Maritime Agencies
TAAM CONFERENCE 5.0: Expert Tasks FG On Local Capacity Development In Shipping
By Izuchukwu Ozoemena
Notable maritime personality and former President, African Ship Owners Association, Barr Temisan Omatseye, has strongly deplored the situation whereby in this time and age,
foreign interests still control about 98% of Nigeria’s cargo resources in terms of shipment of export and import especially oil and gas cargo, leaving a paltry 2% for indigenous operators.
He reminds the Federal Government that this anomaly has been allowed to persist despite the abundant maritime potentials and human capabilities Nigerians possess.
Omatseye, the former Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), stated this in Lagos, Friday, while delivering a keynote address at the Taiwo Afolabi Annual Maritime (TAAM) Conference put together by the SIFAX Group in league with the Maritime Forum of the University of Lagos.
He spoke on the topic ‘Measurable Standards In The Nigerian Maritime Industry:Forging A Path Towards Sustainable Shipping’.
Omatseye reminded the audience that as a major maritime nation, Nigeria has in excess of 90sq kilometres of ocean waters, 850 nautical miles of coastlines and over 4,000kilometres of inland waterways and eight seaports, which make her a rich and great maritime nation.
Following the monopoly of operations which the Federal Government allows foreign liners in lifting and importing cargo, he regretted, indigenous shipping firms have become depressed and incapacitated; foreign liners now enjoy a field day, imposing all manner of arbitrary freight and sundry charges on Nigeria-bound cargo to the disadvantage of Nigeria, her economy and her people.
One way this problem can be addressed, he said, is for the Federal Government to commence with despatch what he calls a Fleet Replacement Programme to enable indigenous shipping lines acquire modern vessels that meet current technology and global acceptance in shipping.
“One of the quickest ways to achieving this is through the immediate disbursement of the Cabotage Vessel Financing Fund, CVFF, which has accrued since 2004 from 2% of every contract awarded under the Coastal and Inland Shipping Act 2003.”
He was emphatic that no reason should further delay the disbursement of the fund through implementable regulations at this time to serve the purpose for which it was created.
As a matter of urgency, he added, government should begin to grant national carrier status to indigenous shipping companies as provided for in section 36 of the NIMASA Act, 2007, which statutorily empowers such national carriers to lift all project cargoes belonging to the Federal, State and Local Governments in the country. Government, he suggested, must begin to operationalize Nigerian laws in order to discourage foreigners from intimidating indigenous operators.
He called for the establishment of more deepsea ports and ship repair and building infrastructure in designated free trade zones.
“The establishment of Shipping Free Trade Zones which would create Original Equipment Manufacturing (OEM) is necessary at this point. To achieve this, the government should put measures in place for the optimal functioning of the Ajokuta Rolling Mill for the large quantities of steel products that would be required”.
A deliberate policy for manpower training and tax-free remittances of seamen, he said, is desirable even as welders with international certification should be trained in Nigeria. Marine architects, nautical engineers and the like must be locally trained to design local vessels that meet global standards in terms of quality and specifications.
Omatseye strongly recommended that the Lagos anchorage be made an international shipping hub by providing dedicated areas for bunker operations.
The Federal Government should work with her training institutions to design international LNG bunker operations while a fleet development programme will enhance the construction of new-build vessels to run on both diesel and natural gas.
At the event, Chairman of the SIFAX Group, Dr. Taiwo Afolabi who was represented by Bode Ojeniyi, the Managing Director, Sky Capital (a subsidiary of the SIFAX Group) noted that the days of over-reliance on oil for Nigeria’s economic sustenance were over, especially given the uncertainties in the global oil and gas market as well as the rising need for cleaner sources of energy. This makes it imperative that potentials the country’s maritime sector has to offer are urgently exploited.
“Looking carefully at the theme of this year’s conference,” Afolabi stated, “you will discover that it is an ambitious one, as we are looking beyond positioning in Africa. Judging by the potential of the industry, we are of the opinion and belief that Nigeria’s maritime industry can rank among the best in the world. It will only take careful planning, progressive policies, generous funding, enabling environment, friendly economic policies, manpower development and massive infrastructural development.”
“A good foundation for sustainable growth and positioning we earnestly crave has been laid. The sector has professionally-run government agencies including the Nigerian Ports Authority, NIMASA and the Nigerian Shippers Council that have contributed significantly to the growth that we already have.”
Director General of NIMASA, Dr Bashir Jamoh who was represented by
the Director of Internal Audit, Mrs. Olamide Odusanya, observed that
the theme of this year’s event is in sync with the vision of the agency to remain a leading Maritime Administration in Africa.
He said that NIMASA is committed to her core functions of ensuring safety and security of lives, cargo and even the vessels within the country’s maritime domain while also not losing focus of her shipping development functions as well.
Maritime Agencies
NAGAFF Suspends Planned Strike As NPA, Maritime Police, DSS Resolve To End Container Blockage.
By Izuchukwu Ozoemena
Following the adoption of three key resolutions aimed at addressing the controversial blockage of containers by the Maritime Police Command at Nigerian ports, the National Association of Government Approved Freight Forwarders (NAGAFF) has resolved to suspend her planned industrial action.
The resolutions followed a crucial meeting convened by the Nigerian Ports Authority (NPA) Thursday, with representatives of the Maritime Police Command, Department of State Services (DSS), NAGAFF and other relevant stakeholders in attendance to discuss freight forwarders’ long-standing concerns on the matter.
Alhaji Ibrahim Tanko, National Coordinator of the NAGAFF 100% Compliance Team, announced the strike suspension in Lagos Friday.
First among the key resolutions is that there should be no blockage of containers by the Maritime Police. The second agreement is that whenever the Maritime Police has a reasonable intel concerning any container in the port, this should be channelled to the Nigeria Customs Service, the appropriate agency statutorily empowered to handle such matters.
Thirdly, in line with continuing efforts to improve trade facilitation and ease of doing business, government agencies maintaining physical presence in the ports must not exceed five.
Alhaji Tanko explained that agencies such as the Standards Organisation of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC) would, under the new arrangement, show presence in the ports only when invited by relevant agencies to execute specialized interventions in line with their statutory mandate. This is to reduce unnecessary bureaucratic procedures and facilitate easy movement of cargo through the ports.
For customs-related issues, he informed, the meeting agreed that the Nigeria Customs Service (NCS) should take the lead, while suspected narcotics consignments should be referred to the National Drug Law Enforcement Agency (NDLEA).
NAGAFF’s intervention, Tanko clarified, was not aimed at undermining any government agency but to ensure that each agency operates within the sphere of its statutory responsibility while supporting the Federal Government’s ease-of-doing-business agenda.
Tanko who condemned the blockage of containers by the Maritime Police even when such consignments are cleared and released by the Customs said freight forwarders had become increasingly concerned about the delays and additional costs caused by the practice, particularly where containers are blocked without verifiable intel linking them to wrongdoing.
He recalled that NAGAFF had earlier engaged the AIG of the Maritime Police Command, AIG Okunade Ronke Nura on their concerns and the police boss promised to look into the matter.
He strongly condemned sweeping blocking of all containers because one or two consignments are suspected to be laden with undeclared or prohibited goods.
“There is no way you can tell me all the ships and all the manifests are suspected to carry another thing. The whole container coming into the country cannot be under investigation,” he said.
He expressed confidence that reducing the number of agencies physically present at the ports, while allowing specialised agencies to intervene when necessary, would help reduce delays and improve the operating environment for importers, exporters and freight forwarders.
Tanko warned that from next week, NAGAFF would, through her compliance officers, begin monitoring compliance with the resolutions and any container blocked after the August 27 agreement would be treated as a fresh violation and reported to relevant authorities.
“If there is any blockage before that day, they will unblock it. But if there is a blockage after yesterday, it is another issue on its own,” he disclosed.
Tanko also acknowledged that even though freight forwarders had previously directed some complaints to the Nigerian Shippers’ Council, the latest engagement had provided greater clarity on the appropriate channel for handling police-related container blockage.
NAGAFF, Tanko assured, would continue to engage relevant government agencies to ensure that diligent implementation of the resolutions result to improved cargo clearance, reduce delays and avail a more efficient operating environment at Nigerian ports.
Maritime Agencies
CVFF: Cargo Availability, Trade Contracts Should Determine Ship Acquisition.
By Izuchukwu Ozoemena
As the ongoing controversy on the Cabotage Vessel Financing Fund (CVFF) persists, an industry expert has canvassed that only guaranteed cargo and long-term trade contracts would guide shipowners to acquire appropriate vessels, generate revenue from their operations and repay the loan over time.
Capt Ladi Olubowale, foremost ship owner and former chapter president of African Shipowners Association (ASA) stated this, Monday, while speaking as a guest at the Maritime Reporters Association of Nigeria (MARAN) Roundtable. The success of the CVFF, he posited, should not be measured merely by the amount allocated to individual shipowners, but by the ability of beneficiaries to link vessel acquisition to viable commercial opportunities.
Capt Olubowale, the CEO, Seamate Maritime Integrated Services Ltd, said that a $25 million facility under the CVFF could be sufficient to acquire a sizeable vessel if the financing is tied to identifiable cargo and long-term trade contracts.
Shipping is all about practicality and private sector must be in the frontline, not the government. People should be made to understand what it means to run the business of shipping. When the Minister travels, he must take along stakeholders who have the experience because shipping is a public sector-driven industry.
Olubowale recalled that the Nigerian Maritime Administration and Safety Agency (NIMASA) had taken a position that potential beneficiaries from the CVFF would be required to provide about $3.7 million in equity to access financing of up to $25 million, but stressed that the critical consideration should be the trade the vessel would serve.
Nigeria’s maritime industry, he explained, is like a loaded ship waiting for who can sail it to sea.
“NIMASA wants you to bring out $3.7 million in order for you to be able to attract $25 million. They will now look at it in your own case. What trade will you be using that for?” he asked.
Olubowale explained that the $25 million facility should not be considered in isolation as different categories of vessels are designed to serve specific cargo requirements.
He urged the government and industry stakeholders to first identify the volume and nature of cargo available in Nigeria and then match such cargo with the appropriate vessels before approving CVFF financing.
Citing dry cargo, cement and other commodities, he said each trade required vessels specifically suited to its operational needs, warning against financing vessel acquisition without first establishing the commercial demand that would sustain the investment.
The shipowner said a properly structured $25 million facility could enable an operator to acquire a vessel dedicated to a specific trade, particularly where a one- or two-year contract guaranteeing cargo is already in place.
He noted that revenue generated from such contracts could be used to service and repay the financing, thereby making the vessel commercially viable and reducing the risk associated with ship acquisition.
Olubowale further called for the CVFF to be deployed as part of a broader national fleet development strategy rather than being treated solely as a financing scheme for individual shipowners.
According to him, with an estimated $700 million currently available in the fund, Nigeria could develop a national fleet covering various cargo segments if the resources were strategically deployed with the guidance of experienced industry professionals.
“Most of this shipping does not require a big capital. It requires you have a 10 per cent deposit as long as you trade to cover up that money,” he said.
He argued that guaranteed trade would significantly improve the viability of CVFF-backed vessel acquisition and provide a clear repayment structure for lenders.
Olubowale also disclosed that several banks had approached his company regarding the CVFF, with some presenting term sheets detailing financing requirements, equity contributions and other conditions.
He said the development represented a significant shift from previous years when shipowners frequently complained about the prolonged process of accessing the fund.
The shipowner maintained that the priority should now be to ensure that the CVFF delivers measurable economic benefits by expanding Nigeria’s indigenous fleet, creating opportunities for local shipowners and enabling Nigerian operators to capture a greater share of the country’s maritime trade.
Maritime Agencies
MARAN to Honour NAGAFF President, High Chief Tochukwu Ezisi as Patron.
By Izuchukwu Ozoemena
The Maritime Reporters’ Association of Nigeria (MARAN) is set to confer the prestigious title of Patron on the President of the National Association of Government Approved Freight Forwarders (NAGAFF), High Chief Tochukwu Ezisi, in recognition of his outstanding contributions to the development of Nigeria’s maritime industry and his commitment to humanitarian causes.
The investiture will take place at the MARAN Maritime Annual Lecture (MAMAL), the flagship programme of the association, scheduled to hold at the Nigerian Air Force Event Centre, No. 1 Kofo Abayomi Street, Victoria Island, Lagos.
High Chief Ezisi is a seasoned and accomplished freight forwarder whose decades of experience and contributions to the freight forwarding profession have earned him respect within and beyond the maritime community. He is also widely recognised for his philanthropic activities and commitment to supporting individuals and communities.
MARAN President, Mr. Oluyinka Onigbinde, said the decision to honour High Chief Ezisi reflects the association’s appreciation of individuals who have distinguished themselves through professionalism, service and contributions to the growth of the maritime sector.
According to him, High Chief Ezisi’s elevation as Patron is also expected to further strengthen the relationship between MARAN and stakeholders across the freight forwarding and broader maritime community.
The MARAN President noted that MAMAL has, over the years, provided a credible platform for critical discussions on issues affecting Nigeria’s maritime industry, bringing together policymakers, government officials, regulators, industry leaders, academics, journalists and other key stakeholders.
The annual lecture is expected to attract top government officials, bureaucrats, maritime industry regulators, members of the academia and major stakeholders across the Nigerian maritime sector.
MARAN said the investiture of High Chief Tochukwu Ezisi will be one of the highlights of this year’s MAMAL and will underscore the association’s commitment to recognising individuals whose contributions continue to advance professionalism, collaboration and sustainable development in Nigeria’s maritime industry.
-
Maritime Agencies3 weeks agoSeme Customs Arrests 2, Intercepts Explosives, Expired Noodles As Command’s Revenue Hits N19.8bn.
-
Maritime Agencies3 weeks agoCGC Restates Position on Illicit Arms, Unveils Intercepted Weapons and Drugs Worth N373m
-
Maritime Agencies3 weeks agoNAGAFF Tasks Bonded Terminals To Suspend All Illegal Fees Collections, Refund N178m.
-
Maritime Agencies3 weeks agoFOU Zone ‘A’ Customs Recovers over N729m Revenue, Intercepts Smuggled Goods Worth N3.24bn.
-
Maritime Agencies2 weeks agoNAGAFF Petitions IGP On Alleged Police Extortion, Harassment At Sea Ports.
-
Maritime Agencies3 weeks agoKey Industry Stakeholders To Focus on Ports Competitiveness as MARAN Hosts MAMAL.
-
Maritime Agencies3 weeks agoNIWA, Private Agency Target Pollution Elimination, Job Creation To Clean Lagos Waterways.
-
Maritime Agencies2 weeks agoCOUNTDOWN TO 2027 ELECTIONS: Customs Hands Over 399 Seized Rifles To NCCSALW .
