how these will square up to its financial projections for 2018.”

Saraki also added that the concern stemmed from the incidence of government-owned enterprises performing below the revenue projections in terms of Internally Generated Revenue (IGR).

He said over the years, the performance of independent revenue has fallen short by at least 50 per cent, prompting the setting of new agenda.

“While we work towards setting new performance standards for government corporations as well as developing stronger oversight frameworks to improve performance in independent revenue, we do expect more realistic projections of corporations operating surpluses,” he said.

Saraki disclosed that the Parliament acknowledges Nigeria’s huge infrastructural deficit, as well as the need to expand planned expenditure aimed at reducing existing deficit.

He stressed the need for human capital development, saying that such an endeavour should form part of government’s core priority.

“You will agree with me that while it is important to achieve equity and balance in the spread of development projects around the country, we must also prioritise human capital development.

“It is in this vein that the National Assembly will prioritise expenditure on critical health and education facilities as well as soft infrastructure,” he added.

Reiterating the resolve of the legislature to see through its constitutional mandate of making laws for the country, House of Representatives Speaker Yakubu Dogara in his address said the parliamentary approval of the budget was the exclusive right of the legislature hence the choice of making the process participatory through the public hearing.

“No amount of blackmail will force us to abandon our legislative assignment”, Dogara said, adding that there must be strict accountability by all concerned with budget execution.

Senate Commitwtee on Appropriation Chairman, Senator Danjuma Goje, told stakeholders that the main objective of the hearing was to ensure an inclusively active stakeholders’ participation in the processing of the 2018 budget, which is in line with the Economic Recovery and Growth Plan (ERGP) (2017-2020) of the Federal Government.

“The hearing is also an entrenched part of the Eighth National Assembly legislative agenda of openness in governance and public sector matters because the people we represent deserve to know and should know how our commonwealth is distributed,” he stated.

The 2018 budget, which was put at N8.612 trillion and presented to the National assembly by President Buhari on November 7, 2017, was tagged “Budget of Consolidation.’’

The Federal Government had last year made a commitment to submit the 2018 Appropriation Bill to the National Assembly so that it could be passed into law before the end of that year. This was to return the nation’s budget cycle to the regular January-December.