The Nation Newspaper

Tag: NIMASA

  • Firm seeks roadmap for local content

    The Managing Director, Lagos Deep Offshore Logistics (LADOL), operators of the Lagos Free Zone behind Tin Can Port, Dr Amy Jadesimi, has challenged the government to chart a definite roadmap for Local Content Law administration in the maritime industry.

    She said this became imperative following the delay in the disbursement of the Cabotage Vessel Finance Fund (CVFF) by the Nigerian Maritime Administration and Safety Agency (NIMASA).

    The LADOL boss, who spoke with The Nation at the Logistics West Africa Conference and exhibition in Lagos, said the call became necessary in view of some challenges faced by local operators.

    She bemoaned the foreign domination of the shipping business in the country and urged the Federal Government to make the fund available to Nigerians.

    The LADOL boss also called on some private sector operators, who still operate as appendages to foreign interests, to have a change of focus. Mrs Jadesimi noted: “We need to see more private sector indigenous operators in the industry being on their own. We need to stop being mere agents. This agency model of classifying ourselves with one or two percentages of large contracts is not sustainable and will not help us.”

    Mrs Jadesimi said with the passage of the local content law, many indigenous operators were coming into the business with a measure of confidence, noting that it is the right way to go.

    She said the impact of free zones to the maritime and oil and gas industry, and how they are facilitating logistical efficiencies, specifically called for a sustained synergy between the Ministry, relevant government agencies and notable private sector operators in taking another look at some of the areas of the law, which constitute significant challenges that still impede the success of the law.

    According to her, one of such areas is the issue of tender process, which, she says, actually works against Nigerian players, in favour of foreign interests.

    “So, they now have to work together with qualified private sector and look at how we can encourage such investors who are seen to be doing something realistic so that they can continue to invest with a measure of confidence,” she added.

    Harping on challenges facing operators in the industry, Jadesimi said from LADOL’s experience, financing was still a huge problem because of bank’s lending rate compared to what obtains elsewhere.

    She, however, berated some of the top players who she accused of festering what ‘zero sum game: I win you lose, and I lose, you lose’ syndrome, which she described as “very damaging and anti-development.”

  • Firm seeks roadmap for local content

    The Managing Director, Lagos Deep Offshore Logistics (LADOL), operators of the Lagos Free Zone behind Tin Can Port, Dr Amy Jadesimi, has challenged the government to chart a definite roadmap for Local Content Law administration in the maritime industry.

    She said this became imperative following the delay in the disbursement of the Cabotage Vessel Finance Fund (CVFF) by the Nigerian Maritime Administration and Safety Agency (NIMASA).

    The LADOL boss, who spoke with The Nation at the Logistics West Africa Conference and exhibition in Lagos, said the call became necessary in view of some challenges faced by local operators.

    She bemoaned the foreign domination of the shipping business in the country and urged the Federal Government to make the fund available to Nigerians.

    The LADOL boss also called on some private sector operators, who still operate as appendages to foreign interests, to have a change of focus. Mrs Jadesimi noted: “We need to see more private sector indigenous operators in the industry being on their own. We need to stop being mere agents. This agency model of classifying ourselves with one or two percentages of large contracts is not sustainable and will not help us.”

    Mrs Jadesimi said with the passage of the local content law, many indigenous operators were coming into the business with a measure of confidence, noting that it is the right way to go.

    She said the impact of free zones to the maritime and oil and gas industry, and how they are facilitating logistical efficiencies, specifically called for a sustained synergy between the Ministry, relevant government agencies and notable private sector operators in taking another look at some of the areas of the law, which constitute significant challenges that still impede the success of the law.

    According to her, one of such areas is the issue of tender process, which, she says, actually works against Nigerian players, in favour of foreign interests.

    “So, they now have to work together with qualified private sector and look at how we can encourage such investors who are seen to be doing something realistic so that they can continue to invest with a measure of confidence,” she added.

    Harping on challenges facing operators in the industry, Jadesimi said from LADOL’s experience, financing was still a huge problem because of bank’s lending rate compared to what obtains elsewhere.

    She, however, berated some of the top players who she accused of festering what ‘zero sum game: I win you lose, and I lose, you lose’ syndrome, which she described as “very damaging and anti-development.”

  • Report on Ports Reform ready

    Report on Ports Reform ready

    The report of the Presidential Committee on Ports Reform is ready, The Nation has gathered.

    The committee was set up after a retreat summoned by President Goodluck Jonathan last July to find ways to boost economic development in the maritime sector.

    Disturbed by the slow space with which the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) were carrying out their responsibilities, the committee, according to information has given matching orders to the management of the two agencies to perform.

    The committee, investigation revealed, is not happy that despite the huge budgets approved for NPA and NIMASA in the last two years, the management of the two agencies did not do enough to improve the ports.

    Investigation also revealed that the committee, headed by the Minister of Transport, Senator Idris Umar and assisted by the lawyer, Mr Olisa Agbakoba, also identified the key problems facing the sector.

    Sources close to the committee told The Nation last weekend that the report of the committee, which may be submitted soon, focused on safety and security of the nation’s waters, efficiency at ports, increasing local participation in shipping business and implementation of Cabotage Act. Other areas it dwelt on are completion of the reform of the ports, maximising revenue potential of the port industry and creation of jobs for the youth from the maritime sector among others.

    The report, sources said, also noted the views of stakeholders who attended the retreat by identifying the key problems facing the maritime sector and proffering solutions.

    The role of the committee, the source said, was to come up with initiatives that can be implemented by the Federal Government over the next six to 18 months to allow Nigerians to harness the opportunities in the maritime sector.

    “The laws governing ports operations in the country are outdated and ineffective. You can imagine a situation where the Ports Act provides only a fine of about a N100 for anybody who encroached into the ports’ land.

    “For almost six years, the ports have been in the hands of private operators, but there is no law empowering any of the government agencies, such as the NPA, NIMASA, or the Nigerian Shippers’ Council (NSC), to regulate the activities of the conces-sionaires. These are some of the issues the report will look into,” he said.

    It was learnt that there are some aspects of the nation’s laws that impact on the maritime sector.

    “For instance, the reason the Cabotage Act was formulated is well known to those in the industry. But the truth is that successive governments have failed to implement the Act despite the fact that the country loses over N2 trillion annually in capital flights to foreign countries because of the inability of the indigenous ship owners to participate in the lifting of the over 150 million tonnes of cargo from the country, and that is one of the major areas which the report of the committee also focused on,” the source said.

    The source said the high level of insecurity in the Gulf of Guinea, which the country is a major stakeholder has steadily risen from 45 per cent in 2010 to over 65 per cent in 2012. This, the source said, is another area where the report looked into because sea piracy has created a major economic problem for the country and it is threatening the nation’s over $600 million fishing business.

    President Jonathan, the source further said, is passionate about the development and transformation of the nation’s seaports to make them viable and competitive. The source said that was why the port reform agenda was embarked on.

  • NIMASA arrests pirates

    The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Patrick Akpobolokemi, said the agency has averted another ship hijack and arrested 15 suspected pirates with arms and ammunition.

    Speaking with The Nation in his office last week, the NIMASA chief said the hijack was planned to have taken place off the coast of Cotonou in the Republic of Benin, adding that the agency’s vigilance led to its foiling the arrest of the suspects.

    He lamented the release of suspected pirtaes. He said: “The continuous release of suspected pirates is frustrating our fight against pirate attack on vessels.”

    Akpobolokemi said the extension of its anti-piracy operation to Benin Republic was based on the request of the President of Benin Republic to the Nigerian government, the agency. As a result, President Goodluck Jonathan directed the agency to extend its operation to Benin waters.

    He said the operations of NIMASA had assisted in curbing the menace of piracy and armed robbery at sea and border-related vices within the Benin Republic waters and its neighbouring countries of Nigeria – Togo and Ghana.

    On the release of arrested pirates, Akpobolokemi said each time these suspects were arrested and handed over to the prosecuting agencies, they soon got themselves off the hook.

    Akpobolokemi said some suspected pirates have been arrested more than twice, thereby making rendering useless the agency’s moves to reduce or eliminate the menace of pirates on the nation’s waters.

    He said NIMASA can only make arrest and hand over to the Police or State Security Service (SSS) or any other prosecuting agency.

    He, however, sought the support of other agencies involved in the prosecution of suspects to stamp out piracy from Nigeria and, possibly, the West African coast.

    Specifically, he warmed that if piracy is not tackled to its logical conclusion, it would lead to high cost of freight of cargoes, thereby bringing an increase in the cost of goods and services.

    The agency boss also said in the last the nine months, NIMASA had arrested vessels involved in illegal ship to ship transfer of products, unauthorised midstream discharge, illegal bunkering and outright oil theft.

    He explained that since NIMASA started the war against piracy, there had been a steady decline.

  • NNSL ex-workers protest non-payment of entitlements

    Almost 17 years after the Nigerian National Shipping Line (NNSL) was liquidated by the Federal Government, ex- members of staff of the national carrier have stormed the Federal Ministry of Transport, Abuja, to protest the non-payment of their entitlements.

    The aggrieved ex- employees carried placards with different messages, such as: “We cannot continue like this”; “Some of our dead are still in the mortuary”; “Our children are out of school”; and “Many of us have no roof over our heads” to the ministry to demand for payment of their entitlements.

    The protesters said some them are widows and widowers. One of them, Mr Oluremi Adetunji, who spoke with The Nation, said a top shot in the ministry had, after the verification of their documents, directed them to the Nigerian Maritime Administration and Safety Agency ( NIMASA) to collect their entitlements, adding that, despite the directive, they had not been paid.

    He said it was the responsibility of the ministry to direct NIMASA to pay them.

    “Maybe the government wants us to die before paying our money; that is why we went to the ministry so that Nigerians will know the problem we are facing before our sudden death.”

    A senior official of the ministry who does not want his name in print said the ministry had met with the protesters and that some agreements had been reached to solve the problem.

  • NIMASA to train youth

    The Nigerian Maritime Administration and Safety Agency (NIMASA), has concluded arrangement to train some youth from the Southeast. Their counterparts from the Southsouth had enjoyed the priviledge.

    Speaking with The Nation in his office last week, NIMASA’s Director-General, Mr Patrick Akpobolokemi said there are many job opportunities in the maritime sector, but unfortunately they are not open to Nigerians because they lack the necessary training.

    NIMASA, he said, is set to reverse the trend.

    Akpobolokemi said NIMASA has received an approval from the National Assembly to train Nigerian youths into becoming competent and qualified seafarers in various universities across the world, so as to fill in the existing knowledge gap in the maritime sector.

    He bemoaned a situation where the sector is dominated by foreigners who man Nigerian vessels at the expense of unemployed but highly enterprising nationals.

    Akpobolokemi told The Nation that the seafarers’ training programme, which is targeted at complimenting the Niger-Delta Amnesty programme of the Federal Government, will also be beneficial to many youths from the South-Eastern region.

    The NIMASA boss also assured the Ohaneze that his administration will protect the interest of the Igbos in the agency. He also solicited for the cooperation of Igbo people in sanitising the Nigerian waterways, improving maritime security and creating friendly business environment for private sector investors in the maritime industry.

    According to him, the training of Nigerian youths including Igbos will enable indigenous ship owners to raise the bar in the maritime industry, by ensuring that shipping business including trade within the nation’s coastal area is dominated and taken over by Nigerians.

  • Integrated Oil resumes operation

    It was cheery news for the downstream sector of the petroleum industry as the depots and head office of the Integrated Oil and Gas Limited have been unsealed for business after two weeks of being under lock and key.

    The company was sealed by the management of Nigerian Maritime Administration and Safety Agency (NIMASA) for accepting throughput arrangement for alleged stolen petroleum product.

    The members of staff of the company were excited for resuming business again. A staff of the company told The Nation that: “As you all are aware, on September 13th, 2012, armed men purported to be under NIMASA and GWVSL invaded Integrated Oil and Gas Limited tank farm located at Ibafon, Apapa, Lagos and occupied the premises.

    We took steps to notify all relevant agencies about the national security implication of this action.

    “However, we are glad to announce that on Wednesday September 26th, 2012 at about 12noon, the occupying army vacated our tank farm. We are therefore, grateful to God as we have repossessed our tank farm. We sincerely thank all Nigerians and our esteemed customers who stood by us in this trial. By the grace and mercy of God, we will always endeavour to stand on the part of truth.”

  • NIMASA introduces new levy

    NIMASA introduces new levy

    The Nigerian Maritime Administration and Safety Agency (NIMASA), has introduced a new Marine Environment (Sea Protection) Levy for various types of vessels coming to the nation’s seaports.

    Sources at the agency told The Nation that a letter to that effect was signed in June, this year by its Director-General, Patrick Akpobolokemi.

    The letter, investigation revealed, imposed the following levies: $ 1.25 per gross tonnage on vessels of 100-1000 gross tonnage, $ 1.00 per gross tonnage for ships of 1,001-10,000 gross tonnage, $ 0.75 per gross tonnage for ships of 10,001- 100,000 gross tonnage, and $ 0.50 per tonnage for vessels of 100,001 gross tonnage and above.

    For Nigerian-registered ships, the rate of the levy is N500 per gross tonnage for ships of 100- 1000 gross tonnage, N350 per gross tonnage for vessels of 1,001- 10,000 gross tonnage, N300 per gross tonnage for vessels of 10,001- 100,000 gross tonnage and N250 per gross tonnage for ships from 100,00 I gross tonnage and above.

    The regulation, according to source, said the “rate of levy payable by an offshore installation and oil pipeline shall be (a) in ‘the case of an offshore oil installation that is producing. Processing, storing, or transferring oil, including buoys used for the loading and/or receiving of oil, NI5million, per annum:

    In the case of an offshore oil installation used or constructed for the purposes of exploring for oil, N10million for each oil well drilled by that installation, while in the case of an oil pipeline, N I, 500 per cubic metre of pipeline volume from the high water mark to the termination point offshore,” would be charged.

    A senior official of the agency, who craved anonymity, also said the new levy affects all commercially-operating vessels of l00 gross tonnage and above in Nigerians waters and on oil installations and pipelines.

    The levy, the official said, is charged against ships and is based on the “potential polluter pays” principle.

    The levy, according to him, applies to vessels which are more than 24 metres in length and have onboard more than 10 tonnes of oil in bulk as fuel or cargo.

  • Between NIMASA and Ihenacho

    Between NIMASA and Ihenacho

    Recent arrest of former Minister of Interior, Capt. Emmanuel Ihenacho by officials of the Nigerian Maritime Administration and Safety Agency (NIMASA) and armed forces personnel attached to the Global West Vessel Specialist Limited (GWVSL) over allegation that his company received stolen petroleum products in its depot is bound to elicit considerable public interest.

    For one, Ihenacho was until recently, the minister of interior, an office that superintends over the internal security of the country. Thus, any action directly or indirectly connected to him which has the prospects of sabotaging the collective interests of the country, is bound to attract measured public indignation.

    Secondly, in the wake of the recent fuel subsidy scandal, the nation has been fully sensitized to the monumental fraud that goes on in the oil sector. More so, with the chilling revelation that several companies and personages received huge sums of money in foreign currency in the name of subsidy payments for fuel purportedly imported into the country even when no drop of the commodity was brought in. Many of such companies have since been charged to court and the nation anxiously waiting for the outcome of these cases.

    Again, oil is very central to the survival of our economy. Given our sole dependence on it for the execution of our development programmes, any loss of revenue from it is bound to have deleterious effects on our economy. For this, any clue as to why Nigerians are not taking full advantage of this gift which nature has bountifully endowed them is bound to arouse the interest of the famished, poor and deprived masses of this country. Thus, the allegation is not only serious and weighty but equally very sensitive.

    For all these, the controversy between Ihenacho’s company, Integrated Oil and Gas Limited and NIMASA, just like the fuel subsidy scandal, is bound to be in the domain of public opinion for quite sometime to come. More so, with some searing issues raised by the company that have further thrown up questions regarding the propriety in singling it out in a business relationship and transaction that involved other agencies of government including the NIMASA itself.

    The offence of the company was that it received a consignment of allegedly stolen fuel brought into its depot by a vessel. Director-General of NIMASA Mr. Patrick Akpobolokemi said the vessel which has been impounded is used by pirates to hijack oil-bearing vessels and steal their fuel. According to him, it was run by a cartel whose activities have been under the agency’s surveillance.

    But the company is not denying it received the fuel which is now said to have been stolen. It is equally not denying that the now controversial consignment was brought to its storage facilities. But its contention is that the rules guiding such transactions were not observed in their breach. Its argument is that the fuel was received in its depot on a throughput basis and that all the necessary clearance documents were obtained before that consignment was received.

    And that the rules guiding such transactions requiring that necessary inward clearance documents be issued by the Nigerian Navy, the Department of Petroleum Resources (DPR), the Nigerian Ports Authority (NPA) and the supervising NIMASA were fully observed. They also claimed that the vessel that brought the fuel to their tank, MT Grace is owned by Messrs Akoto Ventures/Danyomile Marine Services Limited well known to both NIMASA and Integrated Oil and Gas Limited.

    They further claimed that MT Grace passed through NPA channels and facilities enroute to their jetty and was cleared for discharge by both the DPR and the Nigerian Navy even as the cargo was officially consigned to Messrs DPR/Capital Oil PlC and not their company.

    The issues raised by the company are very weighty as they have brought to the front burner a lot of posers that are very germane to the resolution of the alleged oil theft. First, NIMASA claimed that the vessel which has been under surveillance is used by pirates to steal fuel from oil-bearing vessels and that its activities have been under surveillance for sometime now. But Integrated Oil and Gas argued that the identity and ownership of the vessel is very well known to NIMASA itself.

    If that is so, the following questions beg for very urgent answers:

    *Why was the vessel allowed to pass through the facilities of the NPA enroute to the jetty without being arrested?

    * Is it true that after passing through NPA channels both the DPR and the Navy cleared it to discharge at that jetty?

    *Is it true that the alleged stolen fuel is fully served by the availability of the necessary inwards clearance documents issued by the Nigerian Navy, the DPR, the NPA and the supervising NIMASA?

    *And at what point did NIMASA discover that the said fuel was a stolen consignment especially since it claimed it has been monitoring the pirate vessel?

    * From where was the oil stolen and why was the ship not apprehended at that point?

    * What are the identities of the owners of the vessel and the oil consignment?

    *And why were they not arrested before the invasion of the final point of the vessel’s destination?

    These posers are very central to the resolution of the nagging issues that have been thrown up by the manner this matter has so far been handled. More so as Ihenacho, whose company is at the center of the controversy has imputed political motives and an attempt to destroy his business into the whole saga. They have also raised issues with the development of an armed unit within NIMASA that is under the operational control of parties who are neither trained nor constitutionally empowered to command federal forces under arms. That such a situation could lend itself to abuse goes without saying.

    Had the invasion of the tank farms and offices of the company been cleared through our regular security command, the commando operation that left officials of the company handcuffed and thoroughly humiliated may not have taken place.

    Then also, the litany of questions that have been thrown up by the issue would have been addressed before action is taken on who and who to hold culpable for the said malfeasance. It remains a big puzzle why the owners of the MT Grace vessel, Capital Oil PLC to which the alleged stolen oil belongs were not arrested. We are yet to be told what has been done to the Navy, NPA, DPR and NIMASA who cleared and documented the controversial consignment for discharge at the tank farm.

    Unless and until these claims are proven to be false, there are definitely more to the stolen fuel scandal than ordinarily meets the eyes. In the circumstance, the federal government should institute with great dispatch a high-powered probe into the matter. The issues that have been raised are damn weighty and only through a thorough inquisition shall we get at the root of the matter. For now, the way the matter has been handled has been less than tidy.