APM Terminals, Apapa Managing Director Mr. Martin Jacobs has said the terminal operates a truck safety programme that ensures that designated protected areas are provided for drivers outside their truck cabs, as well as safety instructions specific to the facility’s layout and traffic flow.
This is in addition to meeting international security requirements outlined by the ISPS Code and APM Terminals’global safety requirements.
Jacobs spoke on the heels of the terminal operator’s emergence as the Most Compliant International Ships and Ports Facility Security Code (ISPS Code) Onshore Facility in Nigeria by the Nigerian Maritime Administration and Safety Agency (NIMASA).
The award was presented to APM Terminals at the NIMASA Corporate Dinner and Merit Awards chaired by the Secretary to the Government of the Federation, Mr. Boss Mustapha, in Lagos.
Thanking NIMASA for the award, the managing director further assured that APM Terminals, Apapa remains committed to the safety and security at its facility.
He also said operator uses the most advanced crane simulator in West Africa for the training of its crane operators to ensure safe use of equipment at the terminal.
The ISPS Code is a comprehensive set of measures instituted by the International Maritime Organisation (IMO) to enhance the security of ships and port facilities.
It was developed in response to the perceived threats to ships and port facilities in the wake of the 9/11 attacks in the United States.
According to NIMASA’s independent assessment and screening panel, APM Terminals “maintained the highest compliance with the implementation of maritime security protocols in its onshore facilities, and maintains adequate access control and port facility security assessment and plans on a consistent basis in 2019 in line with the ISPS Code”.
The award was presented by Niger State Governor, Alhaji Abubakar Bello, to APM Terminals, Apapa. It was received by the firm’s Security Manager, Mr. Olatunbosun Ayodele.
The decision of the Nigerian Ports Authority to divert cargoes from Lagos to the Eastern Ports is a welcome development, but there are concerns about the ports’landlord’s sudden move and the state of readiness of the affected ports to start receiving cargoes, MUYIWA LUCAS writes.
The Nigerian Ports Authority (NPA) may well deserve a pat on the back for its proactive measure to reduce head-on the congestion of vessels and cargoes at the Lagos Ports Complex.
The General Manager, Corporate and Strategic Communications of NPA, Mr. Adams Jatto, said the NPA, shipping firms and terminal operators agreed to decongest the Lagos Pilotage District, to reduce the waiting time of vessels at the Lagos Port Complex Apapa.
He said as from yesterday, “vessels, which have waited to berth at any terminal within the Lagos Pilotage District will be diverted to other terminals with capacity to berth vessels within the district. In the event that all terminals in Lagos cannot discharge any vessel within four days, such vessels will be diverted to the Eastern Ports (other pilotage districts) for immediate berthing.”
He assured that “NPA will liaise with other relevant government agencies on behalf of stakeholders to expedite the clearance of vessels and cargoes, where necessary”.
The eastern ports under the NPA port district are in Delta, Rivers and Cross River states. They include Onne Port, Rivers Port in Port Harcourt, Calabar Port and Delta Port, Warri. The ports in Calabar and Warri have suffered low patronage since they were concessioned in 2006.
According to the statement, the decision by the NPA is to aid the “Ease of Doing Business”policy of the Federal Government and curtail the negative economic impact that the long turnaround time of vessels has on stakeholders.
Reactions
But for some freight forwarders, the pronouncement by the NPA is another cart before the horse policy of the regulator. According to them, the NPA diverting ships to Eastern ports is a mere propaganda because the Authority lacks the power to divert or force any ship whose destination is Lagos ports to go to another port, especially when the vessel owner, shippers, importers and the consignee’s have paid for Lagos ports.
They argued that sudden diversion of vessels or cargoes are only permitted in time of war, or serious security problems and in agreement with the shipping company and the consignees.
“Cargo destination are always predetermined from the port of loading and paid for. It is only importers and consignees that can determin where their goods goes to and not the NPA. If the NPA does that singlehandedly, the consignee can sue it and the shipping company. So, it is a tough call for the regulator,” Mustapha Hussein, a forwarder at Tin Can Port, said.
Posers
Yet, questions are being asked of how the Authority would execute this policy since it is cost effective. Hussein said the NPA will determine at what point it hopes to divert vessels to the eastern port. “Will the diversion be at the point of loading, halfway or after berthing at Lagos port? Who pays for the extra cost of security, route change and the extra insurance cost? What type of vessels is the NPA diverting or intending to divert and to which of the Eastern ports?” he queried.
House committee report
Stakeholders are concerned that the recent report by a House of Representatives Ad hoc Committee to determine why the eastern ports are not being put to maximal use.
In the report, it was identified that inadequate survey and unreliable nautical charts are some of the obstacles that scare away vessels from the region. It further revealed that inadequate marking of channels with appropriate navigational aids; poor road infrastructure remains major challenges to the ports in the region.
Others are poor and obsolete equipment, lack of tugboats and pilot cutters, shallow berths and draught deficiency of navigable channels, absence of breakwaters, high siltation and long river passage, among others.
On the nautical charts, the report noted that the original survey data used for Calabar port and the two charts used for entering Calabar port were acquired by the British Colonial government in 1903 and 1974. While that of Port Harcourt, Onne and Warri ports were acquired in 1910 and 1984 respectively.
According to the Committee, “This state of affairs is true for uncharted waters, thus, inadequate survey and unreliable nautical charts remains the main reasons very few vessels call at the Eastern ports in focus. For instance, the original survey data used to produce the two charts used for entering Calabar Port were acquired by the British Colonial Government in 1903 and 1974, while that of Port Harcourt/Onne and Warri were acquired in 1910 and 1984.
The report further said: “Although the NPA supplied the United Kingdom Hydrographic Office (UKHO) survey data for updating these charts between 1988 and 2016, the update does not cover the entire spectrum of hydrographic survey, to guarantee the level of confidence to be placed on them.
Pertinently, the Nigerian Navy (NN) has commenced the actualisation of the National Charting Scheme by developing indigenous charting capacity.
This will not only ensure self-reliance in surveying and charting of Nigerian waters, but will also end the practice of sending survey data to the UKHO, whose decision on what to be included in the chart most times differ from local need for which the charts were published.
This way, the NN will produce charts that will support maritime activities in and around these Ports,” the report said.
Besides, the objective of diversion to the eastern ports may not be achieved is a section of the report is considered. This section, which deals with the problems of poor and obsolete equipment, it was discovered that poor cargo handling equipment and other infrastructure in these Ports is a major hindrance to optimal utility of the Ports.
“Most cargo handling infrastructure are degraded and do not attract shippers. Most terminal operations are encumbered by dearth of essential infrastructure for easy evacuation of containers.
The consequence of this is the accumulation of avoidable demurrage and strain on port workers. The turnaround for shipping companies would be affected and hence, the use of ports where there are modern equipment.”
The House committee, chaired by Buba Yusuf Yakub, with Okuta Matthew as Clerk, in its 16-page report, also identified lack of tugboats and pilot cutters to serve the vessels going to Eastern Ports.
It noted that prior to this time, shipping firms were billed for these tug boats which were never made available to them, but the vessel agents have continued to hire tug boats, notwithstanding that it is the responsibility of the NPA to provide them.
Others are shallow berths and draught deficiency of navigable channels. On this, the Committee submitted: “The average berth depth of Eastern Ports stands between six and 11 metres (with high silting which seriously affect safety of navigation) compared to the Lagos port with berth depth ranging from nine to 13.5 metres.
With this deficiency most eastern ports would not be able to accommodate large container-bearing vessels except vessels with flat bottom.
“The draughts of the channels leading to the Eastern ports are also lower than that of Lagos. Lagos Port has an average draught of between nine and 13.5 metres), Port Harcourt -7.1 and 9.1 metres; Warri 6.4 and 7.6 metres; Onne eight and 11 metres, and Calabar has 6.4 metres during high tide. These draught levels impose additional constraints for the Eastern Ports.
“The shallow nature of ports outside Lagos Ports has discouraged ship owners and importers to divert their ships to Lagos even when their goods are meant for areas like Southsouth and Souheast.
This shallow berth depth is one of the major reasons why these ports are not being patronised. The Committee discovered that lots of dredging contract was given out in the last 10 years and yet the depth of these ports is still shallow.
At various fora across the country last year, Vice President Yemi Osinbajo and chief executive officers of government agencies in the maritime sector restated the Federal Government’s plan to establish a national single window (NSW) at the ports to facilitate clearance and export of goods. OLUWAKEMI DAUDA examines some of the issues inhibiting the implementation of the NSW and efforts aimed at tackling them.
Despite promises made by the Federal Government last year and the previous one, Nigeria remains the only country without a single-window platform in Africa in an age where information technology drives every process. The country has continued to trail behind other African nations in the automation of processes at the seaports.
Stakeholders said for the Federal Government to boost revenue from the non-oil sector, facilitating trade through improvement in the turnaround time for goods, must be taken seriously by the President Muhamadu Buhari-led administration based on its diversification efforts to boost the economy.
The stakeholders, who spoke in separate interviews with The Nation, were unanimous that one of the steps that must be taken to quicken cargo clearance and realise the diversification agenda is the single window system.
One of the stakeholders, Samson Atanda, said: “The implementation of a single window system enables international (cross-border) traders to submit regulatory documents at a single location and/or single entity. Such documents are typically customs declarations, applications for import/export permits, and other supporting documents, such as certificates of origin and trading invoices.
Rotimi amaechii
He lamented that Nigeria is the only country in Africa without a single window platform. In 2018, the Minister of Transportation, Rotimi Amaechi promised to set up a National Single Window platform to be managed by the Nigerian Ports Authority (NPA). It was to be funded from the one per cent Comprehensive Import Supervision Scheme. But up till today, the promise has not been fulfilled.
Atanda lamented that this had resulted in Nigerian-bound vessels being diverted to Benin Republic, Ghana and other neighbouring ports because of the intractable traffic in Apapa and unnecessary delays during cargo clearance at the ports.
The maritime lawyer recommended that the policy on single window on the clearing of goods should be fully implemented to discourage physical examination of cargo by men and officers of the Nigeria Customs Service (NCS).
Lack of implementation of a single window platform is reportedly costing Nigeria N1.08 trillion revenue yearly.
“As of 2017, Ghana had commenced the registration of vehicles doing business at its port in preparation for full automation of the processes this year.
“In January last year, the port welcomed a $1.5 billion fully-automated terminal jointly built by the APM Terminals, Bolloré Africa Logistics, Meridian Port Services and the Ghana Ports and Harbours Authority,” Atanda said, adding that the expanded port could accommodate the world’s largest container ships in their breakwater and access channel. Like Ghana, other ports in Africa have automated their processes, making clearing faster and easier.
Atanda said if the Federal Government can put the NSW in place, Nigerians who patronise other African ports would return to the ports by the time the land borders were reopened.
At the opening ceremony of the 2018 Lagos International Trade Fair, Buhari, represented by Prof Yemi Osinbajo, announced plans by the Federal Government to establish a NSW to cut trade times and costs by making information flows more efficient and streamlining trade procedures and address other issues affecting the transaction cycle in bringing in goods, clearing and exporting it through the ports.
The Single Window
A single window is an organic mixture of parties in a nation’s international trade. It uses the latest information
communications technology (ICT) techniques, international data and messaging standards together with simplified, harmonised and remodelled information systems for data exchange to replace traditional paper-based information.
Why scheme is delayed
Speaking at the Trade Fair forum in Lagos, Osinbajo said the scheme was being delayed due to issues concerning individual Ministries, Departments and Agencies (MDAs) such as the Nigerian Ports Authority (‘NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers Council (NSC), Nigeria Customs Service (NCS), various terminal operators, shipping firms and other government agencies at ports and border stations trying to align their various e-platforms to the NSW platform.
The Vice President (VP), however, expressed optimism on the delivery of the promise by the government in the shortest possible time.
Commitment from govt, stakeholders
A maritime lawyer and university don, Mr Dipo Alaka, said the implementation of a NSW involved many stakeholders and requires long-termcommitment from government and business.
The platform, Alaka said, must fit the environment and level of development in the country.
A clearing agent, Kayode Ogunsanu, said at each phase of port development, the Federal Government needed to look at the prevailing global trends and plan for 20, 30 and even 50 years ahead and make all the necessary adjustments to its plans along the way.
“The introduction of a national single window platform is another key plank in the President Muhammadu Buhari administration’s strategy to make the port a hub of maritime in Africa,” Ogunsanu said.
What CBN has done
Findings revealed that the Central Bank of Nigeria (CBN) had last year established a foreign exchange (Forex) window for investors and exporters to boost liquidity in the market and ensure timely execution and settlement of eligible transactions.
But the country is still faced with challenges with import and export procedures, which the VP said the NSW would address.
Efforts by the FIRS
Tax payments and remittances have also been simplified through the e-filing system by the Federal Inland Revenue System (FIRS), importers and exporters are also not left out with the documentation required for imports and exports.
These have been significantly reduced from 14 to eight and 10 to seven. Since 2016, the Federal Government had so far in the past three budget cycles spent over N3.5 trillion on capital, which he said was mostly on infrastructure.
Speaking with The Nation on the sideline of the Association of African Maritime Administrations (AAMA) Conference in Egypt last year, the Director-General, NIMASA, Dr Dakuku Peterside said to become African maritime hub, Nigeria needs a single window platform to deliver the highest value in terms of efficiency, quality and reliability of service.
“Promoting efficiency is a major challenge confronting many African ports. A global bench-marking study by SAP found that ports that leverage technology to drive productivity improvements enjoy 36 per cent higher operating margins than similar peers and that is why the Federal Government is working tirelessly to institute a single window operation in our ports.
“Port automation and digital solutions are potential game-changers, not only for cargo throughput but also profitability.”
DAKUKU peterside
Peterside told the delegates that the Buhari administration has the vision and determination to make the ports, the hub of maritime in the West and Central Africa through the introduction of a national single window, provision of maritime security, improvement in port infrastructure, formulation and implementation of other laudable programmes.
Peterside, also the chairman of AAMA, said the geographical location of Nigeria will aid its transformation to a regional maritime hub after the introduction of the new platform to boost efficiency and competitiveness.
“Today, we are celebrating Singapore based on the vision of its leaders. And I am also happy to inform you that the Federal Government of Nigeria under President Muhammadu Buhari is doing everything possible to make the Nigerian ports the hub of maritime activities in the West and Central Africa,” he said.
He added that the Buhari administration has a long-term, strategic port planning system that would ensure that the seaports provide adequate capacity to meet the demands of key shipping lines and their alliance partners in sizeable blocks of volume.
The NIMASA chief said Africa needs leaders who have vision and courage to make bold decisions that will enable the Nigerian seaports and other ports in Africa ready for the future, be pacesetters, reap first-mover advantages, and thrive in a dynamic and competitive global maritime business.
Nigeria’s strategic vision for its ports, he said, is being built on the three Cs of Connectivity, Capacity and Competitiveness
African leaders, Peterside added, need to emulate Singapore in taking the right decision and investing in the development of port infrastructure and technology to boost efficiency and economy.
The Federal Government, the NIMASA boss revealed, is emulating Singapore and other maritime nations in terms of short, medium and long-term planning that will assist the ports to compete favourably with others across the globe, urging other African countries to emulate them.
He added that the maritime sector forecast released by NIMASA recently and the training of over 2500 seafarers by the agency were parts of efforts to make the ports competitive
He urged African maritime administrators to identify areas where they have comparative advantage, their weaknesses and the opportunities they have to reduce poverty and the high level of unemployment ravaging the content.
He stressed that there was need for maritime administrators across the continent to come up with beautiful ideas so that people could invest in their programmes the way the World Bank and other financial institutions did for Singapore in 1972.
Paucity of fund, according to him, should not affect the growth of the sector on the continent.
Many stakeholders who spoke with The Nation believe that it would be easier for the carmel to pass through the eye of the needle than to clear goods at the ports within the stipulated 48 hours. To overcome the challenges, some have advocated quick adoption of a national single window( NSW), to remove human contact, reduce corruption, boost efficiency and transform the ports to international standard.
For ports users, the challenges of doing business are almost limitless. Achieving 48-hour cargo clearance at the ports has remained a mirage. It has made doing maritime business in neighbouring countries in the sub-region attractive.
“However, there appears to be a consensus that limited co-ordination among agencies, terminal operators and other stakeholders is the greatest obstacle. Importers, clearing agents and other port users face stringent, overlapping and onerous requirements that have made the adoption of a Single Window (SW) imperative to boost efficiency and reduce corruption,” said the a maritime lawyer, Mr Davis Abraham.
The Nigerian Ports Authority (NPA) Managing Director, Ms Hadiza Bala Usman, told The Nation that the agencies, terminal operators and stakeholders must key into the government’s initiative of promoting the SW platform to meet the 48-hour cargo clearance deadline.
The NPA, she said, has embarked on the establishment of a SW through an intense automation and introduction of Standard Operating Procedures (SOPs).
“There is no doubt that the adoption of a national SW will strengthen the port industry by boosting efficiency and reduce cost and time, which are the major objectives of port concession agreement signed by private terminal operators,” she said, adding that the SW has been used by many countries to facilitate trade at ports.
The adoption of the SW, according to Ms Usman, will make local ports competitive in the international trade network and boost trade facilitation programmes of the Federal |Government. “It will also reduce corruption and entrench transparency and accountability in the port operations,” she said.
The desired reforms at the ports, it was learnt, may not be completed without the full implementation of the SW platform by the ports, the Nigeria Customs Service (NCS) and others in the chain of trade facilitation.
A senior official of the Federal Ministry of Transport (FMoT), who craved anonymity, said the Federal Government would generate additional $800 million yearly from the ports and border stations if government agencies key into the SW initiative.
The official urged the Federal Executive Council (FEC) to compel the NCS, the police and other agencies at the ports to key into the platform to facilitate trade and generate more revenue. He also urged the National Assembly to back the initiative with a law.
The Executive Secretary, Nigerian Shippers Council ( NSC), Mr Hassan Belo, said the single window is a laudable initiative, which a country like Nigeria ought to embrace to transform the ports.
He said the platform would enhance trade competitiveness through improvement in import, export, transit procedures and information sharing system.
The facility, he said, would ensure that there is a paperless Customs declaration, compliance and online approval.
The current 100 per cent physical examination of goods, according to him, would be reduced and all government agencies at ports integrated.
Bello added: “The single window facility will also need to be supported by legislation from the National Assembly.”
“The National Single Window is the ultimate in port operation. But it must be multi-agencies integrated for it to be successful. The port is a transit point and our ports must be seen and used as such. That is why we have dry ports across the country to decongest the port and NPA as the landlord must have a say.”
Merits of NSW
A senior official of the Federal Ministry of Transport (FMoT) who craved anonymity said the purpose of the SW is to provide a platform and processes for a paper-less (electronic) system.
“The ultimate national SW includes all of the information exchanged by traders; government departments (including Customs); maritime, air, road, rail and inland waterway transport systems; port and terminal operators; and a range of other participants in the trade process, including freight forwarders, customs brokers, shipping agents, banks and insurance companies.
The management, or governance system, which oversees this major transition from paper and traditional business processes to electronics-based and re-engineered systems is the major challenge in a comprehensive sequence of conversion and change management activities that are themselves serious challenges.
“The NSW is unavoidable if the country intends to remain engaged in expanded and more efficient global maritime trading activities. And the benefits are considerable and long-lasting.
The reverse is also said to be huge for those countries that delay engagement in single window implementations as they will be increasingly subjected to powerful inhibitors to national trade efficiency and economic growth.
“Those that need to collaborate with the NPA in its drive to have a national SW are importers, exporters (consignors and consignees), trade professionals (freight forwarders, Customs brokers and shipping agents), shipping companies, airlines, road, rail and inland waterways, duty free zones, dry ports and multi-modal cargo depot, ports and airports, container terminals, bulk terminals, port gate operations and Customs and all agencies that have a trade compliance responsibility, licensing, permit issuing and/or inspection responsibilities.
“The need for collaboration has given the requirements for faster information delivery, often in advance of shipping, for security and other purposes, and the growing needs of data harmonisation in international supply chains.
“The ability of government agencies to handle data efficiently and swiftly has, in fact, become a key element in international competitiveness, especially in port operations.
“A single window is designed to overcome this complex system of data submission and regulatory control. It is designed to sit at the national junction of national and international trade data exchange, thereby presenting a single point of access to all other relevant trade systems.
While the primary objective is the single electronic submission of data, establishing a single window necessitates a major rationalisation of current approaches and requirements to trade administration and operations, especially the reuse and elimination of duplication of existing data wherever possible, together with widespread e-Government applications and trade-related ministry.
“The single window evolved as a single physical office that was established to handle all formalities, compliance and payment processes.
This was commonly known as a “one-stop-shop”, or “guichet unique”. Initially, the trade or trade facilitation single window was applied to the trader’s lodgement of customs declarations and ministerial licences and permits.
The concept, being championed by the NPA, has now been extended by the authority to include the complete trade, transport and logistics community to boost efficiency and reduce corruption,” the FMoT official said.
The Vice President, association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said the adoption of the SW will enable importers/exporters to submit documentation and/or data requirement for importation, exportation or transit to a single entry point; ensure onward distribution of documentation and/or data requirements to the participating authorities or agencies through the platform.
After the examination by relevant authorities or agencies of the documentation and/or data, the results, he said, shall be notified to the applicants through the SW timely, and in cases where documentation and/or data requirements have already been received by the Single Window, the same documentation and/or data requirements shall not be requested by other agencies except in urgent circumstances and other limited exceptions, which are made public. “Government agencies must apply relevant international standards and practices as basis for the single window schemes,” Farinto said.
An importer, Mr Yusuf Aladejobi, said the NSW will increase compliance level and see to efficient and productive use of resources, facilitate enhanced fee, duties and penalties’ collection.
Hassan Bello
“ It will institutionalise more comprehensive, streamlined and automated business compliance to government legislative and regulatory requirements. It will also enhance risk analysis, management and improve security.
“There will be reduction in corruption and illegal trade activities, enhanced transparency and accountability. It will equally bring more trader-friendly environment, leading to increased foreign investment, integration and timely flow of information between government agencies and improved business intelligence,” Aladejobi said.
Alaka said, for importers and exporters, there will be cost reductions through minimised clerical efforts, time spent will reduce and eliminate delays. “There will be more predictable, reliable and authoritative decisions, just as there will be faster goods clearance, exceptional handling and dispute resolution, leading to reduced inventory holding costs.
“Also, there will be predictable and reliable consignment clearance and availability of advanced goods release information and reduction in face-to-face meetings, greater transparency and reduced opportunities for rent seeking and corruption.”
Ogunsanu also said the NSW will facilitate faster movement of goods through formalities and trade junctions, leading to better and more productive utilisation of resources.
“There will also be reliable information on timing of goods movement, allowing accurate scheduling, allocation of resources and improved accuracy of information provided to clients; more productive and flexible use of human resources; and ability to accurately schedule goods collection and discharge times and locations. There will also be a better end-to-end audit of port operation,” Ogunsanu said.
An exporter, Mr Chris Christopher, said the NSW is a laudable initiative, which a country like Nigeria should embrace to transform the ports.
’We are aware that the current management of the NPA is not happy over the past failure of 48-hour cargo clearance policy.
Apart from the fact that the delays experienced in cargo clearance disrupts the production schedules of manufacturers as raw materials are not delivered in good time to their factories, they affect their revenue and are responsible for high level of corruption at the ports as importers struggle to clear their cargoes under harsh condition.
This, again exacerbates inflation as goods are not quickly cleared from the ports to meet relevant needs in the economy and that is why the need for a national single window is imperative,”Christopher said.
To him, the Federal Government needs to have the political will to introduce the National Single Window platform to reduce costs and increase the compliance level of importers and exporters.
’The benefits of the single window platform at the ports are immense, because on a micro level, it will boost the competitive advantage of our ports and its traders on the international markets, while increasing government’s revenue, boost foreign direct investment, introduce simpler, faster clearance, and release processes,” Ogunsanu said.
Sector 4 of the joint border drill under the ‘Exercise Swift Response,’ has recorded over N300 million seizures in the last two weeks in some Northwestern states.
The Border Drill Sector 4 comprises Sokoto, Kebbi, Katsina, Zamfara, Jigawa and Kaduna states.
The Sector, led by Aliyu Mohammed, said it achieved the feat in conjunction with the Nigeria Customs Service and Armed Forces of Nigeria.
Mohammed, who was in Yauri, Kebbi State, said a huge petroleum smuggling cartel was trailed and uncovered by his men, adding that tankers of petroleum products suspected to be Premium Motor Spirit (PMS) were discovered at a location where smugglers discharged them into drums to be smuggled through the borders.
The sector also made seizures of Premium Motor Spirit (PMS) in jerry cans last week, including rice, textiles, cars and other smuggled items in the areas under the command.
Mohammed said the operations were carried out in a strategic manner to avoid fire outbreak or explosions that could emanate from petroleum products.
According to him, the tankers, pipes drums, jerry cans and other tools being deployed to aid the smuggling act have become seizures
“When I resumed here, I addressed my men and charged them to be ready to smoke out smugglers and seize their wares. I am happy to disclose that our efforts are paying off. We will never compromise. Wherever they are or operate within our area of coverage, we shall continue to be on their trail to seize their wares and arrest them.
There will be zero tolerance for smuggling and other unlawful behaviours here. We are being very careful and strategic with them. We apply a lot of tact and intelligence to achieve seizures without casualties. You know that petroleum products are volatile and dangerous. It could lead to fire and explosion if we are not careful,” he explained.
Mohammed commended the officers and men of sister security agencies like the Nigerian Army, Nigerian Immigration Service, for their efforts at achieving the results.
He said the smugglers were caught napping by their operations and assured that his men would continue to take them by surprise by storming their storehouses, depot for trans loading and intercepting whatever they are smuggling into or out of the country.
“Illegally taking petrol meant for Nigerian use out of the country through borders is an act of economic sabotage and we must not allow it to stand. These smugglers are enemies of the country and our people.
They divert full petrol tankers to remote places and empty the petrol into drums and jerry cans for ease of smuggling through the borders.
What we are doing in this operation, particularly in Sector 4 is to protect our country from insecurity and protect the economy from saboteurs who do not mean well for us,” he said.
Mohammed assured that his sector will continue to make life difficult for smugglers all the time, promising that the Command is already moving into places smugglers never thought they could be caught.
“I can confirm to you that we are fully deploying our manpower and total logistics to maximum use for us to get these results.” he said.
The introduction of the Practitioners Operation Fees (POF) into the long line of payments for cargo clearance is causing ripples among operators and other stakeholders in the industry. While majority see this as a step in the right direction, others say it is an overkill on the already overburdened freight forwarders, reports MUYIWA LUCAS.
It was not a New Year present some freight forwarders expected to receive, but alas, it has come to stay.
On January 7, at a stakeholders’ meeting in Lagos, the Registrar of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Mr. Samuel Nwakohu, informed the gathering that the Federal Ministry of Finance has approved that only Practitioners Operation Fees (POF) paying freight forwarders will henceforth be allowed to clear their cargoes from the ports. He further informed them that before the year end, the POF regime payment would be digitalised.
Nwakohu was simply informing his colleagues in the freight forwarding business of the approval of the Minister of Finance, Budget and National Planning,Mrs. Zainab Ahmed, vide a letter dated January 6, 2020 and signed by the Director, Home Finance, Okokon Udo, which stated that freight forwarders must show receipt of payment of POF before they could exit their cargoes at the ports.
Under the POF regime, importers will pay N3.50 per ton of cargo imported; N1.50 per kilogramme of every air cargo; N1,000 on every imported 20-feet container and N2,000 per 40-feet container.
Beneficiaries
Stakeholders have expressed divergent views on the benefits that may accrue from the POF. For instance, they estimate that the CRFFN is expected to rake in as much as N10 billion yearly.
But for CRFFN, the regime is a win-win for everybody. Nwakohu said the POF regime will help build capacity for the effective participation in African Continental Free Trade Agreement (AFCTA) regime. He said freight forwarders must compete globally, noting that they were behind time and needed to catch up with the rest of the world. He urged them to conform with the rules and regulation guiding the practice of the profession.
“In the months to come, we shall be spending a great deal of our time on how to complete on the global platform. It therefore becomes imperative that we must raise the financial capital to fund and face the battle,” he said, adding; “The POF is our first point of take-off.”
Nwokohu also noted that the POF regime will enhance an organised collective action against numerous threats, including foreign intrusion and dominance, near absence of local content participation in the oil and gas services, including the need to build real capacity for effective participation in AfCFTA regime.
The support
Like a disunited family, the POF regime has pitted operators, especially freight forwarders, once seen as a united front, against themselves. Support for this regime has come in from some bodies.
For instance, the National President, Association of Nigerian Licensed Customs Agents (ANLCA), Mr. Tony Iju Nwabunike, has mandated members of the association to comply with the directive by the CRFFN over the collection POF.
Nwabunike said the association was established to serve as an umbrella body for customs brokers and freight forwarders in Nigeria in line with the principles and procedures of the CRFFN as provided for under the Act No.16 of 2007. To this end, he charged members to live up to expectations, hence complying with POF as mooted by CRFFN.
He said any statement on POF must be treated as a policy statement, which can only be issued by the President of the association, or the National Secretary, acting in their official capacity.
He explained that the CRFFN being a body established by the Act of the Federal Government is endowed will all the proper organ of government required to adequately and sufficiently operate under the law. Therefore, its members must be properly guided on their utterances and actions to ensure that it does not repress the position of Mr. President.
“ANLCA is in support of this directive as it will help enhance the education and enlightenment of its members and ensure that members are abreast of the dynamics of freight forwarding in the contemporary world and also improve the welfare of its members,’’ Nwabunike said, without stressing further the need to comply with the directive of the Federal Government. ‘’Be assured that this new professional development is for our communal good and for our collective growth as members of a single body,” he said.
Also, the Association of Registered Freight Forwarders of Nigeria (AREFFN) commended the Finance Minister’s approval of the POF regime.
In a statement in Lagos and endorsed by its Board of Trustees, its Chairman, Ejike Metu and Secretary, Innocent Elum, the group described the decision as one that will assist the CRFFN in raising funds for its operations.
“In sync with our National Executive headed by Alhaji Bala Usman Daura, the Board of Trustees (BoT) of the Association of Registered Freight Forwarders, Nigeria (AREFFN) commends the Federal Government’s progressive and unequivocal commitment to the professionalisation and repositioning of the freight forwarding practice in a challenging knowledge-based global economy.
“The recent approval granted by the Minister of Finance to the Council for the Regulation of Freight Forwarding in Nigeria’s (CRFFN’s) proposed Practitioners Operating Fee (POF) geared towards proper funding of the council’s programmes and policies, is yet another welcome development.
AREFFN stands on all fours in support of the POF policy and has directed her numerous members across the country to key into it,” the statement said.
The body expressed her members’ readiness to partner with government in advancing the nation’s economy, and cannot lay back from playing a key role in making the POF policy a success.
“Contrary to the sentiment expressed by few industry players, we submit that POF collection cannot in any way heighten cost of cargo clearance; it will rather reduce same, as practitioners would pay far less to Council than they pay their different Associations as presently constituted.
As a partner in progress with Council, AREFFN encourages her to fast-track commencement of the POF collection in view of the enormous responsibilities waiting for her attention,” the statement read.
Still, the Nigerian Association of Air Freight Forwarders and Consolidators (NAFFAC) also lend support to the POF regime. The air freight forwarding group urged the collecting authority not to derail from the agreed sharing formula for the regulator, declarant and associations.
The President-General of the association, also as a member of the Governing Council of CRFFN, Prince Bakare Adeyinka, called on stakeholders to support the role of the council in dealing with issues of malpractice in the port.
He urged the regulator to increase its campaign in the ports for freight forwarders, importers and exporters to be aware of the role of the council according to the Act establishing it.
“We agree to the commencement of collection of POF by CRFFN and disbursement on the agreed formula of 65 percent to CRFFN and five percent to the declaring and 30 per cent to the associations,” the group said.
Opposition
But some clearing agents and freight forwarders have kicked against the POF payment as one of the requirements for cargo release across the seaports and land borders, regretting that the implementation of the new directive by the Finance Minister will lead to congestion and increase the cost of doing business at the nation’s ports.
They are sad at what they term the CRFFN’s heaping of “unnecessary burden on the end users of the cargoes cleared from the port”, saying they already had a handful of levies and duties to pay and that if the POF is added, it would escalate the cost of clearing goods at the port.
An agent, Mr. Abiodun Adekunle, lamented: “The problem we are passing through in this port is too much, do you want to kill us? If the CRFFN was established to regulate the freight forwarding practice, it is not to come and collect money. This system will lead to more demurrage in the port because they say we must pay before our cargo can exit the port.”
He gave a breakdown of payments already being made to include importation duty to Customs, Value Added Tax (VAT) on all the payments made, shipping company charges on container charges and rent on the container, terminal charges, NAFDAC, SON for cargoes relating to their agencies, Plant Quarantine Service, among others.
CRFFN mandate
Already, some agents are at a loss as to who’s interest the CFRRN is representing. For Yemi Adekunle, the POF is an additional burden on stakeholders. “Everybody is talking about payment of POF but my question is if council was created to protect our interest, I see the payment of POF as adding to our burden.
Other professional bodies like ICAN pay professional dues annually; why not limit our own too to annual payment instead of asking us to pay per shipment. We pay customs duty and other charges; this one you want us to pay, who do we refer it to?” he asked rhetorically.
But Nwakohu maintains that mechanism has been put in place to tackle the divergent opinions of the freight forwarders. For him, it is only a group of few freight forwarders complaining as every other person is in agreement with the POF collection.
“If you want to make an effective law, you must make sure that it is near watertight. If the receipt of POF payment is not a condition precedent to cargo exit, then most of them will not pay.
It will not add to cost of doing business. It is the practitioner who bears the cost, and that is their business, not the end user. POF is law right now and our duty is to enforce it,” Nwakohu said.
The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala Usman, says the agency is changing the dynamics of the Eastern ports because of the intractable traffic gridlock in Lagos ports which has continued to hurt port operations. Stakeholders, including port users and investors, among others, are calling on NPA to do more to make the eastern ports more attractive and thereby become alternatives to the congested Lagos ports, writes OLUWAKEMI DAUDA.
Former President, Association of Nigeria Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, echoed the frustrations of various stakeholders in the maritime industry when he said: “The dependence on the Lagos ports is no longer good for maritime trade. It is overburdening the city and its vibrant residents, as well as amenities, especially roads and bridges.”
Shittu said the parlous state of the nation’s premier ports in Apapa, Lagos, which has been hurting businesses, has necessitated “the Federal Government, NPA and the Lagos State Government doing the right thing for the overall good of our port and the country at large”.
To Shittu, the right thing to do is for the management of the Nigerian Ports Authority (NPA) to look towards the eastern ports, and develop them as alternatives to the nation’s premier ports in Apapa, Lagos.
The ANLCA chief’s call, which resonates with not a few operators and other critical stakeholders in the industry, The Nation learnt, became imperative in view of the seemingly intractable traffic gridlock in and around Apapa ports, which has become a pain in the neck of the NPA, port users, investors and the city’s residents.
More importantly, it was prompted by the existence of other viable, but largely under-developed ports outside Lagos, which in the thinking of industry operators and stakeholders, could be made attractive for business and reduce the pressure on the Lagos ports.
For instance, apart from the Lagos ports, there are seaports at Warri, Koko, Onne, Port Harcourt, Calabar and Ibom Deep Seaport at Ibaka, Akwa Ibom State, which is still at the design stage. There are also numerous inland dry ports and fuel depots.
Unfortunately, the main problem with these ports, The Nation learnt, is that the river channels leading to them are too narrow to accommodate large vessels. The shipping firms find it more convenient to take their vessels to Lagos than to the eastern ports because of the unending restiveness in the area.
The situation, it was also gathered, worsened after the concession of the ports started in 2006. This was sequel to the withdrawal of the 30 per cent incentive granted vessel owners to use the eastern ports when the Federal Government controlled the ports.
Apart from the Onne Port, most of the other ports servicing the Southeast, Southsouth and the Eastern flank of the North are virtually idle.
The channels into these ports need to be dredged, their facilities need to be upgraded and incentives provided to enable them take up more of the nation’s maritime business.
The fact that Lagos State government recently joined in the call for other ports in the eastern parts of the country to be revived to enable them take some of the load off Lagos and make living in the state more bearable for residents underscored the urgent need to turn to the eastern ports for succour.
A maritime lawyer and consultant, Mr Oluwaseyi Muhammed, said because of fear of paying for delays of vessels, shallow waters and activities of sea robbers, importers and clearing agents are not patronising the eastern ports.
Muhammed said the challenges that have crippled the activities in the four eastern ports of Calabar, Warri, Port Harcourt and Onne have made trade facilitation and life difficult for the importers using the ports.
Other challenges
Apart from shallow channels, which make bigger vessels unable to access the port, decrepit port infrastructure is said to have led to the continued dwindling revenue fortunes of the NPA and other government agencies at the ports.
While the Calabar Port suffers from shallow draught, the Onne Port is contending with insecurity, such as pirate attacks and sea-robbery.
Other identified challenges include deplorable berths, dearths of finger mooring jetties to berth NPA crafts, lack of operational vehicles and fire hydrants at quays.
Cargo handling equipment and the port quays areas are also inadequate to make trade facilitation efficient.
Also, while high siltation at the Calabar Port has impeded safe navigation, the Port Harcourt Port suffered under pirate attacks, which made the port unattractive for foreign shipping lines.
Because of the afore-mentioned challenges, no fewer than 754 vessels, it was learnt, deserted the eastern ports between 2013 and 2018 before the efforts of the NPA to make the port attractive for business.
Specifically, some vessels that berthed at the ports reduced from 2,268 vessels in 2013 to 1,514 in 2016.
According to the National Bureau of Statistics (NBS), some vessels that berthed at the Delta port fell from 609 in 2013 to 433 in 2016, while the Gross Registered Tonnage at the port also dropped from 8,687,160 in 2013 to 6,177,809 in 2018.
High level of insecurity
An importer, Mr. Robert Francis, said shipment of cargoes from China to Lagos, which used to cost about $1,500, costs between $4,500 and $5,000 because of insecurity and high salinity of the sea. He therefore urged youths in the area to give peace a chance to make the ports attractive and competitive.
“In addition, vessels calling at Onne Port in Rivers State also slammed $45,000 (N16.2 milion) on importers for an average of six hours per night for delay to berth. The delay, which is estimated at $7,500 per hour, is said to be caused by incessant robbery and shallow port channels,” he said.
Worried by the problems, Transportation Minister, Rotimi Amaechi, at the second stakeholders’ interactive session in Warri, explained that one of the factors militating against the success of the sector was insecurity in the Niger Delta region, which he said, was also hampering the growth and development of the region.
He said Niger Delta was not working because of the people in the area. His words: “How many Lagosians are on the water in Lagos? None. The reason vessels will not come to the eastern ports is because there is no war insurance on vessels because of restiveness in the region.
“War insurance means if the goods cost N10,000 in Lagos, it will get it N20,000 here because there is extra cost on it. There is insecurity in Lagos, but not as bad as it is in the eastern ports.”
A senior government official, Mr. Chidi Izuwah, also expressed worry over the inability of vessels to sail out at night at Onne Port. He regretted that vessels cannot sail out of the port as it is done in Lagos Ports.
Low utilisation of eastern ports
NPA Managing Director, Hadiza Bala-Usman, regretted the low utilisation of the Eastern Ports. She said for the Eastern Ports to attract cargo, NPA has improved on infrastructure that would aid port transaction in the zone.
NPA, she said, has awarded the contract for the dredging of Warri Port to make the zone attractive for business. Her words: “There is no need for shippers to en route their cargoes to places where they will find it difficult to reach their warehouses and end users.
“There has been this issue of restiveness in the area, and no investor will like to toy with his or her goods, hence they prefer Lagos Ports where security is guaranteed unlike in the eastern ports.
“Calabar Port is strategically located to service the Northeast and the Northwest, but the link roads to the area from Calabar are bad. Articulated vehicles cannot ply the route.”
The Nation learnt that the Onne Port has been a source of concern to stakeholders, especially shipping companies. For instance, night voyage is absolutely prohibited at Onne Port due to insecurity fuelled by pirate attacks.
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) President, Lucky Amiwero, said Nigeria had lost its leadership position to other countries not only because of security lapses, but also because of shallow draft.
NPA takes the gauntlet
Aware of the perennial gridlock in Lagos and determined to change the narrative, the NPA management said it is working with professionals in the sector to make the eastern ports attractive for business.
Last year, the NPA deployed equipment worth over $30 million in Onne Port, Rivers State. The measure, which was taken by Ms Bala-Usman, it was gathered, was to boost efficiency, security and make the port attractive for business. Onne Port Complex is one of the key ports under the NPA. It is situated on the Bonny River Estuary along Ogu Creek.
Findings revealed that six pilot cutters, tug boats and 17 meter offshore patrol boats, have been deployed in the port to make it attractive and stem the cycle of criminalities at the port.
Sources at Onne Port confirmed to The Nation that it cost the NPA more than $30 million to deploy the sophisticated equipment.
One of the sources, a senior NPA official, however, condemned what he described as indiscriminate anchorage of vessels and urged the perpetrators to desist. He urged investors to take advantage of the strategic location of the port, located in one of the largest oil and gas free zones in the world.
Apart from supporting exploration and production for economic activities, the free zone provides a logistic oil service centre for the oil and gas industry in Nigeria (Onshore and Offshore), while also providing easy access to the entire West African and sub-Sahara oil fields.
The official, who declined to have his name in print, assured stakeholders and investors that adequate depth of the channel leading to the port would be dredged to accommodate big vessels and guarantee adequate security.
Shittu commended the NPA for repositioning the port for greater efficiency. He urged other stakeholders to collaborate with the NPA in its efforts to make the port a hub of maritime.
Another stakeholder, Mr. Felix Abraham, said the deployment of the equipment has assisted the port in taking its rightful position as hub for the East and Central Africa sub-regions in oil and gas and has an advantage of accessibility and proximity to the Eastern commercial centres like Onitsha, Nnewi and Aba, among others.
“Activities, such as pipe coating, waste treatment and boat building, are provided by companies located in Onne. The port is highly industrialised with modern facilities and equipment that can stand the test of time anywhere.
“It has one of the biggest habour mobile cranes in Africa (Liebherr 600) with a lifting capacity of 208 metric tonnes. Also, 220 Gmk 5220 grove twin cranes that have capacity of lifting single heavy duty cargo of 300 tonnes,” he said.
The Olu of Warri, Ogiame Ikewoli 11, has also called on stakeholders in the Delta Ports to give maximum and unflinching support to NPA management so that the transformation the authority has brought to the region could be sustained.
The paramount ruler pointed out that Calabar Port, which also has the same challenge of shallow draught, has been improved upon by the NPA with the use of Flat Bottom Vessels (FBV) to attract more cargoes to the port in Warri.
Federal Government hands over Warri port to operator.
As part of measures to make the eastern ports attractive for business, the Bureau of Public Enterprises (BPE) recently handed over Terminal B of the Warri Old Port to private concessionaire, Ocean & Cargo Terminal Services Limited.
BPE Director-General Mr. Alex Okoh, who spoke at the handover ceremony, said President Muhammadu Buhari’s administration was committed to a private sector-driven economy.
He also called on local and international businessmen to take advantage of the government’s open door policy to establish businesses in the country.
Okoh said the Nigerian ports are the main gateway to the country and key to the Federal Government’s objective of diversifying and growing the economy.
He pointed out that the objective of the government in port concession was to increase efficiency at the ports with the ultimate goal to modernise the ports and make them more competitive.
The BPE boss said: “The objective is to increase efficiency in our ports, improve service delivery, upgrade and modernise facilities in the ports, reduce the cost of shipping and clearing of goods at the ports and relieve the government of the burden of financing the sector.”
According to him, the concession is for a period of 25 years at an annual lease fee of $1,621,500, in addition to the entry fee and monthly throughput fee chargeable on the volume of cargo handled.
Okoh assured that the implementation of the development plan for the concessionaire would be closely monitored by the relevant government agencies, including the NPA, the BPE and Infrastructure Concession Regulatory Commission to ensure compliance.
Why importers prefer Lagos to other ports in the country
Speaking with The Nation Usman said many importers prefer the ports in Lagos to those in other parts of the country because of roads and accessibility.
She said Lagos ports are congested because most of the products imported into the country through them are consumed by residents of Lagos and neighbouring states.
She also spoke on the steps being taken by the NPA to develop other ports in the country.
“As a shipper, you decide where your cargo will go to. Quite a lot of cargo that come into the Lagos area are meant for the Lagos environment, Ogun State, the manufacturing hub, all those industries around and also some that are going to the north,” she said.
“Then, the eastern port, we have Warri port which has a draft of 7.5 meters; we can’t go below that, that is the maximum we can go, we have NNPC pipelines that are buried there so we can’t dredge below that. Then we have the Burutu port, which is moribund.
We are currently at an advance stage of its concession, we have just sent the outline business case to the Infrastructure Concession Regulatory Commission (ICRC), we have investors that are keen to do that as a solid mineral terminal.
“Calabar port has a very widen and long channel, about 180km channels which requires for us to dredge it, to invest about N50 billion to dredge Calabar port. We looked at the revenue generation and traffic and realised that it doesn’t justify us to spend that amount.
“So, we are exploring the use of flat vessel, in December 2018, we had flat vessel come to Calabar port. We have Onne port, Onne is functioning, it has about 10 to 11 meters draft. It was for oil and gas so designated but now it’s meant for all cargo types.
“The other issue that people use to decide where there cargo goes to is also accessibility to the final destination. For example, if you want to take your cargo to Aba, the question is can articulated truck drive from Onne to Aba? Can articulated truck move from Onne to the north? So, those roads that lead from the ports to major towns also need to be passable by articulated trucks. We have written to the ministry of works and highlighted all these roads. We have told the ministry of works to prioritize the repair of all these roads so that they can take larger truck.”
She narrated how the government of Adamawa imported items through Calabar because of proximity but could not access the port as a result of the situation of the roads.
She also explained how she has consistently drawn the attention of the ministry of power, works and housing on the need to make the road accessible.
“Calabar is the closest place to the north-east and north-central part of Nigeria, so you are able to take your cargo faster but there is no good road, there is a bad bridge along that road that prevents trucks from accessing the port. Recently, at the end of 2018, the minister of work awarded that road because I kept pestering him that he needs to award that road and bridge that doesn’t allow truck carrying containers,” she said.
“Adamawa State government imported items through Calabar because its close, when they got to that bridge, they couldn’t pass, these are some of the challenges. Even if you go there, how did you get your things to your final destination?
“In addition, there is the security challenge, people going to the eastern port are challenged because your vessel has to carry war insurance and you need to also hire additional security. So, there is that additional cost that discourage these people from going to the eastern port.
The high rate of pirates operation makes it more unattractive, we have quarterly report from the office of the national security adviser which give details of the security challenges on the water way have reduced our harbour dues by 20 per cent and with that we have been able to have more ships calling more.
In Porthacourt we had recently vessels that have never called and that came in November last year in Porthacourt and that is something that you can see that because of our keen interest to bring in vessels we actually market and we have spoken with the vessels owners that what do you need and we made sure that those things are made available.
It is also good we add that in December, two vessels bathed in Onne and also the zise 370LOE that has never bathed in that area for container vessels. And that is also a way for us to ensure that we diversity and encourage the vessels call into this port locations by providing the necessary support we think that they need and with that particular Marskline two vessels calling in Porthacourt they are not bing into Porthacourt container vessels.
“We also looked to ensure that the roads to the interland from ports are also navigable by articulated vehicles because the concern is if you take your cargo to Onne, the road from Onne to Onitsha, Aba navigable by articulated trucks. We have also written to the Ministry of Works so that all that roads in the Eastern Port that are connecting the port to certain commercial hubs the Ministry of Works has been working on awarding those road network to enable us conclude
We have also written to the Ministry of Niger Delta on the to complete the road between the Onne port and the Port Harcourt is in a very bad state.
The Minister of Niger Delta has committed by ensuring it is in the 2020 budget,” Usman said.
THE Nigeria Customs Service (NCS), Area II Command, Onne Port, Rivers State generated revenue of N107,336,142,823.59 from duty paid value (DPV) on imported goods last year.
This surpassed its target of N95,711,502,149.33 for last year by N11,642,640,674.26. The command also seized goods with DPV of N1,278,708,011.
The seizures include 99 containers comprising vegetable oil, detergents, bags of foreign rice, scraps metals, corrugated aluminum sheets, furniture, tin tomatoes (tomato paste), insect repellent/killer, bales of fabrics and wax materials.
The Comptroller of the Command, Comptroller Aliyu Saidu, said the seizures had wrong documentation, false declarations, wrong classifications, concealments and non-provision of end user certificates for the imported machetes.
On export, 255,407 metric tonnes of goods with a total Free On Board (FoB) value of $78,402,057, which is equivalent to N28,420,745,662.5 at an exchange rate of N362.5 per dollar was processed through the area last year.
Also, in comparing the revenue generated between 2018 and 2019; N94,044,676,428.01 was realised in 2018. This shows 14 per cent increase in revenue generated in 2019 as against the previous year.
Saidu, who frowned at the continued menace of smuggling across the ports and borders, lamented on the effect it has on the nation’s security, social and economic well- being.
He advised those involved in such unpatriotic behaviour to desist from it, and warned that the command will not spare anyone as efforts will be intensified in locating and investigating the economic saboteurs, no matter how they hide.
He urged genuine business men to continue being law-abiding and run their businesses with utmost compliance with the law as a way to build trust and integrity in their dealings.
Saidu expressed appreciation to the Comptroller–General of Customs, Col. Hameed Ibrahim Ali (rtd.), and his management for their consistent encouragement and support, reassuring continued resilience and diligence of officers and men of the Command in carrying out all statutory responsibilities without compromise.
Saidu said: “2019 has come and gone. I want to commend you all for your effort in revenue collection, trade facilitation and anti-smuggling. We can do better than we did last year by staying more vigilant against smuggling, duty evasion, concealment, under declaration and other unlawful acts.
“Those involved in trade related malpractices will be looking for ways to beat the system, but we have deployed our trainings to productivity through diligent profiling, uncompromising examination, improved trade facilitation, strategised intelligence and tact exhibition for 2020 and beyond.”
Breakdown of seizures made in 2019:
15,317 jerry-cans of 25-litres of vegetable oil, with DPV of ¦ 110,211,278.00
20 x 20 ft containers loaded with tin-tomatoes paste with DPV of ¦ 272,261,026.00
13,306 cartons of Eva complexion soap (detergent) with DPV of ¦ 125,966,675.00
1 x 20 ft container comprising 715 bales of fabric/textile (wax materials) with DPV of N25,433,278.46
One(1) x 40 ft container loaded with scrap metal of various sizes and types worth ¦ 5,386,979.00
4 x 20 ft container loaded with 160 logs of hardwood with DPV of ¦ 19,342,838.00
I x 40 ft container loaded with 1,014 cartons of machetes, 1300 sacks of shovel, 100 carton of sickle, 172 packs of digger with DPV of ¦ 52,463,008.00
4,566 bags of 50 kg parboiled rice worth ¦ 57,471,308.61
540 bundles of corrugated Aluminum sheets with DPV of ¦ 561,753,188.00 and others.
How did a gigantic project worth N50 billion, which was originally intended to save the country huge sum in capital flight, become a drainpipe on the Nigeria Maritime Administration and Safety Agency’s resources? While stakeholders say the Floating Dock project would have been a game changer for the maritime sector, others say it has been dogged by other extraneous factors, MUYIWA LUCAS writes.
THE Floating Dock acquired by the Nigeria Maritime Administration and Safety Agency (NIMASA), was celebrated with funfair when it berthed in the nation’s waters on June 11, 2018. This was because it came five years after the idea of the facility was mooted.
Its construction started in 2014 in Damen, Netherlands, but was put on hold and re-started two years later. The dock, which is 125metres long and 35 metres in breadth, has three in-built cranes, transformers and some ancillary facilities.
A floating dock is a submersible structure used for dry docking and ship repairs.
Why floating dock?
The floating dock project was aimed at ensuring that ships of various sizes calling at the ports are able to repair their vessels and thus help save the country from capital flight as a result of dry docking vessels abroad. Sources estimated that Nigeria loses about N180 billion yearly to neighbouring countries due to lack of ship repair yards, hence it was seen as a laudable project.
According to the International Maritime Organisation (IMO), every vessel must undergo dry-docking once every three years to retain their safety classification and insurance cover. It costs between $300,000 and $500,000 to dry-dock a vessel, going by the prevailing international rates.
NIMASA Director-General (DG), Dr. Dakuku Peterside, said the agency’s multi-million dollar floating dockyard will save the country about N36 billion in capital flight yearly once it commenced operation. Besides, the investment in the facility, he noted, would create an enabling environment for the growth of indigenous participation in shipping, such that when fully operational, Nigerian ship owners and their foreign counterparts would no longer need to take their vessels outside the country for dry docking.
The facility, which is to be operated on a Public-Private Partnership (PPP) model was to be located at a facility of the Nigerian Navy. Peterside had assured at a briefing that the Floating Dockyard would commence operations after its inauguration by President Muhammadu Buhari.
“Nigeria loses up to $100million annually simply because when our ship owners need to dry dock their vessels, they take them to neighbouring countries like Ghana and Cameroun, thus spending the needed scarce foreign exchange. When this facility is fully operational, it has the capacity to dry-dock any vessel in the country and save the much-needed foreign exchange,” Peterside said, adding that it will create thousands of jobs for youths as well as provide training opportunities for seafarers.
Besides, the NIMASA floating dockyard is also to serve as a training facility for the students of the Nigerian Maritime University, Okerenkoko, Delta State and other maritime institutions in the country.
NIMASA explains
Following controversies that have trailed the dockyard project, especially its whereabouts, the cost of maintenance, location, among others, the NIMASA hierarchy last week confirmed that the project is constituting a drain on its resources, gulping over $30,000 daily for its maintenance.This is coming after months of speculation about the fate of the floating dock, which has been abandoned at the Naval dockyard, Victoria Island, Lagos.
Besides, Peterside confirmed that the design of the floating dock was for it to berth in Okerenkoko.
NIMASA’s Executive Director Operations, Rotimi Fashakin, said insecurity in the Niger Delta region made it difficult for the agency to berth the dock at Okerenkoko as originally designed. Now the facility lies idle at the Naval dockyard pending when the agency would get a permanent location to operate it.
“Initially, when the floating dock was acquired, the design was for it to berth in Delta State. But even at that time, there were a lot of reports advising to the contrary. There were lots of surveys advising to the contrary. These reports are still there.
“When we got here, we were forced to review all these reports and take a decision that we think would serve all the interests in the shipping community.
“The floating dock was not conceptualised by the Dakuku Peterside administration. We only inherited it just like the Buhari administration some inherited projects and went ahead to actualise them.
“Indeed, the floating dock was supposed to go to Okerenkoko in Delta State, but the conditions that exist now, for the dock to get to Okerenkoko is almost impossible. A dock is supposed to serve the shipping community as a commercial facility, but which company or vessel would be bold enough to travel to Delta State because of the insecurity?
“When the dock landed in Nigeria, there were various state governments that requested for it, all these are on record.
“When it came in, we thought of many ideas. First is to get an operator to operate it, but this is a government asset and not something you can just give to an operator. NIMASA is a regulator and not an operator, so giving the dock to an operator also needs to go through the bureaucracy of government.
“The other thing was getting a place to berth it. If you know the complexity of a floating dock, the draft that you need to keep it and operate it is 12 meters.
“The contractor was spending over $30,000 keeping the dock afloat for many months and we had to pay many months’ demurrage on that.
“Eventually, we reached a situation where we had an agreement with the Naval Holdings Limited, a subsect of the Nigerian Navy to keep the dock
‘’We are still looking forward to having a formal MoU, which we would have an operator operating the floating dock.
“The Navy also has a graving dock. The initial report shows that if that floating dock is operating as it is, it would imperil the graving dock. So, the Naval Holdings Limited suggested another spot where we could use it, a consultant was asked to assess the spot.
The report of the consultant is out. We would need to do some dredging at that spot where we can now operate the floating dock,” he said.
Stakeholders’ views
But stakeholders like the immediate past President, Shipowners Association of Nigerian (SOAN), Greg Ogbeifun, though he agreed that it would have been of tremendous help for the industry if the floating dock was put to work. He is sad at what he termed ‘secrecy’ in which the regulator handled the process, wondering if due diligence was conducted on the project by NIMASA.
“It is not just enough to acquire a floating dock; that is just a fraction of the requirement. Operating a dock and getting it to function is even more critical than owning one. As it stands, nobody is asking: ‘Where do we take this dock to? Where do we operate it from? Who will operate it and which market are they targeting?” he said in an earlier interview.
Ogbeifun, who lamented the huge investment NIMASA had committed in acquiring the floating dock, expressed fear that the facility may turn out to be “another white elephant project” if not immediately put to use as shipowners will continue to patronise ship repair and dry dock facilities outside the country.
Yet, some have blamed the regulator that it did not put in place adequate plans to build a facility where the vessel would be docked. Experts are unanimous in their recommendation that the platform should be deployed in the Niger Delta area, the core operational base of the oil and gas industry.
“Actually, it was what NIMASA used to justify its insistence on acquiring the dock. They maintained, that Nigeria was losing a lot of money from the hundreds of vessels servicing the oil industry that are forced to patronise docks in Cameroun and Ghana.
The floating dock was supposed to target those vessels. But with no plan on ground on how to manage and operate it, there is real danger that the dock will remain idle for many months more to come,”said a stakeholder, who pleaded for anonymity.
The maritime sector is a pool of wealth and catalyst for promoting a wide range of commercial activities, if fully utilised. Assistant Editor MUYIWA LUCAS writes that if properly harnessed this year, more revenue will be generated from this source.
ALTHOUGH the maritime industry stands as the second highest revenue earner for the country after oil, not much has been done to harness it.
With 10,000 kilometres of inland waterways, out of which 3,000km is navigable yearly and 840km coastline facing international waters, the country is Africa’s leading maritime state.
Stakeholders and experts have explained that the country’s inland waters, which connects about 28 states, possesses the potential to foster intra-country commerce in fishing, water transportation, tourism, and boat building
A further confirmation of the potential of the waters came from the Managing Director of National Inland Waterways Authority (NIWA), George Moghalu, who disclosed that the agency could generate more than 5,000 jobs.
Similarly, the President of Shipowners Association of Nigeria (SOAN), Mkgeorge Onyung, averred that the maritime industry, if fully tapped, could address 90 per cent of the country’s economic needs.
Moghalu identified poor awareness of the activities of NIWA as an area to be addressed. He also sees insecurity on the waters as a surmountable challenge.
He said: “I have been here barely two months; a lot of people don’t know about NIWA. A lot of people don’t know what NIWA stands for. A lot of people don’t know the responsibilities of NIWA. I see this as a challenge that has to be addressed.
“Unlike in the past, the resources available to government are not much anymore, so it requires us to think out of the box to think inwards to see what we can do to generate the needed resources internally, by a way of internally generated revenue to balance whatever you are going to get from the national purse.
“With that, we can carry out responsibilities of the authority. So, funding is also a major challenge. I will work to make the waterways attractive, to explore the tourism potential, business potential and many more.”
Onyung said the industry has the capacity for stronger national economic stability. According to him, the much-sought after oil sector also has a strong maritime component that strengthens it.
For instance, he noted that the recent final investment decision taken by shareholders of the Nigeria Liquefied Natural Gas (NLNG) on its Train 7 worth $10 billion can provide as much as $3 billion benefit to the shipping or maritime industry.
“We don’t need any other sector. The shipping sector can contribute 90 per cent of all that we need to make Nigeria prosperous.
“All we are asking for is ships. I am sure the government is seeing it. There was a slogan we were using very much, which is: ‘No Shipping, No Shopping’.
Without shipping, no one will be able to buy anything in the world. Shipping handles 90 per cent of global trade. You have a sector that can solve 90 per cent of your problems, why are you wasting time on other sectors?”
He therefore said the searchlight should be on shipping as a priority area.When borders were closed, the nation felt its effect more because it has no ships. “If we had ships on the waters, we wouldn’t know, if borders were closed or not.
“Train 7 of NLNG final investment decision has been made. We are talking about $10 billion that is going to be unlocked. Out of that huge amount, maybe 20 or 30 per cent of it, is going to involve shipping.
There is no way we are not going to get $3 billion from it through shipping, if we have ships to participate and that will create jobs, boost the economy and the money will remain in Nigeria,” he said.
But much as these stakeholders have identified potential to make the waters economic spinners, they also contend that certain measures must be put in place to make this happen.
Adequate policing
The waters have earned a record of notoriety for being one of the most unsafe maritime spaces in Africa. Piracy and sea robberies have not only increased cost, insurance and freight to the country from other parts of the world, but has threatened lives of crew members who suffered kidnapping for ransom.
Last December, two high- level piracy and kidnapping incidents involving tanker vessels in the Niger Delta area happened.
Experts, including former Secretary-General of Maritime Organisation for West and Central Africa (MOWCA), Magnus Addico, has called for creation of a regional coast guard.
But Moghalu said these might be challenging, but that they were surmountable. To this end, he revealed that NIWA was working with the marine police and Navy to address it.
Also, the President, Nigeria Association of Master Mariners (NAMM), Captain Tajudeen Alao, advised the government to create a dedicated coast guard for protecting the domain.
Alao said the coast guard could be carved out from marine police, navy and other security outfits to further safeguard the waters. According to him, the Navy should only come in for merchant vessel security upon invitation by the coast guards to solve specific issues.
They agree that deploying the navy in what should be coast guard function could be counterproductive and may not address maritime insecurity.
Funding
Critical maritime assets, such as access road to Baro River Port in Niger State, modern rail linking ports to Kaduna Dry Port and opening up of other dry ports across the country requires attention.
Not much has been done with funds provision to promote growth in these sub-sectors. Experts say once this is done, the channels will also contribute to the nation’s revenue.
CVFF
The industry waits anxiously for the promise by the government to release the Cabotage Vessel Financing Fund (CVFF), in the first quarter of the year. This, if done, would increase number of Nigerians participating in the industry, particularly in the lifting of crude oil dominated by foreigners.
THE Apapa Command of Nigeria Customs Service has re-rded N40,610,70,114.55 as Total Free on Board (FoB) value for the exports it processed last year.
Disclosing this recently, Customs Area Controller of the command, Mohammed Abba-Kura, said agricultural products, such as sesame seeds, cocoa, and processed wood, were part of export commodities processed.
He added that the command is strict in preventing the export of unprocessed wood while fully implementing the government import and export guidelines.
Abba-Kura, who said there was an improvement in port users’ level of compliance, also disclosed that the command recorded successes in the fight against smuggling with the seizure of 112 containers of various cargoes.
He said: “For anti-smuggling in the period under review, we seized 112 containers of various items, but the majority of the consignment we seized were drugs.
“Drugs of various types were also seized. Like 47 of them were drugs that were not registered by National Agency for Food Drug Administration and Control (NAFDAC), so they are not fit for human consumption in Nigeria, but the importers went ahead to import them.
“Definitely, we cannot close our eyes and allow such to enter the country. They violated the law, so we seized them.
“Then, we seized about 16 containers of tramadol, 18 containers of vegetable oil, 18 containers of tomato paste and we had one container of used tyres, which they declared as used spare parts , we had some containers of rice, two containers of new empty bags of 50kg rice. It was printed with various brand names.
“So, you see with that maybe their intention was to use them for different purposes. They may decide to use foreign rice that they smuggled in they can put them in those bags and sell. They can put foreign rice that is expired. They can as well use locally made rice as foreign to deceive Nigerians.
“There is real improvement and if you compare it to last year you will see what we are talking about.”
On trade dispute resolution, Abba-Kura said 95 percent of cases brought up in the command were resolved within. He added that those who took their cases to higher authorities had their issues resolved in favour of the command’s earlier positions
“We resolved more than 95 percent of the disputes here within and those who feel like they don’t believe in our argument have the right to escalate upstairs or to headquarters. Most of those that even went higher are coming back to agree in our own favour,” he said.
On impact of ongoing partial border closure on port activities, he said there are lots of advantages because some of our neighbours were not following the best practices in international trade. According to him, anything coming from that side to Nigeria is transit cargo.
So, any goods or consignments coming in as transit must meet up with the standard. One, it must be inside a container.
Two, it must have all the necessary things like having a seal and that seal must be the original seal that is on the manifest and on the bill of laden. Three, it should come intact without any interference.
He explained that the unwholesome practice usually employed by some unscrupulous traders was to unload the containers then put the loads into trucks and bring them into Nigeria, especially from Benin Republic.
He said this was against the principles of transit as such, goods must come in its original form.
“My advice is that they should be compliant in their declarations and we are going to carry over most of the policies or strategies that we adopted in 2019.
We’ve laid a very good foundation, so we are going to continue on that. Like the open door policy, we attend to complaints as at when due. We give importers or their representatives their rights according to the rules and regulations.
“If they have complaints we attend to them and in the course of attending to those complaints, we look at our laws, books, notices and circulars and we will present it to them.
We don’t do things by guess work. If you say you have a container of particular item and may be the officers in the field upon their examination discovered that, your classification is not right then, you bring your evidence to defend your argument or position, we will look at it together and we will convince the importer or his representative on why our argument is superior. The tariff is there and the explanatory notes are there,” Abba-Kura said.
The Nigerian Ports Authority (NPA) Managing Director, Ms Hadiza Bala Usman, told The Nation that the agencies, terminal operators and stakeholders must key into the government’s initiative of promoting the SW platform to meet the 48-hour cargo clearance deadline.