The Nation Newspaper

Category: Maritime

  • Fed Govt can realise N3tr yearly from maritime, says ministry official

    Fed Govt can realise N3tr yearly from maritime, says ministry official

    THE Federal Government can realise N3trillion from maritime yearly if the sector is structured, a top Federal Ministry of Finance official has said.

    The official, who asked not to be named, urged President Muhammadu Buhari to invest part of the money generated from the  sector in the economy because of  the dwindling oil revenue.

    The president should also use 30 per cent of the revenue generated from the Lagos Port Complex (LPC) and the Tin Can Island ports to fix the Oshodi-Apapa Express Way and the Ijora Western Avenue Road to make the ports attractive to investors.

    Speaking with The Nation after the launch of the Nigeria Economic Recovery and Growth Plan ( ERGP) in Abuja, the official said there had been a reduction in cargo volume since the beginning of the year, blaming its problem on some policies on importation.

    “It would be recalled that in 2006, $1 exchanged for about N130, but today it is about N400 to a dollar, which implies a significant decline of about 70 per cent in the value of the national currency since port concession and that is why the Minister of Transport needs to reposition the maritime sector,” he said.

    Customs alone, the official said, could generate about half of the money, if loopholes were blocked and the government stopped the abuse of the waiver clause.

    According to the official, the President should review import policies, especially the foreign exchange (forex) restriction on 41 items.

    Investigation by The Nation revealed that activities at the ports were still very low because of the exchange rate policy.

    For instance, findings revealed that activities at the RoRo Terminal at the Tin Can Island port in Lagos were still at the lowest ebb.

    The exchange rate and the auto policy have impacted negatively on importers, freight forwarders and revenue generated by the Nigeria Customs Service (NCS), Nigerian Ports Authority (NPA) and other government agencies at the ports.

    The official said in 2012, 11,380 vehicles were imported through the Lagos Port while 251, 375 were came in through the Tin Can Island port in the same year.

    “The figure increased to 14, 422 and 280,057 at the Lagos Port Complex and Tin-Can Island ports respectively, in 2013,” he said.

    The figure dropped below 881 and 124,250 at each of the ports last year.

    The official attributed the low  vehicles import to the exchange rate and the auto policy.

    “We are happy that the ERGP focuses on agriculture. For a country to attain growth and development, its economy has to be diversified. As a matter of fact, there is an urgent need for the federal and state governments to look into diversification of various sectors to attain solid economic growth.

    “The Federal Government needs to diversify the economy by using the money generated from the ports to develop agriculture and other solid minerals to encourage exports so that the economy does not rely on oil export but diversified into other areas.

    The government, the official said, should also encourage Foreign Direct Investments (FDIs) for new port projects to come up.

    “In short, the government must focus primarily on raising the revenue generating profile, expanding and diversifying the economic base.

    “Such diversification efforts should ensure that idle, empty containers at the ports are put to use by genuine farmers to increase the volume of our business. Besides, there must be adequate plan to improve on the facilities at the ports to facilitate trade and promote patronage. So, when export business goes up, it will automatically enhance business activities at the ports, in our factories and across the country.”

    The exchange rate, findings revealed, led to a significant drop in the number of containers coming to the ports.

    According to investigation,in 2014, 690,690 containers and 891,638 containers were shipped to the Lagos Port Complex and Tin Can Island ports. But in 2015, 554,739 and 751,534 containers were dropped at each of the Lagos ports. Last year’s  figures were very low compared to the previous years because of the exchange rate.

    Lagos State Shippers Association Chairman, Mr Jonathan Nicol, also  advised the Federal Government to review the import policies, which impose 35 per cent duty and 35 per cent levy on imported vehicles.

    The 70 per cent levy was introduced by the Jonathan administration to support the local industry.

    Speaking with The Nation, Nicol said the exchange rate had reduced activities at the ports.

    He said addressing the high exchange rate would enable many industries to produce most of the items that we use locally, companies to attain at least 80 per cent installed capacity, revamp the local industries and generate employment.

    He suggested that the auto policy should be simplified to improve port activities.

    “Otherwise, activities at the Port and Terminal Multiservices Limited (PTML) renowned for vehicle imports would continue to drop. If this happens, Nigeria will be losing about N800 million yearly from this source,” the shipper warned.

  • Shettima seeks support for NPA MD

    Shettima seeks support for NPA MD

    •Agency donates materials to IDPs

    Borno State Governor Kashim Shettima has  drummed up support for Nigerian Ports Authority (NPA) Managing Director Ms Hadiza Bala Usman to ensure her success.

    Ms Usman, the governor said, inherited traits of her father, the late Dr Bala Usman, who he described as an epitome of courage, commitment and unparalleled patriotism.

    Shettima said: “Only a lion could   give birth to a lioness and not to a goat.”

    Shettima spoke when the NPA  management team donated relief materials to Internally Displaced Persons (IDPs) in the state as part of its Corporate Social Responsibility (CSR).

    He urged the NPA chief not relent in her effort to turnaround the ports.

    According to him, in the face of dwindling revenue from oil, the Federal Government relies on NPA, FIRS, NIMASA and few agencies to bring the economy out of the woods.

    While commending Ms Usman for the brilliant initiatives at the NPA, the governor urged her to be unfazed by unconstructive criticisms.

    “You have paid your dues, and if a child washes his hand he could eat with the kings. And anybody who feels she is too young to lead NPA should be reminded that General Yakubu Gowon became the Head of State of Nigeria at the age of 27. So, it is a function of the mind and not of age. There are a lot of people that their old age does not reflect in their actions in this country. They behave like kindergarten pupils, scandalising others.

    “We advise you to continue to do the good work you are doing at the NPA. We want to commend you for a job well done. We know your background, we can attest to the kind of person you are. We are proud of you, and Inshallah, you will lead the NPA to a greater height,” the governor added.

    Shettima assured Usman of his unalloyed support, saying the Northern support for her and the management team in executing the reform agenda at NPA remained unshaken.

    The governor said within her short tenure so far, she had done a lot to address some of the problems facing the ports, imploring Nigerians to continue to support her bold initiatives to move NPA forward and make the ports the hub of maritime  in the sub-region.

    Shettima, who received the materials at the National Emergency Management Agency (NEMA) office in Maiduguri, expressed appreciation to the management of the NPA for the gesture, urging other agencies  to emulate NPA.

    “On behalf of the people and government of Borno State, we wish to register our profound gratitude for your kind gesture over the insurgence that has confronted us.

    “The people of Borno will forever be grateful to you for your kind gesture and we pray to Allah that the madness will never happen again in our state and the entire country,” the governor said.

    The donation, Ms Usman said, stemmed from her belief that the money generated from the seaports is meant to develop the country and support its people.

    The initiative aligned with NPA’s CSR policy, she said, adding that the agency would continue to focus on working with the government to assist and support the IDPs.

    “As we move towards the third anniversary of the abduction of the Chibok girls, I am passionate and committed to the challenges of Boko Haram. We thank the military and we hope that as we get to the third anniversary, the remaining girls would be rescued from their abductors,’’ she added.

    Ms Usman praised the security agencies for their efforts, adding that she believed that the other Chibok girls would be rescued.

    After a visit to the hospital where she consoled with victims of the insurgency, Ms Usman visited the Bakassi Camp, distributed the materials and interacted with the IDPs.

    The materials include 107, 450 pieces of mats, 29,200 blankets, 2,540  50 kg bags of made-in-Nigeria rice, 2,100 bags of white beans, 1,400 bags of Semovita, 600 bags of red beans, 1,660 kegs of palm oil, 830 pieces of mattress, 2,100 pieces of mosquito nets, 4,620 pieces of Ankara wrappers and 1,950 pieces of solar lanterns.

  • Shippers Council seeks e-truck call-up system 

    Shippers Council seeks e-truck call-up system 

    Nigerian Shippers’ Council (NSC) has called for the implementation of an electronic truck call-up system at the seaports.

    Its Executive Secretary, Mr Hassan Bello, made the call while receiving members of the Manufacturers Association of Nigeria (MAN) in his office.

    Bello said the cost of transportation was vital to the success of business, adding that the council had decided to reduce the cost of transportation through competition instead of through price fixing.

    According to him, transportation is part of manufacturing.

    Part of responsibilities of the Council, he said, was to ensure efficient and timely delivery of shipping services to importers and exporters at minimal cost.

    He said a study by the International Finance Corporation (IFC) study has shown that there were over 4,000 trucks in Apapa, as against 1,300 trucks.

    “What we have are individual truck operators with only one truck and most of the trucks are dilapidated. We have been meeting the transport companies to ensure changes,’’ Bello said.

    MAN Corporate Affairs and Logistics/ Strategic Planning Committee Chairman, Mr John Aluya, stressed the  need to strengthen collaboration with the NSC.

    Aluya said the NSC was a strategic partner, adding that the sector was important to manufacturing because most raw materials were imported.

    He said: “The ease of getting our raw materials is important to us and the NCS. Being the port regulator, NCS is working toward reducing the cost of doing business at the ports.

    “There is a slow pace of cargo clearance, which is affecting the cost of doing business and Nigeria is not alone in this league.”

     

  • For competitive, efficient ports

    For competitive, efficient ports

    The aim of the Nigerian Ports Authority (NPA) under the leadership of Ms Hadiza Bala Usman is to make the ports the hub of maritime trade in Africa, Correspondent OLUWAKEMI DAUDA writes.

    Since President Muhammadu Buhari appointed Ms. Hadiza Bala Usman Nigerian Ports Authority (NPA) managing director, she has not left anyone in doubt about her plans to boost its efficiency.

    At a meeting with stakeholders, Ms. Usman reiterated the agency’s commitment to making the seaports competitive by promoting efficiency and transparency.

    Her team, she said, was not happy that the seaports might lose its comparative advantage in terms of cost and others to neighbouring countries’ ports, especially in quick cargo clearance. Hence, the reason the authority considered it imperative to ensure that terminal operators and government agencies at the ports key into the efficient port services system of the Federal Government.

    The managing director’s message and body language on the matter were clear: “The management has discovered that inefficiency in the procedures and operations of agencies and service providers and even users was undermining Nigeria’s competitive advantage in international trade and we are set to correct that to make the ports attractive for business, and generate more revenue to the government.

    Though the objective to bring efficiency to the ports seems tall and unrealistic because of the situation in the port before her appointment,  sources at the Federal Ministry of Transportation said the Federal Government impressed it on the management of NPA to elevate the  seaports to a hub status through zero tolerance for corruption, inefficiency, among others.

    Ms Usman said NPA would review the concession agreement the agency signed in 2006 with the private terminal operators to correct all the grey areas  in the deal, make the port a hub in the West and Central African sub-region.

    Many importers, clearing agents, operators and port users have lauded the plan, noting that it would revolutionise cargo clearance procedures.

    One of the stakeholders, Mr .Segun Ogunsanu, said the initiative would reduce the time and cost of doing business at the ports. “It would also reduce tension, stress and worries and, if supported by the Federal Government and other agencies at ports, would reduce the volume of trucks on the roads and the number of overtime cargoes in the port,” he added.

    An  importer, Mr. Patrick Ebenezer, described the move as “a robust maverick touch by the Managing Director of NPA Ms  Usman”.

    Ebenezer, who condemned the high level of delay in port operation, commended NPA and its management for bringing the issue of single window platform, transparency and efficiency and zero tolerance for corruption at the ports to the front burner as part of their efforts to make Nigerian ports  leader in Africa.

    “Whether or not the model operated in any port is a tool port or a landlord model like that of NPA, the overall objective of any port is to be efficient and to render quality service to port users,’’ Ebenezer  said.

     

    Why ports were concessioned

    The Federal Government took the decision to concession the ports to address the problems of inefficiency, corruption, mismanagement, and huge debts.

     

    What has changed?

    A senior official of the Federal Ministry of Finance believes that a lot had changed at the ports since they were concessioned.

    The official, who declined to have his name in print, said the NPA management  had been running the ports efficiently. He said, for instance, that the Authority generated $140 million in 2005 before the concession and over $450 million from the Lagos Ports last year.

    The government, he said, concessioned the ports to generate more revenue and allow for greater flexibility, efficiency and better services to importers and other port users by resolving some of the major challenges hindering smooth port operations.

    Hear him: “As a direct impact of these investments, the ports have witnessed increased ship traffic and throughput, which has led to a 400 per cent rise in container throughput from 400,000 TEUs in 2006 to 1.6 million TEUs in 2014.

    “The investments have also led to the eradication of ship waiting time at the container terminals, as ships now berth on arrival.

    ‘’The official also said that vessel turnaround time has been reduced from five days to 41 hours while average dwell time for cargo clearance went from over 30 days to just 14 days.

    ‘’In addition, due to improved security and lighting of the terminals, the ports now run 24-hours (daily) and seven days-a-week operations.

    “There have also been some major investments made by the NPA on behalf of the government to increase traffic at the ports. Most laudable is the dredging of the channel from nine million to 13.5 million water depth.’’

    The official further said the NPA invested in the provision of larger tug boats to service shipping companies. This led to larger ships calling, particularly at the Lagos port and Tin Can port, thereby increasing the throughput.

    “The NPA has been a positive partner in the concession process but there still exists opportunities to further optimise the existing Lagos port infrastructure to meet medium term needs of the sector,” the official said.

     

    Need to review

    concession agreement

    However, to enhance the ease of doing business in ports in line with international best practices, NPA  is pushing for a review of the 10-year-old port concession.

    Many stakeholders have also called for a review of the concession to accommodate aspects, which are not working with the objectives. According to them, a review would remove conflicts and allow both the NPA and the operators to fulfill the agreement.

    To keep to its promise of boosting efficiency and reduce corruption, the management of the NPA is to acquire new tug boats with state-of-the-art, computerised engines, to meet the increasing demands of critical stakeholders, in the port industry.

     

    Functions of a port

    The most common mode of transport in international trade is sea transport. This is based on the huge number of cargoes that are transported on sea. Findings reveal that there are more than 2,000 seaports around the world, from the ones with a single berth location handling a few hundred tonnes of cargo yearly to huge facilities handling about 300 million tonnes of cargo yearly.

    When a port becomes more competitive, its ability to attract cargo will improve. This will increase the revenue and better utilisation of the port’s facility and infrastructure.

     

    Board and management

    This is the first time the board and  management of the Authority would come out in one voice to say that seaport infrastructure must be developed to meet international standard to boost efficiency at the port.

    Efficiency, the authority said, is a critical factor for handling of goods in the international supply chains, and is viewed to impact transportation and logistics, which play an important role in trade exchange with other countries.

    NPA Board Chairman, Mr Emmanuel Olajide Adesoye, said they had evaluated the operational efficiency of the seaports to reflect their status and reveal their position in the competitive environment.

    According to him, knowing the impacts of efficiency of seaports on the supply chain is vital for business survival.

    He said: “Seaports have been considered to be important elements in international supply chains. They hold a very important role and are the most critical nodes in the supply chain. It is widely believed that seaports form a vital link in the overall trading chain. Seaports are a component of freight distribution as they offer a maritime to land interface for cross-border businesses.Therefore, efficiency of seaport operation is vital for supply chains in our country and beyond.”

    Adesoye emphasised the need to improve seaport operational efficiency, and indicated which areas should be given more attention

    Three different areas, he said, had been identified as a new framework of measuring performance of seaports. They are trade channel, logistics channel and supply chain channel.

     

    Making the ports efficient

    One way the management of the NPA is making the ports efficient and easing the processes of importation and exportation for business environment is the strategic adoption and institution of electronic transactions.

    The authority has introduced an online payment platform called the Electronic Ship Entry Notice better known as “e-SEN” for shipping lines and agents to ease business transactions and help reduce ship dwell time.

    Usman said the online payment platform has cut off unnecessary delay associated with ship arrivals and their dwell time at the ports, as well as ensure a quicker cargo clearance system.

    Shipping companies in Nigeria have also described the e-SEN as a major step by the management of the NPA in checking corrupt tendencies at the seaports.

    The electronic devise replaces the obsolete manual system which is said to be corruption-laden.

     

    Synergy with other agencies

    To ensure improvement in operational efficiency in the ports, NPA is now effectively interfacing with other agencies. It has introduced a National Single Window Project to domicile all operations, including those of the Nigeria Customs Service and other agencies, into a single platform to boost efficiency.

     

    Tariffs put on website

    Under Usman, NPA publishes tariffs on its website for easy access by the operators, importers and the public.

     

    Engagement of professionals

    There is a purposeful engagement of maritime professionals by the NPA in most of its activities to make the ports more attractive for business.

     

    Transport cost

    Importers and clearing agents say transport cost contributes between 35 and 40 per cent of the landed cost of goods. A clearing agent at the Lagos port Dr Kayode Farinto listed extortion at entry and exit points, low service level, delays, uncertainty and strong bureaucracy as factors militating against the trade facilitation programme of the government.

    “The new management of the NPA knows that port practices and efficiency in port operations can have a significant if not a huge positive effect on stakeholders at sea ports and that is why they are hammering on efficiency,” he said

     

    Benefits of an efficient port

    One benefit of the government is increased revenue. When the port is more efficient, it will attract more cargo. The increased revenue realised from the duties and fees payable on the cargoes and ships will be a plus for the government.

    Since the port is not an isolated industry but a community of actors, a better positioned port will create other service firms within the industry; this will attract increased private sector participation.

    The people will be able to see a better price on goods since the present price of most import or import related goods are influenced by the cost incurred during the inward movement of cargo.

    The cost of doing business will be reduced since the costing method would change allowing for a more customer and service costing policy. Costs will also reduce for the freight forwarders and inland transport operators like trucking companies and they will be able to give a better price to customers.

    Delays experienced by cargo owners and other port users will be greatly minimised. This will increase the time it takes for them to get their goods to the market place.

    The quality of service perception will change and the port users will enjoy a moreuser friendly port and the advantages associated with it like ease in conducting business with the port. Predictability of port processes will allow port users to be able to optimise their processes like transportation.

    Cost will also reduce for importers who have to go through neighbouring countries’ ports due to the inefficiency experienced at ports in the country.

  • NIMASA partners Navy, Air Force to fight oil theft, piracy

    NIMASA partners Navy, Air Force to fight oil theft, piracy

    TO fight oil thieves and pirates on our territorial waters, the Nigerian Maritime Administration and Safety Agency (NIMASA) is partnering the Nigerian Navy and Nigeria Airforce.

    It has acquired some surveillance equipment to monitor the waterways and secure the ports.

    In furtherance of the engagement, NIMASA now operates a 24-hour surveillance regime, capturing vessels in the nation’s maritime domain irrespective of weather conditions.

    More than 5,000 ships ply the territorial waters yearly. Some vessels, sources said, violate international laws by engaging in illegal activities, including stealing of crude oil and other criminal activities.

    Its Director-General, Dr. Dakuku Peterside, said the agency achieves profile analyses, which include the flag, registered owner, operator, beneficial owner and movement of ships over a specified period.

    He said: “The system enables us to take very swift decision in real time, on any targeted ship. Currently, all offshore areas of interest have been electronically cordoned off with a guard zone via our surveillance system and we can at once link activities in the oil fields and on crude oil platforms.

    “ The system has not only greatly increased our capacity to block revenue leaks but has increased our revenue as all vessels coming into Nigeria are now captured and analysed for billing.

    “Our administration has been able to integrate surveillance data with billing control information, thereby driving our desire for the agency’s billing system to be fully operational  by two-thirds, from 72-hour down to 24 hours while keeping our eyes the target timeline of six hour billing,” Peterside said.

    A senior official of the Federal Ministry of Transport (FMoT), who craved anonymity, said the nation loses 200,000 barrels of crude oil to theft.

    “They are collaborating to curb oil theft, piracy and other criminalities, The Nation has learnt. More than 5,000 international ships ply the territorial waters yearly. Some of the vessels violate international laws by engaging in illegal activities.

    “The Air Force has acquired three maritime 128-6, F27 and ATR-42-500 jets and other planes to monitor the activities of oil thieves and other criminals.

    “The high-tech plane ATR-42-500 jet is being operated by the Air Force. The plane is fitted with sensors, radar and Electro-Optic Surveillance and Tracking (EOST) equipment, which houses three cameras to monitor ships in Nigerian waters.

    “The 20-seat plane can fly as low as 200 feet (60 metres) above the sea and passes on information about maritime traffic to the navy, who can intervene with fast-attack craft if necessary.

    “The collaboration is aimed at fighting all manner of maritime crimes in the country. With this aircraft, we can spot any vessel hundreds of kilometres (miles) away,” said Group Captain Enobong Eneh Effiom.

    “The aircraft is inscribed with the words: ‘Vigilance over the ocean’. The cameras installed in the planes function well at night based on their high powered lights.

    “For any sustainable and meaningful growth in the maritime sector, a robust maritime domain awareness system is inevitable. NIMASA has, therefore, entered into a Memorandum of Understanding with the Nigerian Navy and the Nigerian Air Force to enhance water patrol and aerial surveillance of Nigeria’s maritime domain.

    “The collaboration with the Air force will assist NIMASA in tackling the challenges of large and unrestricted navigational areas, small and non-cooperative objects taking advantage of the dense maritime activity to conceal their actions and it would also protect the ports and ships against attacks,” Effiom said.

    He said the agency was striving to ensure that the government and security agencies had access to accurate, comprehensive and up-to-the-minute situation data of the vessel traffic at sea.

    The jets, it was learnt, were built in France and equipped in Italy with radars, cameras and other security gadgets.

    It was gathered that the Navy has also acquired an equipment called Regional Maritime Awareness Capability Centre (RMAC) to aid the fightt.

    The equipment, findings showed, was imported from Japan for about N2 billion. It has high-frequency radio and long-range cameras, capable of spotting ships up to 48 kilometres away on the waters.

    “From the domain awareness centre, we can see ships from anywhere in the world coming or leaving our maritime space. It also gives us the ability to ascertain the actual threat the vessel poses,” the official said.

    The idea for the tripartite collaboration, a source said, started a few years ago

    It was learnt that NIMASA sought the help of the Air Force when it discovered that the war against pirates was complicated.

    “With the equipment in the planes, NIMASA can monitor even the unusual movement of vessels at sea and keep their records,” the official said.

    The jets, it was learnt, draw on the latest technology to provide a reliable, round-the-clock monitoring.

  • ‘Protect waterways against pollution’

    The rate of pollution, illegal fishing and dumping of haz-ardous wastes in the territorial waters is on the increase.

    A member of the Fishery Society of Nigeria (FISON), Gbolahan Adetona, said the country needed to work with its foreign partners to develop the capacity to tackle the problems.

    Adetona said dumping of toxic waste in the maritime domain and crimes on the coastline required the Federal Government and the Nigerian Maritime Administration and Safety Agency (NIMASA) commitment to building capacity.

    Adetona said security experts around the Horn of Africa had developed theories over the increasing hazardous wastes dumping and piracy

    He said Singapore, Indonesia, Malaysia, the Philippines and Thailand had set the stage for cooperation among states, in information exchange and mobilisation of resources.

    Another member of the group, Mrs Lola Adebajo, observed that the insecurity in Africa’s waterways had forced insurers to hike rates for ships passing through the region.

    Specifically, coastal and inland states had seen their vital trade links threatened by pirates, a situation that led to rising costs that their populations must bear.

    “As at now, there are no clear answers as to the best ways to ensure maritime security, nor are there clear answers as to what percentage of resources nations should allocate to maritime security to best facilitate the goal of furthering development,” she said.

    Since piracy is not the only threat to maritime security, another FASON member, Mr Sesan Olanipekun, advised the government to adopt best practices that can be implemented.

  • Customs releases help desk numbers on vehicle verification 

    The Nigeria Customs Service (NCS) has released three telephone numbers that can be used to reach the help desk for confirmation of Customs duty papers on vehicles by members of the public that are interested in it.

    The numbers are 094621597, 094621598 and 094621599.

    Its Acting Public Relations Officer, Joseph Attah, said the numbers are for those interested in verifying the genuineness of their papers or who intend to buy vehicles from dealers.

    He said “Any person can take advantage of this easy way to call and give the following information; and hold on for an immediate answer before purchasing the vehicle(s) – C –number, year of payment, command that the duty was said to be paid.

    “As you are reading out the C- number on the top right of the Single Goods Declaration (SGD) and giving the year of payment and the command (where the duty was paid), the information is being keyed in for prompt answer that will enable you make appropriate purchase decision.”

    He added that the NCS was determined to explore all ways of easing Customs processes and procedures in the interest of the public.

  • New shipping policy coming

    THE Federal Government is to adopt a new shipping policy to replace the Cost, Insurance and Freight (CIF) system in national interest, it was gathered.

    For now, goods are bought from Nigeria on FoB basis, but the country trades with others under CIF.

    FoB, sources said, gives importers the opportunity to pay for the shipment and landing costs of their goods at the ports.

    The government, a source close to the Ministry of Transport said, was adopting the CIF because it gives the seller the right to arrange for the shipping of goods to a port of his choice, and provides the buyer with the documents to collect them from the carrier.

    The source said the problem faced by indigenous owners was the failure to enforce the Nigerian Maritime Administration and Safety (NIMASA) Act, 2007, almost 10 years after its enactment.

    Nigeria, he said, is the only country still using FoB and NIMASA management is not happy with this, adding that it is pushing for a change.

    He said indigenous shipping firms had over the years been grappling with lack of cargo support, leading many of them to close down.

    A maritime lawyer and don, Mr Dipo Alaka, said the country was losing billions of naira from the continued use of FoB .

    Alaka described the government’s plan to adopt CIF as “good”, adding that the FoB policy was uneconomical.

    Nigeria, he said, loses billions of naira from the continued use of Free-on-Board (FoB) policy.

    FoB, he said, is a trade policy that gives the buyer the opportunity to pay for the shipment and landing costs of the goods from the port of origin. He urged the government  to adopt CIF for the lifting of crude oil.

    A member of the group, Mr Segun Ogunsanu, said he policy was being used to the detriment of the economy, despite the NIMASA Act and other legislations, such as the Cabotage Act, 2003 and Nigerian Content Act 2010.

    Ogunsanu said the adoption of either the CIF or FoB policy by the Federal Government should be based on how the policy benefits  the parties involved in the transaction.

    The intention of the Cabotage Act, he added, is to give indigenous shipping firms the support to enable them to compete with their foreign counterparts, who have usurped the shipping of cargoes on the international shipping route and the coastal and inland region.

  • Visit Lagos ports to assess roads, Osinbajo urged

    Visit Lagos ports to assess roads, Osinbajo urged

    Vice President Yemi Osinbajo has been urged to lead other members of the Federal Executive Council (FEC) to visit the Lagos seaports to see how bad the roads are.

    Some Apapa residents, motorists and statekeholders in the maritime industry said the visit would enable the Federal Government to assess the state of the Apapa and Tin-Can Island ports.

    They accused the Minister of Power, Works and Housing, Mr Babatunde Fashola, of not attending to the roads, despite being the immediate past governor of the state.

    Among the stakeholders are members of the Bible Society of Nigeria who asked the government to fix the roads and reduce users’ suffering.

    The group said it was no longer news that the Apapa/Oshodi Expressway and the Ijora/Apapa road were deplorable and begging for attention.

    The group’s Secretary-General and Chief Executive Officer, Dare Ajiboye, said the roads posed danger to life and also have negative effects on trade and commerce.

    “The appalling state of these roads does not project a good image for our country. Foreigners who come into the country through the ports will not see these roads and give us the respect we deserve as a nation. The stress of going in and out of Apapa and its attendant health challenges have adverse effects on the productivity of the nation,” he said.

    Other stakeholders  spoke  in similar vein, when they paid a condolence visit to the Secretariat of the Maritime Reporters’ Association of Nigeria (MARAN) at Atlantic House, Apapa, over the death of a member,  Segun Agbolade, at TrinityBus Stop, Lagos.

    Agbolade, an alumnus of the Lagos State Polytechnic, worked with Sky Times before his death.

    The stakeholders wondered why it was difficult for successive Ministers of Works to fix the roads despite that the Federal Government through the Nigerian Ports Authority (NPA) earned about $10 billion from the Lagos ports between 2006 and last year.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said the revenue excluded the over N150 billion collected from the Lagos Port Complex (LPC) and Tin-Can Island Port.

    “Few days ago, a journalist covering the maritime beat was gruesomely murdered on the road leading to Apapa port by an hopeless truck driver. The sudden death and other vices along the road would have been averted if the Federal Ministry of Works headed by the former governor of Lagos State, Mr Babatunde Raji Fashola, has been alive to its responsibility of fixing the most dangerous roads leading to any of the seaports across the world. “

    Shittu urged the Federal Government to rehabilitate the roads and resolve other challenges to make the ports more attractive and competitive.

    NPA, Shittu said, generated over $147 million in 2006 and collected over $105 million. From 2007 to 2009, he said, NPA generated $979,010,266 and collected $689,683,545.

    According to findings, NPA made $852,623,584 from 2010 to 2012 and collected $816,184,072 from the Lagos ports.

    At the LPC and Tin-Can Island Port, NPA generated $311,838,719 and collected $351,153,963 in 2013; $852,269,943 in 2014, while $754,362,679 was remitted to its domiciliary account.

    During the visit, the group reiterated its call to  Fashola to summon a stakeholders’ meeting where he would unfold his plan  to address the gridlock on the roads.

    Fashola as a former governor of Lagos State, Shittu said, needs to tell Lagosians what the Federal Government intends to do over the pathetic condition of the roads.

    Investigation by The Nation revealed that apart from the huge amount of money generated by NPA, Apapa and Tin-Can Customs commands generate, respectively, over N1 billion daily from the ports. The amount excludes what NAFDAC, Port Health, NIMASA, SON, Shippers Council and other agencies make.

    Shittu said vehicular congestion, which causes gridlock, has added to the cost of clearing goods, besides driving away businesses from the area.

    He alleged that importers were diverting cargoes to neighbouring countries because of the gridlock; new investors were being discouraged from the area and residents had started looking for homes outside Apapa.

    “The roads leading to the Apapa ports have collapsed and Lagosians and other port users expect Fashola as a former governor of the state to bring the issue to the front burner at the Federal Executive Council (FEC) meeting. But there is no evidence that he has done that because the roads have become worse than before his appointment. And this was the man that was telling the former President Jonathan to solve the problem when he was the governor. But now that he is the minister in charge of the road, why is he not addressing the issue?

    “In Apapa alone, there are about 60 petroleum tank farms for storage of petroleum products, which account for 90 per cent of the total imported products into the country. All these, as well as other maritime-related businesses like freight, clearing and forwarding easily make Apapa a hub of maritime activities.”

    Apapa, Shittu said, is not only reputed for maritime activities. Manufacturers take advantage of the ports to site companies in the suburb.

    Apart from manufacturing companies, such as Dangote Sugar Refinery, BUA Group, and Honeywell, he lamented that other businesses have shut down because of the gridlock.

    “The real problem is that government is making a huge amount of money from the ports without the necessary infrastructural development. It is sad that many businesses have closed down because the owners cannot get to their offices and Fashola is happy to be there as minister without addressing the problem.

    “No wonder, tanker drivers are now moving their trucks into residential buildings. The result is the chaotic situation we are facing in the area which we want Fashola as the minister saddled with that responsibility to address’’.

    The Publicity Secretary of motor vehicle importers in the area, Mr Felix Ayinla, also urged Fashola to rehabilitate the roads and address the perennial gridlock.

    He noted that the problem has impacted on cargo turn-around time and the cost of doing business.

    “Nobody needs to tell Fashola that Lagos port is the gateway to the nation’s economy and that he must see it as such. What we expect from him and the Federal Government is to open up the roads leading to the Lagos ports to make them attractive for business. Why must we face difficulties in moving goods in and out of the ports? he asked.

  • Ali may appear before Senate in uniform tomorrow 

    The Comptroller-General (CG) of Nigeria Customs Service (NCS), Col. Hameed Ali (rtd), may appear before the Senate tomorrow in uniform, The Nation has learnt.

    Sources close to the Ministry of Finance said the Presidency has ordered him to appear before the Senators in uniform.

    Obeying the legislature, a source said, would not cost Ali anything.

    “Presidency has ordered Col Ali to appear in his Customs uniform before the Senate tomorrow and we do not expect him to do otherwise unless he is ready to resign.

    “And up till now, there is no information at our disposal that he has thrown in the towel.

    “Although there is no aspect of Customs Act that stipulates that the Comptroller-General of Customs must appear before the Senate in his or her uniform, the Presidency believes that the controversy must be put to an end.

    “But one thing that Nigerians must understand is that there are so many aspects of Customs law that are crying for review which the legislator must be ready to do immediately.

    “Over the years, both Customs and stakeholders have clamoured for a review of Customs law which was first enacted in 1958. It is a pity that CEMA did not undergo any major review for over half a century. And that is why it is possible for non-career Customs officer like Col Ali and others before him to be appointed as the CGCs

    “After this face-off, Nigerians expect the lawmakers to embark on the review of Customs and Excise Management Act (CEMA) and they must consider the national interest and the future of the professional Customs officers in their review of the Act.

    “The review is overdue to enable the NCS meet up with modern Customs administration under a template provided by the World Customs Organisation (WCO).

    “The CEMA law was enacted in 1958 and the initial gap analysis of the Act was conducted in 2009 which discovered that the law was lacking, with the respect to the WCO Revised Kyoto Convention (RKC).

    “The law does not contain provisions to support the use of modern Information Technology (IT), such as use of electronic documents, signatures and payments as well as application of risk management, post clearance audit and special, simplified procedures for qualified readers,” the official said.