The Nation Newspaper

Category: Maritime

  • Customs makes N800b in eight months

    Customs makes N800b in eight months

    The Nigerian Customs Service (NCS) has generated over N800 billion, about 70 per cent of its N1.2 trillion target for the year, raising the chances of the retention of its Comptroller-General, Alhaji Abdullahi Dikko.

    Sources told The Nation that Dikko and his men have surpassed the expectations of the Presidency and the Economic Management Team (EMT) in revenue generation.

    The Customs, it was learnt, has been upping the ante in revenue collection, contributing almost 25 per cent of the budget.

    According to a source, under Dikko, the Customs has contributed over N800 billion to the Federation Account as at the end of last month; and it is set to make an unprecedented contribution of over N1.3 trillion to the government’s coffer before the end of the year.

    The amount, it was learnt, represents about a quarter of the nation’s N4.964 trillion budget. The President is said to be happy that Customs has plugged revenue loop-holes at the seaports and borders.

    To enable the Customs excel Dikko is said to have opposed the payment of N40 billion yearly to the former service providers while his men had been trained to carry out their functions.

    He is said to have trained no fewer than 15,000 officers in the core areas of Customs responsibilities to facilitate trade at the ports and boost capacity building.

    Some officers, investigation revealed, were trained at home and others abroad to ease Customs clearing procedures and achieve ports efficiency.

    The affected officers, it was gathered, were trained in Customs operations, such as tariff classification, valuation, enforcement and e-Customs.

    “The truth is that the Dikko-led Customs Service has done so well in the area of revenue generation, anti-smuggling functions, trade facilitation, post audit functions, national and international collaboration, capacity building, training, ICT compliance and infrastructural development.

    “When he assumed office on August 17, 2009, it seemed  he took one hard look at the stagnating state of affairs of the Service and was convinced that what was needed is a pragmatic approach by insightful managers who would work with a motivated staff force to bring about the needed revenue to boost the economy.

    “It is generally believed in government circle that the condition of the Service before he came to office was not a salutary one. The service was like one of those government agencies that were in a dire need of reforms and, which had unfortunately, defied many past attempts to transform it into an organisation that would live up to the expectations of those in government and Nigerians,” the official said.

    The source said the Customs boss is yet to attain 35 years in service or clock 60 years, which is the mandatory retirement age.

    “The Economic Management Team is impressed with the revenue collected so far by some major commands of the Service as well as seizures recorded by its Federal Operations Units, the anti-smuggling arms of the service,” the source said.

  • Nigeria loses billions yearly in ship supplies

    Nigeria loses billions yearly in ship supplies

    Customs Clearing Agents have urged the Nigerian Maritime Administration and Safety Agency (NIMASA) to tap into chandling. The agents described the business as the most lucrative in maritime sector.

    Ship chandling, a business established in Nigeria through an Act in 1958, is made up of retail dealers, who specialise in supplies of equipment and goods for ships, known as ship’s stores.

    For traditional sailing ships, items that could be found in a chandlery may include: rosin, turpentine, tar, pitch (resin), linseed oil, whale oil, tallow, lard, varnish, twine, rope and cordage, hemp, oakum and tools (hatchet, axe, hammer, chisel, planes, lantern, nail, spike, boat hook, caulking iron, hand pump, marlinspike).

    Others are brooms, mops, galley supplies, leather goods, and paper.

    Items that could be supplied by the modern day chandlers, range from foodstuff, drinks, oil, engine oil, water,  spares, materials and other items the captain of the ship may require.

    The President, Nigeria Licensed Customs Clearing Agents (ANLCA), Prince Olayiwola Shittu, who made the call, said although the Local Content Act is meant to address issues of this nature, the National Content Monitoring Board is yet to understand the dynamics of the local content ship chandelling operations.

    He said the country loses several billions of naira annually due to the low level of activities in the ship chandelling sub sector of the economy. He, therefore, urged the Director-General of NIMASA, Patrick Akpobolokemi and his management team to do a thorough co-ordination of the statues guiding ship chandelling so as to harness it to create jobs for the youth and boost the nation’s economy.

    He pointed out that ship chandelling needs a lot of funds to meet the demands of the crews engaged by ships.

    For instance, he said a ship of 5,000 Gross Registered Tonnage (GRT), would require about $50,000 monthly to take foods, pharmaceuticals, oil, lubricants and other things for it to go to sea and come back to the port.

    The ANLCA boss said the association was worried that the legislation guiding ship chandelling profession has been in comatose, a situation that has allowed the profession to stagnate, adding that the Customs and Excise Management Act (CEMA), Section 24, which regulates ship chandelling, has not been reviewed since 1968 to reflect the new trend in the business.

    Shittu said the Nigeria Customs Service (NCS), has the power to enforce, as well as the requisite training to understand the dynamics of how this aspect of the maritime business is run.

    He said ship chandelling is one of the oldest maritime professions the country needs to harness to protect local chandlers and end foreign domination.

    The ANLAC chief said the continuous refusal of foreign ship operators to make use of indigenous chandlers contravenes the Local Content Act promulgated by the Federal Government to grow indigenous companies and create jobs.

    “NIMASA and the Federal Government must do something about the business. The country must use all the resources we have to provide jobs for our people. Other countries are using ship chandelling to empower their youths and there is nothing wrong if we also tap into it,” Shittu said.

    But a senior official of Customs, who does not want his name in print, said the terminal operators also were taxing indigenous chandlers heavily, collecting about 20 per cent of the total cost of the goods to be supplied. “They collect the money before they allow them to pass through their terminals to supply the crew inside ships,” he said.

    Ship chandelling business is regulated by an international body known as the International Ship Suppliers Association, (ISSA) which was formed in 1955 and it is a business that is central to the existence and the social dynamics of ports and waterfront areas.

  • Ship owners decry failure to enforce Cabotage Act

    Ship Owners have condemned the inability of the Federal Government to enforce the Coastal and Inland Shipping Act 2003 (Cabotage Act) to enable them to participate in crude oil lifting.

    ISAN General Secretary Capt. Niyi Labinjo said the government should implement the law to allow indigenous shipping companies participate in the oil business.

    He said local ship firms should be given the leverage to lift the corresponding portion of the crude meant for export, stating that the banks were willing to support them with the required financial backing if the government could allocate to them an appreciable volume of crude oil to lift. He told The Nation that in Brazil, the government approved about 700 agencies that were issued certificates of compliance on local content.

    Labinjo said about five years ago, the government trained 200 cadets under the National Seafarers Development Programme in readiness to drive the effort, but regretted that since there was not enough shipping companies to work with, the cadets have remained jobless.

    He advised the government to provide enough funds for the Maritime Academy of Nigeria, Oron, Akwa Ibom, to enable it to produce skillful cadets.

    He sought proper compliance with the Nigerian Content Act and encouragement of the association to participate fully in the Cabotage regime.

    “We will continue to press the government. We’ll continue to make our views known about the need for proper compliance with Cabotage; about the need for proper compliance with the Nigerian Content Act,” he said.

  • Shippers Council to re-fleet trucks

    Shippers Council to re-fleet trucks

    The Nigerian Shippers’ Council (NSC) is partnering with the National Automotive Council (NAC) to re-fleet rickety trucks that are moving cargos at the ports, it Executive Secretary, Mr Hassan Bello, has said.

    Bello told The Nation that the Council is discussing with other stakeholders on the need new cargo trucks at the ports.

    The council, he said, is for taking the step because the seaport has a major role to play in attracting Foreign Direct Investment (FDI), adding that the port reform has brought benefits to the  economy.

    He said the NSC was collaborating with NAC to remove the old trucks from the cargo carriage process and introduce new ones to facilitate trade at the ports, adding that he is worried over the poor state of most of the trucks and the problems they create on the road. He said the situation was a far cry from what it should be.

    “We are talking seriously with the associations, we have the National Association of Truck Owners (NATO), we have the Association of Maritime Truck Owners (AMATO) and many other associations. We must do this so that there will be a semblance of accountability,” he said.  The Shippers Council boss added that there is need for the government and stakeholders to harness other potential areas of the port operations with a view to stimulating efficiency and reducing  the cost of doing business.

    Meanwhile, following complaints by freight forwarders and importers on the arrest of their consignments on the road, the council said it is set to meet with the Standards Organisation of Nigeria (SON) to address the problem.

    Bello told The Nation that there is no cause for alarm because, issues, such as the one raised by the freight forwarders and importers is the reason for the council’s appointment as the economic regulator of the ports.

    “The alarm raised by freight agents is one of the reasons we are going to meet with the Director General of SON.

    “It is not a problem we cannot handle and that is why we are meeting with them, there is no cause for alarm,” Bello said.

  • Seme Customs generates N781m

    The Nigeria Customs Service (NCS) Seme area command says it generated N781,797,557,68 last month.

    The command also made 76 seizures with Duty Paid Value (DPV) of N18,076,695 during the same period.

    The seized items included rice, vehicles narcotics and frozen poultry products among others.

    Speaking with The Nation, its Area Controller Mr Willy Egbudin, said the command seized the prohibited frozen poultry products and the vehicles along bush paths used by smugglers around the border between Nigeria and Benin Republic.

    According to him: “The smugglers in an attempt to beat the various patrol teams of the command, brought the seized items through bush paths which are unapproved routes, but were shocked to see our officers who are keeping vigil at all possible areas of passage.

    “On sighting our operatives from afar in the bush, the smugglers tried to reverse to the Republic of Benin, and not being able to do so, fled into the bush, abandoning the poultry foods and the vehicles”.

    Also, the Customs Area Controller of the command, Comptroller Willy Egbudin who supervised the destruction of the poultry products, described the seizure as a warning signal to desperate smugglers who, during every festive period push their unlawful trade far by daring the resolve of the customs.

    He added that the law is no respecter of persons and that its full weight will be brought to bear on those involved in the smuggling act even as the command has begun  investigations aimed at getting them arrested.

    “This seizure is a warning signal to anyone who attempts to dare us during the day or at night, because we are aware of their antics, our men are deployed in the bushes while normal patrol and  approved check points are sustained.

    “Our Comptroller General’s zero-tolerance for smuggling is being pursued with renewed vigour and zeal, therefore any attempt to undermine our presence will be dealt with in line with the Customs and Excise Management Act.

    “Laws being enforced by Customs is no respecter of persons and we will continue to give our best in carrying out the directives of the CGC to the fullest. There will be no hiding place for smugglers at the border,’’ he said.

    Egbudim also used the opportunity to remind youths of border communities to resist any attempt to be lured into smuggling or any act that can place them on the wrong side of the law.

  • Operators get one year to paint boats

    ThE National Inland Waterways Authority (NIWA) will introduce safety measures for boat operators next year, The Nation has learnt.

    Sources close to NIWA said as from January 2015, boats would have number plates. They will a lot be painted in green-white-green for easy identification and safety.

    The operators are also expected to register their boats which will carry their identity and in case of distress calls.

    The National President, Association of Tourist Boat Operators and Water Transporters of Nigeria (ATBOWATON), Alhaji Gani Balogun, said some officials of NIWA had hinted them about the new plan, adding that they were ready to comply because it is for their benefit and their passengers.

    Balogun said at a meeting NIWA, they agreed on the green-white-green colour.

    He said the white represents light, adding that whenever a boat has challenges at a night, it can be easily identified by other boat operators or government agencies.

    According to him, the darker it is at night, the brighter the boat becomes because of the white in between the green.

    He said the government gave the operators, between six and 12 months to comply it begins implermentation of the guidelines.

  • Seminar on ISPS Code

    Stakeholders are to hold a seminar on International Ship and Port Security (ISPS) Code in Lagos, on Friday.

    The event will hold between 10am and 12.30pm at the International Maritime Press Centre, Maritime Reporters’ Association of Nigeria (MARAN) secretariat, Apapa.

    The seminar, according to the organisers, will discuss the implementation of the ISPS Code and the primary international security standard at the nation’s sea ports.

    A seasoned master mariner and former Consultant to the International Maritime (IMO), Captain Abiodun Omoteso, will  make presentation at the event.

    The Chairman of the committee organising the event, Mr Kayode Atofolaki, said the purpose is to enable the public and the international shipping community appreciate the level of security on the nation’s waterways and the port environment.

    Atofolaki said the seminar would discuss the level of Nigerian Maritime Administration and Safety Agency’s (NIMASA’s) Verification Inspection Exercise (VIE) across port facilities and security threat levels.

    He noted: “The International Ship and Port Facility Security Code (ISPS Code) is a comprehensive set of measures to enhance the security of ships and port facilities.’’

     

  • ANLCA opens secretariat

    The Association of Nigerian Licensed Customs Agents (ANLCA) has opened its national secretariat in Lagos.

    The N150 million edifice was commissioned by Vice President, Namadi Sambo, who was represented by the Senior Special Assistant to the President on Maritime Services, Mr Leke Oyewole.

    The secretariat is named after the Customs Comptroller-General, Alhaji Dikko Inde Abdullahi.

    ANLCA also used the occasion to mark its 60th anniversary.

    ANLCA President, Prince Olayiwola Shittu, said though the body has a functional secretariat, it opted for a permanent secretariat befitting its status, adding that part of the event was to mark its 60th  anniversary and to celebrate the relationship the body  has with the Customs as revenue generators for the government.

    Dignitaries were Abdullahi and some prominent clearing agents.

    Meanwhile, the association has named Chief Henry Njoku as its Chairman, Board of Trustees, Coordinator, Alhaji Taiwo Mustafa, Secretary Prince Taye Oyeniyi, Treasurer, Chief Peter Obih and the Vice Chairman, Aare Sanni Shittu.

  • NPA, Shippers Council quarrel over berth rent

    The Nigerian Ports Authority (NPA) and the Nigerian Shippers Council (NSC) are flexing muscles over control of the ports.

    The NSC is said to be irked by what it called the arbitrary hike in berth rent by NPA without its consent as commercial regulator of the ports.

    NSC Executive Secretary Mr Hassan Bello, it was learnt, has stopped the arbitrary hike because the Council was not consulted before it was imposed by the NPA.

    Bello’s action followed a complaint by Port and Terminal Operator Limited (PTOL), a concessionaire at Port Harcourt Port in Rivers State.

    A Shippers’ Council team led by Bello was informed by PTOL General Manager Abdullahi Ahmed that NPA informed terminal operators of the hike during a meeting.

    Bello was said to have expressed concern that NPA met with the terminal operators without informing the council.

    Ahmed told Bello that his company spent about N3.2 billion to re-inforce berths 1 to 3, which are part of the area concessioned to it by the NPA.

    Berth 4, sources said, will cost about N4 billion to maintain.

    If the maintenance had been done about two years ago, a source said, it would not have cost more than N2.7 billion

    In a July 22 circular, NPA was said to have notified termminal operators of the increase in berth rent.

    Efforts to get NPA’s reaction through its Public Relations Officers,  Musa Illiya and Isa Suwaid, failed. Illiya’s phone was switced off and a text message sent to  Suwaid was not replied as at the time of filing this report.

    Meanwhile, Bello has said Nigeria cannot be classified as a maritime nation, until it has an impressive fleet.

    What qualifies a country as a maritime nation, according to him,  is the number and quality of its ships and vessels.

    Bello told The Nation that the Council is working out modalities to make it a truly commercial and economic regulator of the port.

    “Since Mr President announced NSC as the economic regulator of ports in the country, we have been working hard. We have been consulting with all shipping lines, Nigerian Maritime Administration and Safety Agency (NIMASA), NPA, Customs etc. This is because we recognise that there are many interests,” he said.

    The Council, Bello said, would support local operators to own ships.

    “If we have indigenous carriers, it will boost the nation’s portfolio. Even if we cannot own vessels, at least, we can charter. This we have made clear to Mr. President.

    “Shippers associations ought to be the owners of the business. They are, by right, supposed to dictate the pace of the industry. The original intention is gradually being lost,” Bello said.

    The port, he said, plays a crucial role in the economy of many countries, promising to make Nigeria’s ports the hub of maritime operations in Africa.

    A right pricing mechanism would promote the ports prosperity, he said, adding: “Wrong pricing can guide port to inefficiency or even extinction. Also a high pricing could deprive a port of high patronage of vessels and cargoes.

    “Wrong prices will reduce demand for cargo services and when the demand for port services as  equipment at the ports would be underutilised. Even with monopoly, high port prices will hurt those the port is suppose to serve.

    “Low port prices, on the other hand, could bring life into a port, but congestion may be the order of the day,” he said.

  • Govt loses over $25b yearly to oil theft, sea piracy

    Govt loses over $25b yearly to oil theft, sea piracy

    • West Africa’s 5.6 million illegal weapons in Nigeria

    The Federal Government loses about $25 billion yearly to oil theft, sea piracy and poaching, The Nation has learnt.

    A breakdown showed that $800 million is lost to poaching, $9 billion to piracy and $15.5 billion to oil theft.

    The rate of pollution of the waters from Lagos to the oil-producing Southsouth is also high.

    Speaking with The Nation after presenting a paper on the Legality of the Memorandum of Understanding (MoU) and its Protocols on the partnership between Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Air Force, Matthew Egbadon, a former staff of NIMASA said the amount the country is losing is huge. He called for the sharing of information by the security agencies to stem criminalities on the waters and make it safe.

    He  raised the alarm that over 70 per cent of about eight million illegal arms and ammunition in West Africa are in Nigeria. He urged the government to pay attention to policing of the waters because of the huge number of arms and ammunition in circulation.

    Egbadon urged security agencies to collaborate to stem the tide.

    Investigations, however, revealed that while NIMASA is collaborating with other government agencies to end criminalities on the waters, the agency is seriously handicapped when it comes to the issue of pollution.

    NIMASA, it was learnt, has the responsibility to stop dumping of wastes in the water and its pollution; illegal bunkering; human trafficking; illegal fishing; oil-theft; pipeline vandalism; smuggling of small arms and ammunition; piracy and armed robbery at the sea among others.

    NIMASA’s Director-General Patrick Akpobolokemi has vowed to fight piracy, prevent and mitigate the effects of pollution, develop human capacity and ensure safety of vessels. All these, he said, are geared toward the growth and development of the maritime sector.

    Akpobolokemi also said NIMASA as the maritime regulatory agency  owes the international community the obligation to ensure the safety of their vessels, crew and cargoes in order to foster trade between Nigeria and the rest of the world.

    The NIMASA boss noted that the importance of the security agencies to the development of the nation’s maritime sector and thanked them for their cooporation.

    He commended the officers and men of the Nigerian Navy and Air Force for their efforts in combating piracy and pledged the agency’s support and partnership to help them effectively carry out , its day-to-day operations.

    “Piracy is capable of crippling the nation’s economy. Since shipping largely contributes to the growth of any economy, the economy cannot thrive where piracy activities are carried out,” he said.

    He said he was happy that the management of the Nigerian Navy, has created the Central Naval Command. He noted that it would help to checkmate all forms of illegalities in the maritime domain.