The Nation Newspaper

Category: Maritime

  • Sugar importation rises at ports

    Sugar importation rises at ports

    DESPITE the  Federal Government’s plan to produce 200,000 metric tonnes  of sugar yearly, its importation rate has risen, it was learnt.

    The Nation gathered that the country has been producing only 70,000 tonnes, far off its target because of poor infrastructure and high cost of manufacturing refined sugar.

    Findings revealed that between April this year and this year about 1.3 million tonnes of sugar  worth N190.3 billion ($501 million) were imported from Brazil.

    The government promised to reduce sugar import by 1.6 million tonnes but investigation revealed that two ships  offloaded  last week at the Lagos Port Complex (LPC), Apapa, carrying 94,000 tonnes  of  bulk raw sugar.

    It was gathered that MV Desert Hope discharged 48,000 tonnes at Apapa Bulk Terminal Limited (ABTL) while  MV Virtous Striker   with 46,000 tonnes of the commodity was moored at the Greenview Development Nigeria Limited (GDNL).

    Sources at the port told The Nation that between March and April, this year,  no fewer than 137,000 metric tonnes of raw sugar  worth N23.7billion ($73.4million) was discharged at the port.

    Sources at the Federal Ministry of Finance said last year, the country produced only 70,000 metric tonnes instead of the projected 200,000 metric tonnes.

    At present, sugar consumption  has grown 27 per cent to hit 1.7 million tonnes.

    In 2014, the Federal Government promised to develop a National Sugar Master Plan (NSMP) that would boost the production of the commodity for 10 years through backward integration policy to achieve self-sufficiency and  eliminate the huge foreign exchange spent yearly on its import.

    Also, the National Sugar Development Council (NSDC) has revised the sugar tariff structure to boost domestic raw sugar production, and employment by offering a zero per cent import duty on machinery and spare parts for local manufacturing firms.

    The council said it had offered a five-year tax holiday for investors in the sugar value chain; 10 per cent import duty and 50 per cent levy on imported raw sugar; 20 per cent duty and 60 per cent levy for imported refined sugar.

    Meanwhile, the council  disclosed that the country would depend on refined imported raw brown sugar from Brazil worth over $500 million yearly till 2020.

    Last year, the country received 1.47 million metric tonnes of sugar at the seaports. The imports were 0.34 per cent higher than the 1.46 million metric tonnes  of the previous year due to growing demand by consumers.

    According to NSDC, the country needs $1.238 billion to meet 49 per cent of the total sugar demand by 2020.

    The Council explained that Federal Governmenty had stirred $3 billion investments since the implementation of the National Sugar Master Plan (NSMP).

  • Customs hands over seven containers of fake drugs to NAFDAC

    The  Nigeria Customs Service (NCS) Apapa Area Command has handed over the seven imported containers  of fake pharmaceutical products from China to the National Agency for Food and Drugs Administration and Control (NAFDAC) in Lagos.

    Its Area Controller,  Musa Jibrin, told The Nation that the importer’s documentation showed Cimeti-dine drug, but upon examination, it was discovered that the containers  had various pharmaceutical products.

    He said the drugs, which included Newdol, Original, Ivixagrip and Really extral, were not certified by the National Agency for Food and Drug Administration and Control (NAFDAC).

    “My officers  were able to discover the pharmaceutical products as a result of 100 per cent examination being carried out by the command.

    “The intercepted drugs are not carrying the NAFDAC certification. It was a false declaration and that was why the command intercepted the seven containers at the same time.

    Jibrin said the interception was successful due to the collaboration  between the Customs and other sister agencies.

    He urged stakeholders to engage in honest declaration to enable Nigeria meet up with the international standards.

    Assistant Director, NAFDAC, Oluyemi Ogunrinde, hailed the Customs. He solicited for more robust collaboration to curtail illicit import.

    “NAFDAC will carry on further investigation on the consignment and we will get back to customs on our findings,” Ogunrinde said.

  • Reps praise INTELS for ‘high standards’

    The House of Representatives Ad-hoc Committee on Shell Petroleum Development Company (SPDC) Relocation has praised the management of INTELS Nigeria Limited for sustaining high standards in its operations.

    INTELS implements international standards such as ISO 9001, ISO 14001, OHSAS 18001 and ABS Quality, which are unmatched in the maritime and oil and gas industries.

    Committee Chairman Ibrahim Isiaka, who led the panel’s 12 members on tour of INTELS facility at the Onne Free Zone in Rivers State, said they were impressed with what they saw.

    “I am impressed. As I said earlier, this is an environment I lived in and I have seen a lot of improvement, especially in the expansion of the new phases you are bringing up.

    “I am highly impressed with the facility on ground, the newly acquired Big Mama Crane, the mother of all cranes you have, the lifting operations; so, all we need do is to gain back the confidence in the oil and gas industry in Nigeria so that all these idle vessels, hands and facilities will become operational again and people will have one or two things to do”  he said.

    Isiaka said the committee was set up to prevent the relocation of SPDC from Rivers State because of the potential negative impact such move could have on the Niger Delta region and on the national economy.

    “I can assure you that with the confidence we have gained back from Shell and those that were gained from other stakeholders, by the grace of God, we should not be talking about any major oil company leaving Rivers State. The consequences are grave. The implication is there, so no one should think about it. No one should think about leaving an environment like this. They should just look at grey areas and have them resolved, that is why the House is going to intervene. The Speaker of the House, in his wisdom, has put this calibre of people together in the committee and you can see what we have done so far,” he added.

    Conducting the lawmakers round the expansive facility at the Onne Free Zone, Head of Administration and General Services of INTELS Mr. Chibuisi Onyebueke said the oil and gas logistics firm had developed a “One-Stop-Shop” concept to enable it provide top-class logistics service to industry operators.

    He said the Onne Free Zone, which was developed by INTELS, provides a wide range of services needed for all drill and exploration projects in the oil and gas industry in sub-Sahara Africa. These services, according to him, include pipe coating and modifications, sub-sea installations, logistics, accommodation, catering, helipad and a proposed airstrip.

    He noted that INTELS also provides a wide range of port services to its clientele, while attracting the much-needed investment into Nigeria, and at the same time creating thousands of jobs for Nigerians.

    According to him, the company operates with the highest global safety and security standards obtainable in the industry. He said all INTELS’ facilities are fully compliant with provisions of the International Ship and Port Facility Security Code  (ISPS Code) of the International Maritime Organisation (IMO).

    INTELS, he said, has an edge over other oil and gas free zones on the  continent because of its wealth of experience that spans over three decades, proximity to concessioned blocks for oil and gas exploration, strategic location to serve as a regional hub and its highly trained and skilled workforce.

    He said Onne is the only port in the country that provid oil and gas logistics service all at one place. He listed the services to include clearing and forwarding, drilling support, support vessels and working boats, tubular stocking and machine shop, pipe coating, cement and drilling fluids services, wellhead and subsea equipment, environmental services, dry dock/ship builders, machinery and catering services, among others.

    According to him, INTELS implements the most reputable international standards such as ISO 9001, ISO 14001, OHSAS 18001 and ABS Quality, which are unmatched in the maritime and oil and gas industries.

    Onyebueke also told the visiting lawmakers that INTELS Nigeria Limited is fully committed to maximizing the use of Nigerian human resources, materials, equipment and services in its operations without compromising the company’s values, quality, health, safety and environmental standards.

    He said INTELS has continued to enhance the participation of Nigerian businesses and local contractors in its operations in compliance with the Nigerian Oil & Gas Industry Content Development Act 2010.

  • NIMASA is ‘Public Service Organisation of the year’

    The Nigerian Maritime Administration and Safety Agency (NIMASA)  has bagged the ‘’Public Organisation of the Year’’ Award, organised by TELL Communication Limited to mark the maiden edition of its yearly Awards for Excellence.

    Its Director-General, Dr Dakuku Peterside, received the award at the Civic Centre, Victoria Island, Lagos.

    The promoters of the event said NIMASA merited the award because of the rebranding initiative of  Peterside and the management team aligning with other maritime agencies.

    “In April, NIMASA, in conjunction with the International Maritime Organisation ( IMO), organised the third conference of the Association of African Maritime Administrations in Abuja, Nigeria. This is in line with IMO policy in assisting and enhancing the capacity of maritime administrations in Africa in the adherence and implementation of IMO instruments.

    “One of the benefits of the conference to Nigeria was the election of Dakuku Peterside as the chairman of the continental body.

    Speaking with The Nation on the sideline of the event, Dr Peterside said the rebranding of NIMASA was conceptualised by his administration to inject a breath of fresh air into the agency they were appointed to lead.

    “The Medium Term Strategic Growth Plan covering three years is built around our core mission to Reform, Restructure and Reposition NIMASA for sustainable growth and development of the maritime industry.”

  • NPA automates operation to fulfil Executive Order

    NPA automates operation to fulfil Executive Order

    The Nigerian Ports Authority (NPA) has “fully automated” its operations nationwide in its bid to fulfil the Executive Order on Ease of doing Business, its Managing Director, Ms Hadiza Bala Usman, has said.

    Speaking at a meeting with stakeholders in Lagos, on the implemen-tation of the order, Ms Usman said NPA would continue to introduce initiatives in line with best practices to ensure that it remains efficient, transparent and accountable.

    She also promised that a new platform would be created to accomo-date all government agencies at port for easy transaction.

    The stakeholders also urged the Federal Government to give maximum support to the Authority in its bid to enforce the Executive Order  by the Acting President, Prof Yemi Osinbajo, on 24-hour port operations.

    NPA, it was gathered, will double its revenue next year, after achieving 90 per cent of its target in the 2015 and 2016 budgets.

    A senior official of the Federal Ministry of Finance, who craved anonymity, said at the weekend that things were expected to look up with the NPA’s implementation strategy on 24-hour port operations.

    The official said NPA had fashioned a robust template for operations at the ports. Under the new arrangement, revenue leakages will be blocked while improving operational revenue.

    With government support, NPA will be able to monitor activities of other agencies, including terminal operators, to track revenues through the unified automation platforms to be set up by its finance department, the official said.

    With the introduction of 24-hour port operations and the coordinating role of its leadership, NPA will be able to block leakages. Findings however revealed that a major impediment to NPA’s revenue drive is trade facilitation, while the management is working towards making the sea ports a hub in West Africa.

    “To double its revenue and surpass the budget target, what NPA needs  is the trade facilitation role of other government agencies. NPA has put its house in order with the calibre of the people that are currently leading the agency. But there is need for the Federal Government to ensure that the role of other agencies makes it easy for any of the land-locked countries in West and Central Africa to know that the cost of the goods that are passing through Nigerian ports are reduced, safe, secured and will be delivered wherever they are needed on time,” the official said.

    NPA’s Principal Manager, Public Affairs, Ibahim Nasiru, told The Nation after a meeting with stakeholders that NPA launched the Electronic Payment System and the Electronic Ship Entry Notice (E-Sen), last year as a first step towards full automation of its processes, pointing out that this has tremendously improved efficiency in port operations, as well as added value to stakeholders.

    “The Revenue Invoicing Management System and Customer Portal which we have just introduced are fully convergent and real time platforms for our processes, which will lower operational cost and shorten the time for documentation,” Nasiru said, adding that these platforms are fully integrated to the electronic flow of information for business–to–customer and business–to–business with higher availability and flexibility.

    He said the platforms are fully integrated with all our existing solutions such as Oracle Financials, Oracle Human Capital Management, NPA Pay Direct via Inter switch and Electronic Ship Entry Notice (eSEN).

    “The introduction of this system has the potential to improve our service offering, improve our relationship with stakeholders, create efficient payment method, maximise revenue and minimise losses associated with fraud and revenue leakage.

    “The Customer Self Service Portal (CSSP) on the other hand, provides a platform for our customers to initiate and conclude their business process with us and also communicate with NPA,” the Public Affairs chief said, adding that the benefits accruing from this portal, include improved customer service delivery;  easy access to customer accounts status; view of all transactions and status in respect of bills; electronic upload of manifest; e-invoice and e-receipt generation.

    “Similarly, our Billing Applications which are already operational in all port locations will soon proceed to the next stage. Currently, it covers payment processes in areas such as Lease Fees, Service Boats, Passenger boats, General Bills (Jetties and Trawlers), and Oil Terminal Dues (OTD)/Compulsory Pilotage Rates (CPR).

    Nasiru said: “The introduction of these measures has facilitated business growth with high performance and unlimited scalability of the operations of the authority. This is evident from statistics which have shown that cargo throughput increased from 46,150,518 metric tonnes in 2006, to 86,603,903 metric tonnes in 2014, indicating an 87 per cent increase during that period which is due in part to continued efforts at improving processes.”

    He said the Executive Order issued by the Acting President will improve cargo-based revenue by 52 per cent within a year and 65 per cent subsequently.

    Nasiru said the e-ship entry notice initiative introduced by NPA has improved Gross Tonnage (GRT) based revenue by 38 per cent between 2014 and 2015.

    His words: “The deployment of e-SEN and RIMS Solution by NPA has blocked all leakages in our operational activities by 95 per cent and the remaining five per cent would be blocked upon the launch of a command and control centre which is expected to go on stream by the end of November, this year.”

    He said before the end of this year, “operational leakages would be a thing of the past in all the nation’s seaports as NPA plays its coordinating role in the implementation of the Executive Order’’.

    The Association of Nigerian Licensed Customs Agents (ANLCA) National President, Prince Olayiwola Shittu, said the body was happy with the giant stride so far taken by the NPA in the implementation of the Executive Order.

    “Nigerian Shippers, Cargo owners and shipping lines have a lot to benefit from the coordinating role the NPA is playing in the execution of the order issued by the Federal Government on 24-hour port operation. Its appointment as the coordinating agency is an excellent initiative of the government to improve efficiency and save so much time and costs. NPA, we believe, is up to the task,’’ he said.

  • Customs hands over two stolen Range Rover SUVs to Interpol 

    Customs hands over two stolen Range Rover SUVs to Interpol 

    The Nigeria Customs  Service(NCS), Tin Can Island Port Command has handed over two suspected stolen Range Rover Sport Utility Vehicles (SUVs) to Interpol.

    Speaking during the handing over, its Area Controller, Bashar Yusuf, said the interception was sequel to intelligence report from Interpol.

    In a statement issued by its Public Relations Officer, Uche Ejesieme, said the vehicles loaded in a 40-foot container No. UACN 548368\1 was imported from Washington D.C, United States and declared as Toyota Tundra and Chevrolet Cruiz, and some bicycles.

    The statement added that based on the intelligence report made available to Customs by Interpol, all consignments from the US were placed on high surveillance to ensure that the suspected container was tracked.

    His words: ”The vessel was monitored from the port of loading to Tin Can Island Port and was intercepted on arrival at the Tin Can Island Port.”

    The vehicles are a gold Range Rover SUV 2014 with Chasis No. SALGS2VFGEA126188 and one black Range Rover SUV 2015 with Chasis No. SALGS37FOFA239330.

    According to the image maker, the controller assured Nigerians and the international community of the deep commitment of the Nigeria Customs Service (NCS) to partnering and sharing intelligence with all agencies, both foreign and local, in the spirit of inter-agency collaboration and synergy

    The Controller, Ejesieme said, reiterated the need for Nigerians to desist from acts capable of bringing the country to disrepute, particularly in this era of Information Communication Technology where interception of this nature will be Internet-based.

    He vowed that the Service would resist any attempt by any individual or organisation to use Nigeria for illicit transactions and noted that Interpol Nigeria will subject the vehicles to due diligence investigation through the Courts and will eventually use their internal mechanisms for repatriation of the vehicles to the US.

     

  • Cancel pollution levy, importers urge govt

    Importers and clearing agents have condemned the imposition of pollution levy by the Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigeria Ports Authority (NPA).

    They see it as double taxation by two government agencies and, therefore, urged the Federal Government to cancel it.

    One of the importers, Balogun Onabanjo, said while the NIMASA was collecting Ship Protection  Levy (SPL) from local and foreign vessels, NPA charged fee  on environmental pollution  at the seaports on dry bulk, liquid bulk and general cargoes,

    He alleged that the charges were passed to importers and consumers by shipping lines.

    Investigation, however, revealed that the NIMASA levy was rolled out to curb indiscriminate discharge of ship-generated wastes into the water in the country, while NPA levy was to curb environmental pollution at port.

    The National Publicity Secretary of the Association of Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, said in Lagos that the levies were affecting their businesses.

    He noted that the levies, collected in dollars by NPA and NIMASA, overlapped and amounted to double charges.

    Farinto added that Customs agents had complained to NPA over this and nothing was done on it,

    However, NPA Managing Director  Hadiza Usman said she would discuss with NIMASA on how to harmonise the levies.

    She said NPA would ensure there were no conflicting charges in the port sector.

    Environmental pollution charges include $0.10 per metric ton on general cargoes; $0.10 per ton on liquid bulk cargoes and $0.10 per ton on dry bulk cargoes.

    Others are $3.63 per unit on 20 feet empty container; $3.63 per unit on 20feet laden container; 40feet empty container, $7.68 per unit; 40ft laden container $7.68 per unit; vehicle up to 15 cubic metre (cbm) per unit, $2.25, vehicle up to 16 to 25 cbm per unit, $ 2.25 and vehicle above 25 cbm per unit, $2.25.

    Also, NIMASA charges include: N500 per gross tonnage (GT) for local vessels from 100-1000 metric tonnes, while those from 1001-10,000GT attract N350, vessel with 10001-100,000 metric tonnes, N300 per GT and those from 100,000 and above metric tonnes, N250 per gross tonnage.

    Others are foreign-flagged vessels from 100-1000 metric tons, $0.1 per GT, those from 1001-10000 metric tons, $0.15, per GT, those from 10001-100,000 metric tons, $0.2 per GT and those from 100,000 metric tonnes and above, $0.3 per GT.

    Also, the rate payable per year for offshore oil installations by firms is  N15 million, while oil wells exploration attracts N10 million per annum from first day of April  yearly, pipelines, N1,500 per cubic metre of volume from high water mark to termination point offshore.

     

  • Cheers, jeers for Buhari

    Cheers, jeers for Buhari

    How has the maritime sector fared under the President Muhammadu Buhari-led administration in the past two years? In this report, Maritime Correspondent OLUWAKEMI DAUDA looks at the mid-term performance of the administration, benchmarking it on stakeholders’ expectations.

    Before President Buhari mounted the saddle on May 29, 2015, former Nigerian Bar Association (NBA) president, Dr Olisa Agakoba (SAN) drew Federal Government’s  attention to the potential in the maritime industry.

    At a forum, he maintained that maritime could generate about N7 trillion yearly, if the government  musters the will to take the right steps that would change the way things were done in the industry.

    He cited Philippines, Norway, Singapore, Malaysia, Denmark, and Belgium, which are deriving huge benefits from maritime.

     

    Capacity building

    The industry, according to stakeholders, has made significant progress, especially in human capacity building. They said substantial progress has been made in  ship regulation, port administration and operations, among other skills development, which are related to the International Maritime Organisation (IMO) requirement. Looking at ship regulation under flag state control, the stakeholders said the Buhari administration took a bold step to accept the IMO mandatory audit scheme, called IMO Member-State Audit Scheme (IMSAS). Many developing countries, such as Nigeria, doesn’t like to subject themselves to the audit scheme.

     

    The Nigerian Ports Authority

    The aqcuisition of four 60-tonne buller-pull tug boats with state-of-the-art equipment and computerised engines by the Nigerian Ports Authority (NPA), according to the stakeholders, would boost efficiency and increase the government’s revenue at the ports.

    The boats, which were worth over $30 million, are Mt Daura, Mt Ubima, Mt Uromi and Mt Majaya. The boats, whose engines came from Rolls Royce, were built by DAMEN Engineering, Netherlands under the supervision of IMO. Operators commended its Managing Director Ms Hadiza Bala Usman for a job well done.

     

    NIMASA’s maritime

    security plan

    The Nigerian Maritime Administration and Safety Agency (NIMASA), stakeholders said, had taken steps to reposition the maritime security landscape.

    The security of the waterways of the sea is a key component of Director-General, Dr Dakuku Peterside’s policy, they said. With safety of the waterways, the agency could play a leading role in making shipping a viable alternative to the oil and gas money.

    NIMASA’s roles include crime prevention and maritime safety. With guaranteed maritime safety, Nigerian businesses, which according to the stakeholders, import at least five million cargo containers into the country yearly would increase their activities.

     

    TSA compliance

    One policy that has attracted commendations of maritime industry stakeholders is the President’s directive to all Ministries, Departments and Agencies (MDAs) to maintain a Treasury Single Account (TSA). This, operators said, is vital due to the fact that the industry boasts of several money-spinning government agencies. These include the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Railway Corporation (NRC) and the National Inland Waterways Authority (NIWA).

    To meet their statutory roles and responsibilities, these government agencies, which generate billions of naira yearly, open and operate multiple accounts with several financial institutions across the country.

    It was alleged that through these multiple accounts, huge amounts of money are diverted into private pockets. To address these anomalies, Buhari vide a circular number HCSF/428/S.1/120 dated August 7, 2015, directed all MDAs to ensure that all revenues due the Federal Government or any of its agencies must be paid into the TSA or designated accounts maintained and operated by the Central Bank of Nigeria (CBN) except otherwise expressly approved.

     

    Ports’ access roads

    The roads that lead to the seaports in Lagos, Warri, Onne, Port Harcourt, Calabar, and Sapele are impassable.

    These ports’access roads have not attracted the government’s attention in the last two years. Those leading to the Apapa and Tin-Can Island ports in Lagos are so bad that some stakeholders have described it as a “shame to the nation.”

    The bad roads have constituted  nightmares to consignees, importers, exporters, freight forwarders and other port users who use the roads to evacuate their goods.

    The roads are in sorry state as port users spend hours daily to access or exit the terminals.

     

    What has changed?

    The Principal Partner of Agbakoba Law (OAL) firm and other key maritime stakeholders said the Buhari administration has not done much to develop industry

    “There is no change. It is clear there is no progress, rather there are more declines. Just take Apapa as one of the key maritime areas; you can see the decline yourself. No roads, the port is in tatters. I told the Managing Director of NPA that the port is technically deficient. You cannot say it is an ocean-going port anymore,” Agbakoba said.

     

    Cargo Dwell Time

    Cargo dwell time (CDT), which is the average time a cargo remains in the terminal from the point of discharge to the point it exits the terminal, has not improved significantly since Buhari took over the mantle of leadership in the past two years. Human contact, which breeds corruption in the seaports, airports and international land borders, is yet to be eliminated, despite the campaign for 48-hour cargo clearance regime announced by the Federal Government.

    About 90 per cent of goods is still subjected to physical examination as against use of the mobile and fixed scanners. A lot of deals devoid of transparency and integrity take place at ports, airports and international land borders.

    According to industry players, this explains why many men and officers of NCS, Nigerian Immigration Service (NIS), National Agency for Food and Drugs Administration Control (NAFDAC), Standards Organisation of Nigeria (SON), Department of Directorate Security Service (DSS), among other government agencies, often lobby to be posted to these places. They argued that these key areas of the economy have not witnessed the expected changes in the last two years.

     

    CVFF disbursement

    Indigenous ship owners said they were sad because they had not been able to access the Cabotage Vessel Finance Fund (CVFF) to grow their businesses.

    According to the stakeholders, NIMASA cannot disburse the funds because it does not have the skill to recoup the money after its disbursement. “There is a difference between policy making and regulation. On business operations, NIMASA, unfortunately, is given some responsibilities that are best done by the private sector. So, when NIMASA raises those funds from the freight charges and others, it can nominate a bank and deposit the money there and it is the bank’s responsibility to draw the lending process because they have the skills but when NIMASA  takes up the role of disbursing the funds, it has no capacity.

     

    Stakeholders’ views

    For Captain Adamu Biu and the ANLCA President Prince Olayiwola Shittu, the Buhari administration has made progress. They, specifically, mentioned NPA’s reviewing of the concession agreement the authority had with  terminal operators. “Nigeria is not a force to be reckoned with when it comes to shipping because of its lapses but it’s being improved upon gradually. I believe time should be given for more effectiveness in the industry because it takes a lot of work to put in and less discussion should be done but action. I feel this administration can do more by putting the right people in place to do the job actively and put all their hearts to it,” Biu said.

     

    Unlocking maritime

    potential

    The industry is a key sector of the  economy. As an oil-producing and exporting country, as well as a consumer nation, the country is a large market for foreign goods owing to its population. Thus, the industry holds the key to the nation’s growth.  To unlock the potential in this sector, policies and programmes that have  capacity to boost the economy must be implemented.

    Concerted efforts, stakeholders said, have to be made to address the problems militating against the industry’s efficiency. Nigeria’s strategic location in Africa puts her at advantage in becoming the hub of shipping activities.

     

    Crude oil lifting

    According to the Indigenous Ship Owners Association of Nigeria (ISAN), despite the country’s large export of crude and import of over 100 million tons of general cargo, no Nigerian flagged ship is plying international routes. Nigeria is also the only oil-producing nation without a national fleet, whereas Angola, which recently joined the ranks of oil producing countries, has a fleet for her oil deliveries.

    Some other shocking statistics indicate that Nigeria exports about 900 million barrels of crude oil yearly, but foreign vessels earn the freight of about $2.25 billion yearly carrying the country’s crude with no freight earning benefits to Nigeria. This needs to be addressed, if there will be a change of fortune, the stakeholders said.

     

    Multi-modal transportation

    Multi-modal transportation, Shittu said, is another area that needs to be properly addressed to unlock the wealth in the industry. Goods transported by sea, he said, should get to the owner of the cargo through rail and road transport and vice versa. This multi-modal transportation will facilitate trade and commerce, revenue generation for government finance and development of related economic activities.

     

    Shippers Council

    The Nigerian Shippers Council (NSC) needs the maximum support of the government to carry out its role as economic regulator to make the ports attractive and competitive in the sub region, the operator said.

    Its Executive Secretary, Mr Hassan Bello, according to the operators, has what it takes to carry out the necessary reforms in our ports if his opinion is sought.

    They advised the Federal Government to develop a plan to reach out to the people who have been in the industry.  The Minister of Transport, Rotimi Amaechi, they said, is new in the industry and there was no way he would understand the sector as much as those who have been in the industry for so long. They advised Amaechi to collaborate with the professionals to move the industry forward.

    “There should be a forum where players who understand the nitty gritty of the maritime industry need to meet with the Minister to brainstorm on moving the sector forward,” the stakeholders said.

     

     

     

     

     

     

     

     

     

     

  • Pollution scares ExxonMobil from relocation, says community

    Pollution scares ExxonMobil from relocation, says community

    The core communities paramount rulers’ forum has opened up on why the authority of the ExxonMobil is reluctant to relocate its headquarters to Akwa-Ibom.

    According to the communique that the forum issued on its meeting with the oil giant at the place of the paramount ruler of Ibeno, HRM Owong Effiong Achianga in the state, the firm is afraid of exposing its expatriates to the hazards of environmental pollution.

    The communique that was made available to The Nation in Abuja, said that ExxonMobil has always cited insecurity in the region as excuse for not complying with Presidency directive to relocate its headquarters to the state.

    The communique said that : “After the meeting of the above-named groups, where deep retrospection was given to the litany of excuses given by ExxonMobil for its barefaced refusal to relocate its operational headquarters from Lagos to Akwa Ibom State, we are compelled to state as follows:

    “That the company has always claimed that it was not feasible to relocate at various times in the past because of a number of reasons, including insecurity but the community feels that the American oil giant is simply scared of its shadow;

    “That we have it on good authority ExxonMobil is deeply worried about exposing its expatriate and other senior workers to the hazards of the environmental pollution and devastation they have caused through long years of negligent operation;

    That they have refused to move because they know the level of destruction their operations have brought to the land and people of Akwa Ibom State and so they believe the environment is unsafe, health-wise for their senior staff considering the frequency of early deaths and reduced life span of the inhabitants of the area.”

    The communique said that the onus for the relocation of international oil companies to their areas of operation, however, rest squarely on the Federal Government of Nigeria. It noted that with its 60 percent investment against 40 percent by the Joint Venture Partners, the Federal Government should show commitment and give a clear directive to its partners to relocate.

    It submitted that “ investments in the mainstay of the country’s economy should not be managed by “squatter” companies operating from briefcases and computers with a readiness to leave as soon as the oil is finished.”

    The forum recalled that the company started out as Mobil Producing Nigeria in 1955 to prospect for oil around the Badagry area with head office in Lagos. 

    It noted that from its Lagos office, it explored the Nigerian coastline and found oil in commercial quantity off the coast of the then South Eastern State. By 1969, the volume of business had peaked to a level it had to establish an airstrip, a liaison/operational office in Eket. Two flights or more operated daily to carry its workers, contractors and light materials from Lagos to Eket for the operations of the company. 

    Continuing, the forum said that “between 1969–1989, the business grew to the extent that it established full operational office; built a housing estate for its senior staff – both expatriates and local; acquired residential accommodation in town for several other workers and began to invest in infrastructure development within the area;

    “That in 1989, the oil producing communities noticed that while the oil company was growing rapidly and its staff reveling in affluence, the communities had remained stagnant. The communities also observed discriminatory practices in the staff recruitment, deployment, promotion etc., induced leader of the communities to compel the company to a meeting on July 15, 1989, where terms of relations were negotiated and agreed. Among the issues in contention then was the relocation of the head office of the company from Lagos to its operational area where all its businesses were domiciled;

    “That Mobil Producing Nigeria cited constraints which made such movement untenable then and these included the absence of communication facilities outside the area; inadequate infrastructure; lack of an airport; proximity to federal government agencies and inadequate accommodation for offices and staff;

     “That the communities agreed with the company to give more time for improvement in those areas of deficit with the hope that in 10 years, the movement would be feasible;

    That in 1998, a major protest ensued between the youth/women of the communities on one side and Mobil Producing Nigeria and the state military government on the other side. The intervention of elders of the communities led to a negotiated settlement which culminated in the singing of a Memorandum of Understanding (MoU) in 1998. One of the agreements in the MoU was a phased movement for the headquarters from Lagos to its operational area;

    “That when Exxon took over Mobil Producing Nigeria late in 1998, it abandoned most of the agreements in the MoU including the phased movement of its headquarters;

    That rather it transferred most of the operational departments to Lagos; moved most of its senior staff from the housing estates to Lagos; closed down Jetty and took several obnoxious decisions which could have precipitated crisis but the people kept their cool. It has now become clear that these negative administrative changes were geared at isolating the company staff from the hazardous conditions prevalent in the operational area;

    “That when democratic rule commenced in 1999, the civilian government led by Obong Victor Attah, took up the agitation for relocation but regrettably, the regime fell prey to ExxonMobil’s intrigues and manipulations and the momentum was lost;

    That it was, therefore, a pleasant surprise when Acting President Yemi Osibanjo rekindled hope for the Niger Delta region when he directed the Minister of State for Petroleum Resources, IbeKachikwu to “engage” with IOCs “on the way forward” over calls for their relocation;

    “That it is important to reiterate that as at now, all constraints envisaged in the past have been overtaken by developments in the polity. With the GSM and broadband infrastructure, communication is no longer an issue. An airport is now available within 30 minutes of its operational area. Infrastructure facilities are much improved and nearly perfect;

    “That the Federal Government agencies had moved from Lagos to Abuja; office and residential accommodation would be readily available once the company indicates a commitment to move. After-all, in Lagos, ExxonMobil is still squatting in a rented office accommodation owned by Mobil Oil Nigeria Limited and using facilities in hotels (some with tunnels to its offices) and setup by its proxies in Lagos;

    That the excuse recently canvased by ExxonMobil that its three companies are coordinated from Lagos office is grossly deficient, untenable and not even worth discussion. It is a mere hyperbole designed to cover the real reason for its refusal to relocate. Mobil Oil Nigeria Limited has been bought over by NIMPCO and thus nullified the argument;

    “That we take notice of the recent attempt at the House of Representatives to settle the issue of relocation through a motion and point out that it was a wrong approach. It is a decision for the executive. However, it is pertinent to point out that the Majority Leader of the House of Representatives, Femi Gbajabiamila (because he represents Lagos) allowed his selfish interest to becloud his sense of judgment and patriotism when he kicked against the motion. He appears not to be in touch with his people, who have persistently and vociferously been clamouring for a restructuring of the country in line with fiscal federalism. When the federation is restructured, would the IOC’s remain in Lagos to exploit the resources of the Niger Delta region?”

  • Govt breaks oil logistics firms’ monopoly at ports

    Govt breaks oil logistics firms’ monopoly at ports

    THE Federal Government has broken the monopoly of some oil and gas logistics firms over the discharge of cargoes at the ports.

    Importers, according to a presidential approval, can now pick ports of their choice for the discharge of their cargoes.

    The approval followed the request of Nigerian Ports Authority (NPA) Managing Director Ms Hadiza Usman for the liberalisation of the operations of oil and gas free trade zones in the country.

    Before she came to office last year, some oil and gas logistics firms had exclusive preserve over the discharge of cargoes at their terminals

    In a letter titled: “Conveyance of presidential approval – Re: report on concessioned terminals in the ports”, the government said : “Following a review of the policy directive over the years in respect of the concessions and applicable legal regime by the Office of the Attorney – General of the Federation and Minister for Justice, touching upon reform initiatives and implementation as a veritable mechanism for the development of the maritime industry, investments made to date, general global practice in designation of terminals, right of importers to choose terminals or ports for discharge of their cargoes, streamlining of shipping and other fees, the President has conveyed approval on 21st April, 2017 to the Minister of Transportation on the final position in the following terms:

    “FGN remains guided by the general global practice in the designation of terminal/ports operations into three broad categories of bulk cargo, container cargo and multipurpose cargo. Accordingly, the FGN rejects the categorisation of oil and gas multi-purpose cargo terminal, as this is alien to the relevant concession agreements and inconsistent with global shipping practices.

    “The non-designation of the Onne Oil and Gas Free Zone as an ‘Oil and Gas Multi-purpose Cargo Terminal’ does not in any way legally obstruct or compromise the operations of the free zone as an oil and gas free zone, but rather, it merely indicates that all cargoes including oil and gas can be discharged at the terminal.

    “FGN reaffirms past presidential directives that all importers are free to choose any terminal or port for the discharge of their cargoes, subject to the presence of all requisite regulatory agencies at such ports as required by extant regulations and in line with its policy of promoting competition and value for money. Consequently, any policy that designates certain ports by cargo type is cancelled.

    “The NPA and the Bureau of Public Enterprises (BPE) are to streamline the payment of shipping and other fees at various terminals in a manner that ensures such fees are based on cargo type rather than on the basis of designation of terminals, to ensure that there is no loss of revenue due to FGN based on terminals that importers choose to bring cargoes into the country.”

    Before its exit, the Jonathan administration  directed that a $500 million oil and gas investment project be relocated from Lagos Deep Offshore Logistics (LADOL)  Free Trade Zone (FTZ) in Lagos to Agga in Bayelsa State.

    Under the deal, LADOL and Samsung Heavy Industries of South Korea were to build fabrication and integration yards for Egina Floating Production Storage and Offloading (FPSO) facility for the use of local and foreign oil companies.

    The relocation order from NPA were contained in two letters, which read: “Please be informed that Mr. President has vide PRES/99/MT/2/22 of April 20 approved the FPSO project be relocated to Agga in Bayelsa State when the facilities to handle such operations are developed.

    “In addition, the project can be conveniently located at any designated oil and gas terminal. Please be informed that Mr. President has approved, henceforth, all oil and gas related cargoes must be handled only in the designated terminals in Onne, Warri and Calabar ports.

    “In view of this, vessels coming to Nigeria with oil and gas related cargoes, excluding petroleum products, are advised to first go to the appropriate concessioned terminals to be cleared by Customs and other relevant authorities, terminal operators and shipping firms.”

    LADOL kicked against the relocation, saying the directive was ill-conceived and capable of destroying the gains made by the project’s partners.

    It added: “We got the two letters the same day: a day after the appointment of the new MD of NPA. I want to make it clear that we (LADOL) do not have problems with NPA because they are using our facility.

    “NPA has an office in LADOL Free Trade Zone. NPA had severally said LADOL is the largest private investor in its facility. By the end of 2017, LADOL would have invested $500million in NPA facility. Technically, it is not appropriate for the project to be relocated to Bayelsa State’’.