The Federal
Government’s plan to have a new national fleet is attracting more interests and
discussions in the maritime industry.
A few days ago, the
Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC), Maikanti Kacalla Baru told
shipowners that a total of
771,689,625bbl (107,179,115mt) of crude oil was lifted from Nigeria in 2015. He
also said that a total tonnage of the nation’s crude oil was freighted to UK
using a 130,000 tonne vessel (which could take 950,000bl). To this extent, he
recalled that a total of about
$6,165,800,104 was paid to foreign shipowners. Some of these monies, the GMD lamented, could have been saved if the nation had a
national fleet for crude oil afreightment.
“Assuming that the
total tonnage of the nation’s crude oil was freighted to UK using a 130,000
tonne vessel (which could take 950,000bl), it means that a total of about $6,165,800,104 was paid to foreign
shipowners. Some of these monies could have been saved if the nation had a
national fleet for crude oil afreightment” he lamented.
If this disclosure
is anything to go by, what Nigeria has
lost for over 10 years since the national fleet was in limbo is simply
unimaginable.
It is disheartening
to know that NNPC has contract with traders to sell crude on freight on board
basis (FOB) because of lack of vessels to lift crude to the market where it
would sell the product at appropriate pricing. It is against this backdrop that
the call for the return of the national fleet has intensified recently.
In view of the
interest the national fleet has generated, the Federal Government has
constituted a committee to screen shipping operators interested in acquiring
part of the 60 per cent holding for Nigerians.
The fleet is
expected to have a 40 percent foreign ownership. The committee which,
expectedly, has commenced work, will work out the modalities of operation and
ensure that the new national carrier endures.
According to the
chairman of Shipowners Association of Nigeria (SOAN), Mr Greg Ogbeifun, the
Minister of Transportation, Mr Rotimi
Amaechi, had assured of government’s
political will to ensure that the new project gets cargo to carry. He assured that
the government is determined to do everything possible to ensure that the new
national carrier succeeds.
Recall that Nigeria
and Singapore recently reached an agreement to establish a private-sector
driven National Carrier with stakeholding of 60 to 40 per cent respectively.
The agreement was
reached after a meeting in Singapore between the Nigerian delegation led by the
Executive Secretary of the Nigerian Shippers Council, Hassan Bello, and
representatives of Pacific International Lines – one of the biggest ship
operators.
Bello, who is also
the chairman of the Committee for the Actualization of the National Carrier set
up by the Ministry of Transportation, said while the Pacific International
Lines (PIL), is expected to own 40 per cent of the stake, private Nigerian ship
operators are expected to own the other 60 per cent.
“We have a working
relationship with PIL in Singapore; they are one of the big ship operators.
They are extremely capable and operate to international standards. With the
arrangement, they are expected to have 40 per cent of the venture while Nigeria
is expected to have 60 per cent. “What we have now is a sector dominated by
foreign ships and they dictate to us. We have no choice but we have these
cargoes, so we should have the ships. No matter how wide or long our coast line
is, no matter how long our inland water is and how our ports are, if we do not
have the ships, then we cannot pretend to be a maritime nation.”he said.
But before the new national fleet arrives, it is important
to know what led to the liquidation of the Nigerian National Shipping Line
(NNSL).
According to the
former Executive Secretary of Nigerian
Shippers Council, Alhaji Adamu Biu, NNSL
collapsed because Nigeria acquired 19 ships at once and after some
years, they all aged at the same time and the cost of maintenance became a
problem. So, Nigeria decided to sell them off as scraps.
He suggested that in
view of the cost of maintenance, ships should not be acquired en bloc so that
their maintenance won’t pose a problem.
NNSL was liquidated
in September 1995. Its assets were assumed by the newly formed National Unity
Line (NUL). The NUL, fully owned by the Nigeria Maritime Authority, began
commercial operations in July 1996 as Nigeria’s national flag carrier. The NUL
had just one ship, MV Abuja. In August
2005 the government put the NUL up for sale. The company now has no vessels,
but owns a shipping licence. In July 2010 it was reported that the Nigerian
Maritime Administration and Safety Agency (NIMASA), the successor to the
Nigerian Maritime Authority (NMA), had completed arrangements to establish a
new national shipping line for Nigeria. A fresh attempt was made to relaunch
and sell the NUL in 2011.
According to NNPC
GMD, the history of the establishment of
a national fleet dates back to 1957 when Nigerian National Shipping Line was
established. The company, he said,
started operation with three vessels in 1959 and by 1979 had 24
oceangoing vessels in its fleet. He, however, regretted that the company did
not last before it collapsed.
“Unfortunately, as
we all know, the company was later sold by government due to dwindling fortune.
There have been recent talks in national dailies that government is planning to
establish another national shipping line. Perhaps lessons have been learned on
what led to the collapse of the country’s first national shipping line. It is
not out of place for a nation to want to own a national fleet; countries like
China and India have state-owned shipping companies that are being run
profitably. China COSCO Shipping Corporation Limited which is state owned is among
the largest shipping companies in the world today. Also, India’s state owned
shipping company (Shipping Corporation of India) has grown from a modest
beginning of 19 vessels to a conglomerate with about 80 ships,” he said.
According to Baru, the establishment of a national fleet
for crude oil afreightment could be considered a noble idea, considering the
possible benefits to the nation. He, however, suggested that an enabling
environment has to be put in place for the operation of a thriving national fleet.
Seme generates N1bn
revenue for November
The Seme Command of
the Nigeria Customs Service (NCS) generated N1,247,131,069.14 as revenue for
the month of November 2016.
The spokesman for
the command, Mr. Taupyen Selechang, said in a statement that the command also
made 99 seizures with a Duty Paid Value (DPV) of N82,884,308 million for the
month of November 2016.
According to him,
the revenue generated exceeded the monthly revenue target of the command with
N59,131,069.14, adding that the upsurge
in the revenue figure of the last quarter justifies the command’s open door
policy and its commitment to excel in revenue generation viz-a-viz
anti-smuggling operations.
“The resolve of the
command to remain resolute in actualising the vision/mission of the service and
the policy thrust of the Comptroller General of Customs, Colonel Hameed Ibrahim Ali, without compromise cannot
be overemphasised,” he said.
However, he said,
the Customs Area Controller, Dimka
Victor David, has attributed the revenue figure to the commitment of his
management team, the cooperation and compliance level of the stakeholders and
the host communities that are ready to partner with him in transforming the
Command. He stressed that being firm and persistent to the principle of
transparency, diplomacy and fairness despite forces of distraction, is
gradually stabilising the command’s revenue drive. He reiterated that the
command will continue to facilitate and provide a conducive and level playing
ground for every genuine trader that uses the Seme international land border as
a corridor to the West African sub-region.
He said that Dimka
attributed the success to the firm stand taken by the Valuation Unit in
generating values and the resolve of the Republic of Benin to comply with the
Memorandum of Understanding (MoU) signed on August 4, 2016. “This has actually translated to the higher
revenue generated despite the numerous challenges that would have ordinarily
hampered the revenue generated,” he said.
“In one of the
briefings to his management team and patrol leaders, the Customs Area
Controller highlighted that the posting of a proper officer to a particular
duty post is predicated on the fact that the officer is conversant with the
books of instructions that guide his modus operandi, hence infraction observed
will be traced to where it originated from and the culprit made to face the
consequences of his action. Therefore, the need for carefulness and uprightness
in discharging official functions among officers and men of the Service cannot
be overemphasised,” the statement said.
On the Yuletide season, the Customs Area Controller
disclosed the need for the officers and men to ensure that the entire border is
fortified against smuggling activities and cross border crimes of any kind. He
also cautioned the unprofessional use of
arms among operational officers, stressing that arms should be used only when
the conditions for usage become unavoidable.
Dimka warned that a
situation where the border environment and communities always witness a lot of
cross border vices and crises during the Yuletide season will not be encouraged
nor tolerated under his watch.
He enjoined officers
and men of the command to maintain a high level of discipline, professionalism
and patriotism in the discharge of their responsibilities while observing the
7Cs as their operational guidelines, charging all patrol leaders to ensure that
Seme Command remains blocked to smugglers.
NPA urges Fashola to
allocate funds for Wharf Road
reconstruction
Managing Director of
Nigerian Ports Authority (NPA), Ms Hadiza Bala
Usman, has appealed to the Minister of Power, Works and Housing, Mr.
Babatunde Raji Fashola, and the National Assembly to make budgetary allocation
for the reconstruction of Creek Road in the 2017 Budget and also hasten
completion of the trailer park opposite the Tin-Can port to keep the haulage
trucks away from the road.
Usman made the
appeal following the gridlock that characterises the road to the Apapa Wharf.
She also called for synergy between the federal, state governments and other
stakeholders to find a permanent solution to the perennial gridlock on
that road.
She urged port users
to always subject themselves to the security checks at the gates leading to the
ports and warned unauthorised persons to stay away from the ports, while
threatening to sanction those who break the rule.
Usman said this when
the inter-agency committee on port decongestion, which has members drawn from
the Federal Ministry of Power, Works and Housing; Lagos State Ministry of
Transport; NPA; Nigerian Army, Nigerian Navy; Nigerian Customs Service (NCS)
and Federal Road Safety Commission (FRSC) paid her a courtesy call.
After receiving
briefs on the palliatives done on the Wharf Road, she promised to reach out
to the management of Dangote Group and
Floor Mills of Nigeria on their pledge to carry out the reconstruction of the
Wharf Road under their corporate social responsibility. She further gave the
committee two weeks to report back to her on the progress made on ensuring that
reconstruction resumes on the road.
She also promised to
personally reach out to the Minister of Power, Works and Housing to make him
appreciate the importance of the reconstruction of the port access
roads.
She thanked the
government of Lagos State on the interest it has shown on the reconstruction of
the port’s access roads, saying “work must start now because of the importance
of the roads.”
According to her,
the General Electric of America, which is billed to become the concessionaire
of Nigerian railways, has assured that it would commence haulage of cargo from
the Apapa Port to the northern part of the country immediately the concession
is completed in 2017.
She noted that the
poor state of the roads into Apapa was killing trade facilitation and affects
the smooth delivery of cargoes to importers.
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