The Nation Newspaper

Tag: Maritime sector

  • Foreign investment and maritime sector

    For a country which found itself in recession and is just getting out of it, every effort to rev up the economy is important. Both local investors and foreign ones are crucial to the efforts to breathe life into the economy and thus give the people news songs to sing.

    Of these two classes of investors, the foreign ones are more coveted. They bring in the much-needed foreign exchange, which has the magic to wake the dead. No nation, especially a developing one and one just getting out of recession, jokes with Foreign Direct Investment (FDI).

    FDI creates jobs, promote bilateral relations and boost the Gross Domestic Product (GDP) of the benefitting country.

    Over the years, the federal government has made efforts to attract foreign investors into the country using incentives such as tax holidays amongst others.

    The Nigerian maritime sector is one area where there are a lot of opportunities for economic growth and development if properly harnessed, bearing in mind the endowment of about 853km coastline with an Exclusive Economic Zone (EEZ) of over 200 nautical miles. This is a pointer to the fact that there are prospects for the sector, and this is what the Dakuku Peterside-led management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has demonstrated.

    One of such efforts in wooing investors was tackling the issues relating to safety and security on the nation’s waterways which is crucial to the quest for attracting FDI to the sector.

    In order to boost investor’s confidence, NIMASA has gone a step further to propose an anti-piracy bill, which is currently before the National Assembly, with the intent of giving the agency the legal muscle to prosecute all forms of criminalities on the nation’s territorial waterways. Also assurances have been given to stakeholders that the agency will leave no stone unturned to ensure zero tolerance to all forms of illegalities our waterways.

    Other initiatives by the agency to attract FDI was demonstrated during the unveiling of the maritime industry forecast for 2018 and 2019, which is an unprecedented feat in the history of the maritime industry in Nigeria.

    The forecast stated that business activities in the Nigerian maritime sector are expected to grow from 2.5 percent in 2018 to 5.5 percent in 2019 and also predicted that the total fleet size will grow by 4.08 percent in 2018 and 4.41 percent in 2019.

    In addition, oil tanker fleet size will decrease by 2.23 percent in 2018 and increase by 1.7 percent in 2019. The non-oil tanker fleet size is also expected to increase by 8.15 percent in 2018 and 8.72 percent in 2019. The oil rig count is to increase by 27.67 percent in 2018 and 0 percent in 2019.

    The forecast being the first in the history of the industry is expected to attract FDI to the Nigerian maritime sector and based on the outcome of the study, maritime industry should expect to see increase in business activities in 2018 and 2019 as there would be an expected growth in the demand for the use of maritime facilities in Nigeria within the period under review.

    The forecast also aligned with the three strategic objectives of government’s Economic Recovery and Growth Plan (ERGP): restoring growth in economy, investing in people, and building a globally competitive economy.

    With this, it is hopeful that the public presentation of Nigeria’s maritime industry forecast will provide that confidence in the stakeholders and investors to fully tap into the immense opportunities which abound in the blue economy as a means of wealth creation, employment and development of relevant capacities that will grow our domestic economy; a statement corroborated by the NIMASA DG during the unveiling of the forecast.

    As part of the efforts to drive FDI into the sector, the federal government through NIMASA held a bilateral talk with the Maritime and Ports Authority (MPA) of Singapore.

    While in Singapore, Peterside marketed Nigeria’s enormous maritime potentials to the MPA chief executive, Andrew Tan projected Nigeria and the huge untapped maritime potentials of the country as well as called on Singapore investors to take advantage of the reforms in Nigeria’s maritime sector to invest in the country.

    He also requested partnership with the Singaporean authorities in various areas including technology acquisition for monitoring of the waterways, capacity-building of personnel, support to upgrade maritime infrastructure as well as acquisition of more ocean going vessels for indigenous operators.

    Furthermore, in order to demonstrate its commitment to realize a virile maritime sector in Nigeria through collaboration with foreign partners, the federal government set up a committee known as the Presidential Enabling Business Environment Council (PEBEC) saddled with the responsibility of attaining ease of doing business in Nigeria, particularly the maritime sector.

    Recall that the World Bank’s Ease of Doing Business Report for 2018 placed Nigeria in the 145th position. This is 24 positions better than the 169th position the nation was ranked in the 2017 report. According to the report released by the World Bank, Nigeria was among the 10 top countries that improved on reforms. This can be described as a step in the right direction, and it is expected that in the next ranking, Nigeria will still do better.

    The issue of the re-floating of a national fleet has also been brought to the front burner in international discuss as the government is determined to provide the enabling environment that will pave way for the private sector to drive the processes.

    Conclusively, it can be said that concerted efforts are being made by the current management of the Nigerian Maritime Administration and Safety Agency to attract investors to the nation’s maritime sector. The effect of this is that it will bring growth and development to the sector and the nation at large; more jobs will be created, more revenues earned and more chances to compete favourable with its counterparts in other maritime climes across the globe. And to achieve this feat, the agency needs the continuous support of all stakeholders in the sector so that we can all boast of having a robust maritime sector.

     

    • Kumuyi, is of NIMASA, Lagos.

     

  • Developing Nigeria’s maritime sector

    A major development capable of increasing the capacity of indigenous ship owners and other stakeholders in the maritime sector took root some days back at the NNPC Towers in Abuja. On Tuesday, stakeholders gathered to examine the Free On Board (FOB) trade term, which favours foreign ship owners in crude lifting and the Cost Insurance and Freight (CIF), which will enable indigenous ship owners to begin to lift Nigeria crude and ultimately boost indigenous capacity.

    This forum was organised by Nigerian National Petroleum Corporation (NNPC) and the Nigerian Maritime Administration and Safety (NIMASA).

    Minister of State for Petroleum Dr. Ibe Kachikwu, who declared the event open, noted that the issue of trade term is an age-long challenge that has lingered too far and charged participants to come out with resounding resolutions that would be of National benefit.

    NIMASA Director-General Dr. Dakuku Peterside in his paper pointed out that the changing landscape of Nigeria’s maritime sector vis-à-vis its security architecture, capacity and other determinants has necessitated the change now than ever before.

    Dakuku stated further that the CIF if implemented will “encourage indigenous fleet expansion, lead to massive job creation for qualified Nigerian seafarers, create opportunities for mandatory sea time experience for Nigerian cadets and build expertise and competence in international shipping trade”

    According to him “Nigeria is one of the major exporters of oil and gas resource in the world, and she averages an output of 1.92 million barrels of crude oil per day so this volume generates huge freight for carriers. Regrettably, indigenous shipping operators have insignificant share of the freight earned from the carriage of Nigeria’s crude compared to foreign counterparts”, he lamented.

    OPEC nations such as Iran, Indonesia, Algeria, Kuwait, Angola, Venezuela, UAE and Libya allow indigenous operators to participate actively in shipment of the crude oil, stating that with the right policies in place Nigeria can build its own capacity and one of this is the change of terms of trade for Nigeria’s benefit.

    The Group Managing Director of the NNPC, Maikanti Baru, stated that the corporation had no reason not to allow Nigerians lift crude that there were conditions which made NNPC opt for the FOB trade. He, however, noted that the NNPC also sees benefits in the CIF trade term but processes have to be followed which may include transition period before finally opting for the CIF trade term.

    A lawyer and former NIMASA chief, Temisan Omatseye, who is also a ship owner, pointed out that there is a lot of benefit in the CIF trade term. He stated further that that it would eliminate crude theft, create employment and ultimately compliment the diversification drive of the federal government.

    The CIF initiative is an adjunct of the blue economy campaign of the current NIMASA leadership. Nigeria, with a coastline of about 853km and about 10,000km of Inland Waterways, 12 Nautical Miles of Territorial Waters, 200 Nautical Miles of Exclusive Economic Zone (EEZ), should have no business with poverty.

    This is even more so as Nigeria imports over l50 million metric tons of non-oil cargo and approximate 1,500,000 units of containers a year. These figures are for the formal trade alone.

    Total cargo throughput in 2015 stood at 195,969,200 metric tonnes showing a marginal increase of 0.8 per cent over the 2014 figure of 194,484,142 metric tonnes.

    The current aggregate of the cargo throughput exceeds $15,000,000,000 a year through formal import orders.

    Nigeria has the biggest economy in Africa, the most populous nation in Africa and has more port complexes than any country in Africa, among others.

    At the moment, our gain from the blue economy is still minimal. To aid the sector, NIMASA has commenced 24 hour port operations towards ensuring access to business services at all time. It is improving on the development of critical infrastructure in the maritime sector, such as the construction of the largest floating dockyard in Africa. It is also establishing National Carriers and strengthening institutional frame work through ratification and domestication of IMO/ILO Conventions.

    It is also training over 2500 cadets. It plans to train more. NIMASA has also facilitated the draft of an anti-piracy Bill which is before the National Assembly. It has equally ensured the implementation of the International Ship and Port Facility (ISPS) Code with over 85% compliance level.

    Along this line, it is also collaborating with armed forces for improved intelligence, surveillance and marine security. It maintains strategic partnerships with the Nigerian Navy, which led to the establishment of a Maritime Guard Command (MGC) in NIMASA to ensure compliance with extant maritime legislations, the Nigerian Airforce for the provision of Intelligence, Surveillance and Reconnaissance (ISR) operations, Search and Rescue (SAR) operations at sea, just as tactical airlift operations and enforcement action has given birth to anti-piracy, anti-smuggling, illegal bunkering and illegal fishing activities.

    Part of the agency’s efforts to grow blue economy was to reduce its running cost and give government more money. It shocked not a few last year when it emerged that it within one year and one month contributed N9.975 billion to the Consolidated Revenue Fund (CRF). Within this period, the agency has also paid $38,272,12.12 million (N21.805 billion) to the CRF.

    As the fastest growing sector in the world with enormous business potentials, coupled with the length of the nation’s coastline and the attendant volume of maritime trade, Nigeria obviously stands at a good advantage to develop its blue economy provided stakeholders actively participate to reap the benefits of the sector. Here, we can draw lessons from the economies of Singapore, Ukraine and South Korea which thrive on the activities of their maritime sector.

     

     

  • Amaechi: maritime sector strategic for investors

    Amaechi: maritime sector strategic for investors

    •Nigeria is conducive for investment, says Peterside

    Minister of Transportation Rotimi Amaechi has stated that the maritime sector is a haven of opportunities for the world maritime industry to tap into.

    The minister made this known while speaking at the ”Africa @ Nor” session of the Nor-Shipping 2017 which held at Lillstrome, Norway.

    Amaechi assured the audience that Nigeria is a strategic destination for investment opportunities, stressing that Nigeria epitomises a broad spectrum of the continent in Africa.

    ”Nigeria is the most populous country in Africa with about 183 million people and by extension, with the cumulative population of two Landlocked countries of Chad Republic which is 14.9m people and Niger Republic with 21.3m people creates a huge consuming market and comparable cheap labour”, he said.

    The Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr. Dakuku Peterside stated that Nigeria as a maritime nation is endowed by nature with over 850 kilometers of coastline.  He further pointed out that the country has six modern port complexes and a fast developing intermodal transport system as well as abundant trained workforce combined with a standard regulatory regime amongst others which are benefits accruable to investing in the Nigeria maritime sector.

    “We are bounded by two land locked countries of chad and Niger, so we are not just serving goods coming into Nigeria, we are also serving goods going to chad and Niger,” Peterside said.

    He said Nigeria would soon take delivery of the fifth largest floating dock in Africa.

     

     

     

  • Recession: 6,000 jobs gone in maritime sector

    The maritime sector has lost over 6,000 jobs to the economic recession, and  many companies have closed down due to liquidity challenges, the President, Maritime Workers Union of Nigeria (MWUN), Emmanuel Nted, has said.

    He spoke at the union’s National Executive Council meeting and Special Delegates Conference in Lagos.

    According to him, Intels retrenched over 3,000 workers because of harsh operating environment since the economic recession started.

    He said the job losses were affecting the union, with more workers faced with insecurity, which has exposed the lives of their families to risks.

    The MWUN chief said it had become more difficult to protect members’ jobs in various branches, adding that the union had not been able to discuss the review of conditions of service.

    “Where collective bargaining agreement and conditions of services negotiations are due for review, the union is forced to accept marginal increases where possible and trading off increment, with withdrawal of redundancy threats.

    “We appeal to the government to find urgent solution to the recession before it escalates,” Nted said.

    He also urged the government to fix the deplorable roads leading to the seaports, adding that the problems is affecting the nation’s economy.

    The union leader said apart from the airports and the land borders, the seaports are another entry points for foreigners into the country.

    He said quick action should be taken to start the reconstruction of the roads leading to the seaports, since the contract had been awarded to avoid industrial action.

  • World Bank to support Nigeria’s maritime sector with $40m

    World Bank to support Nigeria’s maritime sector with $40m

    The Nigerian Shippers Council said  the World Bank has indicated its willingness to support Nigeria’s maritime sector with $40million.

    The fund is expected to be used to clear the traffic gridlock along ports access roads in Apapa, Lagos.

    The Executive Secretary of the Council, Mr. Hassan Bello, who spoke in Abuja yesterday at a press briefing, said the move was aimed at making the Nigeria Port Authority (NPA) more efficient.

    He also said it will also ensure that oil pipelines were used to transport petroleum products rather than using tankers.

    He said: “No matter how efficient the terminal is, if you don’t have the road to evacuate cargo, how will you move your goods out of the ports? So there must be an intervention and in that regard, the NSC has introduced NAFITH to NPA.

    “Now NAFITH, an international finance corporation which is an arm of the World Bank, is bringing $40million to put an end to the traffic situation in Apapa.

    “The fund is meant to improve logistics around the Apapa, Tin Can and Orile areas where every time, there are over 5,000 trucks on that axis. But what are they doing there? What we need is about 1,500 trucks in Apapa vicinity logistically, but you find about 5,000. So what are the other 3,500 trucks doing? They are doing nothing.

    “So, the idea is to have an electronic passage where a truck is in Apapa only when  it is needed to pick or drop cargo. The tankers too don’t need to be there for the pipelines will do the transportation of products. The moment we have the pipelines pumping to Mosimi and other flow stations, then we don’t need the tankers in Apapa. So all these things are what the World Bank is coming to do in order to solve, once and for all, the gridlock in Apapa.”

    Bello also urged the Federal Government to support agencies in the sector in making the ports more efficient in their various operations, adding that one major way to achieve this was by automating the facilities.

  • Stakeholders ask National Assembly strip NPA of regulatory function

    Stakeholders ask National Assembly strip NPA of regulatory function

    Stakeholders in the maritime sector Tuesday asked the National Assembly to pass into law the Ports and Harbour Bill to give legal backing to ports concessioning of 2006.

    he Act, they said, should also set performance benchmarks in the sector in accordance with global best practices.

    At a one- day Public Hearing on Amendment of National Inland Water Ways Authority Act (Amendment Bill, 2016 and Nigerian Ports Authority Act( Amendment) Bill, 2016, representatives of the Nigerian Economic Summit Group, Ports Terminal Operators, Nigerian Shipping Association and Maritime Advocacy Group were unanimous in their appeal to the National Assembly to take a look at the Ports and Harbour bill with a view to separating the regulation functions of the ports from the day to day functions of the Nigerian Ports Authority with a view to making the ports work more efficiently.

    The Public Hearing was organized by the Senate Committee on Marine Transport in Abuja.

    Chief Chidi Iluogu (SAN) who represented Nigerian Ports Terminal Operators said there was a need for the National Assembly to ensure that adequate frame work was in place for private sector participation and to promote efficiency based on principles of accountability, competition, fairness and transparency.

    Iluogu noted that it was only fair that functions are streamlined in the sector so as to reap the maximum benefits from the ports.

    He said,” It is a source of concern that many years after the concessioning the laws were still being awaited,” emphasizing that the nation’s ports must be empowered by law to work efficiently.

    A former Director of Post Privatization Monitoring at the Bureau of Public Enterprises (BPE), Mr. Kashim Ibrahim Mohammed on his own noted that the transportation bills currently pending before the National Assembly will stem the tide of crisis bedeviling cargo handling and clearance at the nation’s ports.

    He insisted that for the ports to work optimally, the legislature must enact laws that will separate the functions of the Nigerian Ports Authority as the landlord from that of the regulation, urging the legislature to speed up the passage of the National Transport Commission Bill that was also before it.

    He said he anticipates a situation where the Nigerian Shippers Council will be adapted to transmute into the National Transportation Commission (NTC) since the Council had latent statutory functions that are similar to those of the proposed NTC.

    Senator Khairat Gwadabe who spoke on behalf of Maritime Advocacy Group said concessioning of ports was the modern trend globally as virtually all maritime nations have carried out one form of ports concession or the other but lamented that in Nigeria, the exercise was done without first putting the legal frame work in place.

    She urged the National Assembly to expedite action on the transport related bills pending before it so as to provide a level playing field that will see Nigeria rake in billions of naira in non-oil revenue from the ports.

    Chairman of the Committee, Senator Ahmed Rufai Sani said that he was optimistic that the country’s maritime sector would contribute tremendously to the nation’s economic recovery efforts.

    He said, “With the concessioning of the Port Terminals in 2006, the Nigerian Ports Authority is should no longer be an active participant in the day-to-day running of ports in Nigeria.”

    He added that the Senate will set new benchmarks and give the needed legal backing, adding that the proposed amendment would look towards the direction of huge revenue generation and creation of jobs.

    Senate President, Abubakar Bukola Saraki, said that the country was losing huge sums of revenue through inefficiencies in the Nigerian maritime transport system.
    Saraki who was represented by the Deputy Minority Whip, Senator Philip Aduda, noted that the nation’s Marine sector has fallen short of meeting the needs of water transportation system and by extension, the nation was losing huge revenues.

    He said that the effective means of water transport was the creation of enabling environment for private participation, saying the 8th Senate was committed to making sure, Acts of NIWA and that of NPA were amended.

    “The 8th Senate will take time to create enabling laws for private sector participation and NIWA must be part of Nigeria’s agencies that generates revenues for economic growth,” he said.

  • Ijaw youths to Buhari: Don’t scrap maritime varsity

    Ijaw youths to Buhari: Don’t scrap maritime varsity

    Ijaw youths, Sunday , passionately appealed to President Muhammadu Buhari, against taking any decision to scrap the Maritime University at Okerenkoko, Delta State.

    In their letter to the President, the youths argued that the university would address the age-long marginalisation of the Niger Delta region; develop manpower in the maritime sector and help the Federal Government in its efforts to diversify the economy.

    They told the President that they were disturbed by the proposed cancellation of the university by the Minister of Transportation and former Governor of Rivers State, Chief Rotimi Amaechi.

    In the letter signed by the President of the Ijaw Youth Council (IYC) (Worldwide), Mr. Udens Eradiri, and the council’s Secretary, Mr. Eric Omare, the youths faulted the reasons for the university’s cancellation adduced by Amaechi.

    They said the reasons which Amaechi gave when he briefed the Senate Committee on Marine were weak, mischievous, misleading, highly provocative and inciting.

    The youths noted that scrapping the university would portray Buhari’s government in negative light and provide justification for fresh militancy in the region.

    They said: “The university would no doubt open up the area where it is sited which is in the hinterland of the Niger Delta and help in positively impacting on the life of the people of the area concerned, especially the youths.

    “We cannot be talking of addressing problems of militancy and other associated challenges in the Niger Delta region without giving the people education. The Maritime University, Okerenkoko is part of the post amnesty development plan of the Niger Delta region.”

    They said Amaechi’s position that the country already had similar institutions in Zaria and Oron was not tenable adding that the university in Okerenkoko was designed to play different roles in the sector.

    The youths further posited that instead of relying on allegations of corruption to cancel the university project, such allegations should be investigated and resolved in line with the rule of law.

    They said: “The institutes in Oron and Zaria are meant to train medium class manpower in the maritime sector while the Maritime University, Okerenkoko would train world class technical and managerial manpower.

    “This would obviously address the problems of capital flight in Nigeria where Nigerians are sent to universities in countries like Philippines, Romania, Egypt and other countries to train at great cost to the country. The existing institutes and university are expected to play complimentary roles in the development of the maritime sector.

    “Mr. President, the most ridiculous reason advanced by the Minister is the assertion that parents would not send their children to school at Okerenkoko because of the terrain. This comment is not only ridiculous but also highly provocative and inciting.

    “It would interest your Excellency to note that Okerenkoko Community, Gbaramatu Clan, Delta State is surrounded by several oil installations and platforms such as Egwa 1 Flow station owned by NPDC, Abiteye owned by Chevron, Makarava, Odidi 1 & 11 owned by NPDC, the Chevron Escravos Terminal and several other oil installations.

    “And these oil installations and platforms have several oil workers including foreign expatriates who have been working for several years in that environment even during the period of hostilities in the Niger Delta region.

    “The question is, if oil workers can go to this same environment to explore and exploit oil, why can’t the same place play host to a university that would develop the people and environment?

    “Contrary to Mr. Amaechi’s assertion, the Okerenkoko environment is a natural location for a maritime university. It is ridiculous for the Minister to suggest that one of the Maritime institutes in Zaria be upgraded to a maritime university.”

    They added: “Is Mr. Rotimi Amaechi saying that the Niger Delta environment is only good for oil exploration and exploitation but not good enough for education and infrastructural development?

    “Is Amaechi saying that the people in the creeks of the Niger Delta region unlike other Nigerians have no right to acquire education and live a decent life? Whose interest is Mr. Amaechi serving or promoting?

    “Mr. President, Mr. Amaechi is obviously not promoting the interest of your government! He has only succeeded in painting your government as an anti-Niger Delta administration.

    “We of the IYC are shocked that a suggestion not to build a university in the hinterland of the Niger Delta is coming from Mr. Amaechi who is from the same region.

    “We wish to also point out that if allegations of alleged corruption are one of the reasons for the decision, such issues be handled in accordance with the law. It should not be a reason for cancellation of a laudable project”.

    The youths further said it was not true that there was no work done at the permanent site of the university apart from the feasibility studies.

    According to them the tragedy of the country had been facilitated and often repeated by politicians driven by sectional, ethnic and other primordial sentiments.

    They lamented that the policies and decisions needed in the march to greatness had been sacrificed on the altar of personal and egoistic indulgence to the detriment of the greater good of the nation.

    “Mr. President, we call on you to reject the proposed decision of the Ministry of Transportation to cancel the Maritime University, Okerenkoko. If it is a decision that already has your blessing, we appeal for the reversal of the decision.

    “It is not in the interest of the country and your administration. The decision would only provide justification for hostility in the Niger Delta region towards your administration,” they said.