After achieving some milestones in 2015, John Iwori examines the factors that will shape the maritime sector in 2016
Following the unanimity of stakeholders that the maritime sector of the economy performed below expectations last year, key players have opined that a lot needs to be done to ensure that the ills that bedevilled the sector are not allowed to rear their ugly heads again this year.
This is against the backdrop of the fact that the maritime industry did not record any significant push that would have led to the realisation of its full potential last year. Those who spoke to THISDAY agreed that the negative things that occurred in the maritime sector of the economy in 2015 far outweighed the positive ones. Indeed, the sector also witnessed a lot of negative attention due to allegations of corruption, sea piracy, midstream discharge, pollution, appointments, and dismissals among other ills. It however witnessed little achievements on the part of the various government agencies that are saddled with the statutory roles and responsibilities of superintending it. In fact, it was the year in which the National Assembly failed to deliver on the passage of key maritime bills, such as the Port and Harbour, and the National Transport Commission. The legislature also failed to effect the amendment of the Coastal and Inland Shipping (Cabotage) Act 2003. There was a consensus among stakeholders that the huge fortunes in the maritime sector of the economy will continue to dwindle if the authorities do not take immediate concrete steps to address the ills that have bedevilled it over the years.
48 Hours Cargo Clearance
When the Minister of Transportation, Right Hon. Rotimi Chibuke Amaechi embarked on a maiden tour of parasatals under his watch in Lagos late last year, he directed the management of Nigerian Ports Authority (NPA) to attain 48 cargo clearance in the nation’s seaports. Apparently aware of how government works having spent over 16 years in the corridors of power, Amaechi made it clear that NPA had no reason to continue to do things in the old ways. As at press time, NPA is yet to achieve 48 hours cargo clearance in the ports. Even the clearance of goods in the ports at night is far from reality. Besides, the poor illumination in the seaports at night, some key officials that will help drive it are either not on their duty post or carrying out unofficial activities, including sleeping on duty as THISDAY had exclusively reported in the past. It is the expectation of stakeholders that these malaises should not continue if President Muhammadu Buhari is to make any headway in his quest to harness the enormous potential in the maritime industry in 2016 in the face of the dwindling price of crude oil in the international market.
Appointments
One of the issues that will shape the maritime industry in 2016 is the appointments of key personnel into vacant positions. These include the substantive Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) following the removal of its Director General, Dr. Ziakede Patrick Akpobolokemi and the appointment of the Executive Director, Finance and Administration, Mr. Haruna Jauro as the acting Director General. The pertinent question on the lips of many stakeholders is when will a substantive DG take over the affair of the agency? Will Jauro be appointed as its substantive DG or will one of those names presently making rounds in some quarters take over the reins of administration from him? Who will be appointed as the new Rector of the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom State following the unfortunate death of Dr. Joshua Okpo in Abuja last year? Will the acting Managing Director of the National Inland Waterways Authority (NIWA), Alhaji Danladi be confirmed or a new person replaces him? Danladi took over the running of NIWA in acting capacity following the resignation of its first female Managing Director, Hajia Inna Maryam Ciroma as a result of her desire not continue in office when former President Goodluck Jonathan lost the 2015 presidential election. Who will be chairman of the board of NPA? Who will be chairman of the board of NIMASA, MAN, and NIWA? Who will be the members of the boards of these government agencies? Will they be people with the requisite knowledge, experience and exposure? Will these positions be filled with politicians especially members of the ruling All Progressives Congress (APC) or failed to get appointment as members of the Federal Executive Council (FEC)? These and many more questions would continue to agitate the minds of stakeholders in the maritime industry in the months ahead.
Committees without Results
One area stakeholders have agreed must be adequately addressed in 2016 is the penchant for the Federal Ministry of Transport to set up committees upon committees without commensurate results. These committees also have various sub-committees. No one was willing to make public the exact amount of money these committees have taken from the central till to execute their assignments. Nevertheless, THISDAY checks revealed that funds running into millions of naira were released to meet the travelling, hotels, feeding, stationeries, and other sundry needs of the various committees. In many cases, members of these committees travelled extensively within and outside the country, incurring huge expenses in the processes. Those who spoke with THISDAY said they would have not bothered about the cost incurred by these committees as long as there are tangible results from the assignments given to them. Regrettably, in many cases, there are no tangible results. According to them, reports are poorly written because some of the committee members lacked the requisite experience, exposure, and knowledge of the issues they are saddled with. Even then, some analysts said those committee members should not be blamed for their poor performance because most of them appointed not because they were competent but due to their closeness to the corridors of power. In many cases, when reports are submitted, they are not implemented, making many to wonder why the committees were set up in the first place. Thousands of reports and recommendations submitted by several committees are gathering dusts in shelves of top officials of the Federal Ministry of Transport without anybody bothering to take a look at them. This explains why stakeholders have opined that one of the ways to get results in the maritime sector of the economy this year is for Amaechi to implement the recommendations of the various committees that have been submitted to his predecessors, instead of setting up new ones. The minister should not toe the path of his predecessors. He should jettison the idea of setting up committees and task forces on virtually everything in the sector without bothering to ask what is called “relevant critical questions” on what Nigeria really intend to achieve or benefit from such ventures. Stakeholders have averred that this is the only way to avert a situation where by the time members of the committees or taskforces submit their reports, events have overtaken it.
Resuscitating the NNSL
Also not a few stakeholders expressed dismay that the defunct national shipping carrier, Nigerian National Shipping Line Limited (NNSL) was not resuscitated in 2015, in spite of repeated promises to do so. Nigeria did not also procure a training ship last year. A combination of factors such as poor management, government interference in its operation led to the liquidation of NNSL in 1995. The losses as a result of the absence of a national shipping carrier are enormous. Opportunities for the cadets of the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom State to get sea time experience as part of the requirements for the issuance of the certificate of competence (CoC) have been limited. Nigeria is not getting the benefits. Sea time experience is vital to the training of cadets. Since the liquidation of NNSL, Nigeria has been grappling with the challenge of getting sea time experience for cadets who graduate from MAN, Oron. The present management of MAN, Oron seemed to have an understanding of the need for the cadets of the school to have sea time experience. In the absence of NNSL, it has gone ahead to make a special arrangement for the cadets of the academy to have sea time experience on board ocean going vessels outside the country. It signed a memorandum of understanding (MoU) with a Turkish university at Istanbul. By the provisions of the MoU, Nigeria is expected to pay for the services of the Turkish ship owners which are part of the MoU. Many stakeholders have raised eyebrows over the provisions of the MoU. There is no doubt that the resuscitation of the national shipping carrier would have helped in no small way for the acquisition of a training ship for Nigerian cadets. They also argued that if the quest to resuscitate NNSL fails, the federal government should consider establishing a new one altogether in collaboration with investors in order to avoid some of the mistakes in the past. In a bid to meet the needs of the cadets, indigenous ship owners under the aegis of the Ship Owners Association of Nigeria (SOAN) offered 100 berthing opportunities for the training of Nigerian cadets, who are presently participating in the National Seafarers Association of Nigeria (NSDP) last month. However, the offer could not be concretise before the end of the year.
Cabotage
Cabotage came into being with the enactment of the Coastal and Inland Shipping Act 2003. The provisions of the Act made it clear that only indigenous ship owners have the mandate to carry out coastal trade and inland shipping. In fact, the Act is pillared on its core thematic provisions, which set out the limitations on foreign operations of cabotage shipping, and the tight conditions under which exceptions can be allowed. These provisions are set out in sections 3 to 6 of the Act, which prohibit coastal carriage of cargoes and passengers except by wholly Nigerian owned, manned, built, and registered vessels. It also restricts towage by tugs or vessels to those wholly owned by Nigerian citizens just as it limits carriage of petroleum products and related oil and gas shipping services to vessels of Nigerian ownership. Furthermore, the Act prohibits domestic trading in the inland waters of Nigeria except vessels wholly owned by Nigerians.
In order to drive the implementation of the Act, the federal government initiated the Cabotage Vessel Finance Fund (CVFF). The Nigerian Maritime Administration and Safety Agency (NIMASA) is saddled with the responsibility of managing the fund. It is in line with its mandate that the agency selected four commercial banks as primary lending institutions (PLIs). The banks are Sky Bank Plc, Sterling Bank Plc, Diamond Bank Plc, and Fidelity Bank Plc.
To ensure the effective disbursement of the fund, the government in 2010 signed an agreement with the four PLIs. Since then nothing tangible and concrete has taken place on the disbursement of the fund.
Many stakeholders have wondered why the federal government is yet to commence the actual disbursement of the funds more than ten years it promised to do so.
The long and undue delay in the disbursement of the over $400 million that have already accrued into the CVFF has led credence to insinuations in some quarters that some persons in the corridors of power have diverted it.
Tongues have also not ceased to wag on the high interests that have accrued from the huge CVFF in the commercial banks. This is because, most often, top government officials are eager to go public on how much CVFF has accrued so far without a word on the interest it has accumulated from the date the money was lodged in the bank till date.
It is the expectation of stakeholders that the CVFF should be disbursed without further delay this year as the absence of adequate funding is hampering the successful implementation of the provisions of the Cabotage Act.
Their position is not unconnected with the fact that the successful implementation of the scheme will adequately address the challenges of funding in the Nigerian shipping sector, particularly the issue of modern fleet acquisition.
Security and Transparency
Stakeholders are also unanimous in their verdict that that there is little security in the nation’s seaports and international borders. They also opined that that there is no due process and transparency in the way and manner business is done in the nation’s gateways.
They readily cited the lethal weapons imported into Nigeria through Apapa Container Terminal (ACT), Lagos, the largest container terminal in Africa over six years ago, as an example of the porosity of the nation’s seaports. They queried the effectiveness of the numerous checks into Nigeria’s seaports and international borders if such a huge arms and ammunitions cache would get into ACT, remain there for months until they were discovered by operatives of the States Security Services (SSS). The situation in Nigeria’s international borders, especially Lella near Sokoto, Idiroko, Ogun State and Seme, near Lagos, does not significantly differ from the scenario in the nation’s seaports. Lagos based experienced customs agent and Managing Director of Ogbese International Limited, Olusegun Ologbese averred that the federal government needs to do more to ensure that security of lives and properties are not compromised in the nation’s seaports, airports and international borders. In view of the increasing activities of the Islamic sect fundamentalists, Boko Haram, Ologbese urged the government to put measures in place to ensure its security operatives in the seaports and international borders are extra vigilant.
“They should be on the lookout for any suspicious transaction or movement within and outside the ports. That is the only way, we can enhance security and safety of life and property in the terminals,” he said.
Independent Regulator
Many have agreed that the concession of the nation’s seaports which started in 2006 with the kick-off of the economic reforms programme initiated by the Chief Olusegun Obasanjo’s administration was necessary and decisive step taken by the federal government. This is due to the fact that the monumental rot that characterised port operations in the pre-concession era has been minimised and in some cases totally eliminated. For instance, ‘container flying’, an euphemism for taking cargoes out of the nation’s gateway without paying a dime as import duty after settling some insiders has reduced drastically. Indeed, since the concessionaires took over the day-to-day running of Nigerian ports situated at Calabar, Onne, Sapele, Koko, Lagos, Warri and Port Harcourt, there is a tremendous improvement in cargo throughput. There is also increase in vessels traffic as statistics made available by NPA has shown. However, many have questioned the way and manner the concession was carried out. Taking an overview of how the concessionaires have fared since they took over the ports, erstwhile President, Maritime Workers Union of Nigeria (MWUN), Nigeria Ports Authority (NPA) Branch, Mr. Leke Sani said the maritime sector has not done badly. Nevertheless, he opined that the problem is that the huge revenue that ought to accrue into the coffers of the federal government for the benefit of the citizenry is going into individual pockets as many of them have not fulfilled the promises they gave at the time they took over the terminals. The unionist expressed dismay that while the terminal operators are making almost 500 per cent gains on all their charges, significant development and facilities upgrading in the ports are yet to be seen.
“They promised heaven upon earth before the concession, but we have not seen anything tangible. They are making much money. The job creation they promised at the time they were coming in is not there”, Sani said.
The union leader, however, expressed delight that one of the good things that the maritime industry have recorded is the quick turn-around time of vessels calling at the nation’s seaports. According to Sani, the development will encourage other port users to start looking at Nigerian ports as a friendly port.
Stakeholders in the maritime industry said that the absence of an independent regulator to serve as a check on the excesses of the terminal operators has remained the bane of the port concession since 2006. Though, a bill is in the works in the National Assembly, the pace at which the lawmakers are going about it shows that it may not see the light of the day before the end of the present legislative session. This explained why many stakeholders have clamoured for a quick passage of the four maritime bills, especially the Ports and Harbour presently before the National Assembly this year. Their expectation is that the legislators should concentrate efforts on the ones that address the absence of an independent regulator in the nation’s seaports instead of dissipating energy on all of them and end up not passing any of them before the end of the present legislative session.
Policies, Programmes Implementation
That many programmes and policies in the maritime industry have suffered serious setbacks as result of outright non-implementation or poor implementation over the years is an understatement. The situation has not only retarded Nigeria’s quest to be serious maritime nation but it has also made the huge potential in the maritime industry to remain mere potentials. Some stakeholders who spoke to THISDAY said there has been no consistency and stability in the implementation of maritime policies and programmes in the country. They lamented that there is hardly continuity in the execution of laudable policies and programmes that would lead to the desired changes in the maritime industry. They contended that if there is no consistency and stability in the policy formulation and implementation in the maritime industry, there would be no progress. As a way out, they called for the strict implementation of government policies and programmes. Many have wondered why the authorities will bother to enact policies when they do not have the nerve to strictly implement them. “Why put up a programme when you know you are not ready to execute it to the letter? It is a mere waste of time and scarce resources to continue enact policies when it lacks the political will to drive them to a logical conclusion by ensuring that they are strictly implemented no matter whose ox is gored,” one of the stakeholders said.
Consolidation
The maritime industry in Nigeria has made some gains over the years just as it has made some losses. A typical example of where Nigeria has recorded significant gain in the maritime sector is capacity building, especially seafarer development. The National Seafarers Development Programme (NSDP) which is under auspices of NIMASA has made several strides as thousands of youths are being trained overseas on various courses that will enable them take up career as seafarers. Stakeholders in the maritime sector, however, wondered why as a country, we cannot consolidate on our areas of gains so as to minimise our losses. They averred that Nigeria should consolidate on her areas of strength in the maritime industry and block all leakages in her areas of weaknesses.
Stability and Professionalism
The absence of stability in the maritime industry besides the dearth of thoroughbred professionals has been the bane of the industry over the years. The instability in the system has made it impossible for thorough planning, let alone implementation. It is not true that the industry is bereft of professionals. The missing link is that the few ones available are not given an opportunity to exhibit their knowledge and talents. Even where they are given a chance, they are not allowed to perform as the cartel that have straddled the industry over the years in collaboration with those closed to the corridors of power have perfected ways to remove any helmsman who did not pander to their whims and caprices. This is the basic reason why helmsmen of key government parasatals in the Federal Ministry of Transport, particularly NPA and NIMASA always run from pillar to post to keep their jobs. Analysts have said that the maritime industry will not record any sustainable development if the helmsmen of the key parasatals in the industry are not given a free hand to carry out their statutory roles and responsibilities.
In the words of the Registrar of Institute of Freight Forwarders of Nigeria (IFFN), Mr. Demola Irinyemi: “They should be given the chance to work and they should be supported so that the maritime industry can move forward. Otherwise, we shall continue to be the butts of jokes in the comity of maritime nations. Another thing is that I want to commend the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) for what it is doing. It should work towards actualizing their desire to develop capacity in the maritime industry.
Industry operators are of the view that there is need for the federal government to do the right thing by putting the right policies and programmes in place and ensure their strict implementation if the expectations of stakeholders in the maritime industry would not be dashed in 2016. They contended that that if the industry is to experience any meaningful sustainable development in the years ahead, a professional must be appointed in key positions in the Ministry of Transport. They also maintained that the helmsmen of key parasatals in the ministry and the boards should be patriotic Nigerians, who mean well for the country and not those who want to use the position as an avenue to amass wealth for their future political ambitions. They contended that key parasatals in the ministry, particularly NPA, NIMASA, Nigerian Shippers Council (NSC), and National Inland Waterways Authority (NIWA) must not be allowed to be a dumping ground for failed politicians. There was unanimity among stakeholders that the best way to move the sector forward is for the federal government to avoid appointing those who have vested interest into the boards of these parasatals.
“In most cases, this is the root cause of the in-fighting and acrimony in the running of these government agencies over the years. At the end of the day, the maritime sector continues to suffer from bad leadership and inability to do the right thing because of pettiness and egocentric behaviour of those at the helm of affairs”, a shipping practitioner s said.
The shipping practitioner argued that this is the bane of the maritime sector of the economy over the years. According to him, “the greatest loser is the maritime industry and the citizenry who ought to benefit tremendously from it. You will agree with me that a rolling stone gathers no moss. It is therefore not surprising that we have not been able to attain our desires goals in the maritime industry. This is because we have not been able to get our priority right as a nation. As far as I am concern, we have not and the earlier we start the better for Nigeria and Nigerians.”
Only time will tell whether the federal government, especially the bureaucrats in the Federal Ministry of Transport and the helmsmen in the parasatals have learnt from the numerous mistakes in the past and resolved to make headway this year.
