Category: Maritime

Towards the end of the Muhammadu Buhari administration, the Federal Government signed a concession agreement with XPO Marine Services Limited for the provision of an Offshore Waste Reception Facility (OWRF) in the nation’s eastern zone. In this report, OLUWAKEMI DAUDA looks at the benefits of the facility to the country.

One of the key programmes okayed by the immediate past Federal administration is the cleaning of ships and ports.

  To give teeth to it, the Federal Government signed a concession agreement with XPO Marine Services Limited to provide Offshore Waste Reception Facility (OWRF) in the eastern zone clean seas and ships of any debris. The zone covers Cross River,  Akwa Ibom, Rivers to Bayelsa states.

The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, represented the Federal Government, while the Managing Director, XPO Marine Services, Wellington Agharese, signed for the company.

What is a port reception facility?

A port reception facility is a kind of provision that any international shipping port must make to collect residues, oily mixtures, and garbage generated from sea-going vessels. The arrangements must be such that the receiving operation can be performed as fast as possible to avoid undue delays of the ships.

The facility also refers to any fixed, floating or mobile facility capable of receiving waste.

The International Convention for the Prevention of Pollution from Ships (MARPOL) mandates the facility to receive to receive residues/waste from ships.

What is MARPOL?

MARPOL was adopted in November 1973 at the International Maritime Organisation (IMO) meeting.

It is the main international convention covering prevention of pollution of the marine environment by ships from operational or accidental pollution.

The Convention states that parties to it should ensure adequate provision of facilities at ports and terminals to meet the need of ships using them without causing undue delays.

The merchant fleet of ships in the shipping industry is divided into two main categories: dry ships, which carry dry cargo in bulk and wet ships – these ships generate oily residue mixture and garbage during their cargo carrying operations.

The oily residue mixture and garbage generated by the vessel cannot be discharged to the sea, according to the law to avoid marine pollution. That is why they are disposed to the port reception facilities around the world.

Read Also: Navy to unveil seven additional navigational charts

Position of IMO

The IMO recognised that reception facilities are crucial to  the effective MARPOL implementation, and the Marine Environment Protection Committee (MEPC) has encouraged member-states (Nigeria inclusive), particularly those parties to MARPOL as port states, to fulfil their treaty obligations on providing adequate reception facilities.

Benefits of agreement signed by the govt

The benefits of the agreement include pollution elimination in Nigeria’s waters, infrastructure stock increase, revenue generation,  employment, improved economic activities and transfer of the assets at the end of concession period to the Federal Government.

The importance of adequate waste reception facilities in the chain of implementation of MARPOL and MARPOL policy of “zero tolerance of illegal discharges from ships” could only be enforced when there are adequate facilities provided by the government or its agents.

Agharese expressed the capability of the company to take on the responsibility.

The company, he said, would utilise the Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) Public-Private Partnership (PPP) strategy for the project, which will ensure that from inception government funds were not utilised in project operations while the Federal Government partakes in revenue sharing.

Objective and application

Nigeria is a party to the International Convention on the Prevention of pollution from Ships (MARPOL 73/78) develop under the IMO. The MARPOL Convention requires in its annexes I, II, IV, V and VI that Port Reception Facilities be provided and adequate for ship wastes by member-states.

•These regulations are founded on international commitments of objectives.

They provide for a framework for waste reception facilities for ship-generated waste: statutory backing and regulatory oversight for the Nigerian Ports Authority (NPA) in providing shore-based reception facilities; regulatory cover for reception of waste generated across various offshore installations; for the licensing of waste management organisations and guidelines for developing charges; and reporting requirements for waste delivery and receipt.

•These regulations apply to any port, terminal, jetty, shipyard and offshore installation.

•Subject to sub-regulations and

•These regulations apply to ships calling at/or operating within a port, terminal or otherwise operating a commercial service within the waters.

•These regulations do not apply to any warship, naval auxiliary or other ship owned or operated by a state and used for the time being, only on the government’s non-commercial service.

•The provision of regulations 9 and 12 of these regulations do not apply to a ship which is afishing vessel; or recreational craft authorised to carry or designed to carry not more than 12 passengers.

•The Nigerian Maritime Administration and Safety Agency (NIMASA) is responsible for the provision of waste reception facilities offshore for the reception of waste generated by ships to which these regulations apply that do not call into ports or are otherwise engaged in commercial service within the waters; and offshore installations.

The agency may, in the discharge of their duty, collaborate with  a qualified organisation in providing waste reception facilities; direct or arrange for the provision of such reception facilities by any other person who shall be qualified to undertake the provision of facilities.

What experts said

In a statement, two stakeholders in the industry, Dagogo Jack  and Afiz Abass, said there is interest in marine environment protection among African  coastal states, as the region takes steps to harness its vast maritime endowments.

The statement reads in part: “Nigeria in this respect is conscious of the fact that her people depends on the sea for livelihood.The country is recognising more and more the need to scale up its environmental stewardship  by intensifying efforts to implement the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78), which it is a party to. 

MARPOL, one of the instruments of IMO, is the main international convention covering the prevention of pollution of the marine environment through ships from operational or accidental causes.

“In line with the MARPOL Convention, the Federal Government enacted the Merchant Shipping Act, 2007, and Merchant Shipping (Ship Generated Marine Waste Reception Facilities) Regulations, 2012. Nigeria, being a major oil producing nation, contends with oil-related pollution.

“Oil is the main pollutant of Nigeria’s maritime environment, given the crucial role of the product in the country’s economy.

“Several offshore activities pollute the ocean and coastal communities. Contamination from ships and drilling facilities harms plants, animals, and human communities. It is estimated that more than half a billion barrels of waste fluids are generated annually in the course of oil and gas activities in Nigeria.

“To deal with such pollution menace, the Federal Government, acting through the country’s maritime regulatory agency, Nigerian Maritime Administration and Safety Agency (NIMASA), recently signed a concession agreement with XPO Marine Services Limited for the provision of an Offshore Waste Reception Facility (OWRF) in Nigeria’s Eastern Zone. The zone stretches from Cross River State, through Akwa Ibom, Rivers to Bayelsa State.”

The contract signed

 Dagogo and Abass said: “The contract, signed on May 15, will be executed under a Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) public-private partnership (PPP) arrangement. It will be executed in four phases for an initial period of 10 years at a total cost of USD72.2 million.The facility would handle inspections for verification of compliance and assessment of service requirements, collection/reception of ship generated waste, waste processing and safe recycling and disposal.

“The specialised vessels will also patrol the seas and oceans to protect them from pollution, and act as first responders.

“The Infrastructure Concession Regulatory Commission (ICRC), which has regulatory guidance over the project, announced in December last year that the Federal Executive Council (FEC) had approved three PPP projects to be executed in NIMASA.

“ICRC said the projects were expected to generate over USD1, 110,384,387 for the Federal Government during the concession period.

“The Eastern OWRF, Central/Western OWRF, and a Floating Dry Dock were approved by FEC, following the issuance of Full Business Case Certificate of Compliance (FBC) by the PPP regulator, ICRC.”

What ICRC said

The Director-General, ICRC, Michael Ohiani, had said the approvals demonstrated the commitment of the former President Muhammadu Buhari administration to the environmental well-being of coastal communities and offshore fisher folks.

ICRC said the OWRF projects would help keep the seas and oceans clean.

“The projected total revenue from Eastern OWRF for the entire concession period due to Federal Government based on revenue-sharing ratios is USD279, 487,228.35.The projected total revenue for the entire concession period from the Central and Western zones due to Federal Government based on the revenue sharing ratios is USD765, 289,988.

”The IMO recognises the provision of waste reception facilities as crucial for effective implementation of the MARPOL Convention. IMO’s Marine Environment Protection Committee also encourages member-states, particularly parties to MARPOL as port states, to fulfil their treaty obligations on provision of adequate waste reception facilities at ports and terminals. Nigeria stands to benefit immensely from the offshore waste disposal facility.

“It comes at a time of fervent quest for deep seaports by the state and federal governments, and revelations that about 70 per cent of cargo bound for West and Central Africa are destined for Nigeria.’’

 Besides, NIMASA is expected to commence soon the operation of its floating dry dock, which is of huge commercial benefit to the country in ship dry-docking and repairs. These are in pursuit of the objective of developing Nigeria as a regional and global maritime hub. The waste reception facility would be a significant effort to deal with the increased pollution in maritime activities.

Findings have shown that the offshore waste collection facility has the capacity to receive various classifications of residues/wastes, in line with the demands of MARPOL I-VI, covering oily waste, residues containing noxious liquid substances (NLS), sewage, garbage, including dry/bulk cargo residues and cargo-associated waste, such as dunnage and packaging; and ozone-depleting substances and exhaust gas cleaning residues.The facility is in tandem with efforts to increase Nigeria’s infrastructure stock through PPPs, as captured in the Medium-Term Expenditure Framework and Fiscal Strategy Paper (METF/FSP) 2020-2022.

Increase in revenue

The facility will raise revenue for the government and provide the country an innovative best-practice solution and infrastructure for offshore waste management. It would create employment opportunities for the host community and other Nigerians, with an estimated 1, 200 direct jobs, and up to 2,000 indirect and ancillary jobs. It would give maritime students and scholars an opportunity to sharpen their knowledge through easy data collection, investigation, and analysis.The waste collection project would stimulate greater economic activities in the maritime industry and attract investments.

Advantages of the project

All these, it was gathered, would be at no cost to the government, as incidental risks are transferred to the concessionaire. The DFBOMT PPP strategy also brings advantages to the government. It ensures that, from start to finish, the government funds are not involved; the government has the opportunity to share from the revenue; and it meets it complies with the international maritime convention. Above all, the asset will revert to the government upon expiration of the concession period. In trying to harness the potential of its maritime environment, Nigeria has invested a great deal of effort in ventures meant to guarantee long-term ecological health and improvement.

 Globally concerns

Gobally, concerns are rising about the harmful effects of human activities on the environment.The World Economic Forum (WEF), a Switzerland-based non-governmental and lobbying organisation, warned about a climate crisis in its 2022 Global Risks Report. It said the environment’s health remained the biggest long-term worry for humanity.

The risks report is usually released before the meeting of world business and political leaders held every January in Davos, Switzerland to address global economic issues. Things did not turn out better than forecasted over the course of 2022. WEF started the event with a warning that the world was on the verge of a perilous “polycrisis” – a tangled web of crises straddling global systems. Climate change was one of the major threats identified by the WEF.The Nigerian maritime industry has witnessed an inclination towards innovative steps aimed at securing and preserving the environment for profitable investment. The country intends to develop an environment favourable to faster rollout of its blue economy potential.

The country made international headlines in September 24, 2021, when it launched a wreck removal initiative, in deliberate effort to further open up the maritime sector for sustainable investment.The then Minister of Transportation, Rotimi Amaechi, at the launch of the wreck removal in Lagos: “This creative venture of clearing our waters of wrecks and derelicts, apart from guaranteeing better safety of navigation, opens up the prospects of many new investments in the maritime industry.”

On February 20, 2020, the former Director-General,  NIMASA, Dr. Dakuku Peterside, initiated the Maritime Action Plan on Marine Litter and Plastics, setting a national roadmap for tackling marine pollution.

IMO Secretary-General, Kitack Lim, said: “Shipping must be balanced with the safety of life at sea, the long-term health and diversity of oceans and the conservation of the marine environment. Marine litters are a great concern and the discharge of garbage from ships has been prohibited since the 1980s by the MARPOL convention and additionally by the London convention Governments the world over have adopted partnership with the private sector as an effective strategy for maintaining ocean and sea health.”

Last line

Investigation has shown that in the United Kingdom, the ports employ licensed waste disposal contractors to serve the shipping community. The approach is similar in the United States, where port/terminal operators employ firms for waste reception/removal services, and update the companies’ information with the United States Coast Guard (USCG) if there are changes.

Stakeholders said the latest partnership with XPO Marine Services for an offshore waste reception facility was a good attempt by the Buhari administration to secure the marine environment to support life and investment. The company that won the contract has provided integrated offshore marine support services to the oil and gas industry in West Africa for over a decade, hence the decision of the government to give it a trial.

“We are proud to be part of the execution of Nigeria’s critical treaty obligation under the MARPOL Convention,” said  Agharese.

The Nigerian Ports Authority (NPA) needs a whopping $800million to fix the ports. In this report, OLUWAKEMI DAUDA looks at the collapsed quay wall at the Tin Can Island Port, Lagos, where part of the huge cash will be spent.

Stakeholders in the maritime industry have a major agenda for the incoming administration of Asiwaju Bola Tinubu: Scale up the infrastructure at the seaports to global standards so that the sector, which has the capacity to contribute immensely to the economy, will not continue to falter or flounder.

The Minister of Transportation, Mua’zu Sambo confirmed the dilapidation at the ports that will cost the Federal Government millions of dollars.

Investigation has shown that importers are diverting their Nigeria-bound cargoes to other ports in the Republic of Benin, Togo and Ghana based on the collapsed quay wall at the Lagos port.That, the stakeholders said, is caused mainly by dilapidated port infrastructure, long cargo dwell time, poor vessel turnaround time, delayed clearing and port congestion, resulting from traffic gridlock within and outside the port.

One of the dilapidated structures is the quay wall.

A quay

Quay is a stone or metal platform lying alongside or projecting into the water where ships are moored for loading or unloading. It’s a structure built parallel to the bank of a waterway for ship landing —that wharf on the bank of the river where all the ships park

A quay wall

A quay wall is a soil retaining structure that provides a mooring place for ships, bearing capacity for crane loads, goods and storage, and sometimes a water-retaining function

How a quay is built

The construction of quay walls is adopted by means of large blocks, sometimes of stone but generally of concrete, placed underwater by divers. The economics of this method of construction are influenced by the high cost of skilled divers and by the cumbersome nature of diving equipment.

Alarm over collapsed quay at Tin Can Port

About three years ago, the management of Five Star Logistics Terminal at the Tin Can Island Port Complex raised the alarm over the collapse of the cable ditch along the quay apron of berths 9 and 10 at the terminal.

 Five Star Logistics Terminal, operators of the roll-on/roll-off terminal at the port, where both berth, covers 437.03metres.

 Speaking with reporters during a tour of the facility in Lagos, its General Manager, Wolfgang Schneider, said the management of the terminal had on several occasions called the attention of NPA to the issue.

According to him, it is the responsibility of NPA to repair the tower light area to the quay apron in line with the lease agreement.

 He said the collapsed portion of the quay apron is taking up commercial space at the terminal, calling for NPA’s urgent intervention.

 He said: “We are losing a lot of space, which could stack up to 100 containers as a result of this collapsed portion and it is pathetic. Any heavy object cannot go along the area because it is very dangerous. The quay wall has to be repaired first before we can fill up the failed portion to make sure that we are not sinking in.

 “From the tower light to the quay apron, it is purely NPA’s responsibility to maintain. We have been talking about this with NPA, but nothing has been done.”

What the NPA said

The Managing Director, Nigerian Ports Authority (NPA), Muhammed Bello-Koko, said the Tin Can Island Port is collapsing, adding that more attention should be focused on rehabilitating the quay walls of the port.

 Bello-Koko said the agency had taken a holistic review of the decaying parts of the ports.

He added that the agency had started discussing with some lending firms, stressing that the agency did not have the intention to borrow.

“Tin Can Island Port is practically collapsing. We need to focus our budget towards the rehabilitation of those quay walls at the Tin Can Port. We have taken a holistic review of decaying infrastructure at our ports and have decided that it is very important that we rehabilitate Tin Can and Apapa port.

“What we have done is to start talking to lending agencies, even though we don’t intend to lend. We are asking how much money they will invest in the port terminals.”

He, however, said the affected terminals would not want the agency to rehabilitate the ports.

“However, if we go and borrow money to rehabilitate those ports, then what the terminal operators are paying will have to change. The rates will have to go up. If we don’t do that, these terminal operators will keep managing those places, and the ports will keep collapsing. Because of their financial interest, these terminal operators don’t want us to re-construct the affected port terminals because that will mean stopping them from operating.

 “We have had interest from the World Bank, among others. Surprisingly, it was the World Bank that actually gave money to the NPA to construct part of the Apapa Port so many years ago. The World Bank has come again to tell us that if we need funding, they will give it to us.”

Need for $800m to fix ports infrastructure

Stakeholders said with the delay by the management of NPA in getting approval for the $800 million it needs to fix the dilapidated ports infrastructure across the country, ports condition may worsen as some of the quays might collapse totally and prevent ships from coming to the affected terminals and lead to cargo diversion.

 Former President, Association of Nigerian Licensed Customs Agents (ANCLA), Prince Olayiwola Shittu said the dilapidation of major seaports infrastructure such as Tin Can Island Port and Apapa Port in Lagos, Onne Port in Rivers State and Escravos breakwaters in Warri Port and Calabar Port in Cross River has continued to cause setback for trade facilitation and hinder the much-anticipated growth and revenue generation of the Federal Government as shipping companies are now using other ports in the neighbouring countries.

 Findings have shown that about 85 per cent of these ports infrastructure are over 40 years old and need urgent attention by the incoming administration of Asiwaju Bola Tinubu.

“The truth is that the poor state of the ports has hindered digitisation of our ports, while other neighbouring countries are investing in modern technological equipment that have been attracting Nigerian-bound cargoes, ensuring security and efficient e-cargo clearance system, among others, to boost their economy.

Bello-Koko, had, at the International Association of Ports and Harbours (IAPH) Europe and Africa Regional meeting this year, also said about $800 million was needed to rehabilitate these ports infrastructure.

He said the loan would be repaid in seven years, adding that it was still being worked out by the relevant government agency

He said if the project would be funded by the NPA, it would reduce its contribution to the Consolidated Revenue Fund (CRF) of the Federal Government because of the terms of repayment.

Bello-Koko said further that the rehabilitation would include the digitisation of the ports as port rehabilitation and remedial works were no more effective.

Bello-Koko added: “Palliative and remedial works are no more effective.These ports need total rehabilitation.There is also a plan to rehabilitate the Escravos breakwaters in Warri Port.”

What Sambo said

Sambo confirmed the lack of funds as a major reason for the delay in the rehabilitation of the port since he visited them for on-the-spot assessment last year.

The Minister said NPA has commenced talks with AfroExim Bank, who had expressed its readiness but with conditions that are not insurmountable for the NPA, as well as NEXIM Bank and Engineering Construction Plus Financing (ECPF).

“There are certain conditions that AfroExim Bank has put forward. They are three key conditions. I know that two of them are very easy to meet. The third one involves Sovereign Guarantee and we need to clear that,” he said.

He said further that a delegation of NPA management had held a meeting with the Permanent Secretary of Federal Ministry of Finance, Budget and National Planning on the issue.

“We have the quay apron and quay wall problem in Tin Can Island. We have collapsed quay wall problem also at Onne port, we have the challenge of breakwaters at Warri Escravos. These are dilapidation that will cost us millions of dollars.

“We must go through the entire process of public procurement Act as required by law. We have to ensure correct structural designs, the cost is well done and every survey is done whether biometric or hydrological. This must go to the Federal Executive Council. NPA does not have the resources in hundreds millions of dollars for it now,” the Minister said.

What importers and clearing agents said

Importers and clearing agents have raised concerns over loses of container ships destined for the Tin Can Island Ports (TCIP), Lagos to ports of neigbouring countries due to the collapsed quay aprons at the terminal.

 Also, the National Association of Government Approved Freight Forwarders (NAGAFF) lamented that the development is impacting negatively on the economy as revenue and economic activities because of the increasing diversion of cargo by shippers.

The revenue meant for the country, one of the clearing agents, Kolade Aladejobi explained, was being diverted to the ports of neighbouring countries

Aladejobi expressed concern about the delay in fixing the dilapidated port infrastructure. He urged the incoming administration to address critical infrastructure supporting the economy.

 “The two Lagos ports are very crucial to the economy. They generate billions of Naira weekly to the purse of Federal Government its agencies like the Customs, NPA, NIMASA, SON, and others at port,’’ he added.

Many importers, who spoke with the paper, expressed concern over the decaying infrastructure at the seaport and called for urgent action by the government.

One of the importers, Mr Sunday Godwin, decried the decaying infrastructure in and around the Tin Can Port and urged the Federal Government to fix them to make the port more competitive and attractive for business.

 “One of the major challenges importers and clearing agents at the Lagos ports  face is the poor condition of the port infrastructure, especially in Tin Can Port.”

 Godwin said it is ridiculous that the country is import-dependent, yet the sorry state of its ports, sharp practices and the poor environment continue to drive most importers to the seaports of neighbouring countries, creating huge losses of revenue and escalating cases of smuggling in and around porous land borders at Seme and Idi-Iroko, among others.

He advised that the ports should be run like business by the private terminal operators and government agencies supervising their activities.

“The incoming administration must ensure that the seaports are run as institutions by those to be appointed and not as a mere appendage of the Federal Government if they must meet the yearnings and aspirations of millions of Nigerians and foreigners doing businesses in our ports,” he said.

Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Bashir Jamoh has stated that the maritime industry is large enough to sustainably engage the teeming youths.   

Jamoh said this while he received Major General Barry Ndiomu (rtd), the Interim Administrator of the Presidential Amnesty Programme (PAP) at the Maritime House, Apapa, Lagos State.

According to a statement from the PAP,  the NIMASA boss 
noted that there are enormous opportunities in the Industry that youths can take advantage of to generate foreign earnings.

The DG said that the meeting between both agencies is a wakeup call on the need to collaborate efforts, as both agencies are closely related. 

He recalled that in 2021 when he visited the Amnesty Office in Abuja, there was an agreement to form a Joint Board Meeting to drive more conversations for collaboration.

Read Also: NIMASA DG, NIIA DG, others discuss maritime domain awareness

He noted that this is a critical time to for NIMASA and PAP to have a robust and formidable relationship, adding “the international community is already commending Nigeria for the successes recorded in addressing Maritime insecurity in the country”. 

“Both the Nigerian government and international committee are watching to see if the tempo can be sustained,” he said. 

Jamoh thus suggested that to sustain the current tempo, it is important to fully empower and reintegrate beneficiaries of the Amnesty Programme into the society. 

He informed that NIMASA has trained over 4,000 Nigerians internationally under the Nigerian Seafarers Development Programme, majority of whom are from the Niger Delta.

The PAP Interim Administrator commended the DG and his team for redefining the safety and security of Nigeria’s Maritime Industry. “I’m aware of your outstanding achievements, particularly in the obvious reduction of piracy on the Gulf of Guinea,” Ndiomu said of Jamoh.

On his agenda for the Amnesty Programme, the General said: “My vision is to chart a new path for the Amnesty Programme by upholding the principal objectives of government, by bringing innovative ideas, setting a new Management structure of wealth creation for the teeming youths, instead of depending on monthly stipends, to pave way for a more prosperous future.”

While encouraging NIMASA to sustain the partnership with the PAP, Ndiomu called for more collaboration and cooperation from international stakeholders.

He added that in the Maritime domain, the PAP has trained a large number of ex-agitators across institutions in the world in various specializations, some of which includes Deep Sea Diving, Underwater Welding, and Marine Engineering. He regretted that after these trainings, many of them remain unemployed.  

 Ndiomu further sought the possibility of the establishment of a Coordinating Secretariat between PAP and NIMASA to drive strategic engagement and conversations. 

The Director-General,  Nigerian Institute of International Affairs (NIIA); The Director-General, Nigerian Maritime Adminstration and Safety Agency (NIMASA), Dr. Bashir Jamoh; Presidential Candidate of the Social Democratic Party (SDP), Prince Adebayo Adewole and other stakeholders have discussed Maritime Domain Awareness in the country. 

They gave their viewpoints at the Institute’s Conference themed: Maritime Domain Awareness for Africa’s Maritime Security  Architecture, held on Monday in Lagos.

The Director-General, NIMASA, Dr. Bashir Jamoh, who said the maritime domain is much more than security, noted that Nigeria should take the matters of maritime domain awareness very seriously.

Jamoh, who stated that the domain involves territorial of the maritime sector such as people, infrastructure, said everyone must accept the vulnerability and openess of the coastal line.

He further explained that Nigeria used to experience attack on its coastal lines but it became history with the efforts of the Naval Force.

Dr Bashir, therefore, urged the suster agencies on collaboration regarding information sharing and intelligence gathering.

The Chairman of the Occasion, Presidential Candidate of the Social Democratic Party (SDP), Prince Adewole Adebayo noted that the maritime architecture is the better pathway to achieving the desured economy.

He, therefore, urged the Federal Government to make investment in institutions that will strengthen the maritime architecture, stating that the country has a long coastal line it needs to monitor. 

Prince Adewole noted that Navy is an important platform to conquer the mysteries, adding that the country’s revenue can be tripled if its inland waterways properly managed. 

The Guest Speaker, Rear Admiral Francis Akpan said Maritime security represents one of a number of peace and scurity related policy fields, stating that the essence of maritime security is for effective trade and commerce over the country’s vast maritime domain. 

Francis also said the threats to maritime security are Irregular and unauthorized fishing, resource theft, trafficking of drugs, narcotics, human beings, money laundering, illicit financial activities, and unemployment.

According to him, the surge in piracy from year 2000 revealed how African maritime states have been unable to prevent piracy and other maritime crimes. 

He, therefore, beseeched African countries  to come together to combat these issues.

Rear Admiral pointed out the need to continue to develop capacity, taking seriously the issue of environmental degradation into consideration. 

The Director-General, NIIA, Professor Eghosa Osaghae gave assurances that the country’s maritime domain  will be conquered with NIMASA’s effective policy regulations..

This was just as he expressed the Agency’s readiness to be part of the contributors to the world’s bilateral relations.

The DG stated that the Agency now has a formidable Sports Diplomacy Desk for, adding that Science diplomacy will come into being soon.

Stakeholders in the maritime industry have kicked against the physical examination of goods by the Nigeria Customs Service (NSC). In this report, OLUWAKEMI DAUDA says the manual process is ineffective, inefficient, expensive and breeds corruption.

Operatives of the Nigeria Customs Service  (NCS) working at the seaports are reportedly the only ones still physically sorting out imported goods in the subregion, thus increasing cargo dwell time, fuelling corruption and killing the trade facilitation programme of the Federal Government.

100% physical examination

by Customs

A 100 per cent examination by Customs occurs when every box, carton, or other package  is opened and the goods examined to prevent export or import of contraband, counterfeited, improperly declared, prohibited, embargoed, or any other goods that don’t conform to the Customs and Border Protection stipulations.

Challenges of port operations

Some of the challenges confronting seaport cargo operations are inadequate equipment, dominance of foreign vessel and deficiency in export and lack of regulatory oversight.The seaport cargo operations constitute the hallmark of key maritime activities done in every port.

Stakeholders said the inability of the Service to use the new multi-billion naira scanners effectively is affecting port efficiency and promoting corruption.

Fraudulent importers and clearing agents, findings have shown, are having a field day because the scanners deployed by  the Nigeria Customs Service (NCS) are not enough, a reason the Service is still doing 100 per cent physical examination of most of the containers.

Investigation by The Nation show that fraudulent importers misinterpret imports to shortchange the government during duty valuation on imported cargo as they collaborate with some Customs officers.

Also, stakeholders said, the scanning regime by the service has failed because it could not meet the expected 400 containers examination daily.

Customs’ reaction

Last year, the Assistant Comptroller-General of Customs on Modernisation and ICT, Saidu Galadima, had told stakeholders in Apapa, Lagos that “the new technology is based on trade facilitation. Only compliant traders will celebrate. If you are compliant enough, you won’t have any contact with any Customs officer. Cargoes will be released without anybody needing to go to any Customs office.”

When asked how the system will work, he said: “All activities will start after the scanning  has been completed. When the vessels berth, the containers will be scanned before they are taken to the stacking area where cargo declarations will start. All the scanning would have been completed before agents make their declarations.

“On capacity, the scanners will scan 400 containers daily with four hours to rest. For every 20-feet container, the scanner will take an average of 35 seconds each to scan. For every 40ft container, the scanners will scan them at an average of 55 seconds each.”

“For physical examination, we aim to ensure that the scanning percentage will be higher than the number of containers that will be subjected to physical examination.

“We all have to make it work. If agents decide to cut corners, they will bear the cost of delay associated with a physical examination. So, being compliant will benefit all of us.

Former President, Association of Nigeria Licensed Customs Agents (ANCLA), Prince Olayiwola Shittu, said: “Despite the provision of scanners at the port, the Nigeria Custom Service still subject most of the scanners to physical examination but is not supposed to be so.

“The scanners are not enough and because of the push to meet the revenue target of the government and to maximise how much income  they can generate to justify their appointment, Customs are not doing trade facilitation.

“The incoming administration should get professionals to do the job. It should also de-emphasis revenue generation by Customs and leave the job for the Federal Inland Revenue. Let Customs facilitate trade to help industries to survive.”

National Single Window

On the National Single Window, Shittu said the incoming administration needs to adopt it at the port.

“It is a trade facilitator and we need it in our ports because what happen is that every government agency wants autonomy. There is no  platform that units all of them. You have to clear your cargo through several agencies before it can leave the port. Therefore, we need a national single window through which goods can be cleared at once.

NPA said

Managing Director, Nigerian Ports Authority (NPA), Muhammed Bello-Koko, said 100 per cent physical inspection of cargo by the service “constitutes delays with attendant negative impact on Cargo dwell-time”.

What  other clearing agents say

 To many clearing agents and freight forwarders doing business at the seaports, the most painful part of the experience is cargo clearing.

Physical examination  difficult, dangerous

To NCS, there are two categories of cargoes -the Fast-Track goods that do not need to go through 100 per cent physical examination and another category that must be examined 100 per cent physically.

The fast-track is further categorised into Green, Blue and Red; for goods that need to be investigated and those that can be given clearance without investigation.

The ports handle over 1.5 million 20-foot containers yearly and out of this, less than 200,000 go through the fast-track channel, leaving about 1.3 million TEUs for the physical examination process.

For the examining officer, physical cargo inspection are life-threatening.

“The stacking of goods in containers are most times done in very disorganised fashion,” an official at one of the major seaport terminals in Lagos, who did not want to be named, told our correspondent.

“If you examine a container carrying clothes, for instance, an importer may decide to conceal a motorbike on top of the consignment.

“The examining officer has to crawl inside the container to move the items out one after the other. While he is lying on the floor of the container, the motorbike or even car could fall and crush him.

“Many officers have sustained injury this way; some have even lost their lives.”

Physical examination of one container takes an average of five hours: Physical examination of one container takes an average of five hours and the regulators only work from 8 am to 5pm.

On a good day, there are more than 40 containers waiting on the examination bay at Lagos port and more than 60 at Tin Can Island port.

It is after the examination that the importer is cleared to move the consignment to the gate of the terminal.

However, the agent could avoid his cargo being subjected to the physical test by parting with some money.

This, in itself, the tendency for corruption among Nigerians and the distrust in the Customs, is the reason containers that have been duly cleared by Customs to leave a terminal gate gets examined by the same Customs outside the terminal gate.

“The reason there is a buildup of trucks at the gate entrance is that goods inside have not been evacuated so. It becomes difficult to accept trucks coming in with empties or to pick cargo because there is no space inside,” said a truck driver, Lekan Ajayi

Stakeholders blame corruption

Stakeholders have argued that the process at the seaport is not supposed to defy solution.

“They deploy scanners to examine goods and luggage at the airports,” Ajayi said.

He maintained that Nigeria was aware that if it tried the physical examination for cargoes  at the airport, its airports would be empty.

He wondered why that scanners could be  used at the airports but the country “finds it so difficult to deploy enough same at the seaports”.

It is not even a question of costs, the stakeholders argued.

“The cost of an average scanner is around $600,000. Ten of them can serve the ports in Lagos and that would amount to $6million.

“It is not rocket science. There is certainly something behind their reluctance to deploy enough scanners.”

Expressing the same sentiment, an importer, Seyi Badejo, attributed the practice to corruption.

Badejo said the use of scanners would make it hard for corrupt Customs officers to have physical contact with agents where they could be bribed for easy passage of goods.

He said the ports were the only places where  cash still exchanged hands and people refused to embrace cashless policy.

“They know that the cash could be traced,” he said.

His submission is reinforced by recent stories of operators taking millions of naira in cash to the port to carry out transactions and, in some cases, losing the cash to robbers.

Background

In 2006, cargo scanners were acquired  by service providers, namely Coctena Destination Inspection Limited, SGS Scanning Nigeria and Globalscan System. Each was allotted specific Customs commands they were to supply the scanners to.

The contract, which was based on build, own, operate and transfer terms, also provided that the service providers were to give training and technical support to the NCS on risk management, valuation and classification.

Cotecna, a leading, testing, inspection and certification company with over 40 years’ experience, was charged with managing the scanners. The contract, which ran for six years, ended in December 2012 but while it lasted, the number of containers scanned daily went up to 150.

At the expiration of the initial six-year contract, the Federal Government opened a transition contract agreement with the service providers to ensure a seamless transfer of functional scanners to the NCS. This new contract was extended to November 2013.

A Transition Implementation Committee on Destination Inspection Scheme was constituted by the then Coordinating Minister of Finance,  Ngozi Okonjo-Iweala, in July 2013 to oversee the transfer.

By the end of that year, the transition was completed and the scanners handed over to the NCS. Unfortunately, this giant leap in modernising the NCS did not last very long. A year after the handover, the scanners had stopped functioning and ports and borders were once again returned to the analogue era.

Berating the service, Badejo wondered why the government did not provide spare resources to send some Customs officers on further training overseas to learn how to operate the scanners.

“Why spend so much money on scanners without taking time to build the manpower that could handle the equipment?

“What would it have cost them to send Customs technicians abroad for further training on how to handle the scanners and after that, regularly upgrade their training on how to handle subsequent modern equipment?” he asked.

For years, there has been this huge debate,  on scanners acquisition while the ports keep bursting at the seams with cargo volumes and Customs continue their 100 per cent physical examination of cargoes.

It was gathered that the 100 per cent cargo examination has gained intensity because of the distrust by some importers.

It is increasingly easier to do business at the nation’s seaports, stakeholders in the maritime sector and licensed customs agents in Lagos, have said.

They attributed this to the reforms implemented by the Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-Koko.

They reflected on the improvement in traffic on the port access roads, noting that before Bello-Koko’s reforms, traffic jams virtually rendered activity at the Lagos ports comatose.

Bello-Koko was appointed acting NPA MD on May 6, 2021, and was confirmed substantive MD on February 21, 2022.
As part of his measures to improve the ease of doing business at the ports, Bello-Koko recently approved the licensing of 10 Export Processing Terminals (EPT) to facilitate seamless export cargo.

“Licensing of 10 Export Processing Terminals to facilitate exports at Nigerian Sea Ports is to provide a one-stop shop for export where quality control, cargo assessment by all government agencies and issuance of good-to-ship clearance will be obtained.

“This has led to a significant reduction in truck turn-around time due to successful implementation of the E-Call Up System, “an importer, Akinwale James told newsmen.

Another stakeholder Chukwuka Ayam said the enforcement of the Minimum Safety Standards on trucks accessing the ports by the current NPA management has led to an up to 65 per cent reduction in the number of accidents recorded at the port corridor.

Ayam, a clearing agent, said: “Enforcement of Minimum Safety Standards on trucks which stipulates that all trucks accessing the Ports are inspected, certified and issued stickers to assure safety, has led to 65 per cent reduction in the number of accidents recorded, arising from improved standards of trucks operating within the Port premises.”

The NPA has also engaged the International Maritime Organization (IMO), in the development of the Port Community System on the automation and digitalization of the port processes.

“The current management has engaged with the IMO on the development of the Port Community System under the IMO instrument on automation and digitalization of port processes. Also, award of consultancy for the deployment of Vessel Traffic Service (VTS); a maritime safety measure that equips us with Domain Awareness Capability to enable us to guide and provide safety information to vessels within our channels and ports approaches in line with the Safety of Life at Sea (SOLAS) conventions, “an official of the NPA said.

Another NPA official also lauded the Bello-Koko administration in the area of NPA’s revenue generation and job creation.

“The NPA has supported the national economy through unprecedented revenue generation and remittances to CRF of the federation with revenues steadily growing from N317 billion in 2020 to N361billion in 2022 and remittances progressively soaring from 80 Billion in 2020 to 91Billion by financial year end 2022.

“It created new businesses and attendant job opportunities such as the barge operations services, which apart from reducing pressure on the roads, has grown into a N2billion annual generation business both from direct investment and accompanying externalities. Licensing of additional truck parks to increase the capacity of truck parks servicing the Lagos Ports,” the official said.

Stakeholders have urged the incoming administration on the need to diversify the nation’s export base from oil to enable the country reduce unemployment and poverty. OLUWAKEMI DAUDA writes

With the instability in the price of oil in the international market, exporters and other stakeholders in the maritime industry want the incoming Federal Government to navigate the major oil price crisis worsened by the scarcity of fuel across the country

This, stakeholders said, underscored the need for the next administration to look toward  diversifying the nation’s export base from the volatile commodity, if the country is to win its battles against unemployment, insecurity and high poverty level.

Some months ago,  the Federal Government, through the Nigerian Ports Authority (NPA) granted licences to export terminals as part of its bid to boost the nation’s foreign exchange (forex) earnings.

Investment profile of non-oil export

According to export market analysts, the growth in non-oil exports rose from $1 billion in 2006 to $2.3 billion in 2010, a development they attributed to the favourable policy matrix of the government made possible during Okonjo-Iweala’s first term as finance minister.

Other experts said the Bank of Industry’s (BoI’s) intervention in the sector might have also impacted positively.

The new terminals

The five export terminals are Diamondstar Port & Terminals Limited, Ijora; Esslibra Terminal, Ikorodu; Sundial Global Trade & Service Ltd, Kirikiri; Bellington Cargo Ltd, Okokomaiko; and Tenzik Energy Limted, Kirikiri Lighter Terminal.

 Export of non-oil goods

The next administration has to make export of non-oil goods one of the determinants for the growth and development of the country.

Leaders of the next administration, the stakeholders said, needs to formulate policies and develop strategies that would lead to increase in exports  and make it rank among the highest priorities of its agenda, to stimulate  growth and reduce poverty.

Apart from the fact that exports are beneficial to the economy, maritime analyst and exporter, Mr Gbolahan Adetiba, urged the in-coming administration to intensify efforts on the export of non-crude oil to generate more revenue and foreign exchange needed to develop the economy, while taking a bold step that would lead to the diversification of the economy on a large scale.

Adetiba urged the government to invest heavily on maritime trade, agriculture and other mineral resources to ensure a balanced term of trade.

What Bello-Koko said

During the inauguration of Diamond Star Export Processing Terminal in Ijora, NPA’s Managing Director, Mohammed Bello-Koko, said the approval given by the Federal Government had positioned the country to optimise of the benefits in the African Continental Free Trade Area (AfCFTA) Agreement.

He said the government, to eliminate undue delays that lead to rejection of Nigerian exports abroad, approved the establishment of a new Export Processing Terminal (EPT) in Lagos – the Diamond Star Export Processing Terminal.

“This initiative signposts NPAs’ commitment to the implementation of the National Action Plan on Agro-Export and the Federal Government’s desire to diversify the national economy from oil export to non-oil exports.

“The Authority is by this move positioning to infuse greater efficiency into the logistics surrounding the entry of export boxes into the ports and the eventual loading on sea-going vessels.

“The launch of this and other terminals also strategically positions Nigeria to optimise the advantages of the benefits inherent in the AfCFTA agreement.

“The need for the Export Processing Terminals (EPTs) is underscored by the limitations of current port facilities in the Lagos area which are operating beyond their ‘as built capacity’ for cargo handling.

“The EPTs are, therefore, holding areas positioned in Lagos and Ogun states to help exporters prepare their arrival at port terminals in-view of the traffic management challenges that are visible in Lagos.

 What the Customs says on export laden containers

The Nigeria Customs Service (NCS) has said only export laden containers that emanated from the five EPTs would be allowed to be loaded on seagoing vessels.

The Area Controller, Lilypond Export Command, Mohammed Babandede, said export produce heading to Tin Can Island and Apapa ports would go through the EPTs.

The five EPTs are Diamondstar Port & Terminals Limited, Ijora; Esslibra Terminal, Ikorodu; Sundial Global Trade & Service Limited, Kirikiri; Bellington Cargo Limited, Okokomaiko; and Tenzik Energy Lmited, Kirikiri Lighter Terminal 1.

The terminals are certified as pre-gates for  exports where goods will be inspected and certified by the Nigeria Customs Service (NCS).

Babandede said promoting export was a potential that had been identified by the government to drive FX earnings.

“NPA has approved five terminals and all export for Tin-Can and Apapa must come from these terminals. The Nigeria Export Promotion Council also has 13 approved export warehouses across the country. So, our officers can only attend to the cargoes coming from these places alone,” he said.

Findings show that many shipping firms are  complying with the Federal Government’s directives on Nigerian Export Proceed (NXP) numbers.

The Form NXP is a mandatory document  for exporters through authorised dealer bank outside Nigeria irrespective of the value and  payment. Anyone wo wants to engage in export business must register with the Nigeria Export Promotion Council (NEPC).

Investigation has also shown that the Nigerian Shippers’ Council (NSC), in partnership with the CBN, has held three meetings to educate shipping firms and exporters on the need to implement the directive on the NXP.

A senior official of the Council, told The Nation that the NSC is also working with other agencies of government  and exporters to ensure  compliance.

He said the Federal Government would encourage investors in the industry with incentives and called on shipping firms to follow the directive issued by the apex bank to enhance their operations.

Potential of non-oil sector

The non-oil export sector has deep agro-allied linkages made up of semi-processed and processed agricultural products such as cocoa, cashew, sesame seed, ginger, gum Arabic, shrimps, cotton and rubber. The country is also a major exporter of finished leather, which has direct linkage to the livestock growers.

Expectedly, the export sector had helped to boost the income of over 10 million farmers in rural areas.

During the global financial crisis, Nigeria’s non-oil sector not only soared, but also helped absorbed the shock caused by sharp fall in oil revenue.

Giving an insight into the benefit of the non-oil sector, Dr. Gbadebo Odudaru, in his book, entitled: “Nigeria-U.S. Trade Relations in the Non-Oil Sector”, says the country has received good earnings from the non-oil sector, a fact, made manifest in the rising Gross Domestic Product (GDP) growth.

“The Central Bank of Nigeria Economic report for the third quarter of 2007 was estimated at 6.05 per cent compared with 5.73 per cent in the second quarter. The growth was driven by major agriculture activities in the non-oil sector such as yam, Irish and sweet potatoes, groundnuts and maize, which was estimated at 9.47 per cent.”

Efforts of the banks on non-report

A bank has played a key role in financing various sectors, including the shipping.The bank, maritime stakeholders admitted, is leveraging its vast experience in supporting trade businesses, especially in the Small and Medium Scale Enterprises (SMEs) and corporate business space to lend its expertise to drive discussions that will enable exporters to expand their export businesses and encourage new entrants into non-oil export industry.

For instance, FirstBank, the former President, Association of Nigerian Licensed Customs Agents (ANCLA), Prince Olayiwola Shittu, said, has an Export Desk to support exporters.

Also, the Central Bank of Nigeria (CBN), through some banks, has created awareness for the endowment in each region; open exports’ opportunities in these areas, in collaboration with experts; drive grassroots’ conversations with exporters to convert them to opportunities; help overcome export challenges inherent in these regions; kindle an awareness of the export potential for AfCFTA prevalent in the regions; and serve as a workshop to address concerns, challenges and solutions in the export business of the country.

What  stakeholders said

Stakeholders in the non-oil export sector agreed that it holds a lot of promise as a cash cow to boost the economy and provide jobs for the people. But regrettably, Shittu and others said, the sector, has suffered setbacks based on inconsistency in government policies which they want the next administration to address.

Driving growth in the non-oil sector

“The Federal Government, in its determination to drive growth in the non-oil sector, has put in place certain policy frameworks such as the Export Expansion Grant (EEG) scheme, which operates under the legal context provided under the Export (Incentives and Miscellaneous Provisions) Act 1986.

“The policy which is a fiscal policy instrument is implemented under the guidelines issued by the Federal Ministry of Finance and enforced by the Nigerian Export Promotion Council (NEPC), the apex agency responsible for the administration of the policy, in conjunction with other key implementation agencies such as the CBN and Nigeria Customs.

“The grant is given to exporters to cushion the impact of infrastructural disadvantages faced by Nexporters and make our exports competitive in the international market.

“But the fund is only available to exporters who have repatriated the proceeds from their exports, which must be certified by the CBN,” Shittu added.

 The expert, however, faults the policy on the ground that it doesn’t take care of the port operators and investors, farmers, miners and other critical stakeholders in the non-noil export project.

Export goods

Nigerian products such as cocoa beans and butter, dried-split ginger, leather, woven sacks  technically specified rubber (TSR) and Hibiscus flowers are also being exported are being exported to the US.

The NEPC indicates that the EU accounts for 56 per cent market share of Nigeria’s non-oil exports, followed by the regional ECOWAS with 11 per cent share

What the NPA is ready to do

According to Bello-Koko, NPA is addressing bottlenecks affecting export via the synergy between vessels that came and these that left the ports.   “We are working with the government to ensure diversification of the economy and  encouraging non-oil exports. 

 Also, not just about deploying the e-call-up system, we have licensed 10 export processing terminals. “The terminals are supposed to be at locations whereby one stock, process, package, certify, seal and send it to the port.

But for it to succeed, we need other government agencies. We need to understand that the port is a maritime ecosystem not just for the NPA but other government agencies,” he said.

The NPA chief added: “For the export processing terminals that were created, we expect the Nigeria Customs Service and Standards Organisation of Nigeria to have an export desk there for certification.”

NPA, he said, had deployed a truck electronic call-up system to ease the movement of export cargoes into the port. Bello-Koko added that the NPA had created pregates where trucks would park before entering the port and barges were also introduced at a cost borne by the exporters, thereby making export more expensive.

He explained that the terminal would reduce the burden in future. He called for the introduction of a National Single Window to ease the movement of cargoes.

“Automation is key to reducing congestion and will ensure quick processing of export and import documentations.  In the documentation, whether import or export, all starts with the consignee and the form is Form M and this has to do with port destination, loading and discharging.

“So, there is a need to have one form that serves everybody and that is the National Single Window where all transactions will be done, even payment.

“One bulk payment can be made and everybody is paid separately at the same time. This is obtainable in other neighbouring African countries and I believe we can do so here,” he said.

In addition, the NPA boss said the authority has also created a dedicated lane going into the port to fast-track the movement of export boxes and give them a movement time belt.

“We understand the essence of export that is why we are working with the Nigerian Export Processing Council to integrate the dues with the new export processing terminals. We will also work with the exporters to see how this works to save a lot of time and reduce delays associated with export in Nigeria,” he added.

Port of export

The terminals will help exporters file the Electronic Export Information (EEI) in the Automated Export System (AES).

Initiatives by the CBN

CBN Governor, Godwin Emefiele, said the bank had introduced various initiatives that would harness the opportunities in the non-oil sector to create wealth.

Emefiele added that the apex bank introduced rebate facilities to encourage exporters, and bridge gaps by providing funding for capital expenditure.

“We have the N500 billion non-oil stimulation facilitation, Commercial Agricultural Scheme Act for agricultural commodities and many others,” he said.

He advised Nigeria to look inwards for growth and development.

 Market diversification

It’s interesting to observe how persistent efforts of exporting companies have led to the acceptance of their products in some of the highly quality conscious customers and markets.

Employment generation

There are over 200 exporting firms in Nigeria. CBN publishes the list of the top 100. According to experts, the direct employment in the non-oil export companies is estimated at about 200,000 while indirect employment in the agriculture sector which gains from the market linkages provided by the exporting companies is estimated at over 10 million. A large cashew processing plant set up in Kwara State employs 1500 people, mostly rural women. The cashew kernels are processed and packed, direct for shipment to developed countries such as the U.S. and Europe.

 Cluster development:

A very positive fall out of the non-oil export expansion has been the emergence of export processing clusters.Challawa industrial estate in Kano has emerged as a major export cluster with modern tanneries situated in this zone.

Boosting foreign exchange earnings:

Boosting export earnings becomes even more pertinent today in view of weakening exchange rate of Naira and shrinking foreign exchange reserves. According to a senior official of the Federal Ministry of Transportation, who does not want his name in print but familiar with the past export trends, “a positive feature of the CBN policy has been the tendency on the part of exporters to operate through official channels which compliments CBN efforts to discourage the unofficial forex market in the country.

An exporter, Mr Leke Adetowubo, said the best the next administration could do “is to eliminate the obstacles to the smooth functioning of market forces and provide information to exporting firms about destination markets and foreign competitors’’.

“The two principal compositions of Nigerian exports are oil and non-oil exports. In the past, non-oil exports, led by primary commodities, drove the economic growth of Nigeria. However, this template changed with the discovery of crude oil in 1956. With the increased exploration activities, revenues accruing from oil export have led to increased foreign exchange earnings, more revenue for government, and higher contribution to GDP.”

The government, Adetowubo said, needs to open  up  the economy  and  pursue  external-oriented  trade  policies  by  vigorously  pursuing  export  to  achieve  growth  and development.

“There is an avalanche of evidence  to show that exports are correlated with economic growth and development of countries – developing and developed alike.

“Nigerian export earnings from major agricultural crops contributed significantly to the Gross Domestic Product (GDP). Non-oil exports comprise agricultural products, solid minerals, textiles, manpower, etc. It is made up of every other thing we export from Nigeria except petroleum products. Manufactured exports consist of textiles, beer, cocoa butter, plastic products, processed timber, tyres, natural spring water, soap, detergent  and fabricated iron rods.  Agricultural export merchandise included cocoa, groundnut, palm oil, cotton, rubber, yarn,  palm products,  fish and shrimps.

Increasing the availability of credit

The availability of short and long-term credit is crucial to exporters. This is necessary for small and medium enterprises, for which the credit constraints are more binding than for large firms. Since SMEs make up the large majority of firms, improvements in this area are necessary to favour export development.

Simplifying regulation

The government needs to simplify regulation related to exports; long bureaucracy procedures negatively affect especially new exporters. At the same time, governments should improve information collection and dissemination about foreign markets and requirements for exporting.

Improving cooperation among economic actors

Besides traditional policy instruments, export growth could be favoured by improving cooperation among exporters and between the government and business actors.  The stimulation of export growth requires the combination of short- and long-term policies.

Strategic collaboration between different levels of government and the private sector is widely considered a key element for policy success.

A  shipper, Mr  Sunday Felix, also called on the government  to enhance the domestic enabling environment for potential exporters in terms of infrastructures, regulation, access to finance, insurance, fiscal policies; foster the strategic cooperation between private and public actors and among domestic producers, exporters, and policymakers; improve the productivity and technological content of domestic goods, and provide incentives to nurture innovation; facilitate the access to credit, serve to build the country image in foreign markets; offer targeted and tailored assistance, and rely on continuous evaluation. These are required  to be supported by monetary and fiscal policies designed to improve the enabling environment; and stimulate institutional development.

Conclusion

The economy has had to navigate a major crisis that started with the collapse of oil prices in 2014 and was worsened by the high level of insecurity in the country.

The crisis of the past four years reaffirms the vulnerability of the Nigerian economy to oil related shocks. It underscores the need for Nigeria to look outward, diversifying its export base away from the volatile commodity if the country is to win its battles against poverty and insecurity.

week.

“We are visiting to see the challenges confronting terminal operators after the disruption of operation during the protest. We also want to ensure that there are no spillovers that will affect the nation’s economy, as it will have adverse consequences. Shippers were not able to remove their cargoes so there is need to think about it and come up with incentives so that they can do so,” Felix said.

The multi-million dollar Lekki Deep Seaport, Lagos, recently inaugurated by President Muhammadu Buhari, will boost trade in the West African sub-region, OLUWAKEMI DAUDA reports.

This is a moment of joy for the promoters of the multimillion dollar Lekki Deep Seaport that was inaugurated in Lagos, last Monday by President Muhammadu Buhari. This is because after 45 months, their dream has become a reality.

Addressing reporters during the event at the Lagos Free Zone, Ibeju Lekki,  the Managing Director, Lekki Port LFTZ Enterprise Limited (LPLEL), promoters of the Lekki Deep Seaport, Mr. Du Ruogang, noted this fact.

He, however, affirmed that their joy will be greater in future as the port is planned to boost trade  in Nigeria and increase its Gross Domestic Product (GDP).

The facility, a world-class, is expected to  generate to contribute more than $200billion to the government’s purse and create about 170,000 new jobs.

The project, findings show, is the first of its kind in the country. It is the single largest private investment in infrastructure in Nigeria developed on a non-recourse finance basis with the majority of the funds raised internationally.

Spread over 90 hectares of land in the heart of the Free Trade Zone, Lekki Port is situated  65 km east of Lagos.

The western boundary of the site lies east of Magbon Segun Village while the eastern margin lies west of Itoke Village. The Atlantic Ocean forms the southern boundary of the site and is bound on the North by the Old Ibeju-Lekki Road between Eleko and Akodo.

The major roads and highways around the port include Old Ibeju-Lekki Road, Lekki-Epe Expressway, Ikorodu Road, Ikorodu-Itoikin-Ijebu-Ode Road, Itoikin-Epe Road, Lagos-Ibadan Expressway and Sagamu-Benin Expressway.

In addition to this network, many new key road and bridge projects and expansion of existing highways are under construction to connect Lekki Port to the hinterlands.

The development of the port was conceptualised to bridge the huge gap in projected demand and capacity.

The strategic location, flexible and optimised layout and modern facilities, it was gathered, give the port an edge over any other in the West African region

Tinubu initiated the project as Governor

The  Lekki Deep Seaport, according to the Lagos State Commissioner for Commerce, Industry and Cooperative, Dr Lola Akande, was initiated by the presidential candidate of All Progressives Congress (APC) Asiwaju Bola Tinubu,  when he was the governor, to boost the economy of the state and the country.

Lekki Port remains a game-changer

 Ruogang noted that the Lekki Port remains a game-changer that would redefine maritime in Nigeria and the West African sub-region and it is scheduled to commence operations by the end of first quarter of the year.

He highlighted other benefits to include improvement of external trade competitiveness through improved port efficiency, cost-effective port operations and services, and improved turnaround time for cargo handling and clearance, a reduction in delays in the supply of raw materials and equipment, as well as reduced costs of importations and charges such as demurrage.

“With Lekki Port, Nigeria will witness a growth in maritime traffic and global trade and strengthen connectivity and capability to provide efficient and reliable services. Lekki Port, no doubt, will be a critical engine that will drive the Nigerian economy upon commencement of operations.

Port has state-of-the-art infrastructure

The Chief Executive Officer, Lekki Freeport Terminal, operated by CMA Terminals, a subsidiary of the CMA CGM Group, Mr. Denrick Moos, highlighted that, in addition to its state-of-the-art infrastructure, the Lekki Port will become a new generation container terminal, a game-changer in Nigeria and West Africa.

The port, which is Nigeria’s first deep seaport, is equipped with 13 quay cranes for a capacity of 2.5 million TEUs (20-Foot Equivalent Units) on a 1.2 kilometre quay with a depth of 16 metres, it will operate vessels with a capacity of about 15,000 TEUs and become one of the largest in West Africa.

Through the new container terminal at Lekki Port, the CMA CGM Group will further develop its presence in Nigeria, the continent’s largest economy and population, and the most important consumer market in West Africa and will consolidate its African global shipping and logistics network.

What Sanwo-Olu said

Lagos State Governor, Mr. Babajide Sanwo-Olu, said the project is a big testament to the commitment of the state government to support the provision of infrastructure that would improve the fortunes of Lagosians by providing jobs for the people and impacting their lives positively. Sanwo-Olu described the launch of the seaport as an achievement for the government as well as the private sector, saying the project was started and completed during the Buhari administration.

Sanwo-Olu added that the size of vessels that would berth at the port could be up to four times those that berth at the Tin Can and Apapa ports.

He said: “The project is a total combination of efforts of the Federal Government, Lagos State and the private sector, and we are happy that this is happening in your time. It all started within your time and it has been completed within your time. The size of vessels that will be coming here could be up to four times the size of vessels that berth at Tin Can and Apapa Ports. So, it is a massive infrastructure and we are excited that something fresh has been impacted into this country, and it is going to generate thousands of jobs directly and indirectly in the entire ecosystem. This is your own project and we are excited.”

 The governor noted that the construction of the port was completed in record time, despite the slowdown in the pace of work caused by the coronavirus pandemic. He said speed and consistency of construction testified to the determination of the partners to deliver project.

He added: “The last seaport construction in Lagos took place in the late 1970s, when Tin Can Island Port was built to relieve Apapa Port. Now, with the support of President Buhari, federal authorities and the investment of the private sector, we are home to the newest seaport in the world, and the first Deep seaport in Nigeria. The economy of Lagos and Nigeria will be massively transformed by this investment, with enormous benefits in terms of direct and indirect jobs creation in their thousands, tens of billions of dollars in government revenue, reduced shipping and logistics costs, trade facilitation, and many other benefits.”

Vision conceptualised decades ago

According to the state government, the vision conceptualised decades ago by Lagos State Government has been nurtured to reality, with the construction and completion of a new Deep seaport in the  Lagos Free Trade Zone (FTZ), Ibeju Lekki, by the state government, in collaboration with Nigerian Ports Authority (NPA) and a group of private investors.

The development underscores another triumph of Public-Private Partnership (PPP), a possibility the state government started exploring for infrastructure delivery since early 2000s. The transportation infrastructure would give a major boost to the economy, by expanding the maritime capacity and paving way for the decongestion efforts at the Apapa and Tin Can Island ports.

The Lekki Deep Seaport, constructed by China Habour Engineering firm, sits on 90 hectares in the 830 hectares carved out for the Free Trade Zone, created in 2012 to enhance economic position of Lagos as manufacturing and logistics hub in West Africa. The seaport is designed with three container berths of 1,200-metre long and 16.5-metre water depth. It is built with the capacity to be berthed by fifth generation container ships, and has capacity to handle 1.2 million standard containers. It has expanding storage for six million, 20-Foot Equivalent Unit (TEU) of containers yearly.

 NPA: Lekki Deep Seaport a model

The Managing Director,  NPA, Mohammad Bello-Koko,  agreed that the new port would generate employment, adding that NPA would provide services to it to ensure its efficiency.

“This will be a model for other deep seaports in Nigeria and I say congratulations to the investors and the project delivery team, the Lekki Port management team for a job well done,” he said.

Bello-Koko also appreciated Buhari for his support to the project.

“Recall that the port has been in the drawing board for over 10 years; four years ago when we came here it was just a sand-filled area. Today, we are talking about the inauguration and we thank the president for the approval given to make this happen,” Bello-Koko said

The NPA chief noted that the Lekki Deep Port is the beginning of greater things to come in the sector.

 He said the NPA as the regulator would be responsible for providing marine services and others needed to ensure seamless service delivery to customers at the port.

Port completed in a record 45 months

 The port was completed in a record time of 45 months exited the Minister of Transportation, Muazu Jaji Sambo.  He said this indicated the effectiveness and tenacity of ministerial supervision, strict regulatory oversight and strong presidential backing.

Port’ll enhance agro-allied products’ competitiveness

 Sambo added that the distinctive features of the Lekki Deep Seaport, such as automation of operations that enable quick cargo and vessel turnaround, would enhance the competitiveness of our exports, especially agro-allied products in the international marketplace, while positioning the country to maximise opportunities in the African Continental Free Trade Area (AfCFTA) Agreement.

Sanwo-Olu gets encomium

The Managing Director, Nigeria Export Processing Zones Authority, Prof. Adesoji Adesugba, hailed Sanwo-Olu for bringing a deep seaport to Lagos, saying the governor had been a champion of the Free Zone scheme.

“This maritime project will boost the economy of Nigeria with hundreds of billions of U.S. Dollars revenue to state and federal agencies through taxes, duties and royalties, regardless of the tax incentives being enjoyed as a free zone, thereby boosting the nation’s Gross Domestic Product (GDP). This seaport, which will be managed by CMA Terminals, will open Nigeria up to more local and international businesses,” Adesugba added.

Dabiri expresses gratitude to Buhari

On his part, the chairman of Lekki Port, Mr. Biodun Dabiri, expressed gratitude to the president and his team for backing  the project. He stressed that the management of the port was working to get the port on stream soon.

 “We owe a great deal of this success to the visionary leadership of President Buhari, who provided the much-needed support to make the project a reality. We are immensely grateful to President Buhari, Governor Sanwo-Olu, and other stakeholders for their role in actualisating the port. For us, we would continue to be a willing partner in the quest to achieve significant economic growth by investing in Nigeria,” Dabiri said.