The Nation Newspaper

Category: Maritime

  • Shippers Council to stop ‘arbitrary port charges’

    The Nigeria Shippers’ Council (NSC) is determined to stop arbitrary charges to make the ports attractive for business, The Nation has learnt.

    The NSC, sources said, was determined to resolve the problem caused by the concessioning of the seaports to private investors about 13 years ago.

    The council was taken to court by terminal operators and shipping companies after the government named it as the port economic regulator. The case is yet to be determined by the Supreme Court.

    A senior official of the Federal Ministry of Transport (FMoT) said the council and the ministry were resolute to achieve efficiency at the seaports.

    The source said the era of imposing arbitrary charges was over.

    The council, it was learnt, is worried that the operators are not increasing charges without following due process. Part of the agreement, the source said, was to call a stakeholders’meeting during which such charges would be discussed and approved before implementation.

    The operators and shipping firms, the official alleged, introduced new charges in the past without calling such a meeting.

    “These people went to court to challenge the appointment of the NSC as the port economic regulator. Despite the fact that the appointment of the NSC has been gazetted, they are still claiming that there is no law backing its appointment.

    “But they have forgotten that the agreement they signed with the ‘NPA was a mere agreement that has no single law of the federation backing it up and they have operated the port now for almost 13 years, without being gazetted not to talk of the law of the National Assembly.

    “It was this that prompted the agitation for the appointment of a commercial regulator to oversee the activities of stakeholders, including providers and receivers of shipping services. The freight forwarders had on many occasions gone on strike to protest the action of the service providers in increasing charges and for other deplorable conditions in the system. They had argued that this was so because there was no regulator to check the activities of the terminal operators and shipping companies, most of whom are sister companies of the terminal operators. It was based on this problem that stakeholders applauded the Federal Government when it approved the Shippers’ Council as the economic regulator,” the official said.

    Some stakeholders said it was time the government reformed the maritime sector, and reviewed it’s agreement with the operators.

    The  Chairman, Ports Consultative Council, Otunba Kunle Folarin, said: “If the port industry truly deserves to be productive, competitive, and earn a hub status in the region, it must reform and stop deluding itself.

    ”The colossal growth in traffic, environment and empowerment, which we deserve,will forever elude the country unless the entire industry is reformed to meet the performance level of the ports in the sub-region now husbanding Nigeria destination cargo traffic.

    “There is much more to do to achieve the objectives of unbundling and creating efficient and competitive ports environment.

    “The reforms must start now in an all-inclusive way; it must be total. That is the only way, and that is the way forward,” he said.

    Folarin, who was not happy with the situation of the port, said a typical shipping company’s debit note in Nigeria contained at least nine different elements of charges.

    These include: shipping line charges, container cleaning, container deposit, Maritime Organisation of West and Central Africa (MOWCA) charge, Nigerian Maritime Administration and Safety Agency (NIMASA) sea protection levy, MOWCA fee, freight levy, document release, demurrage charges, NIPOST stamp tax, and Value Added Tax.

    Currently, eight of these charges have generated dispute between the Nigerian Ports Authority (NPA), and the shipping companies, while four are a source of disaffection among importers, exporters and the terminal freight forwarders.

    Also, another four charges are being contested among shipping companies, importers, exporters and freight forwarders.

    Ports cost is a collective responsibility for both government and the private sector.

    Total port cost per a given cargo unit include Customs duty/taxes – 70 per cent, and Ports Terminal Operators – 13 per cent. The Nigerian Ports Authority’s share is negligible (+/-1%) excluding Customs duties, and comprises costs of handling, storage and delivery.

    To address the problem, Folarin said there was a need for deliberate government policy to reduce Customs duty and taxes; set up an effective and efficient single window platform; regulate infrastructure development especially in the port environment and common users’ areas.

    He emphasised the need for a stakeholders’dialogue, and encourage Public-Private Partnership in ports business, invest in modern facilities, and provide good quality human resources.

    The Executive Vice Chairman, Sifax Group, Taiwo Afolabi, said: “We are convinced that these are matters of immediate and practical concerns to every Nigerian, and more so to the regulatory authorities that need to harmonise and balance the conflicting viewpoints to the satisfaction of the stakeholders.

    “I recall as an industry player that the exchange rate (Naira to dollar) in Year 2016, for instance, when we became ports concessionaires was between N125 and N131 to a dollar. How much is the exchange rate today?

    “In other words, since many of the operations are expected to be discharged to the lessee in dollars, how much naira will be enough today to purchase the required dollars.

    “Thirteen  whole years after the historic concession, how do you generate that amount of naira in today’s national economy?

    “By what percentage will the cost of service be adjusted upward to reflect the astronomical changes in the foreign exchange regime? So many questions seeking answers,” he said.

    Chairman, Seaport Terminal Operators Associations of Nigeria (STOAN), Princess Vicky Haastrup said the operators were not to blame for the astronomical increase.

    “Some people are putting all the blames on terminal operators and I feel very disappointed.

    “The truth is that leadership is the problem. The government is the problem. I am not talking of this present leadership, the whole thing started from time immemorial. There was no sincerity on the part of government itself.

    “If you look at what is happening in Apapa today, there is no enabling environment.

    “The operators are losing money. We have invested heavily and what do we get back in return?

    “When we took over, dollar was N125, and today it is N362.

    ‘’NPA is there, Shippers’ Council is also there. What NIMASA charges is one of the highest in the world. Policy summersaults everywhere.

    ‘’Do we sit well and think deeply before changing policies?

    “There are whole lots of government agencies in the ports with a lot of charges, even stamps.

    ‘’You will see the government going around talking about Ease of Doing Business, are we supporting him? Is government supporting itself?

    ‘’Ports should be a one-stop shop, but I am sorry we are far from it because there is no sincerity on the part of anyone,” she said.

    Bello expressed optimism that the council would deliver on its mandate.

    The council, Bello said, was determined to meet the expectations of Nigerians in terms of port operation, efficiency and port charges.

    He assured genuine importers that irregularities and arbitrariness in the ports system would be addressed.

    The NSC, he assured, would look into the high cost of doing business at the ports, and what was responsible for the diversion of goods meant for ports to neighbouring ports of Cotonou.

    The immediate past President, Association of Nigerian Customs Licensed Agents (ANLCA), Prince Olayiwola Shittu, urged the council to review charges imposed on importers.

    Shittu noted that numerous charges were being imposed arbitrarily without due consultations among stakeholders, while soliciting for appropriate consideration for the importers/exporters whom are the basis for shipping because they generate cargoes.

  • Wanted: maritime data bank to halt N10b loss

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Dr Dakuku Peterside, has called for the establishment of Nigerian Maritime Data Bank (NMDB).

    A senior official in the Federal Ministry of Transport (FMoT), who craved anonymity, at the weekend, said the country loses over N10 billion yearly to inaccurate data in the maritime industry. The official said there was the need to bring integrity, transparency and accountability to bear on the operations of the maritime sector, hence the call for accurate data base for the sector.

    The FMoT official, who spoke with The Nation after the last week’s meeting between NIMASA and maritime reporters in Lagos, said there was need for the National Bureau of Statistics (NBS) to capture the contributions of the maritime sector in the Gross Domestic Product (GDP) to enable those who make use of the figures to grow the economy achieve better results.

    The FMoT official said it was time for the management of the NBS to address the question of publishing credible and up-to-date data to be consumed in the maritime sector.

    When established, NMDB, the official said, would be the first specialised data bank in the nation’s maritime industry.

    NMDB, according to the details of the project, will provide a high level of information services based on accurate, regular updates, efficient performance which leads to unlimited cost-effective information.

    Peterside, the official said, wants the NMDB to become the official information source approved by the government in the maritime transport field.

    The vision of the NMDB, according to him, include the following:

    It will provide all information needed for decision makers and people interested in the maritime transport industry through the NMDB website.

     

    Mission

    NMDB will enhance the performance of the Nigerian Maritime Transport Sector by providing all the accurate and certified information on time and with high quality to those working in the maritime industry using the latest information technology.

    Some of the objectives of the data bank, the FMoT official said, also include the following: NMDB will provide planners, decision-makers and researchers from various maritime fields with accurate information on all activities of the sector. It will enable foreign users to access the NMDB applications using the internet to benefit from the available services.

    It will also allow  connection with external and local entities in order to achieve the information integration concept.

    The ports subsystem, according to him, includes ship, cargo, container and passengers’ traffic as well as stevedoring and shipping lines performance among others.

    The bibliographic subsystems, according to him, also include the legislation regulating the nation’s maritime transport activities, researches and studies, selective dissemination, current awareness as well as the companies and entities operating within the maritime transport sector of the economy.

    NMDB services, according to him, are to:

    • provide informative and interactive services through NMDB official website to be created by the NBS;
    • develop various statistical reports, conducting specialised researches and economics studies; and
    • enable direct search in databases.

    Its periodicals and publications (multi lingual) would include: Statistical Yearbook: Analysed statistical and economical reports related to the country

    The FMoT official said there was need for stakeholders to support  the push for a single data window system of maritime activities so that data required will be available on a single platform, as a maritime data bank to foster the nation’s rapid economic growth.

    The dearth of credible maritime data, the official said, hinders transparency and accountability.

    “We are joining NIMASA to push for a single data window system in the maritime sector, whereby NIMASA, the Nigerian Ports Authority (NPA), Nigerian Shippers’ Council (NSC), Nigerian Customs Service (NCS) and other relevant government agencies in the sector will share a common platform for data on all vessels calling at our ports and the activities.

    “This will make it easy for the NBS to capture the contributions of the maritime sector to the GDP of the country and enable those who make use of the figures to grow the economy achieve tangible results,” he said.

    Other stakeholders said they supported the move by NIMASA to have a credible data bank for the industry.

    One of the stakeholders and a maritime lawyer, Mr Dipo Alaka, said the industry needed to be providing local and international organisations with credible data. He said the country needs to keep same for its own reference.

    He said: “It is sad we didn’t have data source on Nigerian maritime industry. I think as we plan to grow and diversify the economy, we should address the question of churning credible data to be consumed in-country’s maritime sector.

    “It is a pity that when students and stakeholders in the maritime industry or other operators are looking for data, the National Bureau of Statistics does not have the required  captured data about the maritime activities in the country.

    “Unfortunately, such concerns no longer seem an anomaly as the Nigerian maritime sector operates more or less in secrecy and obscurity. The dearth of data has remained a major challenge in accessing and  assessing the operations of the private terminal operators.

    “Indeed, for the entire gamut of the industry – from the time a vessel approaches our port to the time it berths to the time it starts discharging imports and moving the containers out of the port, exports and sales and the tonnage– the data value chain is unreliable and weakened, giving rise to lack of transparency and rabid corruption.”

    He said the lack of accurate data has made many to raise doubts on the accuracy of payments made by the terminal operators, importers, exporters and shipping companies to the government with respect to tax and royalty is an understatement.

    “There cannot be openness in darkness and that is why availability of data is important not only to aid planning and research, but also for transparency and containing impunity.

    “When there are gaps in essential information – as there are in the maritime sector– and the accuracy and validity of the data is widely questioned, it is easy to game such a system,’’ Alaka said.

     

  • Customs seizes N10b pangolin scales 

    The Nigeria Customs Service (NCS), Federal Operations Unit, (FOU), Zone A, Ikeja, said it has seized pangolin scales and elephant tusks valued at N10 billion in six months.

    A  worldwide ban on trade in pangolins was agreed to at a meeting of 181 nations, including Nigeria, at the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in September 2016.

    Prior to the ban, China legally imported some pangolin scales, mainly from Africa, for use in traditional Chinese medicine and the pharmaceutical industry.

    However, to enforce the global ban on the endanged animals, Customs officers siezed the pangolin at different locations in Lagos.

    Customs Area Controller of the unit,  Comptroller Mohammed Uba, at a recent briefing, praised the warehouse operation team under the leadership of Assistant Controller Mutalib Sule, who had made smuggling of pangolin and elephant tusks tough for Chinese nationals involved in the illegal trade.

    According to a source, the Warehouse Operation team had on   February 14  evacuated elephant tusk and pangolin scales valued at N2.3 billion at a warehouse in Ikeja while on March 16, another pangolin scale was intercepted by the same team at Opebi, Ikeja.

    In another operation on March 9   at another warehouse in Opebi, the warehouse operation team again intercepted N1.5 billion pangolin scales while on August 1, 21 sacks of pangolin and four pieces of elephant tusks estimated at N1.5 billion were intercepted at Oba Elegushi International Market, Ajah.

    However, the source who pleaded anonymity, said  of the four operations carried out by the  warehouse officers, Chinese are behind the illegal possession and alleged exportation of pangolin scales in Nigeria.

    The source also the suspects have been charged to court and have been granted bail by the court of law.

    She said: “Since the ban on trading on pangolin, Nigeria has made the lagest seizure of pangolin scales in the world with 13,203kg followed by Japan 7,000kg and all interception were done by the warehouse operations team led by Mutalib and assisted by SC Isah Adamu.

    “The seizure has raised global awareness for Nigeria zero tolerance for the exportation of the endangered species that the United Nation has indicated interest to kit Nigeria Customs for effective performance of their jobs.

    “The team has been able to enforce the international convention that no trade of pangolin in any domestic or international market because the animal is considered as an endangered specie and the scales cannot be got without making the animal extinct.”

    Adegbite Babajide praised the FOU, Zone A and the warehouse officers who made the interceptions.

    Adegbite said the warehouse officers have saved Nigeria what could have been an embarrassment in the international community.

    He said: “The warehouse Operation team should be appreciated for putting Nigeria on a world map in a positive way. They may have decided to take bribe and allow the Chinese export the contraband but they remained selfless and patriotic to the country by arresting the Chinese and evacuating the contraband.“

    He, however, suggested that the Comptroller-General should give them accelerated promotion and commendation letter for their exploit.

    “Giving them accelerated promotion and commendation letter personally signed by the Customs CG, Col. Hameed Ali is not out of place. Governments celebrate good deeds and condemn bad deeds. These officers have shown to be patriotic in the face of temptation so they should be celebrated,” Adegbite advised.

     

  • 2019 elections: Customs to deploy scanners in ports

    The Nigeria Customs Service (NCS) has okayed the deployment of scanners at seaports to check the influx of dangerous items into the country, it was learnt.

    Speaking with The Nation, its Area Controller, Tin Can Command Mr Musa Baba Abdullahi said the Service would deploy the scanners to boost 100 per cent cargo clearance.

    “With regards to the 2019 elections, the Service is trying to commission the scanners. Some of them are not there now, but the Service is working seriously to ensure that the scanners are put in place.

    “As soon as the scanners are put in place, we are sure of 100 per cent cargo examination through the scanners. At least,  we would be sure of what is coming, compared to the physical examination that is there now,  sometimes, human element can come in, sometimes you might forget certain things, which might end up being a serious issue,”he said.

    On the involvement of foreigners in cargo clearance at the seaports, Musa blamed the development on Nigerians.

    He called for a law that would  spell it out that certain jobs must be reserved for Nigerians, especially areas where we have the capacity and comparative advantage.

    “Our people prefer foreigners than Nigerians. We need to ask ourselves why it is so; many of the bike riders are from Chad, Niger etc, while those doing tilling are from Togo and Cotonou.

    “Nigerians have to change our attitude to work. Sincerely, we are not good managers. You can carry out an independent analysis of certain sectors; take note of the businesses, we work more, if we are controlled by foreigners.

    “For instance, if you give Nigerian companies, they run it aground. But if you bring in an expatriate from outside, they work hard for every seven days, you would find a Nigerian being engaged unofficially in some family issues and extended family issues. But for the expatriates, who is in the country for the job,  he would forget about those mundane things and focus on his job for 30 days,” he said.

  • Shippers laud NPA’s initiative on gridlock

    The Shippers’Association of Lagos State has praised the Nigerian Ports Authority (NPA) for taking steps to address the Apapa gridlock.

    Its President, Mr Jonathan Nicol ,  in an interview with The Nation  hailed NPA for addressing the traffic challenge.

    “In fact, it will ground the economy for a while. The action will definitely affect cargo throughput as most vessels will be diverted to other ports, especially the Republic of Benin and Togo to discharge their Nigeria-bound cargoes.

    “Shippers, importers and other traders will have an herculean task of moving their cargoes Nigeria through Seme and associated authorised border routes.

    “At the moment, the cost of transportation of containers in Lagos municipality has gone out of reach, forcing some industries to downsize their work force. Some are closing down operations already,” Nicol said.

    The association, he said, had started dialogue with major stakeholders in the maritime sector, especially with shipping lines and terminal operators to assist in averting a “state of emergency” in the sector.

    “We propose that all Dangote vehicles on the long queue in different locations be given free access into the ports as Dangote Group has effective holding bays in their terminals.

    “Maersk Line whose containers are more in the line-up of trucks should also be given free access to their Apapa terminals to discharge their empty boxes.

    “This serves as a concession to ease the over-stressed roads and bridges across routes from Maryland through Surulere to Marine Beach through Apapa port,” he said.

    Nicol suggested that NPA and the Shippers’Council should control local cost of transportation, adding that increase in haulage fees by truckers should be to be approved by the Council, which is the port economic regulator.

    The shipper urged NPA and the  Council to bring about an effective regulatory framework agreeable to port users.

    He described the association as “a private-driven vehicle to protect and speak for importers and exporters”.

    Nicol, however, suggested that the re-construction of the Apapa-Oshodi Expressway be put on hold.

    “The bad spots on the route should be repaired. The Apapa-Marine Beach Road must be completed and put in use before embarking on the Apapa-Oshodi Road re-construction,” he said.

  • NIMASA to create ship chandling jobs

    THE Nigerian Maritime Administration and Safety Agency (NIMASA) is contemplating creating jobs through ship chandling.

    The move, it was gathered, will save the government the huge revenue being wasted on ship supplies.

    Ship chandling – supplying equipment and goods – is a lucrative venture, in which NIMASA is determined to train many Nigerians.

    For traditional sailing ships, items that could be found in a chandler 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 the captain of the ship may require.

    A senior official of the Federal Ministry of Transportation ( FMoT) who craved anonymity, said the Local Content Act was meant to address issues of this nature, noting that the National Content Monitoring Board (NCMB) was yet to understand the dynamics of local content in ship chandling.

    The country, he said, was losing revenue to the low level of activities in ship chandling.

    The source said ship chandling needs a lot of funds to meet the demands of the crew.

    For instance, he said a crew of a ship of 5,000 Gross Registered Tonnage (GRT) would require about $50,000 monthly to buy foods, pharmaceuticals, oil, lubricants and other things for its trip.

    The ministry, he said, was worried that the law guiding ship chandling was not effective, adding that Section 24 of the Customs and Excise Management Act (CEMA), which regulates the business, has not been reviewed since 1968 to reflect new trends.

    He said the Nigeria Customs Service (NCS) has the power to provide the requisite training to understand the dynamics of how the business is run.

    “NIMASA and the 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 chandling to empower their youths and there is nothing wrong if we also tap into it,” the official said.

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

    Ship chandling is regulated by the International Ship Suppliers Association (ISSA). The business is central to the existence and social dynamics of ports and waterfront areas.

  • How to improve ports, by agents

    How can Nigeria become a hub of maritime operations in West and Central Africa? It is by the Federal Government backing the initiative of the Nigerian Ports Authority (NPA) to develop new port facilities to compete with others in the sub-region, clearing agents, have said.

    At a forum in Lagos,their spokeman and the immediate past president of Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said it was important for the government to promote the industry to benefit from the increasing cargo traffic across the globe.

    New facilities, Shittu said, should be designed by the Ministry of Transport to meet the needs of the industry while anticipating what would happen in future.

    He called on the government to fund maritime researches, saying the sector lacks in-depth investigation because of poor funding.

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

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

    The industry, Shittu said, was in dire need of a number of reforms.

    “New port facilities would help to bring the industry to international standards. The importers lamented that previous administrations, like most practitioners in the maritime industry, did not live by the rules guiding the profession, which they said has resulted in a number of problems in the sector.

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

    Shittu said the industry has projected for rapid and sustainable growth.

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

    To meet the manpower requirement for the nation’s fleet, Shittu  canvassed for robust, consistent, versatile and dynamic maritime policies, which are in tandem with global standards.

  • Importers abandon over N10b vehicles at Lagos ports

    About 6,000 vehicles worth over N10 billion have been abandoned by importers at the Lagos ports, investigation has revealed.

    The vehicles, imported through Apapa and Tin-Can Island ports, were abandoned because of the owners’ inability to pay the Customs Duty within the stipulated period.

    The Duty Paid Value (DPV) of about 1,000 of the vehicles, Customs sources said, is up to N4 billion.

    The market value of each of the vehicles is between N4 million and N4.5 million.

    A source close to the Federal Ministry of Finance said instead of the importers looking for ways to pay the duties and levies, they resorted to bribing some Customs officers. They also sought ways to ‘fly’ the vehicles out of the ports through “unscrupulous agents.”

    Over  3,000 of the vehicles, it was learnt, have been moved to some bonded terminals. Some are still at both terminals contributing to the ports congestion.

    The source alleged that some of the importers delayed payment until the vehicles were declared overtime cargoes. Their thinking, he said, is that such vehicles will be sold to them later at very cheap rate through auction.

    But the Nigeria Customs Service (NCS) had since eradicated the old system of auctioning seized vehicles and goods. It has yet to bring the vehicles up on its e-platform for auctioning.

    An official of one of the bonded terminals where about 1,500 of the vehicles are, said some importers abandoned some of the vehicles declared as overtime cargoes when they realised that they have to pay 70 per cent duty and levies to clear them.

    One of the importers, Mr Samson Benjamin said: “As importers, part of our efforts was to ensure that we patronise Nigerian  ports and don’t divert our cargoes to the ports of neighbouring countries, but rather than this gesture being recognised and compensated, the Federal Government through the NCS is busy breathing down on our necks, asking us to pay 70 per cent duty and 70 per cent levy on every brand new vehicles imported into the country.

    “ Ditto used vehicles. We have to pay 35 per cent duty and 35 per cent levy. When you calculate all the amount involved, you will understand the reason why people abandoned their vehicles.

    “We have invested heavily on each of the vehicles abandoned at the ports. We ought to be encouraged. Even some of those the government is buying vehicles from find ways of bringing them  out of the ports without paying the appropriate duty so that they can break even.

    A senior Customs officer at the ports, said the NCS’ position on duty collection had not changed.

    The Customs, he said, would collect the duty on the vehicles, adding that the importers would be sanctioned by declaring their vehicles as overtime cargoes and auctioning them.

    “We are committed to the recovery of the duty payable on every imported vehicle. We have the government’s backing on this and the management has no reason whatsoever to shirk its responsibility in this regard,” the source said.

  • NIMASA to end dumping of vessels, ship wreckage on waters

    To ensure that the territorial waters are safe and secure, they must be cleared of abandoned vessels and ship wrecks, Nigerian Maritime Administration and Safety Agency (NIMASA)  Director-General Dakuku Peterside has said. He warned local and international ship owners to stop abandoning their vessels or dumping wrecked ships into the waters or face sanctions.

    Apart from forfeiting such vessels to the agency, those involved in the illegal act, would be prosecuted, he said.

    Peterside, who spoke with The Nation, said it was necessary to ensure that the territorial waters remained safe for navigation.

    “In line with our mandate on the protection of the marine environment and safety of navigation within Nigerian waters and our powers as the receiver of wrecks, owners of all abandoned ships, vessels and derelicts are sternly warned to stop dumping them on our waters because we have put the necessary measures in place to locate them wherever they are and prosecute them,” he said.

    The NIMASA boss listed the sanctions to include the removal of such wrecks at the owners’ expense as well as forfeiting the vessels. The agency, he said, was empowered to do so by the Merchant Shipping Act 2007, other enabling Acts and the International Maritime Organisation (IMO) instruments.

    Nigeria is a party to the Nairobi International Convention on the Removal of Wrecks  (Nairobi Convention 2007).

    The Convention is an IMO treaty  with the purpose of prompt and effective removal of Shipwrecks located in the parties’ territorial waters, including its Exclusive Economic Zone (EEZ) that may be hazardous to navigation or the environment.

    The convention gives the authority to remove wrecks and in Nigeria’s case NIMASA is the receiver of wrecks.

    All abandoned Vessels littering the country’s waterways and its shoreline are affected by this directive.

    An environmentalist, Prince David Omaghomi, also called for the enforcement of laws against dumping of wrecked ships on the Nigerian coastline.

    Omaghomi, an Executive Director, Eco Restoration Foundation, an non-governmental organisation (NGO), which promotes the protection, restoration and conservation of coastal wetlands in Nigeria, said Nigeria had become a dumping ground for wrecked ships because people found it convenient to sink ships from other parts of the world on Nigerian coastal waters to avoid bearing the cost.

    He said ship wrecks had caused problems, which impacted negatively on the environment, hence the need to improve the Navy’s capacity on protection of the coastlines.

    “We have to save our coasts by implementation of policies, legislation and providing the Nigerian Navy with enough coastal awareness to enforce Nigeria’s territorial integrity, even from environmental hazards like ship wrecks.

    “Some people take insurance from insurance companies abroad, they dump the ships on the coasts of Nigeria because they are supposed to spend money on decommissioning the ship.

    “When a ship has served its life time, you are supposed to take it to a dockyard and dismember it, recycle the metals, but they avoid such expenses, make money from insurance and they dump it in Nigeria where nobody cares,” he said.

    According to him, there are over 3,000 ship wrecks littering the nation’s coastline, and that Nigeria is being ridiculed as the world shipwreck graveyard.

    “Nigeria has no legislation or enforcement of existing legislations that help people to remove ship wrecks. So, people find Nigeria a favourable ground to dump their ships, which are no longer in use.

    “There are particular winds on the Atlantic Ocean, which also push abandoned ships to the Bight of Benin, which is the area on the Atlantic coast that Nigerian shorelines fall within,” he said.

    Omaghomi said the money approved for some concerned government agencies in annual budgets for the removal of shipwrecks are usually not utilised for the purpose.

    He said the Eco Restoration Foundation single-handedly removed a ship wreck causing obstruction at the Lekki Beach, Lagos, in 2016 as part of its efforts to save the environment.

    He also called for protection of the Mangrove Ecosystem as natural means of preserving, protecting and conserving the nation’s coastal lines and the environment.

    “The laws need to be amended, the Oil Spill Detection Response Agencies need to be empowered to be able to enforce investigations and fund them.

    “In other cases, we have absence of laws, we have various laws that do not create the necessary environmental remedia-tion or restoration processes.

    “The laws need to be amended, fines need to be punitive, hefty and they need to deter operators from destroying the environment,” he said.

  • Blue economy: An impetus to Nigeria’s sustainable development

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr. Dakuku Peterside has stressed the need for blue economy to harness the nation’s huge resources in the seas and oceans, Maritime Correspondent OLUWAKEMI DAUDA writes.

    To the Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Dr Dakuku Peterside, promotion of what he calls the blue economy is the way to go to boost revenue.

    Speaking at the African Day of the Seas and Oceans in Lagos, last week, Peterside urged stakeholders to harness the potential of the blue economy to create jobs and wealth.

    The blue economy is a marine-based sustainable, visionary economic developmental process, which leads to improved human well-being, through sound management of marine resources.

    It involves meticulous planning aimed at evolving policies capable of invigorating and crystallising mental concept into pragmatic economic realities.

    Nigeria, through NIMASA, has  latched on to this idea, by adopting, enacting and ‘domesticating’ the concept, to enforce a positive turn-around of the economy, beginning from the maritime subsector.

    Nigeria may not be the first country to adopt the blue economy. But, it is, nonetheless, inspiring that every country that adopted the concept and implemented it, positively impacted on its citizens, particu-larly its youths, in terms of  employment.

    India as a case study

    India, for instance, while adopting it, also anchored it to a 10-year vision, which targeted 100 innovations for creating 100 million jobs.

    To India in 2010, it was: “The blue economy: 10 years, 100 innova-tions, 100 million jobs”and it, ultimately, fuelled the country’s march into economic prominence.

    It is, therefore, exciting that Nigeria, through NIMASA, being inspired by Peterside, has decided to re-engineer its management, by repositioning the mental and philosophical base on an inverted pyramidal concept capable of leading the nation to a new dawn.

    Three-prong approach

    NIMASA helmsman has begun with a three-prong approach. First, he has obtained a tax-relief regime for shipowners through the Central Bank of Nigeria (CBN). With this incentive, indigenous shipowners can  acquire new ships for their trade and gradually build up their fleet at low cost.

    Secondly, the agency is  working with the Nigerian National Petroleum Corporation (NNPC) to ensure that shipowners are given the enablement to participate in freighting the nation’s crude. Practice makes perfect. It, therefore, implies, that once the country could participate in carrying its crude no matter how little, it would soon evolve into a fleet that would be enviable.

    Thirdly, the agency is also collaborating with the Nigerian Local Content Development Board (NLCDB) to implement the NLCDB Act, which prescribes a fixed percent of indigenous participation, in the economic activities of the oil and gas industry.

    The three-prong strategy, working in a pyramidal form, stakeholders said,should, therefore, enable anyone with Cost Insurance and Freight (CIF) foresight generate enough latitude, economic heat, and industry activities, which the insurance stakeholders and underwriters can latch unto, as well as the maritime lawyers, on  sustainable layers of ancillary participations, capable of igniting a turnaround to wipe off unemployment.

    Thus, viewed more concisely, operators said that by the time the shipowners are unbundled and invigorated by growing economic activities; not only being able to participate in crude afreightment, but also empowered to acquire more ships, some of which, this time around, would be tankers, not only would the challenges of cadets sea-time be technically overtaken, the chances that inflow of hard currency into Nigeria would surge on an unprecedented scale, thereby eroding the bases for piracy and other social miscreants.

    Succinctly, NIMASA’s dream, and which every stakeholder, as well as the government should support, is the development and integration of ocean economy development, through the principles of social inclusion, environmental sustainabi-lity, innovation, and then, linking other industries as a pragmatic and dynamic business model. It goes beyond mining for export; it transcends the boarders of oil and gas; and it also accommodates the human elements, because it fuels capacity building and expertise promotions.

    This move and the new innovation by NIMASA, stakeholders said, is commendable in view of many years of wastage despite the vintage position of the country, bounded in the South by the Atlantic Ocean with a coast line of about 850 kilometres. It is also traversed by a myriad of river system, which provide about 4000 kilometres of navigable inland waterways, covering an estimated area of 199,580 km. Hence, with a total landmark of 923,415 km square waterways, it actually covers 21.6 per cent of the entire country.

    Hitherto, the quantum of infrastructure required to harness resources in this economy has been a challenge. The blue economy involves marine transportation and exploitation of living and non-living resources in the maritime environment. All these can be categorised into marine transportation, living marine resources (fishes), port services, ship repairs and ship building and non- living marine resource (oil and gas).

    These can be extended to cover towage, salvage, passenger ferry services, dredging and cargo trade, be it liquid bulk, dry bulk and general cargo (feeder and inland transport). There are also other services, such as maritime auxiliary (freight forwarding, storage and warehousing, maritime agency container depot, marine insurance and training school for skill acquisition

    A study conducted about six years ago by  a Federal Government committee on the  maritime trade  revealed that maritime trade significantly constitutes 80 per cent of global trade by weight and that 90 per cent of Nigerian-generated trade come by sea with very limited indigenous participation, leading to enormous capital flight in excess of N1.5 trillion yearly. These exclude expatriates estimated at N600 billion yearly going by the report of the National Content Development and Management Board (NCDMB).

    According to UNCTAD report in 2008 and 2009, exports from Nigeria were $80.1 billion and N49 billion as the goods were carried on FoB, whereas imports to Nigeria stood at $942.3 billion and 33.9 billion and these were carried on CIF. Evidently, the economy lost the maritime insurance and freight elements of both our export and import trade worth $122.4 billion in 2008 and $82.9 billion in 2009.

    The estimated total loss to the  economy, in terms of capital flight based on the study, is huge and was in excess of $14.60 billion in 2008 and $10.38 billion for 2009 and when considered over the years, the amount becomes mind boggling

    Every activity in the blue economy is a potential job and wealth creator, if all resources are well harnessed.

    From the foregoing, it is obvious that the nation’s loss could be its gain, if well-articulated policies are put in place to change the trade policy from Free On Board (FoB) to Cost Insurance and Freight (CIF) for Nigerians to participate in maritime transport to earn what was once lost to foreign insurance and capital flight.

    The economy could generate about five million jobs, either directly or indirectly. The Jones Act of the United States has created more than 35,000 indigenous vessels carrying more than one billion tons of cargo and over 100 million passengers yearly. These fleet generate almost 125,000 jobs, 80,000 of which are aboard vessels and represent a $26 billion private sector investment in vessel and infrastructure.

    According to the Federal Government Committee report earlier referred to, five million jobs meant for the youths were lost to foreigners in the last few years, due to the deprivation of indigenous ship-owners in the maritime transportation.

    “The sale of Nigerian crude at FoB negates Nigerian maritime insurance policy, which domesticates insurance of imports and exports. By this, Nigeria is losing N15billion or $101 million annually. It was further observed that out of the 457 vessels working in the upstream, where some vessels earn $85,000 a day, year in year out, Nigerian ownership account for less than eight per cent, which is far less than 60 percent to 90 per cent for trans-portation and shipping provisions, in the Nigeria content Act,” the committee regretted.

    Findings revealed that apart from the non-participation of Nigerian-owned vessels in maritime transport, the 457 foreign vessels in the Nigerian waters, have foreign crew members when our youths are roaming the streets, including professional mariners, who have been excluded, because of lack of sea-time experience.

    The reasons for all these are not far-fetched. The absence of a national maritime strategy has not allowed for a focused and sustainable maritime development into which the indigenous operators can tap in, coupled with the lack of maritime technical development policy to encourage participation of indigenous ship owners and operators as envisaged in the Cabotage Act of 2003.

    The crude oil sales on FoB are  based on government policy, which the NNPC complies with. Stake-holders said, the situation can, however, change, if a new policy directs the NNPC to contract the crude oil sales on CIF, in line with what obtains worldwide and, if Nigerians would be willing to give its wealth creation policy another push.

    This, it was gathered, becomes necessary in view of the fact that NNPC exports 2.5 million barrels per day and imports 12 billion litres of refined petroleum products yearly and these cargoes are carried by foreign vessels as the trade policy had, before long, excluded Nigerian-owned vessels from the lucrative trade, hence the loss of revenue and insurance to foreigners.

    This, findings revealed, is contrary to the provisions of the Nigerian Content Development Act 2010, which prescribed that 90 percent of very large crude carriers and other vessels within the nation’s coastal waters should belong to indigenous operators who should also enjoy the right of first refusal by contracting agency NNPC as it is practised in many maritime nationsmany of the indigenous shipping firms have not been able to attract necessary funds to purchase goods and quality ships coupled with their inability to sign technical agreement with international companies. So, they continue to trade with their old and low quality vessels, which has led to low patronage by the contract-awarding agencies.

    In countries with blue economies, findings revealed that their sovereignty had largely been protected as noticed in the United States during the Tsunami incident, where many of the indigenous fleet were mobilised to save lives and property. Other countries have also attested to the economic benefit of their blue sea development.  George Bush, former American President in 2002 national maritime Day speech, noted that America emphasises the important of local shipping activities to the nation’s economic wellbeing and national defence capabilities. The Brazilians maritime policy saw the evolution of its merchant fleet from 500,000grt in 1970 to 3,500grt in 2000 while the volume of cargo in their international trade leaped from 31 million tons in 1994 to nearly 67 million tons in 2000.

    In Nigeria, the story is negative, hence the campaign by the NIMASA for the development of the blue economy.