The Nation Newspaper

Category: Maritime

  • Fed Govt goes tough on arbitrary port charges

    Plans are under way by the President Muhammadu Buhari administration to end arbitrary charges at the nation’s sea ports, The Nation has learnt.

    The Federal Government, it was gathered, has finished its study of the various tariffs across ports in West Africa, and determined to ensure that Nigerian ports are competitive compared to its neighbours.

    Speaking with The Nation at the weekend, a senior official of the Federal Ministry of Finance (FMoF), who craved anonimity, said the government was reviewing the concession agreement to make the ports attractive and competitive by eliminating the legion of arbitrary charges importers and their clearing agents are being made to pay by the private terminal operators.

    The President Muhammadu Buhari administration, the official said, was going tough on arbitrary charges based on the economic diversification agenda of the government.

    “Through the on-going review of the concession agreement, the Federal Government was determined to check the excesses of the private terminal operators by ensuring that things like arbitrary tariff by terminal operators will be checked

    “The review of the concession agreement by the government  will further sanitise the sector and enhance smooth operations and clearance of cargo at the ports.

    “Many illegal payments that contribute to making Nigerian ports  non-competitive in the West African region will soon be eradicated and the review will boost the ease of doing business initiative of the government,” the source said.

    The new operations rate as contained in the review agreement, the FMoF official said, cannot be circumvented by the private terminal operators.

    In the proposed review agreement exclusively sighted by The Nation, it is now mandatory for all terminal operators “to use their best efforts to do the following: •develop, market and promote cargo throughput and cargo-related business of the lease property in order to achieve maximum utilisation thereof in a manner that  is consistent with applicable law and prudent industry standards; and • ensure that there is no decline in the standards of the operations; •the lessee shall perform the operations in such a manner as to achieve the performance requirements in the applicable years of the term. •the lessee shall ensure that the operations rates shall be in accordance with applicable laws and competitive within the port and with other competing ports of Nigeria and its neighbours having facilities similar to the lease property.

    Read also: Publish vehicles charges, importers urge Customs

    • the lessee shall charge cargo dues and delivery charges for the operations which are not greater than the rates set forth in Section A of Appendix H (the “Operations Rates”) in accordance with the terms and conditions included therein.
    • The lessee shall not make any increases in the operations rates unless agreed to in writing by the parties and any required consents of governmental authorities have been obtained.
    • Value added taxes and other taxes shall be added as required to the accounts rendered to the lessee’s customers.
    • Income from the operations rates shall accrue directly to the lessee without any collection, deduction or set off by the lessor or the regulator.
    • The lessee shall also be allowed to charge for other services rendered but not specified in Appendix H, including but not limited to: terminal handling, inland container depot transfers. storage and for penalties for violation of applicable rules and regulations set down by the lessee.
    • The level of terminal handling charges and inland bonded terminal transfer charges shall not exceed the market rates charged by the shipping agents and the lessor respectively prior to this agreement, and any future-increases shall require the consent of the relevant governmental authorities.

    The Federal Government through the Nigerian Ports Authority (NPA), the FMoF official said, was coming up with stiffer penalty for any terminal operator that refused to publish it’s operations rates from time to time.

    “Terminal operators shall at all times publish their rates, charges and conditions of the operations as may be  directed by the lessor, the NPA or the regulator, the Nigerian Shippers Council shall make such information immediately available upon request by any person

    “Terminal operators shall afford to all who may request the operations uniform treatment under like conditions and shall not apply discriminatory charges on any person. For the avoidance of doubt, the provisions of this Section shall not prohibit the lessee from granting preferential rates in accordance with the provisions set out in Sub Section (e).

    “lf preferential rates are applied to any customers of the lessee, the lessee shall inform the lessor and if applicable, the regulator in writing of the same. If the lessor can show to the satisfaction of the regulator,  that the preferential rates applied by the lessee are discriminatory, the lessor shall have the right to instruct the lessee to apply such rates to all other similar customers of the lessee using the operations and the lease property.

    “ Other than in circumstances where the lessee charges preferential rates, if the lessee is not able to charge the operations rates and/or other charges referred to in sub-section (b) above to its customers, the lessee shall refer the matter to the regulator for determination of the rates chargeable.

    “ In the event that the lessor or any other governmental authority receives a complaint of discrimination on the part of the lessee, and the regulator, concludes after its investigation of such complaint that there are reasonable grounds for such complaint, then the lessee shall immediately cease and desist from such practices and pay any applicable penalties provided for under applicable law,” he added.

    To complement government efforts  in repositioning the ports for greater efficiency and competitiveness, the FMoF official said there must be synergy between  NPA and the Nigerian Shippers Council (NSC).

    The Minister of Transport, Mr Rotimi Amaechi, the official said, must ensure that the NPA, as  the landlord and the Shippers Council, as the Ports Economic Regulator work together for effective enforcement of the provisions of the new concession agreement.

    The FMoF official said the lack of necessary synergy and proper understanding between the two agencies was responsible for the impunity with which the terminal operators are violating the concession agreement.

     

  • Reduce high interest rate, CBN urged

    The Central Bank of Nigeria (CBN), has been asked to reduce interest rates to enable ship owners upgrade their facilities and compete with foreigners.

    In an interview with The Nation in Lagos, stakeholders urged the government to build a vibrant investment climate for the maritime sector.

    Former Chairman, House Commit-tee on Legislative Compliance, Mr. Moruf Akinderu-Fatai, said there should be policies to create linkages between the maritime industry and other sectors, such as banking and manufacturing.

    He suggested measures like dedicated institutional financing mechanism for the shipping and maritime sector, a comprehensive maritime regulatory policy, to clearly delineate the role and responsibilities of the government and private sector in the development of the maritime sector.

    The purchase of modern vessels, Akinderu-Fatai, a shipper,  said, would also provide jobs for millions of Nigerians and the restive youths across the country.

    He said there was need for a sustained partnership between the private and public sectors for effective funding.

    The country, acccording to him, has not enjoyed the commercial benefits of transporting large quantities of cargoes because local ship owners lack the necessary capital.

    He suggested that the Federal Government should integrate maritime education and training into the national university system so that Nigerians who are interested in seafarers’training can get the  education needed to promote the sector.

    While lamenting the lack of foreign exposure for better performance, he said many operators were bugged down with only practical experience, with little or no academic performance.

    “There is need for more government intervention aside from CVFF to actively encourage the banking sector to support local ship owners to acquire modern fleet, which can sail anywhere in the world,” he said.

    Also, the former President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said 60 per cent of the inward and outward bound seaborne trade in the West and Central Africa sub-region passes through the nation’s waterways and called on the CBN Governor and the Minister of Transport, Mr Rotimi Amaechi, to assist in developing the maritime industry.

    He said the country needs to expand its merchant fleet based on the high volume of bulk liquid, gas and dry cargoes that pass through its waterways.

    “The fleet to carry the enormous quantity of cargo is estimated at 200 size tankers including combo general cargo vessels and liquefied natural gas vessels,” he said.

  • Shippers to Fed Govt: pay attention to port infrastructure

    The Shippers’ Association of Lagos State (SALS) has urged the Federal Government to pay more attention to port infrastructure.

    The government, the group said, should position the ports to meet international best practices.

    Its President, Mr Jonathan Nicol,  gave the charge in a chat with The Nation.

    He called for the resuscitation of the informal sector of cargo management.

    According to him, the informal sector will contribute about 45 per cent of the total cargo throughput (imports and exports).

    He said  there was need to rebuild dead infrastructure at the ports to enable individuals in the sector to assist in nation-building.

    The Executive Secretary, Nigerian Shippers Council, Mr Hassan Bello, advised members of the group to export, especially non-oil items.

    Bello said so far, 27 shippers associations have been established across the country. He said these associations are formidable bodies for cargo protection.

    “Shippers should endeavour to channel efforts into export-ation of value-adding non-oil exports to generate revenue.

    “The Council is committed to protecting the cargo interest of Nigeria and also enjoins you to remain compliant with both national and international rules guiding global trade practices.

    “The SALS have been very active. I must commend them for their doggedness and laudable ideas and I hope they continue,” Bello said.

    Also, a maritime lawyer, Mr Doipo Alaka, said there was the need for operators to embrace maritime arbitration to resolve issues which emanated from their business.

    He said arbitrators had been in existence for more than 10 years, adding that the arbitrators had assisted several port operators to solve maritime disputes.

     

  • Fed Govt goes tough on arbitrary port charges

    Plans are under way by the President Muhammadu Buhari administration to end arbitrary charges at the nation’s sea ports, The Nation has learnt.

    The Federal Government, it was gathered, has finished its study of the various tariffs across ports in West Africa, and determined to ensure that Nigerian ports are competitive compared to its neighbours.

    Speaking with The Nation at the weekend, a senior official of the Federal Ministry of Finance (FMoF), who craved anonimity, said the government was reviewing the concession agreement to make the ports attractive and competitive by eliminating the legion of arbitrary charges importers and their clearing agents are being made to pay by the private terminal operators.

    The President Muhammadu Buhari administration, the official said, was going tough on arbitrary charges based on the economic diversification agenda of the government.

    “Through the on-going review of the concession agreement, the Federal Government was determined to check the excesses of the private terminal operators by ensuring that things like arbitrary tariff by terminal operators will be checked

    “The review of the concession agreement by the government  will further sanitise the sector and enhance smooth operations and clearance of cargo at the ports.

    “Many illegal payments that contribute to making Nigerian ports  non-competitive in the West African region will soon be eradicated and the review will boost the ease of doing business initiative of the government,” the source said.

    The new operations rate as contained in the review agreement, the FMoF official said, cannot be circumvented by the private terminal operators.

    In the proposed review agreement exclusively sighted by The Nation, it is now mandatory for all terminal operators “to use their best efforts to do the following: •develop, market and promote cargo throughput and cargo-related business of the lease property in order to achieve maximum utilisation thereof in a manner that  is consistent with applicable law and prudent industry standards; and • ensure that there is no decline in the standards of the operations; •the lessee shall perform the operations in such a manner as to achieve the performance requirements in the applicable years of the term. •the lessee shall ensure that the operations rates shall be in accordance with applicable laws and competitive within the port and with other competing ports of Nigeria and its neighbours having facilities similar to the lease property.

    • the lessee shall charge cargo dues and delivery charges for the operations which are not greater than the rates set forth in Section A of Appendix H (the “Operations Rates”) in accordance with the terms and conditions included therein.
    • The lessee shall not make any increases in the operations rates unless agreed to in writing by the parties and any required consents of governmental authorities have been obtained.
    • Value added taxes and other taxes shall be added as required to the accounts rendered to the lessee’s customers.
    • Income from the operations rates shall accrue directly to the lessee without any collection, deduction or set off by the lessor or the regulator.
    • The lessee shall also be allowed to charge for other services rendered but not specified in Appendix H, including but not limited to: terminal handling, inland container depot transfers. storage and for penalties for violation of applicable rules and regulations set down by the lessee.
    • The level of terminal handling charges and inland bonded terminal transfer charges shall not exceed the market rates charged by the shipping agents and the lessor respectively prior to this agreement, and any future-increases shall require the consent of the relevant governmental authorities.

    The Federal Government through the Nigerian Ports Authority (NPA), the FMoF official said, was coming up with stiffer penalty for any terminal operator that refused to publish it’s operations rates from time to time.

    “Terminal operators shall at all times publish their rates, charges and conditions of the operations as may be  directed by the lessor, the NPA or the regulator, the Nigerian Shippers Council shall make such information immediately available upon request by any person

    “Terminal operators shall afford to all who may request the operations uniform treatment under like conditions and shall not apply discriminatory charges on any person. For the avoidance of doubt, the provisions of this Section shall not prohibit the lessee from granting preferential rates in accordance with the provisions set out in Sub Section (e).

    “lf preferential rates are applied to any customers of the lessee, the lessee shall inform the lessor and if applicable, the regulator in writing of the same. If the lessor can show to the satisfaction of the regulator,  that the preferential rates applied by the lessee are discriminatory, the lessor shall have the right to instruct the lessee to apply such rates to all other similar customers of the lessee using the operations and the lease property.

    “ Other than in circumstances where the lessee charges preferential rates, if the lessee is not able to charge the operations rates and/or other charges referred to in sub-section (b) above to its customers, the lessee shall refer the matter to the regulator for determination of the rates chargeable.

    “ In the event that the lessor or any other governmental authority receives a complaint of discrimination on the part of the lessee, and the regulator, concludes after its investigation of such complaint that there are reasonable grounds for such complaint, then the lessee shall immediately cease and desist from such practices and pay any applicable penalties provided for under applicable law,” he added.

    To complement government efforts  in repositioning the ports for greater efficiency and competitiveness, the FMoF official said there must be synergy between  NPA and the Nigerian Shippers Council (NSC).

    The Minister of Transport, Mr Rotimi Amaechi, the official said, must ensure that the NPA, as  the landlord and the Shippers Council, as the Ports Economic Regulator work together for effective enforcement of the provisions of the new concession agreement.

    The FMoF official said the lack of necessary synergy and proper understanding between the two agencies was responsible for the impunity with which the terminal operators are violating the concession agreement.

     

  • Reduce high interest rate, CBN urged

    The Central Bank of Nigeria (CBN), has been asked to reduce interest rates to enable ship owners upgrade their facilities and compete with foreigners.

    In an interview with The Nation in Lagos, stakeholders urged the government to build a vibrant investment climate for the maritime sector.

    Former Chairman, House Commit-tee on Legislative Compliance, Mr. Moruf Akinderu-Fatai, said there should be policies to create linkages between the maritime industry and other sectors, such as banking and manufacturing.

    He suggested measures like dedicated institutional financing mechanism for the shipping and maritime sector, a comprehensive maritime regulatory policy, to clearly delineate the role and responsibilities of the government and private sector in the development of the maritime sector.

    The purchase of modern vessels, Akinderu-Fatai, a shipper,  said, would also provide jobs for millions of Nigerians and the restive youths across the country.

    He said there was need for a sustained partnership between the private and public sectors for effective funding.

    The country, acccording to him, has not enjoyed the commercial benefits of transporting large quantities of cargoes because local ship owners lack the necessary capital.

    He suggested that the Federal Government should integrate maritime education and training into the national university system so that Nigerians who are interested in seafarers’training can get the  education needed to promote the sector.

    While lamenting the lack of foreign exposure for better performance, he said many operators were bugged down with only practical experience, with little or no academic performance.

    “There is need for more government intervention aside from CVFF to actively encourage the banking sector to support local ship owners to acquire modern fleet, which can sail anywhere in the world,” he said.

    Also, the former President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said 60 per cent of the inward and outward bound seaborne trade in the West and Central Africa sub-region passes through the nation’s waterways and called on the CBN Governor and the Minister of Transport, Mr Rotimi Amaechi, to assist in developing the maritime industry.

    He said the country needs to expand its merchant fleet based on the high volume of bulk liquid, gas and dry cargoes that pass through its waterways.

    “The fleet to carry the enormous quantity of cargo is estimated at 200 size tankers including combo general cargo vessels and liquefied natural gas vessels,” he said.

  • Shippers to Fed Govt: pay attention to port infrastructure

    The Shippers’ Association of Lagos State (SALS) has urged the Federal Government to pay more attention to port infrastructure.

    The government, the group said, should position the ports to meet international best practices.

    Its President, Mr Jonathan Nicol,  gave the charge in a chat with The Nation.

    He called for the resuscitation of the informal sector of cargo management.

    According to him, the informal sector will contribute about 45 per cent of the total cargo throughput (imports and exports).

    He said  there was need to rebuild dead infrastructure at the ports to enable individuals in the sector to assist in nation-building.

    The Executive Secretary, Nigerian Shippers Council, Mr Hassan Bello, advised members of the group to export, especially non-oil items.

    Bello said so far, 27 shippers associations have been established across the country. He said these associations are formidable bodies for cargo protection.

    “Shippers should endeavour to channel efforts into export-ation of value-adding non-oil exports to generate revenue.

    “The Council is committed to protecting the cargo interest of Nigeria and also enjoins you to remain compliant with both national and international rules guiding global trade practices.

    “The SALS have been very active. I must commend them for their doggedness and laudable ideas and I hope they continue,” Bello said.

    Also, a maritime lawyer, Mr Doipo Alaka, said there was the need for operators to embrace maritime arbitration to resolve issues which emanated from their business.

    He said arbitrators had been in existence for more than 10 years, adding that the arbitrators had assisted several port operators to solve maritime disputes.

  • Stop Ports’ venture with Depasa, Buhari urged

    President Muhammadu Buhari and the Federal Executive Council (FEC) have been urged to prevail on the board of the Nigerian Ports Authority (NPA) not to renew the Joint Venture (JV) agreement between the organisation and Depasa Marine International because of the inability of the JV to perform its core responsibilities to NPA.

    Depasa is a limited liability company, whose registered office is at Westerkadi, 7a, 3016 CL, Rotterdam, Holland,

    Investigation conducted by The Nation revealed that the JV was entered into in 2005 by the NPA and Depasa to form the Lagos Channel Management (LCM) Limited by virtue of the NPA’s enabling Act Cap. N126, Law of the Federation of Nigeria, 2004 .

    Under the Act, the  NPA is charged with the responsibility of exclusive maintenance of the channels that provide access to the nation’s sea ports and may carry this out through any other person authorised by it.

    Speaking with The Nation at the weekend, a senior official of the Federal Ministry of Transport (FMoT), who craved anonymity, alleged that few years after the JV was entered into, the company abandoned its responsibility of training NPA workers in the core areas of ports operations.

    In the agreement exclusively seen by The Nation, the business of the company include the following:

    • Maintenance and dredging of Lagos Channel and ports; •Capital dredging of Lagos Channel (where necessary); •Quarterly bathymetric surveys in Lagos channel and ports; •Buoy maintenance and surveillance in Lagos Channel and ports; •Planning and management of dredging operations in Lagos channel and ports; •Assist in the monitoring of vessels using Lagos channel and ports; •Wreck removal in the Lagos channel and ports; •Visual pollution monitoring and reporting operation in Lagos channel and ports and •Management training of the NPA’s staff with respect to the foregoing.

    A senior official of the FMoT said the JV was skewed in favour of Depasa because the firm has failed to train many NPA workers because majority of them are not in management cadre.

    “The agreement was entered into more than 13 years ago. Let Depasa or LCM publish the names,  number of ‘NPA staff  they have trained through the JV since the commencement of the agreement,  where they were trained and the amount expended on them, to date,“ the source said, adding that some of those that were purportedly trained through the JV, were only taken abroad by the company to collect estacode.

    “The dearth of skilled manpower to manage and utilise the NPA’s equipment and facilities after the retirement of over 70 per cent of the management and senior staff of NPA in the last three to four years, is based on the fact that the JV was skewed in favour of Depasa.

    “ Thirteen years after, the question President Buhari and the FEC must ask Depasa is how many current staff of NPA have competency in wrecks removal, capital and maintenance dredging, bathymetric surveys, maintenance of buoy, vessels monitoring, surveillance and pollution control among others,” the FMoT official asked.

    He also pointed out that the JV agreement failed to specify the number of staff of NPA the company must have trained before the end of the 15 years agreement.

    “The board and the management of NPA must go back and study the JV agreement very well, and correct where they deliberately made mistakes for the NPA and the country to regain its lost glory in the management of ports operations.

    “‘The NPA is empowered by law to safeguard an optimal nautical access through Lagos Channel to the Lagos Ports with a view to securing safe and efficient operations;

    “No wonder, the Federal Government of Nigeria in line with its policy on Port Reform, was desirous of promoting private sector investment and participation in the development and operation of public utilities and infrastructures.

    “ It was in pursuance of the foregoing policy, the NPA for itself and on behalf of the Federal Government of Nigeria invited proposals from interested qualified and technically competent private sector operators to carry out capital and maintenance dredging, bathymetric surveys, buoy maintenance, surveillance, visual pollution monitoring and reporting operation and other ancillary functions, particularly as contained in Clause 4 of the agreement.

    “The NPA in line with the policy of the Federal Government of Nigeria has recommended to the Federal Government of Nigeria that a separate and distinct Joint Venture Company be floated to Operate and manage the Lagos Channels and Ports to enhance efficiency and viability.

    “The recommendation of the NPA was accepted by the Federal Government of Nigeria and machineries were set in motion with a view to implementing same thereby culminating in the incorporation of the LAGOS CHANNEL MANAGEMENT LIMITED as a Private Limited Liability.

    “The company was given the mandate to maintain the Lagos channel and ports for safe and accessible navigation.

    “ DEPASA submitted its proposal dated August, 2004  and presented itself as a world class private operator specialised in dredging, marine and port engineering, marine infrastructure and long term marine project development and management and capable of implementing workable and feasible financial structures to the benefit of NPA Nigeria and Nigerians.

    “The NPA accepted Depasa’’s proposal and obtained the approval’ of the President of the Federal Republic of Nigeria, Chief Olusegun Obasanjo, dated 7th June, 2005 for the parties to enter into the J V.

    Investigation conducted by The Nation revealed that the former Minister of Transport, Dr A.S. P. Sekibo, made the recommendation for approval for the JV  on 7th June, 2005 and got the Presidential approval the same day.

    The JV agreement, investigation revealed, has an initial 15 years which is renewable only through mutual consent of the Federal Government through NPA and Depasa.

    The agreement, it was learnt, is governed by, and construed in all respects in accordance with Nigerian law.

  • ‘Warri Port dredging ‘ll be completed soon’

    THE dredging of the Warri Port in Delta State, to seven metres draught, will be completed soon, the Nigerian Ports Authority (NPA) Managing Director, Ms Hadiza Bala Usman, has said.

    The low draught of the port, importers and clearing agents said, has made the Warri and Calabar ports unattractive for business.

    Ms Bala Usman assured importers, exporters, operators and clearing agents that after the dredging of the port channel business would pick up. Meanwhile, she advised shipping companies on the axis to deploy flat bottom vessels (FBVs) to solve draught challenge.

    She said the quick completion of the dredging would enhance shipping services in the Delta area and open it up for business.

    “The dredging of the Warri Port to seven metres will be completed within the next two month, and this will go a long way in reducing the congestion we are having in Lagos Port and also in providing access for cargoes, particularly petroleum products coming into the country through the Delta port,” Mrs Usman said.

    On the Calabar Port, she said estimation for the dredging of the channel has been put at N50 billion but has yet to be finalised. She, however, said dredging of the channel to Calabar Port would be executed with NPA’s internally-generated revenue.

  • Customs rakes in over N26b in Onne

    The Nigeria Customs Service (NCS), Onne Command, Area II,  Rivers State, generated N26,388,754,244.37 from duty paid on imported goods between August 16  and this month.

    The command also recorded 10 seizures of prohibited items with duty paid value (DPV) of N543,958,740 within the same period. Area Comptroller Aliyu Saidu said the impounded goods included rice and military uniforms.

    Some of the seized items included 1,070 25-litre jerry cans of vegetable cooking oil with DPV of N8,501,322; 55 20-feet container of foreign rice, which contained 510 50kg bags of rice, 1040 25kg bags of rice, 19,680 10kg bags of rice with total DPV of N364, 746,762; and a 40-feet container comprising 600 pairs of military camouflage uniforms, 600 pairs of military caps, 600 pairs of military jungle boots: all are prohibited items and therefore, has no monetary value as regards duty payment.”

    According to the Area Controller, “found in the same 40-feet container are 15 bales of new clothes, 80 rolls of water hose, 10 cartons of singlets, 50 cartons of shoes, 207 cartons of tiles, 15 bales of socks, five sacks of ladies’ skirt and other items with DPV of N4,682,021 used to conceal the military uniforms.”

    Other seized items, he said, were 13,560 cartons of tomato paste with DPV of N70,502,283; and a 40ft container of car parts, among others.

    Giving a comparative analysis of the command’s revenue profile, Saidu said it generated N62,593,334,451 between January and October, 2017 while it generated N68,331,473,662 in the corresponding period this year.

    He also said the command was facilitating export trade in oil and non-oil sector, and had so far generated through export into National Export Supervision Scheme (NESS) account N1.42 billion.

    He, however, condemned smuggling in the country despite the awareness and dire consequences of the act, saying that it poses a “high threat to both the economy and security of the country and this is why those engage in it are considered economic saboteurs since they engage in false declarations to evade the correct duty payment. They are the destroyers of the country’s economy”.

    “The Command under my watch will continue to deal decisively with the economic saboteurs, their agents and collaborators, and work for the security and well-being of the people of Nigeria,” he said.

     

  • ‘Nigeria to rake in over $400m from ship chandling’

    The Nigeria Maritime Administration Safety Agency (NIMASA) has put in place measures that will ensure the country rakes in over $400 million yearly from ship chandling business, The Nation has learnt.

    Its Director-General Dr Dakuku Peterside, it was gathered has developed a robust initiative that will end foreign domination of the business and create jobs for many Nigerians in ship chandling.

    A senior official of the Federal Ministry of Finance (FMoF), who craved anonymity told The Nation, that Peterside was unhappy that foreigners and non-professional chandlers were responsible for the supply of essential commodities to ships, including  Floating Production Storage Offshore Vessels (FPSOVs), oil rigs, platforms, supply boats and LNG vessels.

    He said the illegal practice had been causing capital flight.

    Many foreigners and non-professionals have taken over ship chandling industry due to lack of regulation by agencies saddled with the responsibility of supervising the operators.

    The official alleged that some of those currently in the business obtained their licences from the Nigeria Customs Service (NCS).

    Peterside, the official said, is making the current move to ensure that there is updated record of authentic professionals in the business.

    “Lack of regulation of the profession was partly responsible for the criminal activities on the nation’s territorial waters and that is why NIMASA is taking the bold move to end the cycle of criminalities in our waters and seas.”

    He described the business as a most lucrative one in the maritime sector. Ship chandling, a business established in Nigeria through an Act in 1958, is made up of retail dealers who specialise in the supply of equipment and goods for ships, known as ships’ stores.

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

    Others are brooms, mops, galley supplies, leather goods, and paper. Items that could be supplied by the modern day chandlers range from foodstuff, drinks, oil, engine oil, water,  spares to materials that the Captain of the ship may require.

    Former President,Nigeria Licensed Customs Clearing Agents (ANLCA), Prince Olayiwola Shittu, said though the Local Content Act was meant to address such issues, the Nigerian Content Development and Monitoring Board was yet to understand the dynamics of the local content in ship chandelling.

    He said the country loses billions of naira yearly due to the low level of activities in the ship chandelling sub-sector. He urged Peteride and the agency’s Board to co-ordinate the statues guiding ship chandelling to harness it to create jobs for the youth and boost the economy. He pointed out that ship chandelling needs funds to meet the demands of the crew.

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

    The ANLCA chief said the association was worried that the legislation guiding ship chandelling had been in comatose, a situation, which allowed the profession to stagnate, adding that the Customs and Excise Management Act (CEMA), Section 24, which regulates ship chandelling, has not been reviewed since 1968 to reflect the new business trend. Shittu said the Nigeria Customs Service (NCS) has the power to enforce as well as carry out the requisite training to understand the dynamics of how this aspect of the maritime business is run.

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

    Shittu said the continuous refusal of foreign ship operators to make use of indigenous chandlers contravenes the Local Content Act aimed at growing indigenous firms and creating jobs.

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

    But an importer, Mr Shola Adedayo, alleged that port operators were charging indigenous chandlers heavily, collecting about 20 per cent of the total cost of the goods to be supplied. “They collect the money before they allow the goods to pass through their terminals for supply to the crew inside ships,” he said. Ship chandelling is regulated by an international body known as the International Ship Suppliers Association (ISSA), formed in 1955.