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  • 15 years of Cabotage: How has NIMASA fared?

    The Cabotage Act has remained a very contentious policy in the country’s sector. While the industry regulators claim to have taken very proactive measures in ensuring its full implementation, the concerned operators have continued to cry blue murder over the continued rising influence of foreign operators. How well has the Nigerian Maritime and Safety Administration (NIMASA) fared in its implementation of this policy? MUYIWA LUCAS reports.

    Globally, maritime plays a key role in the alleviation of poverty through employment and other economic opportunities. This comes by way of creating opportunities for the engagement of seagoing personnel and ship recycling, ship owning and operating, shipbuilding and repair and port services, among others.

    And with a coastline of about 870 kilometres and about 3,000 kilometres of inland waterways, including several natural resources like petroleum, natural gas, tin, columbite, iron ore, coal, zinc, limestone, lead and other minerals, Nigeria can be said to have been aptly positioned by nature for greatness.

    Determined to take advantage and ensure her citizens benefit to the fullest from the sector, government enacted the Coastal and Inland Shipping (Cabotage) Act, 2003 (Cabotage Act) on April 30, 2003; its provisions became enforceable from May 1, 2004- allowing one year transitional period.  The law was enacted with provisions to empower local investors to take control of the domestic shipping trade and from it develop enough muscle to assume the right of place for the country as a maritime nation in the movement of her import/export cargoes including crude oil to and from international markets.

    The Act was also to promote economic growth and national development; stimulate and expose Nigeria’s indigenous shipping operators to shipping business in the coasts as a stepping stone to deep sea/international shipping; enhance indigenous maritime capacity by igniting the flame of education, training and employment of seafarers, ship operators and ship managers since the ships to be used in domestic shipping would be Nigerian-built and Nigerian-owned, crewed and operated; protect the nation’s security interests; improve Balance of Payment; provide level ground for fair competition amongst the indigenous shipowners and operators, among others.

    The Act

    The Cabotage Act, designed as a tool or driver for economic development, is set out in nine parts made up of 55 sections. In the first part, which comprise of Sections 1 and 2, it defines Cabotage, the scope of the Act and the intention of the Legislature, spelling out new parameters for the regulation of the oil and gas industry in the country, covering all aspects of exploration, production and development activities. Part 2, comprising Sections 3-8 provides that a vessel other than a vessel wholly owned and manned by a Nigerian citizen, built and registered in Nigeria shall not engage in Cabotage. This restriction applies up to the extent of the Exclusive Economic Zone, which is approximately 200 nautical miles seaward from the outer limits of the coastline. Part 3 contains Section 9-14, covering aspects of waivers and the conditions precedent to the granting of waivers, the duration of waivers and further empowers the Minister of Transport to publish guidelines for the waiver system.

    Furthermore, in Part 4, which houses Sections 15-21, issues bothering on the licensing of foreign vessels, especially that of bringing foreign flagged vessels under the control of the regulatory body were dealt with. Part 5, comprising of Sections 22-28, deal with registration issues. In very clear terms, Section 22 of this part provides for the establishment of a Special Cabotage Vessels Register while Section 23 qualifies the conditions for registration of Cabotage vessels. Part 6, containing Sections 29-34 seeks to create a cabotage enforcement unit within the Nigerian Maritime Administration and Safety Agency (NIMASA) to monitor the implementation of and compliance with cabotage, even as its Section 31grants the enforcement officers very wide powers of arrest and detention of the vessel in the conduct of the duties.

    In Part 7, Sections 35-41 though criminalise acts in contravention of this Act by imposing stiff fines for non-compliance; it however did not specify any jail terms for erring vessels or its crew. Part 8, accommodates Sections 42-45, and established a Cabotage Vessel Financing Fund (CVFF). The Section 43 of the Act imposes an additional surcharge or tax of two percent of the contract sum of any contract performed by any vessel. In Part 9, made up of Sections 46-55, miscellaneous and sundry issues relating to the application of the Act, the discretion of the Minister and of transitional provisions and repeals.

    On trial /obstacles

    The Cabotage Act is designed to guarantee the participation of Nigerian citizens in its own domestic maritime trade. However, there are continued hindrances to the achievement of the objectives of the Act in the last 15 years. This is why the Act has largely been described as a failure by critical stakeholders in the industry on the basis that all the prevalent conditions bedeviling the maritime industry that the law was expected to address has remained unsolved.

    One of these is the issue of the Cabotage Vessels Finance Fund (CVFF), which was planned as a support funding to indigenous investors in the shipping industry. Apart from the fund remaining undisbursed, the actual amount accrued so far for this purpose remains unknown to industry stakeholders. The government has continued to hinge its failure to disburse the CVFF on the excuse that earlier disbursed Ship Acquisition and Ship Building Fund (SASBF) was not refunded as expected by the borrowers. Some even went into litigation with government.

    Failure on the part of NIMASA to process the applications for the CVFF loan for tonnage expansion; lack of commitment by the National Petroleum Investment Management Services (NAPPIMS) and the Petroleum and Pipeline Management Company (PPMC) to guarantee cargo support to indigenous operators; NIMASA’s lukewarm attitude in enforcing the provisions of the Act.

    Equally worrisome is that most of the cabotage vessels operated by most indigenous shipping companies are below specified standards and are unseaworthy, a situation that has led to the recent proscription of the use of certain ships on the Nigerian waters. Also is a growing dearth of qualified indigenous seafarers and certified marine engineers and navigators to operate the few available cabotage vessels.

    Besides, whereas the law provides that Nigerians be given preference for jobs in the sector and allow foreigners only in areas where there are no competent Nigerians, the industry has remained dominated by foreigners as government has refused to demonstrate willingness to stop the domination. NIMASA is viewed by many stakeholders to have derailed into focusing on collecting revenue for government from a foreigners dominated sector rather than create avenues for promotion of shipping trade with Nigerians at the fore.

    Irrespective of the fact that the Federal Government had several times reassured that it will fund indigenous operators, stop abusive waivers and promote Nigerian flag, the very lucrative deal of lifting Nigerian crude oil and bringing in refined petroleum products into the country has for long been dominated and controlled by foreigners as the Nigerian National Petroleum Corporation (NNPC) persistently maintains that Nigerians do not own ships that can efficiently participate in the oil industry.

    Statistics

    According to a research published by the European Centre for Research Training and Development UK, Nigeria is said to generate more than 70 percent of the cargo throughput in West and Central Africa; but regrettably, the sector is characterised by the domination of foreign flag vessels especially those of developed market economies of Western Europe and America. The publication further revealed that as at 2013, about 98 percent of the sea freight in Nigeria was still done by foreign companies and that foreigners make up about 85 percent of the maritime workforce in Nigeria (Global shipbuilding Market Report, 2013).

    In similar vein, the 2017 report of the National Bureau of Statistics/Nigerian Ports Authority (NPA), the ship traffic statistics at Nigerian ports reflected that a total number of 19,833 vessels berthed at the various ports between 2013 and 2016. Similarly 543,842,425 tonnages were registered within the period under review. Year 2014 recorded the highest number of vessels berthed as well as tonnages registered while the least were recorded in 2016. Tin Can Island Port handled the most ships accounting for 33 percent of total number of ships that berthed in all ports and 32 percent of total tonnage registered in all ports. It is closely followed by Apapa port which accounted for 28 percent of ships that berthed.

    SOAN’s position

    For the Ship Owners Association of Nigeria (SOAN), the issue of Nigerian vessels competing favourably remains a concern. According to the association’s President, Dr. M. K. George Onyung, harder times lie ahead of the full implementation of the Cabotage regime. This, he explained, is because of the recent banning of certain category of vessels or ship from the Nigerian waters. He said there is a need for capacity building in the sector if the country is to reap the full benefits of the Act. Stakeholders are worried that a major problem to enjoying the Act remains the interest of foreign vessels owners. This, they argued, is because they have a way of influencing government to circumvent whatever action is being planned to improve the ship owning by Nigerians. For example, they explained that in the original bill leading to the Act, oil rig was listed as a vessel but somehow it was removed from it later on.

    Onyung contended that the cabotage law requires that costal trade will be done by Nigerian ships, including the lifting of crude oil to the tune of up to 90 percent Nigerian content. “We have to build that capacity.  I do not see why anybody tells me that we bring a 2020 or 2019 built vessel that is compliant with all the carbon emissions control rules of construction,  it will be discriminated against. There is no racism in shipping because a ship is a country. If you discriminate against a Nigeria flag vessel anywhere in the world is like you are discriminating against Nigeria. So if you have a Nigerian vessel that is a super tanker, that is going to Gulf of Mexico to deliver a cargo, as long as it is running based on international best practices and international standard, nobody would look down on it. So if a Nigerian ship begins to operate according to international best practices, people will give respect to it,” he explained at a news event last Thursday. He, therefore, urged NIMASA and government to look at it in that perspective. We have come a long way and we want to work with the government.

    He revealed that government should deploy the CVFF as there are so many ship builders in the world that want to fund ships up to 85 percent. He said if indigenous operators have no ships or vessel, then the Act remains in vain as Nigerians will not be able to benefit from act.

    NIMASA’s five-year plan, changing tide

    Stakeholders in the industry maintained that to enhance indigenous participation and reduce the foreign dominance in the sector, NIMASA should make the cabotage vessel finance Fund/loan facility accessible to local operators for fleet expansion and to make solid arrangements for cadet-ship sea-training to enhance proficiency and avoid importation of manpower. PPMC and NAPPIMS should guarantee long time charter of the fleet as a kind of incentive against idle moment. On the other hand, local operators should try to present standard and seaworthy vessels for optimal cabotage operations and clean sea assurances.

    Indeed, there seems to be a new wave of direction in NIMASA. Recently, the agency commenced the process that will end the regime of cabotage waivers in the country. The process, which began with a brainstorming session of critical stakeholders in the maritime sector at the Eko Hotel and  Suites, Lagos, is expected to present a roadmap for the exercise within five years.

    The planned stoppage of the waivers was staggered into phases, and would ultimately make room for indigenous shipowners take charge of local cabotage trade. Indeed, granting of waivers is said to have created huge capital flight on the nation’s economy as Nigeria continues to lose in excess of N2 trillion annually for not developing local shipping capacity. Stakeholders estimate that the maritime industry alone. It is estimated that maritime industry can generate close to N7 trillion annually because developing shipping comes with spinoff effects on other industries such as insurance, steel for the use of ship building and ship repair yards. Unfortunately, over 80 percent of Nigerian seaborne cargoes are carried by foreign-flagged and registered vessels today.

    “For a very long time, indigenous operators have been very concerned about cabotage waivers. This stems from the fact that it appears that waivers is now a norm instead of exception. We are determined to bring to an end the waivers regime so that cabotage will flourish in Nigeria and Nigerians will benefit from coastal trade,” he said.

    As part of steps the NIMASA has taken, the agency has taken preliminary steps to give Nigerian operators a strong footing in the Cabotage regime. To this end, vessels which flout the Cabotage Act will no longer be granted waivers, because granting waivers to vessels which do not comply with the Cabotage Compliance Strategy (CCS)- introduced to ease the law’s implementation, cannot help the economy. “Our laws forbid foreign vessels operating in our territorial waters save for compliance with the Cabotage Act. There shall be no sacred cow when we commence clampdown on erring vessels. We want to increase the number of Nigerians who participate in the marine aspect of your business and we are working closely with the Nigerian Content Development and Monitoring Board (NCDMB) to have a joint categorisation of vessels operating under the Cabotage Act in order to ensure the full implementation of the Act,” he said, adding that NIMASA no longer considers applications for waiver on manning requirements for vessels engaged in coastal trade with regards to second officer, second engineer, second  mate down to able seamen, ratings and stewards.

    Besides, NIMASA has concluded plans to begin the disbursement of CVFF to assist local operators in the maritime sector. This is aside the provision of incentives in terms of giving tax waivers and the like to Nigerians who import maritime related equipment so that they can favourably compete with their foreign counterparts.

    This is traceable to lack of affordable funding for vessel acquisition, owing to the inability of the Nigerian banking industry to develop a framework for financing ship acquisition, which has a long gestation period.

    As a result, credit facilities received from Nigerian banks by indigenous ship owners to fund vessel acquisition, usually come with interest rates that are in double digit, sometimes over 20 percent. This makes it near-difficult for Nigerian indigenous shipping firms to compete with their counterparts that operate with offshore loans of single-digit interest rates.

    Other initiatives taken by NIMASA to boost Cabotage participation includes the recently rolled out plans targeted at putting an end to granting of waivers to foreign-owned, manned, built and flagged vessels. The new strategies are aimed at addressing issues around growing capacity in ship building by encouraging establishment of shipyards; creating affordable credit facilities to enable Nigerians acquire vessels; creating tax incentives for importing built vessels by Nigerians and building of qualified seafarers.

    Still, the director- general of NIMASA, Dakuku Peterside, said the agency is engaging with the Federal Ministry of Finance and the Nigeria Customs Service (NCS) to create a special tax incentive for Nigerians bringing vessels in the country. He explained that this strategy will involve creating special incentives that can enable shipbuilding yards to bring in components for building vessels in-country, adding that the government is also determined to ensure that Ajaokuta Steel Mill and Aluminum Steel Company in Akwa Ibom State, come on stream to provide the needed raw materials for ship building yards.

    “The current tax regime makes it impossible for Nigerian ship owners to compete with their foreign counterparts. For instance, foreigners bring in vessels for a short period and they have a special tax regime that enables them pay little to nothing for their vessels and crew to work and live in Nigeria, whereas a Nigerian is charged a full range of all tax applicable (14 percent), making it near impossible for their vessels to compete,” Peterside explained.

    He said NIMASA is determined to ensure that in the next five years, certain categories of vessels will be built in-country. This, he said, would put an end to issues around bringing in all kinds of vessels from outside the country and its attendant capital flight and job losses on the economy.

    “NIMASA is engaging with the office of the Vice President on the possibility of creating incentives for shipyards. We believe it will encourage a lot of entrepreneurs to invest in shipbuilding. We are also working in partnership with the Nigerian Content Development Monitoring Board (NCMB) and have commissioned an audit of all shipyards in order to identify a level support that will help revive them,” he said.

    The Executive Director, Finance and Administration, NIMASA, Bashir Jamoh, observed that ships cannot exist without cargo to lift. Therefore, NIMASA is also working towards ensuring that ship owners have cargo support. This is by way of guaranteeing ship owners cargo to lift by giving them right to lift government cargo and other heavy cargo, especially project cargo, while also looking for different windows to get favourable foreign exchange rate for the ship owners in terms of handling, purchasing, repairing their own ships. Jamoh revealed that changing Nigerian crude oil trading policy to Cost Insurance and Freight (CIS) from Free on Board (FOB), has gone far.

    The agency is talking with the Nigerian National Petroleum Corporation (NNPC) to ensure that Nigerian ship owners get the right to lift Nigerian crude oil. “Interestingly, from our conversations, we have evidence that Nigerians are already lifting oil without any problem,” he added.

    The planned floating of a $200 million by the Nigerian Content Development and Monitoring Board (NCDMB) to support indigenous shipping in the country, was also heralded as positive.

    Commendations

    Although stakeholders agreed that there are still a lot to be done in ensuring the success of the Act, experts say NIMASA deserves a pat on the back for what it has done so far.

    The Chairman, Technical Committee, SOAN, Dr. Lucky Akhiwu, observed that the Agency’s intervention is getting sea time training for sea farers which is  commendable.  He said it was important NIMASA put a system in place to monitor what the cadets are doing and keep record in order to certify that they cover the areas required by the regulations.

  • NIMASA targets world-class ship registry

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Dr. Dakuku Peterside, has said the agency’s target is to have a world-class registry.

    Peterside, who disclosed this at the weekend in Lagos while receiving the report of the committee on the review of the Nigerian Ship Registry, said the goal was for Nigeria to have a ship registry that would meet international certification standards and compete favourably with the best in the global maritime community.

    “NIMASA is working at giving Nigerians a ship Registry that is respected across the globe and that will be attractive to ship-owners, so they can fly the Nigerian flag. In no distant future, our ship registry will be more effective, more efficient and responsive to change, thus meeting international standards for certification,” he said.

    Peter noted that the agency had already begun the process of automating the country’s ship registry. According to him, from the preliminary report earlier submitted to the agency, diligent implementation of the committee’s findings would have a beneficial effect on the Nigerian maritime sector.

    “We are putting in place the necessary building blocks for Nigeria to be the first African country to achieve a five-star International standards certification by 2020. International standard certification for ship registration is our goal at NIMASA,” he said.

    The committee chairman,  Emmanuel Ilori, an engineer, who spoke before submitting the report, said ship registration and the effectiveness of established processes in a country’s maritime operations are critical in determining the health of a national maritime administration.

    “All the committee’s efforts were geared towards making the Nigerian flag globally acceptable. The committee carried out an extensive review of the Nigerian Ship Registry, took cognizance of stakeholders’ opinions and expectations, and carried out comparative analysis of the ship registration processes of some global registries in arriving at the report. NIMASA’s management should consider and implement submissions contained in the report,” Ilori said.

    The nine-man committee terms of reference, which was set up in February 2018, included to examine the status of the ship registry in line with international best practices, advise and recommend requisite improvements of necessity in the registry.

    The committee was inaugurated on February 27, last year to establish a strategy to revamp the Nigerian ship registration process in order to raise the profile of the Nigerian flag in the global maritime space.

  • NIMASA leads sub-regional regulator chart

    The Nigerian Maritime Administration and Safety Agency (NIMASA) tops the Port and Flag State Control chart in West and Central Africa.

    It beats other regulators in the inspection of vessels, according to a report by the Abuja Memorandum of Understanding (MoU) on Port State Control for West and Central Africa, known as Abuja MoU, the apex regional treaty on ports control.

    The feat, according to NIMASA Director-General (DG) Dr. Dakuku Peterside, is part of the dividends of reforms initiated by the agency and its investment in  equipment.

    “In NIMASA, we are conscious of global best practices and determined to rid our waterways of all substandard vessels, with the ultimate aim of ensuring a safe and robust maritime domain. This will afford us the capacity to be a competitive player in the global maritime space, giving us an edge in the comity of maritime investment destinations,” Peterside said.

    According to the MoU, Nigeria dominated vessels inspection, with 13 of the 14 exercises carried out on the continent last year. But it also showed “a significant rise” in deficiencies as 727 vessel deficiencies were recorded last year, as against 587 in 2017. This was attributed to increased enforcement, with Nigeria in the lead with 339 deficiencies.

    Read Also: NIMASA donates to flood victims in Anambra

    An analysis of the MoU’s performance between 2010 and last year indicated an improvement on member-nations’ discharge of their duties.

    Peterside attributed Nigeria’s feat to the initiatives introduced by NIMASA, the Abuja MoU’s administrator, and the availability of vessels for officers to carry out their duties.

    He pledged the agency’s commitment to safety and innovation in line with global best standards. “The agency has no intention of taking anyone out of business; rather, we are here to assist ship operators by creating a conducive environment. We will not fail to clamp down on erring operators  in our bid to safeguard the country’s maritime environment for the good of all,” Peterside said.

    Following the international requirement for countries to inspect at least 15 per cent of foreign vessels entering their domains, NIMASA inspected over 600 vessels. This, analysts said, led to a reduction of vessels with deficiency from 18.99 percent in 2015 to 14 percent last year.

    Sixteen countries signed the Abuja MoU at a Ministerial Conference in Abuja on October 22, 1999.

    The Abuja MoU’s duty entails the harmonisation of the port state control procedure and practices of all West and Central African countries to eliminate the operation of substandard shipping and ensure maritime safety, security, protection of the marine environment from pollution, and improvement in the working and living conditions of the crew.

    Its members are Angola, Benin, Cameroon, Cape Verde, Congo, Ivory Coast, Gabon, Ghana, Guinea, Equatorial Guinea, Liberia, Mauritania, Namibia, Nigeria, Senegal, Sierra Leone, South Africa, Sao Tome and Principe, Democratic Republic of Congo, Guinea Bissau, The Gambia, and Togo.

  • Maritime crimes squeeze NIMASA’s revenue

    The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, yesterday blamed high rate of crime for the revenue shortfall the agency recorded in 2018 fiscal year.

    He spoke in Abuja during 2019 budget defence session of the agency before the Senate Committee on Marine Transport.

    Peterside who made the submission in response to a question on why NIMASA’s contributions to the Consolidated Revenue Fund in 2018 reduced by N6billion noted that maritime crimes was largely responsible for the reduction.

    He explained that since monies remitted into the account on yearly basis are directly percentages of revenues saved, shortfalls in remittances were as a result of low revenues largely caused by maritime crime or piracy on high sea.

    He said: “Our own problem here is more of maritime crime and not piracy which is committed on high seas, but within the sector, Nigeria is largely seen as headquarters of piracy in the world.”

    The agency’s remittance into the consolidated revenue fund in 2017 was N22billion while that of 2018 was N16billion, giving a shortfall of N6billion.

    As a way out, the NIMASA chief appealed to the committee to facilitate the process of the Senate giving concurrence to the Maritime Security Bill already passed by the House of Representatives.

    He said: “We need adequate security on our water ways, the very reason why the Anti- Piracy law already passed by the House of Representatives is urgently needed.”

     

  • ‘Cabotage is key to job creation, economic growth’

    The most talked about issue in the maritime sector today is how to end cabotage waivers, which stakeholders insist is needed to develop the industry. In this interview with OLUWAKEMI DAUDA, Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr Dakuku Peterside says the agency is working on enforcing the cabotage law without stifling businesses. He advised Nigerians to take advantage of the opportunities in the sector.

    What was your impression about NIMASA before your appointment and three years after, what is your impression?

    Well, before my appointment, I didn’t know much about NIMASA; the best I knew was that it is a regulatory agency in the maritime sector. But after my appointment, I researched further into NIMASA’s activities, I look at their history and where they want to be. When I got here, I interacted with my colleagues, and numerous sections were held with my colleagues. it really exposed me to the challenges NIMASA was facing. The limited opportunities that laid ahead and what we could do on NIMASA’s role in repositioning the maritime industry in Nigeria, most importantly, as the driver for the growth of the maritime industry. And I am glad to say that I have had the opportunity of working with my colleagues to see to the growth of the maritime industry in Nigeria through the regulatory and promotional perspective.

    Before your appointment, stakeholders believed that the image of NIMASA was battered, how far have you been able to redeem the image?

    I agree that much that by the time I was appointed to join NIMASA, a lot of damages have been done to the agency’s reputation, and when I sat down with my colleagues, we all admitted that something had gone wrong, and we needed to fix it. And fixing it, we believed we must start from the inside for once, we need to change the way we do things, and choose a different course. We must agree on the code of conduct, and we took very bold steps. One of the bold steps was to rebrand the agency and that is in two dimensions: internal rebranding and external rebranding. External rebranding will not be appreciated until you change the way you are perceived from inside. So, we created a new work ethic. We changed our orientation to work and began to lay emphasis on transparency and accountability. We took responsibility for our actions, embarked on a culture change from the inside and the result is what we are seeing today, where the public perceives NIMASA as a responsible organisation, contributing to the economic growth of this country, ensuring that they make our waterways safe and secure for navigation and protect the interest of Nigerians in the maritime sector.

    A few days ago, the International Maritime Bureau (IMB), a specialised department of the International Chamber of Commerce’s report for the first quarter of this year showed an increased level of safety in the Nigerian maritime domain, what is your view about the piracy report on Nigeria?

    Well, you read the latest report, even the IMB admitted that in the last one year there has been a drop in the piracy in the country. The report by IMB is not a surprise to us at NIMASA and to every watcher of maritime activities in our country and beyond, because if you consider how seriously the President Muhammadu Buhari-led Federal Government is paying attention to maritime safety and security, which led to the approval of the Deep Blue Project geared towards tackling all illegalities in the maritime sector, you would understand that these are the best times to invest in maritime in Nigeria.

    I have always complained about two things. One is that I don’t know if it is deliberate on the part of the IMB. We have been wrongly reported. Every small crime on the sea is reported as piracy. We are still not the worst in the world. We are working very hard to improve where we are. The second dimension is that they have refused to acknowledge the progress we have made in fighting piracy. This is the first time they are admitting in their latest press release that piracy has dropped drastically by 31 per cent in Nigeria. The impression given hitherto is that Nigeria is now the new hot bed of piracy in the world. But now, they have admitted that we have made a lot of progress and as last count it has dropped by 31 per cent.

    How did you achieve that?

    We have put in place a number of measures. We are not satisfied where we are in terms of maritime safety and security. We believe it is a work in progress.

    Nigeria is receiving this kind of good report almost 25 years after, why?

    The Federal Executive Council’s recent approval of the Deep Blue Project, which is all-encompassing maritime security architecture, is a clear demonstration of the fact that President Buhari is leaving no stone unturned in his determination to tackle the menace of piracy. It was based on those sincere efforts by the Federal Government that the IMB Piracy Reporting Centre said no vessel was reported hijacked in the period under review, marking the first time Nigeria had such record since the first quarter of 1994. The report noted that in the first quarter of this year, Nigeria experienced a decrease in reported piracy incidents, compared to the same period last year. The report further stated that there was a great improvement in the efforts to actively respond to incidents in the Nigerian maritime domain. The IMB Director, Pottengal Mukundan also made it known to the world that Nigeria was gaining advantage from co-ordinated responses to incidents via its maritime regulatory agency, NIMASA and the Nigerian Navy.

    We at NIMASA have also taken a number of steps. One is to create the legal framework that will give us the teeth to fight piracy and other crimes at sea. In that respect we are pushing for the early passage of a dedicated anti-piracy bill. We are also acquiring assets through the deep blue project to enable us build response capability to tackling maritime security. We are also doing a lot of collaboration with our partners in the Gulf of Guinea.

    What further assurance do you intend to give to the international community to keep the good report?

    The truth is that the Federal Government, through NIMASA will continue to do all in its powers, within the ambit of the law, to ensure that piracy in Nigerian territorial waters is  reduced drastically, if not totally eradicated.

    What is your take on collaboration with other maritime administrations in the Gulf of Guinea to boost your efforts?

    Yes. We are doing a lot of regional collaboration with our partners in the Gulf of Guinea. We are also investing in intelligence and surveillance so that our fight against piracy would be driven by technology; guided by accurate and timely information.

    What other measures are you putting in place to stem the problem?

    One of the other things we are doing, is to convey a global conference on maritime security in the Gulf of Guinea. There have been different actors doing different things. But we want to harmonise everything people are doing concerning maritime security in the Gulf of Guinea.

    So, we hope that later this year, we would convey a global conference on maritime security that will focus on piracy and crimes in the Gulf of Guinea, where we would bring our partners and other colleagues for us to issue a statement of commitment on how we intend to tackle piracy and as well reach a consensus on what needs to be done, when it would be done, who would be the actors and who are the responsible parties. That is what we intend to do in the short run.

    Why the need for regional collaboration?

    Most of our revenue is from oil. The oil and gas industry needs the maritime sector, particularly shipping, which is international in nature for it to thrive. The fact that shipping is international in nature makes collaboration, particularly at the regional level, inevitable. This will serve as a catalyst for growth in the industry and we at NIMASA have recognised this fact, thus our numerous collaborative efforts, which have begun to yield fruits.

    Is there any relationship between NIMASA, the Navy and IMO?

    Yes. We have a very strong relationship with the IMO.  We are also partnering the Nigerian Navy in different programmes, some supported by the United States. We are embarking on dedicated operations to tackle piracy and wade off maritime crime within our coastal waters. So, those are some of things we are doing with piracy because no piracy begins and ends in one jurisdiction. When there is a hot pursuit, they shift to another region, and on our part, we are determined to give it a fight. Also, in the area of ratification of IMO conventions, Nigeria has done very well, which is evident in the day-to-day running of the maritime sector in the country.

    As a maritime administrator, what are the challenges you and other maritime administrator in Africa are facing?

    There are four major challenges the maritime administration is facing. One is the dynamism of the industry. Laws change as soon as they are made. Regulations change too often. And that now takes you to the second issue; human capacity building. This is because there is new development in technology and new development in rules. You must continuously train your people and retrain your them, and in many maritime administrations, human capacity is an issue. Now, the third one is what I called harmonisation of rules. You know, maritime is global in nature and when you come up with new international regulations; you need to domesticate it in your own jurisdiction. You must get the legislature to understand your role; you must get the government of the day to also understand your role. And to harmonise the position of the executive and the legislative, stakeholders and operators in the industry, as well as maritime administrations, you will discover that  it is not an easy task. It is something you work very hard to get everybody to understand and bring everybody to the same page.

    Even from one jurisdiction to another, circumstances vary. You must also engage the people in the same cluster with you. In our case, we in Abuja MOU Zone. You have the Turkey MOU Zone, you have the Black Sea MOU Zone, you have different maritime zones. So, you must be well positioned in your country with different stakeholders, harmonise in your region, harmonise internationally. And that is a bit of a challenge. Now, the other challenge faced, that is peculiar to us in Nigeria, is the issue of maritime security. We thought that It would be history by now, but it is proving slightly or seemingly intractable. But we are doing a lot in that direction. Then, the final thing is the issue of infrastructure deficit. Maritime is capital intensive and so are the assets or building ports and building of supporting infrastructure. They are usually capital intensive and  not cheap in this part of the world. In other parts of the world you can get one,  two per cent interest rate, but that is not common here. So, those are four key challenges we are facing in the maritime sector.

    What are you doing to ensure that NIMASA performs its core responsibility?

    We are doing a lot. All of that is articulated in what we called the NIMASA medium term strategic plan and it has five pillars. Pillar number one is survey of certification, transformation strategy; the second one is environmental and security, search and rescue initiatives, the third one is capacity building and promotional initiatives while the fourth one deals with digital and the fifth one is structural. These are five anchors on which we are repositioning NIMASA to fulfill our mandate. Our mandate is two: one is regulation of the maritime industry and the second is promotion of the industry so that many Nigerians will get involve as active players in the sector.

    And I think that if anybody will modestly access us, they would agree that we have made remarkable progress in the last three years. Unprecedented, phenomenal progress that has not been seen in the recent time. Whether in the area of regulations, and we are focusing on the area of promotion, all these are giving them reasons to get involve in the maritime sector and giving them the reason to take advantage of the opportunities that exist in the sector.

    What is your take that more women should be involved in the maritime sector?

    Globally, the focus in the maritime industry today, is how to get more women involved in the sector, whether as seafarers, ship owners, etc. So, every effort to encourage women participation in the sector is supported by NIMASA. They can count on the support of NIMASA and, by extension, Nigeria. We believe and support everything that would give women a role in the maritime sector. There is no sector that would exclude 50 per cent of the population and expect that sector to thrive. If we exclude women, we are excluding 50 per cent of our population from benefitting in the economic activities in the maritime sector.

    As AMAA President, tell us African leaders’ efforts in this direction?

    There are ongoing efforts by African leaders to create economic activities in the continent by maximising the benefits of the blue economy. They all believe that nobody can ignore the role women have to play. The blue economy is one critical sector that will create employment for our people, contribute to economic growth, and give opportunities to all our people, whether they be men or women. So, it is timely and most appropriate that you asked question that is focusing on how to get 50 per cent of the continent’s population involved in the blue economy, be it fisheries, fishing, or underwater mining, aquaculture or any of the activities that go on in the blue economy. That totally aligns with our vision of making the blue economy play greater role in the economic growth of our country and our continent.

    In 2017, NIMASA remitted N18.7 billion and in  2018 you projected N109 billion. How far have you been able to achieve this?

    In 2018 we projected that we will raise revenue of N109 billion, including Cabotage which is actually not money NIMASA can utilise. But, by December 2018, we were able to rake-in over N92 billion. That is over 85 per cent of our target. You will admit if you know the operating time that we have done very well. Our contribution to the consolidated revenue fund  keeps increasing. We have been singled out by the Federal Executive Council (FEC) as one of the most improved agencies in terms of contribution to the consolidated revenue fund. And that is something worth celebrating, something worth taking note of.

    What do we expect this year?

    This year, we will definately exceed the N109 billion revenue. We are putting a lot of measures in place to grow our contribution to the consulidated revenue fund. But that is not our primary focus. Our primary focus is safety on our waterways. Are we able to reduce accidents to zero? Are we able to ensure that no substandard ship is unable to call on any port in Nigeria? Are we able to ensure that shipping does not contribute to the pollution of the marine environment? Are we going to get more Nigerians on board the vessels? Are we going to get more Cabotage vessels to be working? Are we going to ensure that our response time in case of search and rescue is minimal? That we are able to respond less than  five minutes. Are we able to reduce threat of maritime insecurity to zero? For me, those are the measures for us to be assessed and not necessarily the amount we are able to contribute.

    What assurance can you give to the indigenous and foreign ship owners using our waters?

    In terms of piracy and maritime threat, we have put in place what we call the deep blue project approved by the Federal Executive Council to tackle the issue of piracy and maritime crime. We are so pushing for the full implementation of ISPS Code approved by the IMO. We will ensure that our ports and terminals are safe. We read a report from the United States where Nigeria was indicted and that some of our facilities are not ISPS Code compliant. And we engaged the US Coast Guard and as well as the Department of Transport in the United Kingdom and they said the report has not been updated. In their updated report, which will be published later this year, you will see that almost all the facilities in Nigeria are on clear standard. Nigeria is the most improved country  in terms of ISPS Code enforcement and that is International Shipping and Ports Security code enforcement in the region of Africa. So, I have talked about the deep blue project, ISPS Code enforcement, then, the other one is the issue of our ports, flag and coastal state control responsibility, which we have taken very seriously so that vessels would be safe to navigate our waterways and our ocean would be clean to maximise the benefits of the industry.

    What is your take on the roads leading to the Lagos sea ports?

    All stakeholders are not happy, including me. The agencies too are not happy.

    What do you think should be done?

    For once, it is coming under serious consideration by the Federal Government working with maritime sector players. We all agreed  that without fixing the roads, our ports will not be competitive. It has its own multiplier effects on the competitiveness of our ports. So, it is in our best interest that the government should  fix all the roads leading to our ports. It reduces dwell time, increases revenue, enhances efficiency and reduces the time of doing transactions in the ports.

    How will you feel if you are re-appointed by President Buhari? 

    I don’t think that is under consideration now. I don’t think it is time to talk about that. I want to talk about how to move the industry forward. It is time to talk about how to drive our reform, which we have started to its logical conclusion. We have invested a lot of time in reforming NIMASA and in repositioning it. So, if there is anything that will give us joy is to see a new NIMASA that is alive to her responsibility; that is responsive to stakeholders’ yearnings and be able to deliver on her mandate. For me, that is the focus for now.

    When is the CVFF fund going to be disbursed?

    We have made a lot of progress with the Cabotage Vessel Finance Fund (CVFF). We have engaged the Presidency and the Presidency has given consent and support for us to review the CVFF guidelines and disburse the fund. The Minister of Transport has also approved the review of the CVFF guidelines and we are putting the necessary framework in place towards the disbursement of the CVFF. For us, the ultimate is for the CVFF to be able to reduce the cost of borrowing funds to do businesses in the sector so that  Nigerians would have access to capital to acquire assets,  get the infrastructure and compete with their pairs in the industry.

    How many seafarers have you trained to date? 

    We have trained a number of seafarers under the NSDP programme. We have also retrained seafarers, who are not under the NSDP programme. As at the last count, we have trained close to 2,000 seafarers under the NSDP programme and we also retrained about 6,000 seafarers and dock workers under our retraining initiative.

    How many members of staff of the agency have you promoted in recent time?

    We have done a lot in that regards. Recently, NIMASA’s Governing Board approved the promotion of the Nigerian Alternate Permanent Representative at the International Maritime Organisation (IMO), Mr. Dikko Bala, to Director. Also elevated to the position of Director in the agency was the Deputy Director, Maritime Labour Services, Mrs. Rita Uruakpa. Other beneficiaries of the promotion exercise were Mr Kazir Musa, who was promoted to Deputy Director, and 18 officers, who were elevated to Assistant Directors. Let me add that 236 other staff across all grade levels also benefited from the exercise. The promotions were ratified at a meeting of the Governing Board of the agency under the chairmanship of Major General Jonathan India Garba (rtd). Our determination to continue to motivate the agency’s workforce remains unwavering. This was a rigorous, but fair process, and in this wise, I will like to use this medium to congratulate the newly promoted staff of the agency and to say to them that the reward for hard work is more work.

    Why do you think your members of staff need to be promoted?

    On our part as Executive Management, we will continue to ensure that staff are promoted as and when due, so that they can remain motivated to give their best in the agency’s drive to reposition the maritime industry.

    How far have you gone with your CSR projects?

    Recently, we embarked on a nationwide donation of relief items to victims affected by flood in some 20 states of the country. The measure was part of the agency’s humble effort towards alleviating the suffering of the people, who were displaced through natural disasters, insurgency and other forms of conflict. This is just our way of supporting the Federal and state governments in catering for the needs of the displaced so that they do not feel abandoned in their times of need. Let me also call on other well-meaning organisations and individuals to also lend their hand of support to the displaced citizens as government cannot do it alone.

    As the current Chairman of the Association of African Maritime Administration (AAMA), kindly tell us your primary aim and what your group is doing to build a competitive maritime sector in Africa?

    Our primary aim of coming together is to continue to uphold the tenets of the African Maritime Transport Charter (AMTC) to improve among others, the capacity, capability and performance of Africa’s Maritime Administrations and the maritime/shipping sector with great emphasis on human resources development, technology and information sharing. Let me assure you and others that we will not relent in our efforts to build competitive and vibrant maritime and shipping sector and to give Africa a voice among comity of maritime nations as Africa is our hope for sustainable growth.

    Recently, stakeholders and other key players said they want NIMASA to end Cabotage waivers for non-indigenous ship owners, what is your take?

    NIMASA is determined to ensure that Cabotage waivers are stopped in the next five years. NIMASA’s mandate is all about promoting and regulating shipping in Nigeria. And we have no intentions to stifle anybody’s business. Rather, we are committed to promoting, protecting and providing the enabling environment so that the local ship owners can grow and compete with their international counterparts. We are, certainly, determined to work with our stakeholders and other key players in the industry. I, therefore, call on stakeholders to cooperate with NIMASA  to realise the Cabotage implementation because it holds a huge potential to create jobs, add to the Gross Domestic Product (GDP), and bring about a boom in the economy.

  • Senate, NPA, NIMASA, others to meet over Apapa gridlock

    PLANS are underway to invite the Nigeria Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), farm tank owners, manufacturers and other relevant stakeholders over THE lingering Apapa gridlock, the Senate Committee on Works has said.

    The Chairman of the Committee, Senator Kabiru Gaya, who dropped the hint at a meeting with management of APM Terminals in Abuja, yesterday, said the stakeholders would be invited in the coming weeks.

    He further said they are to attend the meeting to find lasting solution to the problem.

    Gaya, who said the challenge had become an embarrassment to the country, noted that only concerted efforts would bring about lasting solution.

    He said: “We are expanding the committee to include, Senate Committee on Marine Transport and by next week, we will invite NPA and NIMASA to take a holistic look at the matter.

    Read also: Apapa gridlock, excessive charges take toll on cashew

    “We will also invite all owners of terminals, manufacturers, tank farm owners and other stakeholders to the meeting.

    “We cannot wait for one person to find solution to the problem. We have to work together as a team.”

    He expressed concern that unlike in the past, where terminal operators cleared up to 750 containers a day, “today, with less business, some of the few containers brought to the terminal for clearing spend close to three weeks.”

    He further decried that in some situations, before containers arrived the terminals, the ships had departed, adding that many exporters lost millions of Naira in the process.

    The APM Terminal Managing Director, Mr. Martins Jacob, said the problem was multifaceted, adding that  unless it was tackled holistically, no significant impact would be made.

    Jacob, who identified one of the major challenges was lack of access roads, said the bad road condition and absence of an efficient traffic management system were part of the problem.

    He also said that issues such as identifying and allowing only truckers with valid transactions into the port area as well as monitoring and removing idling or broken down trucks from the ports access roads were a challenge.

    The APM chief said: “Poor state of trucks coming to the port which makes it difficult to service them, cause  a number of breakdowns affecting the terminal operations.

    “Fatigue on the part of the drivers after the long wait on the port access road also has potentials to cause accident leading to more gridlock.”

  • NIMASA set to end cabotage waivers

    The Nigerian Maritime Administration and Safety Agency (NIMASA), yesterday, commenced the process that will end the regime of cabotage waivers in the country. The process, which began with a brainstorming session of critical stakeholders in the maritime sector at the Eko Hotel and  Suites, Lagos, is expected to present a roadmap for the exercise within five years.

    The stoppage of the waivers, it was gathered, would be in phases, and would ultimately make room for indigenous shipowners take charge of local cabotage trade.

    The Coastal and Inland Shipping (Cabotage) Act 2003, which came into force in 2004, aims primarily to reserve the commercial transportation of goods and services within the country’s coastal and inland waters to vessels flying Nigerian flag, owned and crewed by Nigerians, and built in Nigeria.

    Read also: NIMASA donates relief materials to displaced persons

    Speaking at the meeting, Director-General of NIMASA, Dr. Dakuku Peterside, said the agency is determined to bring to an end the waivers regime, so as to allow cabotage flourish in the country.

    “For a very long time, indigenous operators have been very concerned about cabotage waivers. This stems from the fact that it appears that waivers is now a norm instead of exception. We are determined to bring to an end the waivers regime so that cabotage will flourish in Nigeria and Nigerians will benefit from coastal trade,” he said.

    According to the NIMASA boss, the agency has taken preliminary steps to give Nigerian operators a strong footing in the Cabotage regime.

  • NIMASA donates relief materials to displaced persons

    The Nigerian Maritime and Safety Administration Agency (NIMASA), yesterday donated relief materials to displaced persons in Lagos state.

    The donation held at the Lagos State Emergency Management Agency (LASEMA) Relief and Resettlement Camp, Igando, Lagos.

    At the presentation, NIMASA’S Director, Special Duties, Hajia Lami Tumaka, expressed the Agency’s sympathy to the displaced persons.

    “We are here to commiserate with you and to let you know that we are with you at this trying period of your life. God will settle you. You shall not experience this in your lives again. Only God and good government, which this present administration is providing, can help present hardship and disaster. Be assured that this present government is taking us to the next level,” she said.

    Tumaka explained that her Agency, as a socially responsible organisation, and following the directive of the federal government to all her Agencies and Parastatals to raise a hand to all displaced persons in the country, is by the gesture, complying to ensure some form of comfort get to the affected people.

    “This is our Corporate social responsibility (CSR). We are doing this in 20 States of the federation beginning with Lagos state today. We started last year and our concentration was mainly in IDP camps in the northeast. Nigerian organisations are caring but nobody beats NIMASA and we are spurred to do more,” Tumaka assured.

    Responding to the gesture, the General Manager, LASEMA, Adesina Tiamiyu, thanks the NIMASA delegation for the donation. He described the maritime agency as “a wonderful partner.”

    “NIMASA has been a wonderful partner. Last year, they donated to disaster victims and here they are again, helping to bring succour to our people in this camp. We cannot thank you enough,” he said.

    One of the displaced persons, Risikat Olorunosebi, on behalf of other members of the camp, thanked NIMASA and government for not forgetting them at this period. “God will continue to guide and direct government. Your organisation will continue to grow and disaster will not be your portion,” Olorunosebi prayed.

    Items donated relief include food stuff, toiletries, beddings, among others.

    It will be recalled that the Lagos state government immediately relocated victims affected by the collapsed school building in Epetedo area of the state, last month.

    Tiamiyu explained that the relocation is for an initial period of three months until the victims are resettled.

     

  • NIMASA, NLNG case: No appeal to Supreme Court, says SAN

    The Nigerian Maritime Administration and Safety Agency (NIMASA) has not received any notice from the Nigeria LNG (NLNG) Ltd seeking to challenge at the Supreme Court, the Court of Appeal decision in their levies case.

    NIMASA’s counsel, Lateef Fagbemi SAN, stated this following last Friday’s appellate court judgment setting aside a Federal High Court judgment which exempted the NLNG from levies imposed by the NIMASA.

    The appellate court returned the 2013 case to the lower court and ordered that it be re-assigned to another judge for retrial.

    In a unanimous decision, a three-man panel of the appellate court led by Justice Garuba Lawal upheld NIMASA’s argument that the lower court erred in its judgment delivered on October 3, 2017.

    Other members of the panel were Justice Abimbola Obaseki-Adejumo and Justice Gabriel Kolawole.

    The Justices upheld NIMASA’s contention, made through its lawyer Lateef Fagbemi SAN, that the lower court breached NIMASA’s fundamental right to fair hearing.

    In its judgment read on their behalf by Justice Joseph Ikyegh, the appellate court held: “The appeal is allowed, and the judgment delivered by the lower court in October 2017 is hereby set aside.

    ‘The case is hereby ordered to be sent back to the administrative judge of the Lagos Division of the lower court to be assigned to a judge for expeditious determination on its merit.

    ‘Parties are to bear the administrative cost of the appeal.”

    In 2017, a judge of the Federal High Court, Lagos, Justice Muhammed Idris, who is now at the Court of Appeal, decided the suit in NLNG’s favour.

    The judge held that NLNG was not liable to make the said payments to NIMASA and that all payments already made by NLNG to NIMASA should be refunded to NLNG.

    The judge further held that NIMASA was wrong in blockading the Bonny Channel for the purpose of enforcing the payments against NLNG.

    Dissatisfied, NIMASA filed an appeal before the Appeal Court challenging the judgment on the the ground of fair hearing among others.

    NIMASA averred that the NLNG was liable to pay three per cent gross freight on its international in-bound and out-bound cargo as sea protection levy.

    It also averred that NLNG is to pay two per cent cabotage surcharge on all activities carried out for and on its behalf as well as other sundry claims.

     

     

  • Peterside hails Appeal Court over dispute with NLNG

    Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr. Dakuku Peterside has hailed the Appeal Court judgement in the case between the agency and the Nigerian Liquefied Natural Gas (NLNG) Limited over levies payable to the maritime regulator.

    Peterside said the verdict has reaffirmed confidence in the judiciary.

    The Court of Appeal in Lagos on Friday set aside an earlier judgment of the Federal High Court, which had exempted NLNG from the levies, on the grounds that NIMASA was not given fair hearing at the lower court. Justice Mohammed Lawal Garba, who delivered the judgment, ordered that the case be sent back to the high court for fresh trial under a different judge.

    Peterside, in a statement by the NIMASA Corporate Communications Department, said NIMASA remained law-abiding and would keep working closely with the judiciary in matters that need clarity and interpretation.

    He said: “This judgment has further shown that the judiciary is unbiased and remains a beacon of hope for Nigerians. On our part as a responsible government agency, we will continue to work closely with the judiciary and other stakeholders to ensure that we realise our mandate of creating a robust maritime sector in line with best global practices.

    “NIMASA and NLNG are neither foes nor competitors. We are corporate cousins working together for the common good of our great country. Judgments like this only serve to strengthen our institutions and ensure greater bonding.”

    The agency had in 2010 commenced an action against NLNG, wherein it sought for an interpretation of relevant provisions of the Nigerian LNG (Fiscal Incentives, Guarantees and Assurances) Act, CAP N87, Laws of the Federation of Nigeria 1990, and the NIMASA Act of 2007. In January 2013, the action by NIMASA was withdrawn in a bid to amicably settle the dispute out of court.

    In May 2013, NIMASA requested NLNG to pay all statutory Levies accruable to the agency, including the three per cent levy on gross freight on inbound and outbound international cargo, two per cent Cabotage levy and Sea Protection levy.

    It stated that the NLNG was not exempted from payments of statutory levies after its tax holiday ended many years ago. Following the continued disregard of the provisions of the NIMASA Act and other relevant laws by the NLNG, their vessels were detained for non-compliance.

    Upon agreement between both parties, on July 12, 2013 before Justice Idris Mohammed of a Federal High Court in Lagos, NLNG agreed to pay outstanding levies attributable to the Free on Board (FOB) and cabotage vessels.

    The NLNG also agreed to keep paying all applicable levies in line with the NIMASA mandate. The court order also gave NIMASA liberty to collect levies directly from Free on Board (FOB) and cabotage vessels without recourse to NLNG.

    The agency received a pre-action Notice on June 18, 2013 from counsel to NLNG, giving a 30 days’ notice of their intention to begin legal action in accordance with Sections 53(2) of the NIMASA Act. Hearing of the substantive issue continues after which the Federal High Court ruled in favour of NLNG.

    Dissatisfied with the judgment of the Federal High Court by Justice M. B. Idris delivered in the case between NIMASA and NLNG, the agency appealed the matter in October 2017.

    NIMASA’s action, said its statement, is in line with its enabling law, the NIMASA Act 2007.