The Nation Newspaper

Category: Maritime

  • Amaechi implored to evolve world-class transport system

    Amaechi implored to evolve world-class transport system

    TRANSPORT  Minister Rotimi Amaechi has been urged to evolve a world-class transport system that will position Nigeria as the hub in West and Central Africa.

    Speaking with The Nation in Lagos, an importer, Mr Francis Adelowo, said the government should establish a safe, efficient, affordable and seamless intermodal transport system in line with best global practices.

    Adelowo canvassed an enabling environment for Public-Private Partnership (PPP).

    The promotion of inter-modalism, he said, envisages, among others, the connection of state capitals, seaports, airports and river ports with railway lines to complement road infrastructure.

    Maritime, he said, remains a key sector of the economy, adding that its enormous potential deserves continuous harnessing to meet the expectations of the government and the people.

    “Nigeria needs to carry out a number of reform measures aimed at enhancing the operational efficiency in the various ports. For instance, the 48-hour cargo clearance operation must be achieved in the Lagos Ports where more than 60 per cent of our port activities take place.

    “For the long term, the minister must make concerted efforts towards ensuring the development of deep seaports in the country. This is the ultimate solution to the port congestion as the cargo handling capacity is beyond their designed capacity.

    “The Federal Government has approved the development of the Lekki Deep Sea Port in Lagos, which is expected to handle bigger vessels, and create employment. The port is to be developed under a Public-Private Partnership (PPP),” he said.

  • Row over $120m scanners at ports as service providers scheme to return

    Row over $120m scanners at ports as service providers scheme to return

    Two years after their exit, service providers are scheming to return to the ports and borders to run the $120million equipment for scanning goods, it has been learnt.

    The scanners were handed over to the Nigerian Customs Service (NCS) when the service providers were leaving in 2013.

    The scanners, acquired by the Federal Ministry of Finance (FMoF) seven years ago, are said to have been handed over to Customs in poor state. Maritime watchers are wondering what will become of the process introduced by Customs, if the service providers return.

    For instance, Customs introduced Pre-Arrival Assessment Report (PAAR) to replace the Risk Assessment Report (RAR) hitherto issued by the service providers?

    To Maritime Operators, the Federal Government and Customs Comptroller-General (CCG) Col Hameed Ali (rtd), must look into this and related issues before the service providers are allowed to  return. The government terminated the service providers contract December 31, 2013, seven years after its award on January 1, 2006.

    A senior official of the Federal Ministry of Transport (FMoT) told The Nation that there is a covert move in the FMOF to bring back service providers.

    Ali, the official alleged, has bought the idea. Most of the scanning equipment inherited are he said, obsolete.

    When The Nation visited Seme border last week, there was no activity at the two scanning sites.

    They were empty with no vehicular movement within and outside the facilities.

    Operations at the scanning sites at Apapa and Tin-Can ports are also at a low ebb.

    A senior Customs officer, said malfunctioning scanners are preventing trained officers from providing fast and efficient services for trade facilitation.

    “The officers were trained to man the scanning equipment, but the machines have stopped functioning and that is why we have resorted to physical examination of over 90 per cent containers coming and going out of the ports. Although, the process is cumbersome and time wasting, we don’t have an alternative.

    “Scanning machines are tools introduced by the Federal Government to facilitate trade. They are to complement non-intrusive inspection, that is cargo inspection without opening containers in order to speed up operations at the gateways and facilitate trade.

    “Before the termination of the inspection contract by the Federal Government in December 2013, Cotecna, which operated in the Lagos ports, said it was bequeathing $70 million worth of equipment for scanning of goods arriving at the ports to facilitate clearing process. But it is sad that the machine purchased with that huge amount of money is now useless, serving no purpose in our port.

    “The whole handover process is geared towards their coming back because before the handing over date, the management of NCS consulted the manufacturers of those scanners and they undertook an audit to evaluate the scanners and the report they came out with was that most of the scanners were obsolete and were in bad shape when they were handed over to us,” the official alleged.

    Association of Nigerian Licensed Customs Agents (ANLCA), president Alhaji Olayiwola Shittu  said the service providers have no unique role at the ports since they are not the manufacturers.

    He urged the Federal Government and Customs to use the manufacturers instead of going through a third party and creating an avenue to exploit importers.

    “Which role are they going to perform apart from that of the third party because they are not the manufacturers of the equipment. Government should allow those who manufactured the scanners to service them if they are still serviceable. If they are not, Customs and not the Ministry of Finance, should be allowed to buy new ones so that they can take responsibility,” Shittu said.

  • LADOL’s N51b vessel facility ‘ll boost economy, says NPA

    The N51 billion vessel fabrication facility built by Lagos Deep Offshore Logistics (LADOL) and Samsung Heavy Industries (SHI) will create jobs and boost the economy, Nigerian Ports Authority (NPA) Managing Director Mallam Habib Abdullahi has said.

    He praised the facility’s promoters for their contributions to the industry urging other investors to follow suit.

    The facility is located at the back of Lagos ports.

    Conducting the NPA boss round the facility, LADOL’s  Managing Director Dr Amy Jadesimi and the Managing Director of SHI-MCI, Mr Dong Seong Suh, said the  facility with a quay length of 520 metres, depth of 13.5 metres and heavy lifting area of 5,000 metric tonnes is designed to become  largest vessel fabrication and integration facility in Nigeria and Africa.

    The facility, Jadesimi said, would create 5,000 direct and 50,000 indirect jobs.

    The facility, she said, is the first fabrication and integration yard in Africa with an area of 121,000 square metres consisting of an assembling area, a painting shop, utility and warehouse area with a production capacity of 10, 000 metric tonnes.

    The project, on completion by October next year, the LADOL boss said, will be capable of fabricating 1,000 metric tonnes per month as well as integrating the Egina FPSO and other FPSO projects expected to be done in the country.

    She listed ongoing projects  to include a passenger terminal with an emergency response facility and the capacity to accommodate 1,000 passengers, which is due to be completed in 2017. She also spoke of an integrated quay wall with a built design of 13.5-metre draught and 500-metre long to be completed next year.

    Jadesinmi expressed appreciation to the management of NPA for its support and cooperation over the years, which she said, has given her company the opportunity it enjoys presently.

    Commending the joint project, Abdullahi  said he was happy not only as the MD of NPA, but as a Nigerian because of the huge investment within the LADOL Base in Lagos.

    The facility, the NPA boss said, would not only add value to the economy, but promote indigenous growth and provide stiff competition in the maritime and oil and gas industry.

    Abdullahi assured the promoters of the project that NPA will continue to provide security around the facility and give it all the necessary support to grow and boost the economy.

    “I am proud of this huge investment, not only as somebody representing the Nigerian Ports Authority, but as a Nigerian seeing other Nigerians promoting this kind of investment in our country.

    “The project is not only to be of great benefit to the NPA, but also to the economy. And I believe this is the type of investment any government will like to welcome. This project will provide more investment, generate employment, and will provide peace and security that will allow other investors to invest in our country.

    “I am very impressed what the LADOL MD said what we need to promote the economy is competition, collaboration, synergy, reconciliation if there is any and robust partnership that will serve as encouragement for others to come in.

    “ As the landlord, we will do all we can do to make sure that we give all the necessary encouragement not only to LADOL, but to other companies that are willing to invest in our country,” Abdullahi said.

    He also assured the company of the NPA’s  support and collaboration in the areas of security, pilotage, dredging and safe channels among others.

  • Special team combats smugglers at Seme

    Special team combats smugglers at Seme

    The special anti-smuggling unit set up by  the out-going Controller, Federal Operations Unit (FOU) Zone ‘A’ Ikeja, Amede Abdul, has become smugglers’ nemesis at the Seme border.

    Investigations revealed that the Deputy Superintendent  of Customs (DSC) Jude Ohagwu-led team seized over 2,502 bags of 50kg parboiled rice, 60 kegs of 25 litres of vegetable oil, 105 pieces of fairly used tyres, 858 pairs of used shoes and other goods valued at N17,749,800 in a single operation.

    The team, The  Nation learnt, has been displaying zero tolerance for smuggling and other vices.

    The unit Public Relations Officer (PRO), Uche Ejesieme, said:”The team’s operational escapades remain a reference point. The leader of the group, Jude Ohagwu, is a rugged, fearless, resilient and highly committed officer and he has received award from the controller based on his anti-smuggling activities, “he said.

     

  • A sector’s many challenges

    A sector’s many challenges

    Maritime is supposed to be the country’s second major revenue earner, but it is not deriving much from the sector, ROTIMI BOLUWAJI writes.

    Developments, of late, in maritime appear to have reversed the popular adage that when the elephants fight the grass suffers, the Federal Government which is the elephant because it is supposed to call the shots in the sector and also reap the benefits therein courtesy of rules, regulations and supervision is the one losing out in terms of realisable revenue.

    Since April 2015, the unhealthy competitions among players in the industry, especially, terminal operators who handle maritime cargo have reached a feverish pitch following the pronouncement of former President Goodluck Jonathan which insists that vessels carrying oil and gas cargo discharge in designated ports or terminals.

    Soon after this circular was issued by the Nigerian Ports Authority, some private jetty operators, registered customs agents amongst others went to town with stories which insinuated that the policy was meant to favour a certain company. They never saw the merits of the directive in terms of revenue generation to the national purse.

    Over the years, efforts by the NPA to explain why vessels carrying oil and gas cargo should berth and discharge at agreed terminals have fallen on deaf ears.

    Shippers have seized the opportunity of the ensuing confusion and the impunity with which some terminal operators circumvent the rules and regulation guiding their operations to discharge cargo at the wrong terminals because it is cheaper, thereby robbing the government of the hundreds of millions of dollars that should have gone into its coffers.

    The impunity with which some terminal operators abuse government regulations was well captured in a story published on October 22, 2015 by the Nigerian Tribune. In the story, Maritime Workers Union of Nigeria (MWUN) was so bitter and had to raise the alarm over the illegal and unregulated discharge procedure of vessels that berth in Nigeria waters.

    In the Nigerian Tribune story, MWUN complained that the rising cases of unmonitored vessel discharge at Nigerian ports poses security dangers to the nation.

    As a testimony that even dockworkers have not been spared in the regime of impunity by the unscrupulous terminal operators, MWUN President General Tony Emmanuel said, “the law of this country is clear on who should discharge a vessel when it berthed at the ports. Can you imagine that when Industrial Chef (a vessel) called at a private terminal, its contents and all the cargo on board were discharged from the vessel by the crew of the ship? To make matters worse the crew of the vessel were mostly foreigners.

    “It’s an Act of parliament. It is statutory. It is the law of the Federal Government that said nobody other than a registered dockworker is allowed to work inside the port terminals, jetties and even in the bonded terminals. But today, many of the operators are violating these laws,” he said.

    MWAN President said that “after we protested, the operator agreed to pay our dockworkers their rightful due but the deed has been done. The vessel has been discharged. As I am talking to you, the same scenario is about repeating itself at Bonny Midstream”.

    In the same vein a group, ”Nigerians United Against Theft in the Maritime Sector,” has called on the Federal Government to stop what it called the on-going huge revenue loss incurred due to illegal and inappropriate discharge of cargo in Nigeria’s territorial waters.

    Chairman of the group, Dr. Jonas Bankole said at a meeting of the organisation in Abuja recently that hundreds of millions of dollars have been lost in recent weeks following the impunity with which some terminal operators engaged in the practice.

    He observed that a situation where operators of private jetties allow certain categories of ocean going vessels to discharge at their terminals is unacceptable and should be stopped henceforth in line with the new administration’s commitment to blocking leakages.

    Perhaps, the organisation worst hit by the agitations which have caused loss of revenue to government is Integrated Logistics Services (Intels). The bashing of the company for being a pioneer key player in the industry and a major revenue generator for the government has been disturbing.

    This calls for urgent intervention by the government to prevent the company from companies/competitors that have adopted the mafia style to run out of business. In the industry today, Intels remains the goose that lays the golden egg. Allowing it to die or to suffer the kind of distraction it is currently going through is to say the least, a manifestation of a deliberate desire of a few Nigerians to stunt the nation’s growth.

    From April till date campaigns against Intels have ranged from several suits in court over concession, blackmail that the company is enjoying the status of a monopoly, allegations that charges for its services are high coupled with accusations that it illegally collects dollars for its charges against the ‘non-dollarisation’ of the nation’s economy. There have also been rumours that importers/shippers have abandoned the terminals operated by the company.

    The company’s efforts to convince the government that it is all compaigns of calumny have received little attention.

    With further continuous delay, government will keep losing millions of dollars daily as illegal discharge of cargo continues unabated.

    If what the Vice President, Prof. Yemi Osinbajo said a few weeks ago when he received a delegation from the Federal Ministry of Transport is anything to go by, then the government is beginning to realise the dangers inherent in the activities of some players in the maritime sector.

    Osinbajo said: “I think that we have an opportunity to do something that will radically transform all of the things we do especially revenues from cargoes coming into the country”.

    He said opportunity exists for the government to increase its revenue generation in the maritime industry and that there were plans in the works to ensure that it happens. The earlier this happens, the better.

    All said and done, the situation will get worse if the government continues to condone the rot in the sector.

     

    • Boluwaji writes from Abuja.
  • Buhari urged to audit terminal operators

    Buhari urged to audit terminal operators

    •Firms accused of violating concession agreement •N10b realised yearly in demurrage, storage charges

    PRESIDENT Muhammadu Buhari has been urged to direct the Ministry of Transport,  Nigerian Ports Authority (NPA) and Bureau of Public Enterprises (BPE) to conduct performance audit of the concession of seaports  to determine their progress and challenges since 2006.

    The concessionaires, it was learnt, make huge amount from service charges and also rake-in over N10 billion annually, from storage and demurrage charges on importers and clearing agents without a corresponding improvement on their terminals.

    In 2016, it will be 10 years since the ports concession agreement was signed by NPA and the operators.

    A senior official at the Federal Ministry of Transport (FMoT), who asked not to be named, said some operators had not added value to their services and terminals since the ports were handed over to them.

    Most of the terminals, he said, were stocked with old equipment inherited from the NPA, adding that most of the inherited buildings are dilapidated and serving no purpose apart from occupying space that would have been converted  to cargo delivery and process procedure.

    Huge demurrage and other sundry factors, he said, are making the ports uncompetitive and unattractive for business.He therefore urged Buhari to address  the problem.

    The uncompetitiveness of the ports, the official said, has made it difficult for them to attain world-class status.

    More than nine years after the NPA surrendered its cargo handling functions to private terminal operators, the official said, things are not looking good.

    The ports, according to him, are still burdened with bureaucratic glitches, periodic technical blackouts and duplication of processes by a plethora of government agencies at the port.

    NPA, according to him, is well focused on its agenda to facilitate trade and reduce cost. The problems created by the concession, the official said, is hampering the robust injection made by the management of the authority into port operations.

    President Buhari, the official said, should see the problem as one of the key issues  to address while carrying out his reform programme for the maritime sector next year.

    The Federal Government and the NPA, he said, need to carry out competence and performance audit on each of the terminals, see where they have erred in law and apply sanctions where applicable.

    Investigation conducted by The Nation revealed that the terminal operators are collecting demurrage and storage charges both at weekends and public holidays, which is against the agreement  signed with the NPA before the terminals were concessioned to them in 2006.

    Article 1 of the concession agreement, exclusively obtained by The Nation, showed that importers are only expected to pay on “Business Days.”

    Business days, according to the agreement “means a day on which commercial banks in Nigeria are not authorised or required to close.”

    Efforts, the official disclosed, are on by the NPA, the Nigeria Shippers’ Council (NSC) and other critical stakeholders to reassess the gains of ports sector reform and make recommendations for refocusing and fast-tracking it in line with the Change Agenda of President Buhari’s administration.

    “In spite of the reforms carried out by the Obasanjo administration, Nigerian seaports still lag behind world-class ports in Africa and elsewhere, with respect to speed of cargo clearance, demurrage charges and ease of evacuation of cargo from the ports.

    “With a throughput of more than 90 million metric tonnes in cargo, there is something to cheer about this robust initiative of the NPA.

    “But we make bold to say that it is not yet uhuru, because  the system is burdened by bureaucratic glitches, periodic technical blackouts, and duplication of processes by a plethora of government agencies, which lead to rising demurrage charges and avoidable pains to many port users.

    “Figures from the Nigeria Shippers’ Council show that importers and clearing agents pay between nine and N11 billion annually for storage and demurrage charges alone.

    “Even after clearing their cargo from the Lagos ports, the poor state of roads leading to the ports make evacuation a nightmare for importers, other port users and residents of the areas,” he said.

    The official expressed the need for various government agencies at the ports to work together, speed up the clearing process and eliminate duplications in their roles. This, he said, will radically reduce the cargo dwell time to between two and three days.

    An importer, Mr Teslim Fatoki, urged the Federal Government to stop port concessionaires from charging demurrage during weekends and public holidays when banks are not opened for business.

    Fatoki called for rapid and radical expansion of existing facilities at the Lagos ports and the need to build new seaport to halt cargo diversion to ports of neighboring countries

    “The Buhari administration must ensure that port facilities of world class standard are provided to meet up with the demands of stakeholders in the maritime industry.

    “Government and NPA must embark on performance audit of the concessioning programme of the sea ports with a view to examining progress recorded almost 10 years since its commencement.

    “We need new investors that will add value and efficiency to our port system through the provision of modern cargo handling plants, equipment and technology, so as to make our seaports are competitive, user-friendly, efficient, cost-effective and attractive to stakeholders in the maritime industry,” Fatoki said.

     

  • Agents urge Buhari to stop Intels from collecting dollars

    Agents urge Buhari to stop Intels from collecting dollars

    The Association of Customs Licensed Agents (ANLCA) has urged the Federal Government to stop Intels Logistics Terminal, Onne Port, Rivers State, from collecting charges in dollars.

    The group also seeks the reversal of the directive of former President Goodluck Jonathan that oil and gas cargoes coming into the country go through the private terminal.

    Importers of cargoes in oil and gas sector are allegedly diverting goods to neighbouring countries’ ports because of the monopolistic nature of the directive, especially paying charges in dollars at the terminal and other alleged oppressive tendencies associated with it.

    The group said if the Federal Government fails to act urgently, it may lead to loss of jobs as cargo diversion translates to revenue loss.

    Its President, Alhaji Olayiwola Shittu, said the directive “is obnoxious, uncharitable and counter-productive” because of its negative effect on the economy, arguing that it negates the foreign exchange (forex) policy of the Central Bank of Nigeria (CBN) designed to enhance the value of the naira.

    The company, which has interests in Onne Port, Warri Port and Calabar Port, Shittu said, has been frustrating the efforts of the government to strengthen the local currency as it still collects dollars from users of its facilities.

    Shittu alleged that to protest against this directive that favours Intels, some importers of oil and gas related cargoes  have boycotted the use of its facilities and diverted their consignments to neighbouring ports.

    The Federal Government, he said, needs to show the political will to address the problem.

    Shittu said ports concession was to reduce costs of doing business, increase revenue generation, create employment and promote competition and not monopoly in port services.

    He said: “What the last administration had done was highly un-charitable and very irresponsible; what they did was to create a monopoly that is anti-people, and not in the interest of the economy.

    “Everybody should have a choice of where they want to take their cargoes to. The government concessioned the ports and all of them signed the same documents. “Why do you have to force people to take their cargo to Onne so that they can charge them in dollars? Not only that, their charges are 300 times more than regular charges in other ports.

    “We have embarked on a campaign to boycott Onne port facilities. In addition, we are prepared to take our oil and gas goods through Cotonou. If that discrimination continues, then we go through the border and pay duty. “It is very unfortunate because the terminal has become a big problem and it is like a government on its own. That is because the promoters held the last administration by the jugular because they wanted to remain in power at all cost. Thank God, Nigerians have sent them back to the creeks but it is very unfortunate that we are in this mess.”

    When our reporter visited Seme and Idiroko borders at the weekend, findings revealed that importers of oil and gas cargoes have carried out their threat to divert their goods from Onne Port based on what they described as the abuse of the monopoly granted them by the last administration.

    It was also  discovered that importers now bring pipes and other materials meant for water and oil and gas industry through the port of Cotonou in Benin Republic.

    Importers of oil and gas cargoes, it was gathered, are now paying shipping charges, terminal handling charges and other sundry charges to the Benin terminal operators.

    Aside paying in dollar at Onne port, one of the importers, Mr Felix Johnson, also alleged that the charges were on the high side.

    Johnson identified abuse of agreement, arbitrary charges and undue delay to clear cargo as soem of the challenges facing the concession model at the ports.

    He admitted that importers now bring pipes and other materials meant for water and oil and gas industry through Cotonou port.

    He said  the creation of monopoly at Onne is not in the best interest of the Federal Government because of its forex policy.

    Johnson said it was wrong to compel businessmen to consign their cargoes to a particular port.

    Contacted, Intels Public Relations Manager, Mr Isidore Sambol, confirmed the receipt of foreign currencies by the company for his services.

    Sambol said Intels operates in a free zone which he claimed is exempted from the CBN’s forex restriction policy.

    “Yes, we are exempted from the forex restriction because we operate in a free trade zone. If you conduct your investigation well, you will notice that free trade zones are not part of the policy.

    “You should also be aware that oil and gas is an international business and there is nothing wrong if we collect international currency, mostly United States (U.S) dollar,” he said.

    He, however, added that the company may collect the naira equivalent of foreign currency from its clients.

     

  • Customs: Ali’s anti-corruption crusade faces litmus test

    Customs: Ali’s anti-corruption crusade faces litmus test

    The anti-corruption crusade of Comptroller-General of Nigeria Customs Service (NCS), Col Hamed Ali (rtd) is facing litmus test.

    Investigation by The Nation revealed that some vehicles were released from the Lagos port about two weeks ago, without due process and stakeholders are waiting to see what Ali will do to those that committed the crime.

    The Nigeria Customs Service (NCS), Federal Operation  Unit (FOU), Zone ‘A’, Ikeja, Lagos  seized 17 vehicles estimated at over N200 million.

    The vehicles, investigation revealed, are at the government warehouse in Ikeja.

    Will officers, importers and clearing agents involved be sacked or prosecuted as promised by Ali, to boost the anti-corruption campaign of the Federal Government and deter others? This is the question industry watchers, want Ali to answer in the next few weeks.

    The vehicles, it was gatherd, were seized by FOU officers, following the busting of a smuggling ring that specialised in importing vehicles through the seaports without paying the necessary duty.

    Officers who released the vehicles from the ports are now in trouble.

    A source said most of the vehicles, including new 2015 Toyota Camry and Prado, passed through the Lagos ports without paying the 70 per cent duty. They added that the importers and clearing agents declared the cargoes as used cars purportedly manufactured in 2004 and 2005 to deceive the Customs and short-change the Federal Government.

    The market value of the Prado Jeep, security sources said, is about N14 million and the importer was expected to pay N6 million duty on it . The importer, it was alleged, paid N1 million to get the vehicles out of the port.

    Some of the vehicles, sources alleged, have no Customs paper.

    The officers responsible for the release of the vehicles, it was gathered, may be sacked in the spirit of the anti-corruption stance of Ali.

    Some of the vehicles, a source said, were released from the port at night to beat security checks.

    It was learnt that some of the importers used number plates to beat Customs’ checks on the road. But, unknown to them, Customs officials from the FOU Zone ‘A’ had been monitoring their movement in Lagos for over 10 days before swooping on them.

    Its Public Relations Officer (PRO), Mr Uche Ejesieme, confirmed that some new vehicles were intercepted by officers and men of the unit, but refused to mention the number and the value. The Customs headquarters had been briefed, he said.

    “The vehicles were intercepted by our officers following a tip-off. We are yet to determine the value of the vehicles because investigation is still on.

    “Our controller, Abdul, has urged smugglers in the Southwest to relocate or else they would face the full wrath of the law.

    “We have spread our dragnets to the nooks and crannies of our areas of jurisdiction and would not stop at dealing with the menace,” he assured.

    Ejesieme, who said the unit was complementing the efforts of other Customs commands in ensuring that there was total compliance with the fiscal policies of the Federal Government on trade,  assured genuine and compliant importers of support. He stressed that the unit is committed to boosting legitimate trade in line with global best practice.

    Analysts, however, believe that bringing the offenders to book  may be the first litmus test of Ali‘s anti-corruption crusade.

    During his first official visit to Lagos, last week, Ali  vowed to deal with any officer found to engage in shady business at the ports. He promised not only to sack such officers but also ensure they were sent to jail in line with the provisions of the law.

     

     

  • Importers, traders laud govt for lifting ban on rice

    Importers, traders laud govt for lifting ban on rice

    President Muhammadu Buhari has been praised for approving the recommendation of the Comptroller-General, Nigerian Customs Service (NCS), Col. Hameed Ali (rtd), to lift the ban on  rice importation through land borders.

    According to stakeholders in the maritime sector, the Federal Government loses over N20 billion yearly for putting rice on the import restriction list.

    This is because no fewer than 10,000 bags of rice were smuggled into the country daily from Benin Republic and other neighbouring countries before the ban was lifted.

    Customs Public Relations Officer Mr Wale Adeniyi, last week, in a statement, announced the lfiting of the ban.

    The action of the government was lauded by officials of the Federal Ministry of Finance, the Association of Nigerian Licensed Customs Agents (ANLCA), Customs officers, importers, traders and others.

    A senior official of the Federal Ministry of Finance, who craved anonymity, said the N20 billion yearly loss was not part of the duty owed the government by rice importers who exceded the import quotas given to them. Some importers also enjoyed ‘questionable waivers’ too.

    The  administration of former President Goodluck Jonathan, had through the Ministry of Agriculture, approved import waivers for rice importers.

    In spite this largesse, all entreaties, notifications and notices  given to the importers by the Customs, many of them still defaulted paying Customs duty and other charges on the excess imported rice.

    A few months ago, offcials of the NCS sealed warehouses of major rice importers for failing to pay debts valued at N23,603,479,402.44

    The affected importers are: Olam, Stallion/Popular Foods/Masco Agro, Ebony Agro and Conti-Agro (Milan).

    Allowing the issue to degenerate to the level of closing down their warehouses was one of the reasons the government reviewed the ban.

    “These people were given special allocation by the government and the terms of agreement were spelt out to them. But, at a stage, they brought in rice in excess of the allocations that were given to them. It became difficult for them to pay the duty imposed by the government. I don’t know when Nigeria became Father Christmas where anybody can ship in commodities without paying the necessary duty to the government.

    “Those who put rice under import restriction list failed to understand that some people that are close to the government may abuse the process and that is why we recorded huge losses from the border stations where the government is supposed to collect huge revenue from duty and other charges.

    “Immediately, the item was banned, rice became the most smuggling commodity.

    “Those using local production to sustain the ban could not achieve anything before they left power. “How many tonnes of rice are we producing in the country? What is the method and level of our production? How many genuine rice farmers do we have in the country? How much was allocated for rice production by the last administration and where is the rice in our markets or the money in our purse?

    “Without the necessary policy frame work and massive production of the commodity across the country, the ban on the commodity cannot be sustained.

    “Rice business is a big business. Rice is an international commodity and it will always find its way into our country like fish in the Atlantic Ocean; wherever the water goes, you find fish. Every grain of rice is money,” an official of the NCS said.

    ANLCA President, Prince Olayiwola Shittu, commended President Buhari and the Col. Ali for reversing the obnoxious policy of the last administration.

    He argued that the ban on rice importation through land borders had led to upsurge in  the smuggling of the essential commodity and threw up some emergency millionaires.

    He said over 10,000 bags of rice are smuggled in daily.

    In 2011, Shittu said, 2.9 million tonnes of rice were imported, not 342,000 tonnes, as claimed by some top officials of the last administration.

    He called on the National Assembly to support the Federal Government with a legislation that would promote agric production.

    Shittu urged the Federal Government and the NCS  to put in place an effective sanction for rice smuggler.

    He identified low tariff on rice in neighbouring countries as one of the major factors contributing to smuggling of rice, urging the government to look into the 60 per cent levy imposed by the last administration.

    An importer at Alaba Rago Market,Mallam Audu Bello, howver, said the decision to ban rice importation was not well thought-out.

    “Rice is important in Nigeria. This is because it is a staple food of most homes,” he said.

    According to government statistics, yearly consumption of rice is about 5.5million tonnes. It is also a fact that local production accounts for about 1.8million tonnes. Analysts say the question is how to bridge the gap.

    “The fact is that over two million metric tonnes are smuggled into the country and the country loses huge revenue through it,” he added.

    Also, the President, Shippers’ Association Lagos State, Rev. Jonathan Nicol, lauded the lifting of the ban. He described the action as the ‘most sensible’.

    According to him, rice is the staple food of many Nigerians. “When Nigeria is ripe to produce enough rice, Nigerians will be glad to adjust and consume local produce,” he said.

     

  • Army to NIMASA: consider fallen soldiers’ kids in seafarers scheme

    Army to NIMASA: consider fallen soldiers’ kids in seafarers scheme

    The Chief of Army Staff, Lt. Gen. Tukur Buratai, has appealed to the Nigerian Maritime Administration and Safety Agency (NIMASA) to  engage children of  soldiers who lost their lives in the battle against insurgency in its Nigerian Seafarers Development Programme (NSDP).

    This, according to him, will help to alleviate the sufferings of the families of the soldiers who died while defending their father land.

    Buratai spoke when NIMASA’s Acting Director-General Pastor Haruna Baba Jauro visited him at the Army headquarters, Abuja.

    He appealed to NIMASA and  other corporate organisations to assist with the resettlement of the Internally Displaced Persons (IDPs) through their Corporate Social Responsibility (CSR) programmes to have them properly re-integrated into the society.

    “I want to appeal to you and other responsible corporate bodies to assist with the resettlement of IDPs now that calm is being restored to some of those communities because the situation in the camps is not really conducive,” Gen Buratai said.

    While commending NIMASA for combating piracy and other criminal activities on the nation’s territorial waters, he said the Army will always be ready to assist the agency in curbing criminalities, especially in the creeks where barges and other water crafts are used to commit crimes,such as crude oil theft and piracy

    Earlier, the NIMASA chief had congratulated General Buratai on his appointment and  commended him for the successes recorded so far in the fight against insurgency in the Northeast under his leadership.