The Nation Newspaper

Category: Maritime

  • NPA gets new PRO

    The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala Usman, has appointed Mr Effiong Etim Nduonofit General Manager, Public Affairs.

    The new image maker assumed office after his predecessor, Chief Michael Kayode Ajayi, retired last week.

    After the handing over, Nduonofit urged members of the staff to support him in his quest to boost the image of the authority and its personnel.

    “Collaboration must be the watchword as we navigate the very challenging task of ensuring that NPA takes its place of pride among notable institutions across the globe,” he said.

    Nduonofit also urged officers of the unit to continue to promote the image of the authority and brace to the new vista in line with the change mantra of the Federal Government.

    He urged them to key into the vision of the agency.

    Before his appointment,  Nduonofit was an Assistant General Manager (AGM) Audit.

    He holds a Postgraduate Diploma (PGD) and Masters in Business Administration (MBA) from the University of Calabar between (1996-1998) and (1999-2001).

  • Stop abusing ECOWAS protocol, agents told

    Importers and clearing agents at the land borders have been urged to stop abusing the ECOWAS Trade Liberalisation Scheme (ETLS) to boost revenue and facilitate trade.

    Speaking with The Nation at Seme border last week,  the Managing Director, World Cargo Investment, Mr Adesope Aderoju, said ETLS was put in place by the Economic Community of West African States (ECOWAS) to facilitate the integration of trade and commerce among citizens of the member states.

    Aderoju said the scheme was set up to eliminate barriers and promote free trade.

    ETLS, he said, allows goods manufactured in member-states of ECOWAS to move freely without payment of import/export duties within the region.

    “The scheme has been subjected to unbridled abuse, especially by some unscrupulous importers and Asian businessmen. These unscrupulous people bring in goods from China and other Asian countries, ship them into the sub-region and land such goods in ports of neighbouring countries such as Benin Republic, Ivory Coast, Ghana and even lately Liberia. They subsequently change the labels on these goods and smuggle them through the land borders into the country.”

    A source said the implications of this act are grave. Apart from the loss of huge government revenue, goods that find their way into the market in this manner gain unfair competitive price advantage over locally made products.

    Apart from the abuse of the ETLS, which is mostly perpetrated through the land borders, many importers also disregard the country’s import policy. They bring in variou sgoods, including those banned by the government through seaports.

  • Stakeholders fault shipping policy

    Stakeholders fault shipping policy

    Stakeholders in the industry have faulted the shipping policy on waivers.

    They alleged that the policy would hinder the implementation of the Cabotage law. To them, effort is still needed on the part of the Minister of Transport, Rotimi Amaechi, to prepare the country for challenges in the industry.

    Speaking at a forum organised by importers and clearing agents in Lagos last week, Sea Logistics Managing Director, Mr. Rufus Olanipekun, expressed concern that foreign shipping lines would continue to exploit the country because of the selfish interest of a few and lack of a functional shipping policy that identifies the strategic challenges of the maritime sector.

    Olanipekun said there had been lapses in enforcing the Cabotage Law and domesticating all international treaties and conventions that relate to the sector.

    He expressed displeasure that the Cabotage regime is yet to be implemented to meet the expectations of stakeholders in the industry.

    Olanipekun also said there was a  gap between the intention of the Act and the system, which is yet to empower indigenous operators to take advantage of the law.

    The performance of the Federal Government on trade facilitation, high port charges, infrastructure, safety at sea, protection of the marine environment and enhancement of maritime law and security, Olanipekun said, falls below expectation, adding that the ports are performing below expectation.

    He said the Federal Government needed to do more to reduce piracy and armed robbery on the waterways.

    Olanipekun said foreign shipping companies are still dominating the nation’s maritime industry to the detriment of local ship owners.

    Another stakeholder and Chairman, JM Investment, Mr James Joseph, said conspiracy hinders the Cabotage Law  implementation.

    He said its implementation  would have been easier, but for conspiracy between some past officials of the Ministry of Transport and foreign ship owners.

    Joseph said the law could be easily implemented if the Minister of Transport musters enough political will to do so.

    “The Minister of Transport needs to see to the full implementation of the Cabotage law before he leaves office. We are aware that some individuals within and outside the government are trying to frustrate the implementation.

    “My suggestion to the minister is that he should make sure every ship that calls at the nation’s ports should first declare arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easier to implement the law,” he said.

    Poor policy implementation, he said, is the bane of the sector.

    “No government agency needs to go to the jetty to arrest a ship. NIMASA, for instance, can ask any ship to tell her its point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels. Therefore, if the Minister is determined, implementation should not be a problem.”

    Joseph said Nigerian ship owners must be supported with good policies by the government and banks so they can buy vessels to carry out coastal trade.

    The Coastal and Inland Shipping Act, 2003, he said, is a protectionist law enacted to create exclusive areas of operation in the coastal trade for indigenous operators.

    “Much as it is estimated that marine transportation offshore alone has a potential annual revenue/profit of millions of naira as against coastal trade in commodity and products, it is believed that harnessing the opportunities of effective implementation of Cabotage will provide a springboard for indigenous operators to acquire requisite capacity and expertise in launching them into global shipping.

    “The target is for Nigerian carriers to have a share of about $4.5 billion per annum gross value of freight in and out of Nigeria. Only 20 per cent share of the market will stimulate the local economy to the tune of about $600 million gross per annum,” Joseph said.

    The Cabotage regime, he said, covers ship building, ship ownership, manning and registration. Unlike the Cabotage Law in most  maritime countries, Nigeria’s Cabotage law provides for waivers, he said.

    Indigenous operators, according to him, have complained that the waiver clause has helped make implementation of the law difficult, inefficient and faulty.

  • Ship owners elect new leaders

    The Ship Owners Association of Nigeria (SOAN) has reelected the Chief Executive Officer of STARZS Group, Greg Ogbeifun as President, for a second term of another two years.

    Other officers  elected by the group included  Dr. M. K. George Onyung, first Vice President; Mr. Alfred Okoigun, Second Vice President; Mr. Eno J. Williams, Financial Secretary/Treasurer; and the Mr. Sonny Eja, the Chairman Ethics & Privileges Committee.

    Also elected were  Nnamdi Obiagwu, as Chairman Finance and Membership Committee; Lucky Akhiwu as Chairman Technical Committee; and Joseph Awodeha as the Chairman, Training and Capacity Building Committee.

    In an interview, Ogbeifun pledged to collaborate with other ship owners to strengthen  the relationship between the group and government agencies, such as the  Nigerian Maritime Administration and Safety Agency (NIMASA), NPA and the NNPC, to boost the economy and generate fresh employment opportunities for the youths.

    He assured that SOAN would leave no stone unturned to equip the cadets trained at the Maritime Academy of Nigeria Oron (MAN), Oron and those educated abroad by various foreign institutions.

    “The shipping industry needs them. We need them. Without them, there will be no enviable future for the nation’s shipping industry. So we are going to crystalise a strategy of articulating all our vessels and make them available for the training of  Nigerian cadets; working in full collaboration with NIMASA and of course, with the Maritime Academy of Nigeria, Oron; as well as other maritime institutions in the country, to see that the standard maintained is global.

    “The Cabotage Act itself is good, but it needs to be reviewed to sharpen it and revitalise so as to make it achieve the purpose for which it was created,” he said.

    Ogbeifun said he sees his reelection as a further call to service; thanking SOAN and other stakeholders for their support.

  • NPA PRO retires

    THE General Manager, Public Affairs, Nigerian Port Authority (NPA), Chief Michael Kayode Ajayi, has bowed out of office after reaching the mandatory 60 years.

    Ajayi, The Nation learnt, retired in a blaze of glory, because of his high level of commitment and dedication to duty. He was said to be a detribalised Nigerian, which endeared him to all that worked with him. A farewell ceremony organised in his honour in Lagos, last week, spoke volumes of his virtues.

    The event was attended by the NPA’s Managing Director, Ms Hadiza Bala Usman, the Executive Director, Finance Mohammed Bello-Koko and other top officials of the authority.

    The management and staff said they would have loved him to continue because of his dedication to duty, deep knowledge of administration and his enviable human relations.

    The General Manager, Monitoring and Enforcement (M&E), Western Ports, Capt. Ebubeogu Ihenacho, said he was not happy to announce Ajayi’s retirement.

    Remarks from top officials of NPA showed Ajayi as a man that used his position to promote career excellence among the staff and brought to the front burner issues relating to their welfare.

    In her remark, the Managing Director said she had a very good working relationship with him and happy over his disposition to work.

    “During the period we were together, we had a very robust working relationship and very robust interaction.

    “What is important is that he has been able to discuss openly with me issues on what we need to do to move the authority forward.

    “He makes his suggestions very clear and he has been very candid in conveying some of his messages and I appreciate him for that.

    “Over the period, I have also learnt to listen to his advice as regards the challenges facing the public affairs because  the media turns positive and negative against us. He has been there to guide and assist. I appreciate the contributions he has brought to the public affairs.

    “As Ajayi would be going,  I will always call on him to provide support. I will always call on him to provide guidance and I think he will always be part of us in the Public Affairs and in the authority,” the NPA chief said.

    Families, friends and other officials at the event spoke well of  Ajayi.

    Ajayi told The Nation that as a GM for 10 years, “I tried to focus on letting the staff do what they were paid to do. I put a lot of trust in them, and tutored them on selfless service to NPA and the nation.’’

    Ajayi spent 24 years with the NPA working in various capacities.

  • Farmers challenge govt on rice smuggling

    The Chairman, Rice Farmers Association of Nigeria (RIFAN), Southwest Zone, Mr. Olusegun Atho, has said unless smuggling is tackled, the policy on imported rice will not yield results.

    He identified smuggling as the major factor that would hinder the ban on the imported commodity, just as it had adverse effect on local rice production.

    He said: “The government needs to come out and deal with the issue of smuggling in order to encourage local growers.”

    The Federal Government recently announced the ban on rice importation through the land borders in order to develop local production of the commodity.

    But Atho said in Lagos that the government needed to provide more incentives to farmers to become self-sufficient in rice production.

    He advised the government to put in place proactive measures to meet the country’s rice demand before banning imported rice.

    Buttressing the association’s stand, he said: “I don’t see any reality in the ban. Not until when necessary machinery is put in place should Nigerians expect the gains of the government ban on imported rice through the land borders

    “The government should equip farmers with the necessary tools including tractors, organic fertilisers and give adequate training ”

    The RIFAN chief also advised the government to provide adequate funding by way of grants or loans to farmers.

    “These factors are very important and must be put into consideration, before the ban can yield fruitful results.

    “If these things are not in place, the ban cannot be realistic. Until when government begins to do something about it, that is when we can see the seriousness,” he added.

    Atho also appealed to the government to construct more dams and provide mini-pumping machines for farmers to prepare them for irrigation farming as well as introduce modern rice production technology.

    “If the government can provide all these to farmers, that is when government can boast of self-sustainability,” he said.

  • N10b river ports spark Reps probe of NIWA

    N10b river ports spark Reps probe of NIWA

    The House of Representatives is set to probe the Nigeria Inland Waterways Authority (NIWA) to determine its efficiency in securing passengers and their goods, it has been learnt.

    The lawmakers, sources said, settled for the probe because they felt NIWA was not doing enough about the safety of passengers around and their goods.

    The House Committee on Ports, Harbours and Waterways is said to be worried that NIWA is not doing enough to make the ports attractive to investors, despite N10 billion being spent on the construction of river ports in Onitsha (Anambra), Lokoja, Baro and Oguta (Imo).

    Findings revealed that work on Baro, Lokoja and Oguta river ports have attained 98, 57 and 75 per cent completion. Onitsha has been completed and a waiting concession.

    A government source told The Nation that N3.5 billion was spent on Baro, Lokoja, N4.1 billion and Oguta, N2.7 billion.

    NIWA, he said, was yet to provide the platform that would ensure security on the waterways to allow for private sector investment and participation in the river ports to trigger improved utilisation of inland waterways for transportation and easy conveyance of cargo from one part of the country to another.

    The authority, a source also said, was yet to take its rightful place in waterways development and reposition the agency to meet the expected target of river port operators and users.

    He bemoaned the unregulated activities within and around the corridors of Nigerian waterways and urged NIWA to wake up to its responsibility by securing the waterways and make the river ports attractive.

    The unregulated activities of the local boat operators, he said, could affect security of passengers  aboard vessels, on shore facilities at intermodal connections, and where other transportation modes interact with NIWA infrastructure.

    “The National Inland Waterways Authority (NIWA) was established  to improve and develop Nigeria’s inland waterways for navigation. It also has the responsibility to issue licences for inland navigation, piers, jetties and dockyards; examine and survey inland watercraft and shipyard operators, grant permit and licences for sand dredging, pipeline construction, dredging of slot and approve designs and construction of inland river crafts.

    NIWA’s role include effective understanding of anything associated with the maritime domain that could impact the security, safety, economy, or environment of the river ports they are promoting and other government facilities they are linked with.

    “But if you move from Marina in Lagos to Epe, Iyana-Oworo,  Ojo,  Badagry, Lekki, Osoroko, Ibese, Ogogo village behind the Lagos port and other riverine areas across the country, you will see the impunity with which the local boat operators are operating on our waters without any corrective measures being taken by officials of NIWA.

    “The July 2005 terrorist bombings in London highlighted the need to protect US mass transit systems, including ferries. Later, the effects of hurricanes Katrina and Rita highlighted the criticality of preparedness for recovery of the MTS following a large-scale disaster.  The 2008 terrorist attack via the maritime domain against Mumbai, India, highlighted the tie between border security and PWCS.  After each event, the Coast Guard reviewed its PWCS strategy and made adjustments where appropriate,” he said.

    He continued: “Therefore, the management of the agency needs not be remembered that it must ensure that the river ports and maritime personnel, both domestically and international, need safe and secure environment to operate. Safety regulations for other modes of transportation like inland water usage can also help reduce security risks at the nation’s sea ports.

    “Given recent intelligence regarding the threats to maritime assets and the attractiveness of these assets to attacks, it would be prudent for the National Assembly to review transportation safety regulations to determine if reasonable changes could be made by NIWA to promote security.

    “The National Assembly will hold the management of the agency  accountable for not fulfilling their roles/responsibilities, and we must also provide incentives for excellent management performance in other maritime agencies and give penalties for inadequate performance.”

    He added: “As a nation, we must do more to protect the water transportation system. We must prevent accident and attacks, which could destroy critical infrastructure and key assets in the maritime domain, and disrupt river port activities. That is why Maritime Transportation System Security is an essential component to the National Strategy for Maritime Security.”

    Operators and port users in Apapa also attested to the fact that the agency saddled with the responsibility of ensuing safety  on inland water. is asleep.

    An importer who lives in Ikorodu and come to the port through the water, Mr Samuel Adewoyin, bemoaned how operators were not adhering to safety standards and the lack of commitment by NIWA officials to enforce government rules and regulation on the waterways

    The Nation’s findings revealed that safety measures were not being observed by local boat operators in many places visited.

    Most of the operators do not  have navigational aids, cabin lighting systems, life jackets, fire extinguishers, paddle, life buoys, shore to sea communication gadgets, key starter and alarm systems  by most of local commercial boats

    In most cases, boats used in Lagos areas are rickety, not seaworthy and very risky for passengers. Despite the risks, the passengers are left with no choice than to use them because NIWA was no where on the water to enforce standard. There are even many cases where live-jackets are not offered to passengers not to talk of the state of health of the boat. This explains why from time to time, accidents occur and so many people lose their lives

  • Cabotage: ‘Nigeria still losing billions yearly to foreign firms’

    Despite the Cabotage Law, Nigeria is losing billions of naira yearly to foreign ship yards. Most ship owners take thier vessels to other countries for repair and dry docking, it was learnt.

    Under the law, coastal trade is reserved for indigenous shipowners, while foreign firms are only allowed to participate in the business subject to a waiver by the Federal Government.

    To the Shipowners Association of Nigeria (SOAN), the law has not served its purpose because its members cannot handle cargoes that pass through the waterways.

    Speaking with The Nation in Lagos, SOAN’s President Greg Ogbeifun urged the government to engage  its members in crude oil lifting.

    Sources close to the association said a vessel involved in offshore operations makes at least $5,000 daily. This, according to a source, is the least amount collected by foreign vessels on the nation’s waters.

    The country, the source said, is losing over $20 billion to foreign ship yards and over $10 billion to foreigners yearly  because of the government’s alleged failure to engage indigenous ship chandlers. The source also said about N45 billion was being lost yearly due to the preference given to foreign ship owners and their choice of insurers over indigenous companies in the lifting and importation of fuel.

    The Federal Government, a source said, loses over N3.5 billion monthly in freight insurance, urging the government to arrest the situation.

    A senior Nigerian Maritime Administration and Safety Agency (NIMASA)  official, who pleaded not to be named, said the amount foreign ship owners pay to the agency and others was small compared to what they repatriate.

    He put the Federal Government’s loss at over N2 trillion yearly, wondering why the loopholes were yet to be plugged by the President Buhari’s administration.

    Indigenous insurance companies, he said, were sidelined in the insurance of imported fuel both locally and internationally

    He said: “The sorry situation we find our country as a maritime nation is ridiculous and in absolute contravention of the Local Content Act.

    “For instance, Nigerian ship chandlers are supposed to be given 95 per cent of business oppor-tunities in the ship chandelling industry and other opportunities to render services in the ships. The Federal Government needs to ensure that the local content Act is wholly implemented in order to create jobs for Nigerians in the maritime, oil and gas sectors effectively.

    He continued: “In the oil and gas industry, Nigeria has close to 500 oil wells. For each well, there is a rig, which is supported by a minimum of five ships, and they are called oil support vessels. Each of the foreign ships earn $5,000, while others earn $150,000 per day.

    “The Cabotage Act seeks to reserve domestic coastal trade or Cabotage trade within Nigerian coastal and inland waters to vessels built and registered in the country, wholly owned and manned by Nigerian citizens. Foreign-owned vessels and companies are, however, allowed to participate in Cabotage trade within Nigerian waters, subject to obtaining a waiver and or license from the Federal Ministry of Transport.

    He added: “I can say conveniently that even in the crude oil carriage that they do today, if SOAN, ISAN are allowed to do 60 per cent of their own allocation, they will be putting back more than about N1.8 trillion or N2trillion into the economy and that is almost half of the  budget.

    “With the poor state of our economy, I think it would be suicidal for us to continue to engage foreigners to lift our crude. The government must ensure that every dollar we pay for the carriage of our oil comes into the economy,” he said.

    Ogbeifun, however, promised that after the election, the group would promote the interest of Nigerian-owned vessels and provide a forum for dialogue with relevant government agencies.

    “SOAN comprise ship owning companies with proven track records of activities in the industry recognised by upstream and downstream sectors of the shipping industry as well as by the private and public sectors of the industry.

    Ogbeifun, who is also the Chief Executive Officer of Starz Group, said his company had contributed immensely to the Cabotage fund and that SOAN was set up to facilitate participation of Nigerian shipowners in international fora on shipping matters through effective representation

    “Part of our job is to cultivate and maintain good relations with the government and maritime authorities by contributing expertise in formulating policies and regulations on national and maritime activities,” he said.

  • Union backs govt

    The Maritime Workers’ Union of Nigeria (MAWUN) has urged its members to support the Federal Government in its drive to boost the economy and facilitate trade at the ports.

    The union also pledeged to work with the government to achieve its maritime and economic policies.

    Speaking with The Nation after kicking off the campaign for the union’s President-General in Lagos, the out-going Vice-President, Comrade Dahiru Abubakar, said  the group would collaborate with the Nigerian Navy and other security agencies to secure the waterways if elected.

    He said the union, apart from protecting the interests of its workers by assisting the government to create sustainable employment opportunities, would also create a sustainable networking framework with the stakeholders in the maritime industry to achieve the nation’s maritime goals.

    Abubakar said his team would ensure that all maritime protocols, conventions and treaties were domesticated.

    The group, he said, would ensure that clerks and onboard security men are catered for through genuine engagement of the government at the sea ports.

     

  • Fed Govt requires N10b to remove ship wrecks in Lagos

    Fed Govt requires N10b to remove ship wrecks in Lagos

    THE Federal Government requires an estimated N10 billion to remove the over 30 abandoned vessels on the Lagos shoreline, it has been learnt.

    According to sources at the Federal Ministry of Transport (FMoT), it costs more than N300 million to remove a wrecked ship from the water.

    The government, a source said, has spent over N300 billion to remove over 200 wrecked ships in the past.

    The exercise, when started, the  source, an official in the ministry, said would last between 20 and 24 months.

    For  long, wrecked and abandoned vessels have constituted a menace to riverine communities along the shorelines.

    But the hope of clearing the waterbodies of wrecked vessels this year may remain a dream. The official of the ministry blames this on the huge financial implication to conduct such exercise, adding that increasing vessel sizes and growing cargo volumes are driving up the cost.

    Besides, the Nigeria Maritime Administration and Safety Agency (NIMASA) Board, it was learnt, that the NIMASA Board cannot award contract for such exercise without going through the Ministry of Transport, the Bureau of Public Enterprises and the Federal Executive Council.

    In government, a source said, are politicians and civil servants with vested interest in the contract.

    Explaining the reasons  for the delay in the removal of the wrecks, a ship owner, Captain Niyi Labinjo, said the country does not have the required capacity to put broken down vessels back into shape. This, he said, accounts for the increasing number of wreckage and abandoned vessels on the Lagos waters.

    He further explained that the lack of capacity to remove wreckages by indigenous companies is why they have not been removed.

    Labinjo, while painting a grim picture of the maritime industry, lampooned the Federal Government for its non-challance for the industry, saying it is only interested in collecting revenue accruing from it but not willing to develop the sector based on its bad and inconsistent policies.

    He said the dearth of adequate infrastructure to repair broken down vessels on the nation’s coastline, necessitated the decision of the NPA to take its 6,000 tonnes floating dock, which sank in Lagos in 2011 to Ghana for repair, after it had been refloated.

    The spokesman of Ilado community in Lagos, Mr . Seyi Agbato, lamented the eye sore wrecked vessels have not only constituted on his community, but also its threat to life and property.

    Agbato said abandoned vessels were partly responsible for the problem of ocean surge, adding that the environmental problem had devastated lives and communities in the state.

    A senior Nigeria Customs Service (NCS) official who raised the alarm on abandoned vessels few days ago, said  the problem of ship wrecks is a major issue in the state just as it is in other states of the federation.

    “Unfortunately, the NPA and NIMASA, who are responsible for maritime safety, are not doing anything about this problem.

    “People have written to the Federal Government on a number of occasions on the problem, but they are yet to get replies let alone assistance,” the NCS source said.

    It would be recalled that the Lagos State government in the past appealed to NIMASA and other relevant authorities to assist the state by removing these vessels for the safety of residents and the environment.