Tag: NIMASA

  • NIMASA denies acquiring properties in England

    NIMASA denies acquiring properties in England

    The Nigerian Maritime Administration and Safety Agency NIMASA, has faulted the allegation by Femi Falana, a Senior Advocate of Nigeria, SAN, leveled against it to the effect that three properties were acquired by the organization in England saying it has not acquired any property in any foreign country.

    Osagie Edward the Assistant Director, Public Relations, who conveyed this in a statement, insisted that there is no truth in the allegations, as it did not acquire any property in England, as claimed by Femi Falana, on Channels Television Programme Sunrise on Friday.

    It said:”Our attention has been drawn to the allegation by Femi Falana, a Senior Advocate of Nigeria, SAN, leveled against the Management of the Nigerian Maritime Administration and Safety Agency NIMASA, bordering on acquiring three properties in England under this regime.

    “This allegation was made by Senior Advocate Femi Falana Friday on Channels Television Programme Sunrise.We wish to state that there is no truth in the allegations, as NIMASA did not acquire any property in England, as claimed by Femi Falana.

    “Furthermore, the Agency has not acquired any property in any foreign country in over 30 years.While we respect the views of the learned silk on public matters, NIMASA demands that he takes responsibility and retract this false claim.

    “We also use this medium to caution that he and other members of the public should verify their facts before going public with any information”

    .

  • Something fishy in our waters – By Dakuku Peterside

    Something fishy in our waters – By Dakuku Peterside

    It is a scientific fact that water and oil do not mix, but in the complex and complicated world of criminal enterprise, this natural law does not apply. It is becoming evident that in Nigeria’s crude oil theft industry, there is an inexplicable convergence of interest against the interest of the country. This has gone on for too long , hurting our economic calculations as a country.

    A massive vessel, “MT Tura 11”, laden with 800 metric tonnes (erroneously stated as 800,000 litres) of stolen crude oil, was intercepted on Escravos Sea in Delta State by operatives of Tantita Security Services Limited. They handed over the vessel to the military Joint Task Force (JTF) Operation Delta Safe troops.

    The JTF personnel allegedly set the bunkering vessel ablaze on Warri River after the ship’s captain confessed that the ship was laden with crude oil. Could the recent arrest and subsequent setting ablaze of a vessel used for oil theft be a case of a complex web of organised economic crime or failure of law enforcement? The facts of this case are as intriguing as the entire landscape of oil theft, maritime crime, and environmental degradation in the Niger Delta. This operation has caused considerable unease among stakeholders in the oil and gas industry, maritime space, law enforcement and ecological conservation activists. It raises a lot of fundamental questions with no answers in sight.

    First, is the burning or destruction of vessels transporting stolen crude oil the best approach to fighting the crime? This entails destroying evidence that would aid investigation and prosecution. The hasty destruction of the oil theft vessel raises questions about due process in the fight against what may be considered a complex economic crime against the state. In every crime investigation system and process, the instant destruction of evidence leaves a trail of further suspicion.

    There are elements of concealment of a wider crime that a more thorough and discreet investigation will reveal. This vessel had been arrested severally in connection with crude oil theft and released. We are unaware of any arrest and prosecution connected with these previous incidents. The JTF had, in October 2022, destroyed a vessel, MT Deima, allegedly carrying stolen crude. Burning vessels used for crude oil theft is now a common practice and a pattern of a deterrent.

    The Defence Headquarters’ defence to this noxious practice is a certain executive order given by former President Olusegun Obasanjo in 2003. However, in 2019, facilitated by Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria’s National Assembly passed the Suppression of Piracy and Other Maritime Offences Act (SPOMO Act), which provided the legal framework to deal with this kind of issue, including provisions for asset forfeiture and disposal of proceeds.

    Second, will burning crude oil at sea not exacerbate the already severe environmental degradation in the Niger Delta? Elementary science has taught us that it will lead to air and marine pollution, degraded mangroves, and oceans, and destroyed biodiversity and vegetation.

    In this instance, the burning of 800 MT of crude, if it took place, will have far-reaching and long-lasting effects on the environment and the communities dependent on it. The cleaning up of the environment could take several weeks. While addressing the issue of stolen crude should remain crucial, environmental protection must remain a priority.

    Third, on the issue of law enforcement, with multiple maritime intelligence gathering technology available in the country, such as Nigerian Navy’s “Falcon Eye”, NIMASA’s “C4i and NPA’s “C3i”, how come none was able to detect a tanker vessel as big as MT Tura 11 or MT Deima? Does it not raise curiosity that it took a security contractor rather than the Navy or other security agencies to intercept and arrest the rogue vessel?   Is this a case of conspiracy, complicity or just abdication or dereliction of duty? When juxtaposed with the allegation of Mujahid Asari Dokubo of a compromised military, it calls for deep investigation, interrogation, and introspection.

    There are obvious vested interests, and things are unravelling. And one wonders whether this operation has anything to do with the N48 billion per annum pipeline surveillance and security contract. Is there a “Wangerisation agenda” in the crude oil pipeline contract?

    This incident provides an opportunity for a holistic review of our approach to fighting oil theft in the country. The criminal violation in oil theft has been a concern for years. This is despite the existence and presence of the Navy in the suspected theatres. Getting to the bottom of this criminal enterprise requires more than the arrest of one errant vessel. It requires a thorough investigation to establish the missing links between the arrested vessel and other activities in the past. As we already know, oil theft is a major national economic crisis that requires a deeper understanding and collaborative action as a national priority.

    A few issues are for consideration. Should we not consider asset forfeiture and disposal instead of burning, which is barbaric, crude, unhealthy and toxic? Have we considered recovery and repurposing the stolen crude for legitimate use? What level of interagency collaboration do we have in the fight against crude oil thieves? From the overall layout of the narrative, it is obvious something is fishy.

    Crude oil theft is a significant challenge in Nigeria, and tackling it requires a systematic and bespoke approach involving various stakeholders. We need to articulate some strategies to address this economic malady. Recognising that addressing crude oil theft requires a multi-faceted and sustained effort involving government agencies, law enforcement, communities, and international partners is crucial. Combining these strategies with continuous monitoring, evaluation, and adaptation of approaches can significantly reduce crude oil theft in Nigeria. Some of these strategies are in place now, but their functionality could be better since they have not eradicated the scourge of oil theft in Nigeria. Efficient and effective implementation is a crucial success factor.

    Activities such as enhancing security measures in oil-producing regions are crucial. This includes increasing patrols, establishing dedicated security forces, and deploying technology such as surveillance systems and drones to monitor pipelines and oil infrastructure. Cooperation between the Nigerian Navy, NIMASA, the Nigerian Police, and other security agencies is essential to combat oil theft effectively. Besides, engaging with local communities in oil-producing regions is vital for addressing the root causes of crude oil theft. It is essential to create awareness about the negative impacts of oil theft on the environment, economy, and local livelihoods. Encouraging community members to report suspicious activities and offering alternative sources of income can help reduce the incentive for involvement in oil theft.

    Also, protecting pipelines from tampering and illegal tapping is crucial. Implementing technologies like pipeline monitoring systems, pressure sensors, and leak detection systems can help promptly identify and respond to unauthorised activities. Regular inspections and maintenance of pipelines are necessary to ensure their integrity and reduce vulnerabilities.

    Furthermore, strengthening legal frameworks and imposing stricter penalties for oil theft can act as a deterrent. Enforcing existing laws and regulations effectively, prosecuting perpetrators, and confiscating assets obtained through illegal activities can help combat oil theft. Also, enhancing governance and promoting transparency in the oil sector is essential to tackle oil theft. Implementing measures to curb corruption, improve revenue management, and ensure accountability in the oil industry can help reduce opportunities for theft and illegal activities.

    Collaboration is key to effectively addressing crude oil theft in Nigeria. Collaborating with international partners to address the transnational nature of oil theft is crucial. Sharing intelligence, best practices, and technical expertise can help Nigeria in its efforts to combat oil theft. Cooperation with neighbouring countries to prevent smuggling and illegally exporting stolen oil is also important. Collaboration between oil companies operating in Nigeria and relevant industry associations is essential. These entities can share information and collaborate on security measures, technology implementation, and best practices to protect oil infrastructure. Cooperation can include exchanging information on suspicious activities and joint initiatives to address oil theft.

    Besides, collaboration with technology providers specialising in pipeline security, surveillance systems, and monitoring technologies can significantly enhance efforts to tackle crude oil theft.

    Finally, collaborating with financial institutions can help track and disrupt the financial networks associated with crude oil theft. Sharing information on suspicious transactions, implementing stricter financial controls, and working together to freeze and seize assets obtained through illegal activities can undermine the profitability of oil theft operations.

    Establishing platforms for regular communication, coordination, and information sharing among these collaborating entities is important.

    It is important to reiterate that strategies and actions of the past have not worked, and this new administration must desist from following them. Now is the time for a new bold approach to tackling the menace of crude theft. The systems that allow such impunity are entrenched and will be difficult to uproot. This calls for a deliberate intervention from Nigeria’s highest point of leadership. The President must send a clear message that he will not accept the stealing of even a drop of our crude oil, and those behind such atrocity must stop or face the wrath of the law no matter how highly placed they are. It is a national embarrassment for news of crude oil theft to pervade the local and international space. Nigeria must protect its resources at all costs.

  • Reps move to probe alleged fake contract awards, gross Mismanagement of funds by NIMASA

    Reps move to probe alleged fake contract awards, gross Mismanagement of funds by NIMASA

    The House of Representatives on Wednesday resolved to set up an Ad-hoc Committee to probe alleged fictitious contract awards, gross Mismanagement of billions of naira and a lopsided directorate by the Nigerian Mạritime Administration And Safety Agency (NIMASA).

    This development was sequel to a motion by the House Minority Leader, Rep. Kingsley Chinda and four others (Rep. Victor Ogbuzor, Rep. Cyril Hart, Rep. Manu Soro Rep. Manuchim Onwuzuirike), on Wednesday at plenary.

    In his submission, Rep. Chinda explained that the recent developments in the award of questionable and phoney contracts, fraudulent forex transactions, lopsided placement of Directors and other unwholesome and corrupt practices in NIMASA.

    He also noted that there have been several allegations of questionable, inflated and fictitious contract awards particularly for non-operational speed boats, security surveillance contracts and Deep Blue
    Water Contract, revenue leakages and the award of contracts to cronies of the Director-General and other top management staff of the agency.

    Chinda further expressed concern about alleged under-remittance of debts owed the country by Shipping firms, with the consent and connivance of the agency.

    “Aware that the agency is alleged to have entered into a very dubious contract with a firm known as XPO Marine Limited’ for the lease of six (6) speed boats, each at the rate of $173,930.00 monthly, without a Need Assessment for such facility being carried out by the relevant departments of the agency, the said XPO Marine Limited had earlier been indicted for defrauding the agency to the tune of $80,000 in revenue.

    According to him, the security surveillance contract called Deep Blue Water Contract’ is suspected to be a conduit by the management of the agency to pilfer funds.

    He added: “A security contract tagged National Integrated Surveillance and Waterways Protection’ is also said to have been awarded to an Israeli firm, HSLI Systems and Technologies Limited at the cost of $195,300,000.00, despite an existing facility, which is a simple internet subscription via Lloyds Intelligence Platform for such operations.

    “Cognizant of the fact that the agency is also said to have an existing surveillance system (called Lloyd’s
    List Intelligence) for tracking the movement of vessels on Nigeria’s Exclusive Economic Zone (EEZ).

    “Also cognizant of the fact that there is evidence that the agency’s legal department counseled against the consummation of the contract on grounds of some fraudulent claims in the agreement, but same was not heeded to. The facilities claimed by HSLI is said to be an existing surveillance infrastructure provided by KMBTS Limited, also an lsraeli firm whose contract with the agency at the instance of the agency’s former DG had long expired”.

    He stated that other allegations such as abuse of office and lopsided appointment and placement of Directors of the Agency in favour of some interests to the detriment of others and in breach of S. 14(3) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), as well as other unwholesome practices within the Agency.

    “Again aware of allegations of high level corruption against the DG and top management of the agency in the form of withholding of remittable revenue by Gas Shipping Nigeria Limited, Daddo Marine
    Limited, Blue Seas Marine Services, Transocean Support Services Limited, leading to loss of huge revenue to the Federal government. Others are the award of contracts to the DG’s cronies and other top management staff of the agency in clear violation of the Procurement Act and other Financial Regulations. Such companies include COT Engineering Limited, Well Mann Construction Company
    Limited, Retin Technical and Commercial Service Limited, Messrs. De-PK Ventures Limited, amongst others.

    “Further aware of alleged cases of round-tripping and under declaration of foreign exchange earnings from the agency’s foreign Accounts.

    “Concerned that these allegations are of grave nature to be swept under the carpet or dismissed with a wave of the hand, particularly as it relates to economic losses on the part of the government”.

    The Minority Leader therefore said there is the need to urgently investigate the allegations and unless and until this is done, the Federal government would continue to lose huge sums of money to an unconscionable and fraudulent cabal who are hell bent on sucking the country dry.

    The House unanimously adopted the motion to set up an Ad-hoc Committee to investigate the allegations and report back within four weeks for further legislative action.

  • Reps to probe  NPA, NIMASA, others over auctioning of govt properties

    Reps to probe NPA, NIMASA, others over auctioning of govt properties

    The House of Representatives has resolved to probe what it regards as illegal auctioning of Federal Government properties by Nigeria Ports Authority (NPA) and Nigeria Maritime Administration and Safety Agency (NIMASA)

    Other agencies allegedly involved are: the Nigeria Railway Corporation (NRC) River Basin Development Authority (RBDA) and Nigeria Customs Service (NCS)

    This is sequel to the adoption of a motion moved by Rep. Oluwole Oke (PDP-Osun) during plenary on Thursday in Abuja.

    In his motion,Oke said the procedure for the disposal and auctioning of government assets in Nigeria were well spelt out in Financial Regulations, 2009 and Public Procurement Act 2007 among others.

    Oke said the Constitution of the Federal Republic of Nigeria, 1999 (as amended)

    provides that all revenues realised from the disposal or auctioning of public property be remitted into the Consolidated Revenue Fund.

    He alleged that NPA, NIMASA, NRC, NCS and others RBDA had been auctioning public property not only at a ridiculous price but also without following due process.

    He advanced that partial remittance or non-remittance of revenue realised from the auctioning of public property into consolidated revenue fund was a breach of the constitution.

    He expressed concerned that if the practice continued, coupled with dwindling crude oil revenue in Nigeria, the government might not cope with the rising demand for accelerated infrastructure

    Following his submission, the House thereafter resolved to set up an ad hoc committee to investigate the disposal of public property by the affected agencies.

    This, according to the House, would cover the period between 2010 and 2022 with a view to establishing the extent of alleged illegal auctioning of public property and the non-remittance of revenue realised into consolidated revenue purse.

    The committee would report to the House within four weeks for further legislative action.

  • FG approves ratifications of six maritime conventions, protocols

    FG approves ratifications of six maritime conventions, protocols

    In a bid to sustain a cleaner maritime environment, ship-breaking criteria, world best practices in Fishing and response to oil production casualties, the Federal Government of Nigeria recently approved the ratification of six maritime conventions and protocols in the country.
    Federal Government’s approved instruments for ratification are Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships 2009; International Convention on Standards of Training Certification and Watchkeeping for Fishing Vessel Personnel (STCW-F) 1995; Protocol Relating to Intervention on the High Seas in Cases of Oil Pollution Casualties (intervention protocol) 1973 and the Protocol on Limitation of Liabilities for Maritime Claims 1996.
    Others are the Protocol to the 1974 Athens Convention Relating to the Carriage of Passengers and their Luggage by Sea 2002; and the protocol of 2005 to the 1988 protocol to the Suppression of Unlawful Acts against the Safety of Fixed Platforms Located on the Continental Shelf (SUA PROT 2005)
    Following  the approval which was conveyed by the Federal Ministry of Transportation to Nigerian Maritime Administration  (NIMASA) to the appropriate quarters, Nigeria has started to align its Maritime protocols and operation with global best practices.
    In addition, the Director General of NIMASA Dr. Bashir Jamoh, OFR has thanked the Federal Government for approving the ratifications of six maritime conventions while assuring the agency’s unflinching effort as designated authority(DA) to draw the gains of the various instruments closer to indigenous investors, professionals and all stakeholders in the country.
     According to Jamoh. The Hong Kong Convention is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose risk to human health, safety or to the environment.
    He added that STCW-F is a treaty that sets certification and minimum training requirements for crews of seagoing fishing vessels with the goal to promote the safety of life at sea and the protection of the marine environment, taking into account the unique nature of the fishing industry and the fishing working environment.
  • FG signs agreement with XPO Marine to provide offshore waste facility

    FG signs agreement with XPO Marine to provide offshore waste facility

    The Federal Government of Nigeria acting through the Nigerian Maritime Administration and Safety Agency (NIMASA) has signed a concession agreement with XPO Marine Services Limited to provide Offshore Waste Reception Facility (OWRF) in the country’s Eastern Zone.

    Dr Bashir Jamoh signed for NIMASA while Wellington Agharese signed for XPO marine. The agreement signing ceremony took place at the Federal Ministry of Transport, Abuja.

    The concession agreement seeks to  fulfill International Convention for the Prevention of Pollution from Ships – MARPOL 73/78, and Nigeria’s Laws providing for the operation of Ship Generated Marine Waste Reception Facilities, which requires the provision of waste reception facilities to cater for waste and pollutants generated at sea.

    The International Maritime Organization (IMO) has recognized that provision of waste reception facilities is crucial for effective MARPOL implementation, and the IMO’s Marine Environment Protection Committee has strongly encouraged Member States, particularly those parties to MARPOL as Port States, which includes Nigeria, to fulfill their treaty obligations on providing adequate waste reception facilities.

    The importance of adequate waste reception facilities in the chain of implementation of MARPOL and MARPOL’s policy of “zero tolerance of illegal discharges from ships” could only be effectively enforced when there are adequate facilities.

    The Managing Director of XPO Marine Services, Wellington Agharese expressed its capability and excitement to take on the huge responsibility attendant with the OWRF Project, stating its commitment to ensure the project is a success.

    The OWRF will utilize the Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) PPP strategy for the project, which will ensure that from inception government funds are not utilized in project operations whilst the federal government partakes in revenue sharing.

    Additionally, while the federal government seeks to meet its obligation of compliance to MARPOL, it will also be creating employment opportunities and positive external economic activities; and at the expiration of the concession period, the assets and equipment of the facility will revert to the federal government of Nigeria.

    The Benefits of the OWRF Project include pollution elimination in Nigeria’s waters, infrastructure stock increase, revenue generation, transfer of assets at end of concession period to the FGN, employment opportunities and improved economic activities.

    XPO Marine Services Ltd. has been a key player in Nigeria’s marine industry for over a decade and has demonstrated sufficient capability to contribute immensely to the country’s economic development.

  • NIMASA to continue operation from a permanent office in Abuja

    NIMASA to continue operation from a permanent office in Abuja

    The Nigerian Maritime Administration and Safety Agency (NIMASA) will start operating from its permanent office first time since it began operation in the FCT 30 years ago.

    Muazu Sambo, the Minister of Transportation, made this known at the commissioning of the building on Tuesday, he said that the staffers have to double their productivity as a response to the newly commissioned regional office in Abuja.

    The new office, located in the Central Business District of Abuja, was opened by the Minister alongside the Director-General of NIMASA, Dr Bashir Jamoh.

    According to Sambo, NIMASA has operated from a rented office ever since, adding that with an improved work environment, the staff should justify the investment by scaling up production.

    Sambo added “Abuja Zonal Office serves as the nexus point between the NIMASA and the Federal Ministry of Transportation, the National Assembly, and all other relevant Ministries, Departments and Agencies, as well as critical stakeholders like the Central Bank of Nigeria and the Nigerian National Petroleum Company Limited, amongst others.

    He said, “The Abuja Zonal Office further oversees the operations of the NIMASA’s Lokoja Safety Base, thereby playing a pivotal role in delivering the Agency’s regulatory responsibilities on safety matters in our inland waterways.

    “The Abuja Zonal Office further oversees the operations of the NIMASA’s Lokoja Safety Base, thereby playing a pivotal role in delivering the Agency’s regulatory responsibilities on safety matters in our inland waterways.”

    The Director General NIMASA, Dr Bashir Yusuf Jamoh said the facility will reduce the cost of governance as it was no longer convenient for NIMASA to be operating in a rented apartment because of the importance of the regional office.

    He said, “This office was established in 1987 and the Abuja office remains a cardinal office that interfaces with other agencies and we don’t have an office environment, so the essence is to ensure that we maintain sanctity in terms of productivity to boost economic growth and development.”

  • NIMASA expresses determination, commitment to transforming maritime sector

    NIMASA expresses determination, commitment to transforming maritime sector

    The Nigerian Maritime Administration and Safety Agency (NIMASA), has expressed commitment to playing a leadership role that will ensure growth and development of the maritime sector.

    Hajiya Rakiya Lamai, Deputy Director, Shipping Development of NIMASA, made this known in Kaduna on Sunday, at the closing ceremony of the 44th Kaduna International Trade Fair.

    Newsmen reports that NIMASA has received an award for emerging the second runner up at the fair.

    Lamai, who noted that the theme of this year’s fair; “Promoting Value Addition for Sustainable Growth and Development”, was apt, appreciated the efforts of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) for the award.

    She noted that for emerging second runner up at the fair, it showed that NIMASA had not wasted its efforts or contributions towards the success of the fair.

    “We thank KADCCIMA for giving us the opportunity to participate, and for the award which is unprecedented,” she said.

    NAN also reports that NIMASA promised to exploit all the additional values of the maritime sector, by bringing it to bare, for sustainable growth and development of the Nigerian economy.

    The Director General (D-G) of the agency, Malam Bashir Jamoh, explained that Nigeria had a coastline of about 853km and about 10,000km of inland waterways, 12 nautical miles of territorial waters, 200 nautical miles of Exclusive Economic Zone.

    Jamoh, who was represented by the coordinator of the Abuja Zonal Office of the agency, Mr Zailani Attah, said that the maritime sector played a greater role in international trade and Nigeria’s import and export sectors.

    “It generates appreciable revenue and creates lots of jobs. It is critical to the supply chain of the Nigerian economy,” Attah said.

    While calling for more collaboration among stakeholders in realising a robust Maritime Sector interface, the DG announced that a zero tariff had been approved for brand new imported vessels.

    He disclosed that one and two years old vessels would pay minimal duty of between one to two per cent, as a means of boosting indigenous shipping through fiscal incentives.

    Jamoh further said that the agency would prioritise the integration of blue economy into the nation’s circular economic restoration and growth plan.

    “There is no better time to have a national carrier and develop the maritime industry than now, when the world is gradually looking away from fossil fuels.

    “Nigeria cannot be caught unawares; we need to look at ways of developing our shipping sector, which could earn the country even more than oil annually.

    “We had in 2021 deployed the modern technology, using the instrumentality of the Deep Blue Project to implement the first ‘S’ of the tripod, which is security, to stem the tide of piracy in the country’s waterways,” he said.

    He explained that the objective was to keep the waterways secure for all maritime activities to thrive, thereby positioning Nigeria’s economy on the path of rapid growth.

    “Statistics released by the International Maritime Bureau, shows piracy incidents in the Gulf of Guinea dropping from 81 in year 2020, to 34 in 2021, representing 58.02 per cent.”

    Jamoh further said the wreck removal exercise was another milestone in the incremental achievement of the ‘Triple S’ strategy of the current management of NIMASA, anchored on maritime safety security and shipping development.

    He added that in December 2021, they launched the third phase of Nigerian Seafarers Development Programme (NSDP), called NSDP Tera, sponsoring 200 cadets to different countries.

    He explained that the NSDP, aimed at addressing the dearth of trained and certified seafarers in the Nigerian maritime industry.

    NAN reports that the National Agency for Science and Engineering Infrastructure (NASENI), emerged 1st in this year’s fair, while Dangote Group clinched 2nd position.

  • FEC approves 3 PPP projects for NIMASA, targets $1.1bn revenue – ICRC

    FEC approves 3 PPP projects for NIMASA, targets $1.1bn revenue – ICRC

    The Federal Executive Council (FEC) has approved three Public Private Partnership (PPP) Projects to be executed in the Nigerian Maritime Administration and Safety Agency (NIMASA).

    This is contained in a statement by Mrs Manji Yarling, Acting Head, Media and Publicity, Infrastructure Concession Regulatory Commission (ICRC).

    Yarling said the projects, under the regulatory guidance of the ICRC, were projected to generate over 1.1 billion  dollars to the Federal Government during the concession period.

    She said the projects included the Eastern Offshore Waste Reception Facility, Central/Western Offshore Waste Reception Facility and a Floating Dry Dock.

    Yarling said the projects were approved by FEC following the issuance of Full Business Case Certificate of Compliance (FBC) by the PPP regulatory body, the ICRC.

    She said the Director-General, ICRC, Michael Ohiani issued the FBCs for the Offshore Waste Reception Facilities (OWRF) projects.

    According to her, Ohiani said the move demonstrated the commitment of President Muhammadu Buhari’s administration to the environmental well-being of coastal communities and offshore fishermen.

    “The essence of the approvals by FEC is for the OWRF to put in place a standard facility for use in Nigeria’s international waters, in compliance with the International Convention for the Prevention of Pollution from Ships (MARPOL) 1973/1978.”

    Ohiani said the goal of the proposed partnership was to protect the offshore environment and provide a visible deterrent for offshore polluters from a surveillance point of view.

    He said it was also to reduce the current level of pollution to the benefit of offshore fishermen and coastal communities.

    The director-general said the OWRF projects would essentially help keep the seas and oceans clean.

    “Each facility, when completed, would be adequate to fully meet the needs of ships and other installations regularly making use of the facilities, and contribute to the improvement of the marine environment.

    ” They will allow for the ultimate disposal and discharge of wastes from ships and other installations in an environmentally friendly way,” Ohiani said.

    He said more details on the Eastern OWRF showed that the Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) PPP model would be adopted with XPO Marine Services Limited as the concessionaire for an initial period of 10 years.

    “The projected total revenue from Eastern OWRF for the entire concession period due to Federal Government based on revenue sharing ratios is 279.4 million dollars.

    “The projected total revenue for the entire concession period from the Central and Western zones due to Federal Government, based on the revenue sharing ratios, is 765.2 million dollars.

    “The concessionaire for the Central and Western OWRF is African Circle Pollution Waste Management Limited and the concession period is also 10 years.”

    He said also approved by FEC was the management contract to Operate, Maintain and Transfer (OMT) the Floating Dry Dock (FDD) of NIMASA.

    ” The FDD is for the repair of cabotage vessels.

    “The concessionaire, J. Marine Logistics Limited, is to manage the Modular/Floating Dry Dock for 15 years.

    “Total revenue accruing to NIMASA for the 15 years concession period is 65.6 million dollars (N27.2 billion).

    When fully implemented, the project is expected to create over 800 direct and indirect jobs.”

    Ohiani said beyond revenue generation, the project was also expected to create jobs, develop capacity and provide maintenance facilities for ships and boats.

    He said FEC also approved a PPP project in Ikeja Lagos, for the Federal Radio Corporation of Nigeria (FRCN) to develop a commercial mixed-use complex.

    Ohiani said that the complex would comprise houses, hotels, recreational facilities as well an office complex.

    ‘The FRCN PPP project was approved for a concession period of 55 years with expected revenue for the period put at N14.9 billion while the concessionaire is Fish Valley Investment & Property Limited. “

  • TNG Deal Breakers: Navigating Inland with Ships of Destiny: The Cabotage Transition

    TNG Deal Breakers: Navigating Inland with Ships of Destiny: The Cabotage Transition

    For decades now most Nigerian maritime experts have been worried over the absence or abysmally low capacity of indigenous players in the maritime sector given the fact that more than 80% of Nigeria’s economy is dependent on maritime activities. The crude oil and the import and export trades are sea-bound activities. Wet cargo revenue far outstrips dry cargo. The target has been to deepen Nigerians’ participation in the estimated US$ 10 billion coastal shipping. Investments are usually capital intensive and that is the reason the government’s intervention is vital towards creating impetus.

    Technology and communication earnings certainly do not belong to this equation. Nevertheless, technology may be key to unlocking the potential of the local shipping business. For instance, deploying technologies to vessel dashboards could help minimize thefts. Vessels, ships, crafts, barges and all other marine transportation systems are heavily reliant on foreign inputs. These gulp millions of dollars to acquire. It is along this perspective that one must understand the federal government and NIMASA’s intervention through Cabotage Fund to aid more local participation in sea transport. 

    Domestication of several maritime rules has been championed by several Nigerians who out of patriotism canvass for a reduction to the millions of dollars in exports that could otherwise develop the maritime space. However, the domestication of rules is just one problem. The capacity has to be built up organically such that every resource is available for fully grown services. For instance, Nigeria does not have the required number of admiralty lawyers both at the bench and bar to adjudicate on maritime cases. Of course, there are few Nigerian admiralty lawyers but all of them are practising in London’s Lloyds market. Cases emanating from Nigerian jurisdiction are shipped overseas to be settled there because most charterers and vessel owners are foreigners. Added to the FOB rules for cargoes, it would seem that dominance by overseas traders is affirmed.

    Therefore, the structure required for Nigeria to begin to have some form of domestication of maritime practices would yet have to be deliberately built up. Hand-in-hand with financing ships acquisition, some universities may have to be endowed to open studies in admiralty law as a specialization while academicians could be sponsored by government institutions to acquire the knowledge. The Nigerian Police as well as other prosecutorial ambulation structures will take cues to train personnel for that purpose. 

    Hence, Nigeria could still operate its cabotage businesses; build, register ships, and indigenize shipping for coastal trade and yet parties to any dispute will travel to another jurisdiction for settlement. Specifically, London will definitely host all the cases arising from maritime business disagreements if no trained and knowledgeable manpower is available.

    So-called cabotage is the transportation of passengers and goods between two places in the same country. Originally applying to shipping, port to port, the terms now extend to aviation, railways and road transport is some countries. It pertains to the right to operate a shipping business within a country and therefore, connotes a restriction. Lower insurance costs, lower risk of accidents and a lower rate of piracy attacks and a better guarantee for goods are some of the perceived advantages for charterers.

    The Cabotage Act also known as the Coastal and Inland Shipping Act 2003 seeks to indigenize inland transport business through the Cabotage Vessel Financing Fund (CVFF) established under the Coastal and Inland Shipping (Cabotage) Act, 2003.

    The US$350million plus US$350million funding

    The Nigerian Maritime Administration and Safety Agency (NIMASA) have taken a firm step in the direction of building the needed capacity. Only recently it announced the federal government’s approval to begin the disbursement of US$350 million in cabotage funds to qualified indigenous operators with a relevant pedigree in shipping. Eleven banks have been shortlisted as primary lending institutions under the scheme. The purpose is for ships, vessels, barges, crafts and so on to be owned and serviced here in the country for any meaningful development to commence.  

    There is another tranche of US$350million for the same purpose through the Nigerian Content Development and Monitoring Board’s Nigerian Content Intervention Fund (NCI Fund). It is hoped this is not the same fund approved for disbursement through NIMASA’s Cabotage Vessel Financing Fund (CVFF). 

    Altogether, the US$700million from both NIMASA and local NCDMB presents a huge opportunity for the maritime sector, especially locally-owned shipping companies, to develop local capacities in those areas in that Nigeria has complete jurisdiction for coastal shipping.

    Therefore, the objective of disbursing US$700 million is to ensure that “all vessels that engage in coastal shipping in Nigeria are built in Nigeria, owned by Nigerians, manned by Nigerians and registered in Nigeria.” The spillover of this empowerment will be the strengthening of the local insurance capacity for local shipping. In addition, more seafarers trained at such cost to the government will find jobs to deploy their skills. The Nigerian Dockyard will also be amply busy in building to specification the required vessels appropriate for Nigerian waters. 

    Where a vessel is needed in Nigeria but does not meet the requirement of being wholly built, registered and operated in Nigeria and by Nigeria, the law and guidelines provide for a waiver application from the charterer on the particular requirement they are seeking to be waived and ensure that no indigenous capacity is available in that area before recommending to the federal ministry of transportation for approval. Ambiguities as to the classification of some vessels classified as foreign vessels should also be cleared up. These include vessels with foreign registered companies but owned by Nigerians and registered under foreign flags due to the requirements for the financing of such vessels’ acquisition.

    Transitioning  

    But there is a caveat which shades the objective of indigenizing coastal businesses –– the Cabotage Department of NIMASA is to “ensure that the Oil and Gas Industry which is the mainstay of the Nigerian economy and provides over 80% of the cabotage trade business, is not destabilized.” This clause may eventually subvert the cause of building the shipping structures that would operationalize the cabotage business in the country. The reason for this is not far-fetched; currently, transactions are dollar-denominated and most vessels and charterers are foreigners and the movement of oil and petroleum must be constant. The most important of all is the fact that part of NIMASA’s revenues accrues from the 2% levy collection from the gross contract sum of all cabotage vessels in Nigeria. 

    The transition is not going to be very smooth because this 2% revenue will suffer disruption and the caveat to ensure the smooth running of Nigeria’s oil transactions and transportation would certainly pose a roadblock. In this respect, a body of oversight professionals should be constituted to oversee Nigeria’s cabotage transition. It is also doubtful if NIMASA has seen and identified the need for this course of action. If it has taken 19 years and 16 years to activate the Cabotage law and guidelines respectively, then a close scrutiny of the processes should be put in place to see through the operational phase of the vessels acquired by local players. The Ship Building and Ship Acquisition Fund should serve as a lesson on Nigerian soil.

    Cabotage Vessel Financing Fund (CVFF) is the Fund meant to be used to help indigenous operators acquire vessels for tonnage capacity building and gradually take over fully from foreign operators. What these flagships will achieve will determine the future of coastal maritime trade in Nigeria and the milestones will be destined to provide a blueprint for further development of the sector.

    Resources to bank on

    o   The Dangote Refinery is projected to start full operations by 2023. Though fossil fuel is gradually being phased out in developed countries, yet the refining capacity and consumption in the local market would provide ample development opportunities for the cabotage to thrive.  

    o   There are about 2,050 Nigerian seafarers trained by NIMASA with about 800 engaged by mostly foreign shipping lines. Indigenous shipping companies may absorb the rest that is unemployed if they are properly equipped. 

    o   The establishment of other deep seaports in other regions of Nigeria’s vast maritime enclave will support expansion and provide jobs and hubs of activity for many Nigerians. This policy ought to be pursued with vigour in view of the scope expected in the cabotage enactment.

    o   The Nigerian Content Development and Monitoring Board (NCDMB) assisted vessel acquisition funds in support of Nigerian local content in the oil and gas services providing another opportunity to transit from a foreign-dominated space to one populated by Nigerian shippers. The Bank of Industry manages the Nigerian Content Intervention Fund (NCI Fund) established by the Nigerian Content Development Fund. 

    o   It is also important to gazette any waiver on imports of ship-building components to counterbalance the single-digit loans for ship acquisition. 

    Dispute Resolutions

    Any legislation or judgement which cedes crew arbitrage exclusively to the National Industrial Court should be examined as shipping is international and requires accelerated discharge of cases in order to engender confidence. The High Courts should also have jurisdiction over such cases to also develop capacity in this field. Prior to proper constitutional amendment of fresh legislation in this aspect, experts advise that courts when faced with such challenges can constitute a special panel and invite friends of the Court to help in resolving crew claims disputes. Charterer issues have their own complications which may not immediately be ventured into by Nigerian courts.

    It is in this light that the efforts to entrench informed maritime decisions by the courts should also be viewed. The yearly training of judges through the collaboration of the Nigerian Maritime Law Association and the National Judicial Institute should be supported by the government. In like manner, the Cabotage Implementation Forum set up by the Nigerian Shipowners Association, lawyers, the Nigerian Chamber of Shipping and other stakeholders is geared towards building the required capacity to deal with outcomes of increased local shipping.  

    The purported stoppage of waiver and ban of foreign ships trading in Nigerian waters must be backed with a coherent plan that situates the actions on existing local capacity and structures so that there will be no disruption in the movement of oil and gas. It is against this background that the seized vessels that are not compliant with the Cabotage Act must be reviewed.