At the World Maritime Day in Lagos, stakeholders urged the Federal Government to develop a functional shipping policy. OLUWAKEMI DAUDA, who covers the event, reports.

STAKEHOLDERS, who met last week to celebrate the World Maritime Day in Lagos, made a request to President Muhammadu Buhari: He should develop a functional shipping policy that would make the sector a major contributor to poverty reduction, job and wealth creation, skills acquisition and entrepreneurship promotion.

The stakeholders also said they wanted the seaports to be safe, secure, and perform optimally.

Speaking with The Nation on the sidelines, the stakeholders said the sector could contribute at least 10 per cent of the nation’s  gross domestic product (GDP) because it has the biggest market in Africa and generates about 67 per cent of cargo thoroughput in West Africa.

The theme for this year’s Day is: “Sustainable shipping for a sustainable planet,” It provides an opportunity to raise awareness for the United Nations’ Sustainable Development Goals (SDGs).

The stakeholders emphasised that the SDGs were germane to the industry. The Permanent Secretary, Federal Ministry of Transportation, Dr. Magdalene Ajani, also urged participants not to see the yearly event as a mere celebration, but as a time for sober reflection.

Senior Special Assistant to the President on SDG’s, Adejoke Orelope-Adefulire, said it had been five years since Buhari joined other world leaders at the 70th Session of the United Nations to adopt the 2030 Agenda for Sustainable Development of 17 SDGs to end poverty, safeguard the planet and ensure peace and prosperity.

Also, the Chairman, Senate Committee on Maritime Transport, Senator Danjuma Goje, represented by Senator Tolu Odebiyi, Vice Chairman, Senate Committee on Federal Capital Territory (FCT), Chairman, House Committee on Maritime Safety, Education and Administration, Hon. Linda Ikpeazu, advised that the recommendations reached be backed by policy and action.

The Director-General, Nigeria Maritime Administration, and Safety Agency (NIMASA), Dr. Bashir Jamoh, assured the international community that with the Anti-Piracy Act, Nigeria had repositioned to fight piracy and change the narrative, following recent statistics by International Maritime Organisation (IMO), that the nation’s waters were the most dangerous to trade in.

Also in a communiqué, NIMASA was directed to provide a platform for marine incident reporting and information sharing; training and retraining of seafarers in line with internationally acceptable standards; and that there should be a collaboration between government and private maritime training institutions.

Investigation has shown that about 65 per cent of cargoes heading for the region end up in the Nigerian market.

An analyst, Mr Festus Filagbade, lamented that the sector had not achieved its goals over the years and urged the President to assist the industry to arrest its declining fortune.

He said the forum was not aimed at criticising the government, but to assist the Federal Government on how to develop the industry.

“We are coming against the backdrop of repositioning the maritime industry because in the last 20 years the maritime industry has seen gradual decline. So, what we hope to achieve is to reposition and refocus the industry within the region.

“We want a functional maritime policy. The government cannot just create a policy without having to know what the stakeholders want; that is why we are here.

“This administration must be ready to build the maritime sector, create a sector that will stand out within the region if not in Africa and beyond,” he said.

A maritime lawyer, Mr Dipo Alaka, however, berated a situation where the country is losing billions of naira yearly for not putting the government did not put the sector at the reach of Nigerians.

“While different figures are given by the various groups as to what the country loses annually to foreign-flagged vessels, the fact remains that what Nigeria loses to non-implementation of the Cabotage Act in monetary and employment terms is monumental. These are happening because of non-functional shipping policy.

“About 80 per cent of the world trade by weight is done by sea. In the case of our country, 90 per cent is done by sea. Despite this huge potential, local capacity in the maritime industry remains low. Nigeria imports several million tonnes of cargo and general goods annually, yet its maritime sector is in a shambles.”

Alaka called for the development of the blue economic policy, the use of scientific and verified information for the development of the sector.

The university teacher also looked at the prospects of the industry and policies that have over the years skewed the development and efficiency of this critical cash-cow industry that firmly holds the beacon of hope and survival of a developing economy like Nigeria.

An importer, Mr Dairo Adefila, said the country is a major international trading nation in Africa, and that it exports large quantities of hydrocarbons to earn substantial revenue which accrue from crude oil export that are used mainly to fund huge trade in imports.

“Due to its geographical location, and spatial, logistical characteristics, alongside its topographical landscape, the country, as one of the developing African nations, needs to create an efficient shipping. Shipping is required for the evacuation of the nation’s exports and for inward carriage of the imports. In the context of  economic growth and development as one of the developing African countries of note, shipping’s production function could well be developed in the service of the nation’s international trading requirements.

“Obviously shipping has a direct bearing and reflective impact on the development process of a country as it improves the foreign exchange situation, creates employment, and fosters technological transfer and economic integration, while also helping to strengthen national security. These are the reasons some of us are saying it loud and clear that as we are celebrating the World Maritime Day, the country must develop a functional shipping policy that will shape the industry before 2021 celebration,” Adefila said.

By Muyiwa Lucas

The Nigerian Maritime Administration and Safety Agency (NIMASA) is making efforts to change the Terms of Trade for the freighting of crude oil from Free on Board (FoB) to Cost Insurance and Freight (CIF).

NIMASA Director-General (DG) Dr. Bashir Jamoh made this known in Lagos, when he received a delegation from the Nigerian National Petroleum Corporation (NNPC), led by its new Group General Manager, Crude Oil Marketing Division, Sir Billy Okoye.

Jamoh, who had paid a similar visit to the Group Managing Director of NNPC, Mele Kyari, at the corporation’s headquarters in Abuja, expressed NIMASA’s appreciation to NNPC for accommodating the agency’s interests in transactions whereNIMASA relied on data from the national oil company.

Jamoh said the agency was working towards implementing a National Maritime Security Strategy to improve security in the waters and reduce the cost of shipping.

“Since 2018, NIMASA has championed moves for a change in the terms of trade with regard to transportation of Nigerian crude oil, from FOB to CIF to ensure greater benefits for the country from its oil resources,” the DG stated, adding: “A technical committee involving NIMASA, NNPC, and other stakeholders would be set up to develop a template for the desired change, with workable timelines.’’

Under FoB trade terms, Nigeria has no control over the delivery of its crude oil on carriage, insurance, and other ancillary services. But under the CIF arrangement, the country maintains ample control over the distribution of its oil, which can be leveraged to enhance the competitive advantage of indigenous operators.

Read Also: Bayelsa, NIMASA partner on security, others

Jamoh commended the synergy between NNPC and NIMASA, saying: “70 per cent of the agency’s revenue comes through the sale of crude. Thus, cooperation between NNPC and NNPC cannot be over-emphasised.”

He also said: “The Maritime Intelligence Unit recently established by the agency is part of efforts to ensure a proactive approach to security in our waters. The focus is to try to nip maritime attacks in the bud by tracking the criminals from the pre-planning and planning stages.

“The ultimate aim is to develop a National Maritime Security Strategy that would help to minimise the cost of insecurity, which NNPC bears on behalf of the country, in the shipment of Nigerian crude.”

He recalled NNPC’s grant of the agency’s requests and pledge of cooperation during his visit to the corporation and prayed for the continuation of such mutual understanding.

He stated: “We appreciate the NNPC for accommodating NIMASA in its processes. We do not delay vessels in the search for information on them because of the confidence we have in NNPC’s capacity to readily supply such information.” Jamoh appealed for more local content in the transportation of the country’s crude in line with the Cabotage regime.

Okoye said NIMASA is a “critical stakeholder in the business of crude oil sale.”

He said his goal was to get the two agencies of government to interface more closely with each other to resolve challenges and ensure seamless movement of crude and petroleum products in the country.

Last week, Bayelsa State Governor  Senator Duoye Diri visited the Nigerian Maritime Administration and Safety Agency (NIMASA), where he urged the Director-General, Dr. Bashir Jamoh, to support the development of the Agge Deep Seaport in Ekeremor Local Government Area of the state. In this report, OLUWAKEMI DAUDA looks at the viability of most of the proposed deep seaports in the country.

The visit by the Bayelsa State Governor, Duoye Diri, to the Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Dr. Bashir Jamoh, provided the tonic for the state’s number one citizen to make a request: assist us to develop the Agge Deep Seaport in Ekeremor Local Government Area. Though the request was granted, experts are asking if that project would not become a white elephant project in the long run.

Race to have deep seaports is on

Before now, it appears many governors were in the race to outdo each other in the quest to establish a deep seaport in their states.

For instance, the Lagos State Government is promoting the Lekki Deep Seaport and eyeing the Badagry mega port. Ondo and Ogun states are championing the joint development of the Olokola Deep Seaport. Akwa Ibom State joined the fray with Ibom Deep Seaport, while Cross River State is advocating the Calabar Deep Seaport.

Diri said: “A lot of countries are moving away from fossil fuel and the maritime sector gives Nigeria an alternative.

“All the eight local governments in our state can be accessed by water. In fact, the headquarters of three of these local governments can only be reached by water. This shows how important our state is to national maritime development.

“We are, therefore, seeking partnership with NIMASA, which is the apex maritime regulatory agency of our country, to enable the organisation to expand its regulatory activities to our state.

“NIMASA and Bayelsa are inextricably one, and there is a need for both to work together to strengthen the country’s maritime domain.”

He urged NIMASA to support the state to develop its maritime potential, especially in training, youth development, the establishment of a maritime academy in the state, and the development of the Agge Deep Seaport in Ekeremor Local Government Area.

Jamoh said Bayelsa was one of the agency’s strongest allies. He assured the governor of the agency’s support in maritime growth.

‘$3b is needed to build a deep seaport’

The NIMASA chief said about $3 billion was needed to build a deep seaport. Stakeholders are wondering if the Bayelsa State governor and his counterparts have done their homework on the viability  of the proposed deep seaports.

One of them is the spokesman of terminal operators, Mr. Bolaji Akinola. He said: “The question is, does Nigeria require a deep seaport? Yes, it does, but one is enough for now and I believe Lagos remains the most-viable state to host such facility. Why will any state, in this period of global pandemic, expend several billion dollars on a facility that might not yield good future returns or add significant value to the economy of the state or better the lives of its citizens?

“I honestly do not believe that any deep seaport outside Lagos will be viable. There will not be sufficient cargo volumes to support such facilities in the next 50 years. This is clear enough from the underutilisation of port facilities in the country, especially those facilities outside Lagos. For instance, while the ports in Lagos have capacity utilisation of about 50 to 60 per cent at present, the ones in the Southsouth – Warri, Port Harcourt and Calabar – have about 25 per cent capacity utilisation. The exception will be Onne Port, which is fairly busy. Even the so-called Olokola Port; can it honestly compete with the ports in Lagos or the ports of West African countries such as the Autonomous Port of Cotonou or the Port of Lome for cargo?

“I think rather than establish these mega white elephant projects, the governments of Akwa Ibom and Cross Rivers states should join hands with the Federal Government to address the shortcomings of the Calabar Port so that it can attract business and compete with other ports in the sub-region. The shortcomings of the Calabar Port include shallow draft, which has made it impossible for large vessels to berth, poor port access road and the restriction imposed by the Ikom Bridge.

“Container throughput at Lagos ports was expected to hit two million 20-foot equivalent units (TEUs) this year, whereas the maximum capacity that the ports and the Inland Container Depots (ICDs) in the state can accommodate is 2.2 million TEUs. Lagos ports alone handle 90 per cent of the cargo in and out of Nigeria. With this expected growth in container volumes, the combined capacity of Apapa Port fully-developed and Tin Can Island Port and the Inland Container Depots (ICDs) in the Lagos area is expected to be inadequate within the next five years. The same situation also applies to general cargo terminals.

“A new port will therefore be needed to keep up with the demand for capacity, as the existing ports are surrounded by the city and cannot be further expanded.

“New deep seaports, in addition to Rivers Port, Calabar Port, Onne Port, Warri Port, Lagos Port Complex Apapa and Tin Can Island Port, is a waste of resources. There is simply no market for it and there won’t be in another half a century,” Akinola said.

 Imperativeness  of deep seaport

Deep seaports were conceived to improve the cargo handling capacity of the ports and increase Nigeria’s gross domestic product (GDP). The handling capacity of ports in Nigeria is put at 60 million metric tonnes, though demand and use is about 100 million metric tonnes. They are expected to rise with the increasing population, urban expansion and attendant demand for more markets.

The cargo throughput handled in the ports since the ports were concessioned in 2006 has increased geometrically. According to global port development, out of over 100 seaports being built the world over, 75 per cent of these are deep seaports or terminals. The others are mostly inland waterway ports and jetties.

This indicates that the country needs better designed port facilities in tune with increased cargo traffic, for the global competition. Also, emphasis is shifting to larger more economical vessels that require deeper harbour drafts. Global logistics trends have made the need for deep seaports more imperative.

Also, the last two decades have witnessed a major shift in the exploration and production focus of international oil companies (IOCs), with deep offshore frontiers becoming more attractive and widespread. This has naturally affected the dynamics of crude oil carriage, just as more efficient means of petroleum products and liquefied natural gas (LNG) supply and distribution are sought from the downstream segment.

Crucially, logistics services for these new frontier developments define the core of operations, costs and efficiency, with bigger vessels infinitely more able to leverage scales and further, thereto, on costs. The foregoing defines the shipping and oil and gas reality in Nigeria, and paints the canvass for deepwater ports in bold relief.

Stakeholders called on the promoters of all deep seaports to ensure rail link in their projects.

Why the ports are not competitive?

Few weeks ago, the Managing Director, Nigerian Ports Authority (NPA) Ms Hadiza Bala-Usman, said the reason the ports were not competitive compared with their counterparts in neighbouring countries was the absence of deepness with drafts of about 17 metres.

She said the world has adopted deep seaports. She, however, promised that her management team would work with the new NPA Board to ensure that work on the deepening some seaports were completed.

‘Unstable govt policies’

Also, stakeholders said unstable government policies, lack of safety and security of funds invested by promoters were some of the challenges hindering the development of deep seaport.

Others include comfort of investors, non-provision of measures to ensure continuity, lack of infrastructure and efficient transport system.

A law teacher at the Lagos State University (LASU), Dr. Dipo Alaka, bemoaned the absence of plans for rail connectivity and use of barges on inland water access to the port, saying these would affect the multi-billion dollar project.

“Go to Apapa and see the huge but avoidable national embarrassment that is going on there. There is congestion in Apapa because those who handed over the ports to the terminal operators failed to plan for them. There is congestion within and around the Lagos ports because over 95 per cent of our cargo goes on the road. Therefore, both the Lagos State government and the promoters of the Lekki port  must ensure that we have a seamless cargo  evacuation from the port, if not, it’s laughable to think that we will not have congestion by the time the port becomes operational,” Alaka said.

These fears are not unfounded considering that upon completion, the Ibeju-Lekki-Epe axis will be home to huge traffic arising from activities in the deep seaport and the Dangote Refinery, among the other major projects cited in the Lekki Free Trade Zone.

The Technical Director, Lekki Deep Sea Port, Mr. Steven Heukelom, agreed that the masterplan of the project does not include rail. He however said it was not too late to include same in the project because adjustments were possible in any ongoing project.

It would be recalled that NPA has been under pressure to develop deep seaports, including the one being promoted by the  Bayelsa State governor.

By Muyiwa Lucas

How can Nigeria become a hub of maritime in West and Central Africa? It is by getting modern port facilities for the Nigerian Ports Authority (NPA) to make it better than others in the sub-region.

Importers and clearing agents, who spoke with The Nation, at the weekend made this suggestion.

According to their spokesperson, Olukorede Ajala, it is imperative for the government to promote the maritime industry to benefit from increasing cargo traffic across the globe.

“Few days ago, heads of the Nigerian maritime agencies presented a plan to transform the country into a maritime power and embark on 24 hours port operation. The plan is generating much excitement in the shipping and port industries. But as far as some of us are concerned, it has been a recurring decimal at many meetings of government agencies.

“At the meeting of heads of the agencies held at the Nigerian Maritime Administration and Safety Agency (NIMASA), its Director-General Jamoh announced aggressive development plans for the nation’s sea and river ports. NPA as the landlord must ensure steady investments in port upgrades and expansions,” he said.

A clearing agent, Mr. Kayode Ogunsanu, said the seaports were suffering from long years of under-investment in infrastructure.

“With nearly 90 per cent of international trade being seaborne, it is still not too late to pursue an intensive course of infrastructure development so as to maintain economic growth, productivity and competitiveness. In fact, trade and economic growth here has strained port infrastructure in Lagos to the point where the two ports in the city cannot accommodate further expansion without serious investments. In short, it is now ‘boom or bust,” he said.

Based on the discussions among the heads of the agencies and investigation conducted among operators, port users, shipping and logistics firms, the consensus is less about whether new port developments are needed but more on ‘when’ is the country going to have deep sea port.

New facilities, Ogunsanu said, should be designed by the Ministry of Transport to meet the logistics needs of the industry in anticipation of future development.

He called on the government to fund maritime researches, saying the sector lacked in-depth investigation due to poor funding.

”The maritime industry has experienced an appreciable development in recent years. That development is set to stay. World trade continues to shift global markets and production lines, make new demands on transport systems and on ports in particular.

”Ports serve the national interest, supporting the competitiveness of national and regional economies. It is in the nation’s interest that our ports remain able to handle cargo trade and its potential development efficiently and sustainably,” he said.

The industry, according to a motor vehicle importer, Mr. Abolarinwa Yusuf, is in dire need of reforms. “New port facilities would help to bring the industry to international standards. The importers lamented that previous administrations, like most practitioners in the maritime industry, did not live by the rules guiding the profession, which they said has resulted in a number of problems in the sector.

“The maritime industry requires reforms; reform by way of standardising, educating, informing, sanitising the practice and making it global because the mere mention of the words import and export trade means we are not doing it locally, but across borders. Therefore, there are set rules, information and knowledge that operators must possess,” he said.

The Association of Nigerian Licensed Customs Agents (ANLCA) Vice President, Dr Kayode Farinto, said the industry has project for rapid and sustainable growth.

“Based on this development and the strategic position Nigeria occupies in the industry and the sub-region for the development of human capital for an enhanced economy, it is expected of the government to train our youth to develop interest in maritime education,” Farinto said.

To meet the manpower requirement for the nation’s fleet, Farinto also canvassed for robust, consistent, versatile and dynamic maritime policies, which are in tandem with global issues to ensure efficiency.

He lamented that the country, despite its huge population, has no standard maritime institute compared to the Philippines which, he said, has over 40 maritime academies with half of Nigeria’s population.

The Philippines, a maritime lawyer, Mr. Dipo Alaka, said supplies over 30 per cent of the world’s seafarers’ requirement. He noted that the Philippines earns over $1.6 billion as reparation from seafarers. He emphasised the need for a training school to develop competent manpower for the sector, adding that the industry would grow if the government co-opted the private sector into its manpower development strategy.

A stakeholder, Mr. Benson Adegboyega, called on the Federal Government to formulate a new policy that would promote business at the ports. This, according to him, requires strengthening regional commitment to eradicating sub-standard shipping and ensure the rapid development of the industry.

“Ports have always been a large direct employer, as well as generating significant indirect work. But the former has been changing. Where oil used to be loaded and unloaded in individual barrels, we now have customised oil tankers with specialised storage terminals that require limited numbers of staff to operate. Break-bulk cargo has also been going down this route since the introduction of the container, but crane operators, truckers and other personnel are still required. Many modern terminals have been automated to such a degree that they are largely the domain of computer algorithms and autonomous vehicles.

“Specialist commercial terminal operators often take up the investment in the bespoke infrastructure needed for their operations, ranging from the tanks and cranes to the quays and jetties. Long-term returns of the port assets have however been stable and in today’s market. This means there is an increasing interest from institutional investors, private infrastructure funds and others in investing in these terminal operations and individual ports.

“Together with increasing interest in PPP investment arrangements, it would seem that capital for development is the lesser problem, where government policies are not stable,” Alaka said.

By Muyiwa Lucas

As further proof to the efficiency of the closed borders, the Port Harcourt Area II Command of Nigeria Customs Service in Onne has declared N69,449,896,709.79 as revenue from January to August 2020.

Former Controller of the command, Aliyu Galadima Saidu made this known while handing over to a new Area Command Controller, Comptroller Baba Auwal Mohammed, the new Area Controller. He described the feat as a product of hardwork, dedication and honesty on the part of the officers.

Saidu, who is now an acting Assistant Comptroller General of Customs (ACG ) in charge of ICT/ Modernisation Department of the Nigerian Customs Service, said the command has always strived to improve on revenue generating capacity for the Federal government. He attributed the increased revenue profile to the rise in trade volume, blocking of revenue leakages and level of ports users compliance among others.

He maintained that despite the COVID-19 pandemic, the command was not deterred in giving her best, stating that its offices resiliently keyed into the stipulated mandate of achieving speedy clearance of cargo while enthusiastically carrying out 100 percent physical examination which provided the needed impulsion to creating an enabling environment to thrive in smooth attainment of trade facilitation

On export, Saidu said the command during the period under review, achieved a total of 2,402,776 metric Tons (MT) of export activities with Free on-board (FOB) value of $128,711,308,27

He said the command with its anti smuggling operations recorded 31 seizures involving 27 Containers with total duty paid value 825,735,.296.88.

The breakdown of seizures, he said, includes 802 bags of 50kg foreign Rice, 5,615 kegs of 25 litres of vegetable oil 3,184 bales of second hand clothing,1,060 pieces of used tyres,69 logs of unprocessed wood, 641 bags of used white cement, 76 pieces of door, 1,692 cartons of foreign soaps and detergents, and 6,500 pieces of substandard Aluminum zinc.

Others were 5,300 rolls of royal carpet, 6,500 pieces of used canverse, 4 units of Toyota Hiace buses and 4 units of 10 tyre trucks, additional seizure of 175 bales of second hand clothing and 53 bales of fabric which were seized in July 2020.

He described the command’s relationship with host communities as robust while giving kudos to the synergy between the Nigerian Customs Service and other sister agencies, insisting that such should be made to grow stronger for respective and collective success in national interest.

Mohammed assured that compliant traders should have nothing to worry about while reiterating that infractions and other illegalities would be treated with full weight of the law.