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Nigeria’s Maritime Industry Needs More Private Sector Financing-BPE Boss

BPE boss calls for increased PPP in maritime sector

Alex Okoh, the Director General of Bureau of Public Enterprises,has advocated the need

for increased private sector involvement in financing critical infrastructural development in the maritime sector to pave way for the industry to become a major revenue earner for the Federal Government.

He gave the advice at a webinar on public private partnership as alternative financing model in the maritime sector organised by the Nigeria-South Africa Chamber of Commerce and sponsored by SIFAX Group.

He said the success of the port concession was as a justification for more private sectors funding, adding that the Federal Government’s revenue from the sector more than doubled ten years post-concession.

According to him, competing needs for government’s lean resources has also made public private partnership (PPP) a welcome option.

He said the Federal Government has simplified the PPP process, which now allows for private sector players to scout for projects that can be financed through the model.

He said, “The Bureau of Public Enterprises has been entrusted with a significant part of the PPP responsibilities in Nigeria through the Federal Government’s circular of September 2020. What this means in effect is that players in the country’s maritime and other key sectors of the economy can identify and suggest projects to the government through the BPE or relevant MDAs.

“Once these projects are examined, approval will be given to the relevant parties to undertake an appraisal, feasibility study or outline of the business case, which will be scrutinised by the government. Thereafter, a tender will be published. The benefit of this is that the originator of the project will be allowed to provide a matching offer with that of the highest bidder and if the party is able to match this offer, they will be declared the preferred bidder.”

He urged the private sector to identify the gap in transport infrastructures in the nation’s maritime sector and work towards providing solutions to these gaps.

He noted that such investments in and around Nigeria’s ports will help reduce the high shipping charges and local transport to warehouse costs which will in turn make the nation’s ports more competitive and business friendly in comparison to other African countries.

by Online Editor — April 1, 2021 in Maritime 0

Calabar Port Ships First Cocoa Export To US

Calabar Port Ships First Cocoa Export in 14 YearsTHISDAYLIVE

The Calabar seaport, Cross River State, has shipped 7,000 metric tonnes of cocoa to the United States of America, USA.

The export was handled from the Ecomarine Terminals.

At the load-out ceremony in Calabar, Governor Ben Ayade, implored the Federal Government to implement the agreement reached with the concessionaires on dredging of the Calabar port.

Ayade,who was represented by the Commissioner for Commerce, Mrs. Rosemary Archibong, laudedStarlink Global and Ideal Limited, forchoosing to convey its cargo through the Calabar Port, adding that it was a value addition to the Ecomarine Terminal and Cross River State to have a vessel departing to the USA.

He stated: “Calabar Port is very strategic to the economic empowerment of Nigerians in view of the employment opportunities here. All we are appealing for now, is for the Federal Government to expedite the dredging of the Calabar channel to really kick-start economic activities”.

Hadiza Bala Usman, the Managing Director, Nigerian Ports Authority, described the development as a sign of better things for the nation and urged other shippers to emulate Starlink.

Usman, who was represented by the Port Manager, NPA Calabar, Marie Asan,saidthe authority was pursuing Federal Government’s economic recovery agenda through consistent improvement on service delivery at the nation’s seaports, especially the eastern ports.

She stated that Calabar Port did not fall short of revenue generation, even during the COVID-19 pandemic, an indication she attributed to service improvement.

She said“The Executive Management of NPA is pleased by this development , as it shows that the strategic measures put in place to make all the nation’s seaports viable and vibrant are beginning to produce positive outcome”.

She disclosed that the management had introduced an inclusive governance system which had “brought modest milestones to Calabar Port in the areas of wreck removals, stimulation of container traffic, attraction of flat-bottom vessel traffic, restoration of broken down crafts and more”.

In his remarks, Adeyemi Adeniji, the Managing Director of Starlink Global and Ideal Limited, disclosed that the cocoa beans were sourced from Ikom Local Government Area of Cross River State which he saidconstituted a factor in utilizing the Calabar Port.

Adeniji,who described the shipping of non-oil products from the Calabar sea portto the United States of America as eventful, explained that :“in our search for a solution to different dimensional problems facing export in Nigeria, we opened a direct export from Calabar to the United States of America using a chartered vessel.

by Online Editor — April 1, 2021 in Maritime 0

Union Investigating Saboteurs Of NPA’s E-Call System

The Maritime branch of the Senior Staff Association of Statutory Corporations and Governmemt Owned Companies (SSASCGOC) has commenced an underground investigations to reveal stakeholders who are bent on frustrating the call up system.

President NPA Branch of SSASCGOC, Comrade Abubakar Abdullahi,who spoke during a capacity building programme it held for its members in Ilorin Kwara state,berated those frustrating the introduction of the E-call up system.

He expressed satisfaction with the call- up system,adding that the innovation had been of tremendous help to port users but according to him, there are some elements trying to frustrate the success of the electronic call up system.

According to him, SSASCGOC and the sister labour bodies, the Maritime Workers’Union of Nigeria will synergize to scuttle attempt made by those who are unhappy with the call up system.

He also promised that the union would do all it could to support the success of the system as well as the management of NPA under the leadership of Hajia Bala Usman.

He added: “They have made a very giant stride because it is not an easy job. For over three years now, NPA have been battling with a modality to clear this menace along the road.There are many groups and security agents in the road but there are many factors that contributed to the gridlock, we are not aportioning blames to anyone but the NPA MD has come out with a very good platform.

“If you look at the E-Call up system,it is working only that the evil ones are behind trying to make sure it does not work,to frustrate the efforts of NPA management.We at NPA SSASCGOC, Maritime, we would not fold our hands, we are working with our sister unions.We are doing everything possible to support our management and when we come out with it, everyone will know we are working’’

Comrade Abubakar noted that the training would also enable the participants to live up to expectations in their individual lives and endeavours.

“We have kicked against stagnation of our members after a long,serious battle but the management agreed to reverse it to the day of approvals.Some were wrongly given stagnation and it is going to be withdrawn and those who are supposed to be given will be given.We are able to acquire a four flat property at Obalende and we are going to develop it into two properties, it belongs to the union.We are able to acquire this property just one and a half year into our terms in office,” he said

by Online Editor — March 31, 2021 in Maritime 0

FG Rakes In N538bn From Ports Taxes

The Director-General of the Bureau of Public Enterprises, Mr Alex Okoh, has disclosed that the Federal Government saved over N500bn from the privatisation of the ports infrastructure.

Okoh,who was represented by Director, Infrastructure and Public-Private Partnership, Department of the Bureau of Public Enterprises, Amaechi Aloke, said involving the private sector saved the government a fortune.

Aloke who spoke at a virtual forum on alternative financing model for Nigeria’s maritime sector which held on Thursday said the government had been able to make N538bn in a space of 11 years after the privatisation.

He said, “One can say that the involvement of the private sector in the ports has paid off to the government. Based on our reviews, we can see from the slides that more than half a trillion has been generated either in the form of fees paid, throughput fees, investment in infrastructure, investment in other equipment.

“As a result of these, tax paid to the government came to a total of N538bn between 2006 and 2017. That is the kind of money the government would have lost if it had not done the reform in the sector.”

by Online Editor — March 27, 2021 in Maritime 0

NIMASA To Deploy Modular Floating Dock Soon

Dr Bashir Jamoh, Director-General, Nigerian Maritime Administration Safety Agency (NIMASA) has said that its modular floating dock is in the process of being deployed.

Jamoh disclosed this during a visit to Managing Director of Nigerian Ports Authority (NPA), Hadiza Bala-Usman at the NPA Headquarters, Marina, Lagos. “I am here to affirm that the modular floating dock has come to stay.

Jamoh spoke on the process of getting approval from the Federal Ministry of Transportation as well as the Infrastructure Concession Regulatory Commission (ICRC). He emphasised that obtaining those approvals were important preliminary conditions. He said this was because of the need to engage managing partners and ICRC in charge of the mode of operations and Public-Private Partnership (PPP) arrangement.

He added that the second aspect after the housing of the floating dock was the issue of operation.

He said that NIMASA had obtained the approval of the ICRC and had been directed to move to the Federal Executive Council. “As far as we are concerned, the confirmation of certain aspects of the operations will be run concurrently. “While we are seeking the Federal Executive Council approval, the issue of a managing partner will be considered and Expression of Interest will be published. So, we are good to go. “When fully operational, the NIMASA floating dock, which arrived Nigeria in 2018, is expected to provide a lot of benefits to the maritime industry, ranging from conserving foreign exchange, to providing employment.

“Others are boosting indigenous capacity, developing shipping, and providing training exposure for students of the Maritime Academy of Nigeria, Oron, and the Maritime University, Okerenkoko,” he said.

Speaking,Bala-Usman stressed the need to promote the NIMASA local dry dock to the maximum capacity by placing the NPA’s Continental Shipyard at the agency’s disposal as a preferred location.

She said NPA would go into an agreement with NIMASA on the handover of the authority’s dockyard, jetty locations, and warehouses within the area to facilitate the installation of the modular floating dock.

Chevron Donates To Ughelli Government College

Star Deepwater Petroleum Limited, a Chevron Company and the operator of the Agbami field, together with the parties in the Agbami field – Nigerian National Petroleum Corporation (NNPC), Famfa Oil Limited, Equinor Nigeria Energy Company Limited, and Prime 127 Nigeria Limited, have donated a model block of classrooms to Government College, Ughelli, Delta State .

The Deputy Senate President, Senator Ovie Omo-Agege, represented by his Chief of Staff, Dr Otive Igbuzor commended the Agbami Parties for the donation. “We commend the Agbami parties for this CSR project and are particularly happy on the focus of this project on infrastructure and education which, according to development theories, are two of the key areas critical for the development of a nation.”

At the virtual event to handover the project, Delta State Governor, Senator Ifeanyi Okowa, who was represented by the Commissioner for Basic and Secondary Education, Mr. Patrick Ukah, commended the Agbami parties for an outstanding donation. “I am most delighted and happy because this project stands out. What you have done is actually a whole school project because it has all the attributes a school should have. The lab and everything you have put in that school are modern and state of the art.”

According to Robert Hulett, Director, DW and Production Sharing Contract (DW & PSC) Star Deepwater Petroleum Limited, the multi-floor Model classroom comprises: Thirteen (13) classrooms with three hundred (300) sets of furniture, plus twelve (12) sets of teachers’ chairs and tables; an ICT center and computer room, including a set of main servers with a broad bandwidth subscription and all hybrid equipment required for the ICT center to function effectively; a library with book shelves, tables and benches; a fine art room; a sick bay with mini beds; a 40KVA power generator and other functional rooms.

He noted that the Agbami parties have also implemented other projects in the past in Delta state, which include three science laboratory complexes with fully furnished and equipped Physics, Chemistry, Biology laboratories built and donated to Zik’s Senior Secondary School Sapele, Alaka Grammar School, Ozoro and Unity School Agbarho respectively.

The others include a Chest Clinic built and donated to the Tuberculosis and Leprosy Referral Center, Eku, two hybrid libraries built and donated to Uwheru Secondary School, Uwheru and Ubeji Secondary School, Ubeji. “In addition, a Mother and Childcare Center at Sapele Central Hospital, and a model classroom block project at Essi College Warri are nearing completion and will soon be commissioned”, he informed.

Mr. Modupe Alakija, Chairman/CEO, Famfa Oil Nigeria Limited, who was represented by Dapo Okewole, Chief Financial Officer, reiterated his Company’s delight with the Social Investments of the Agbami Parties. “We are happy that this block of classrooms is one of several other projects donated by the Agbami Parties, to various educational and health institutions across Nigeria, including 28 chest clinics and 39 science laboratories complexes, for the development of the health and education sectors.”

Similarly, Mr. Bala Wunti, Group General Manager, National Petroleum Investment Management Services (NAPIMS), represented by Group General Manager Services, Yunusa Yahaya, explained that the NNPC together with the Agbami parties have executed several Social Investment projects in Delta State which included two thousand seven hundred and forty-seven (2,747) special scholarships. “We applaud the Agbami Parties for their continued partnership and collaboration with the NNPC in our drive to deliver impactful social investments interventions to our people” he added.

In the same vein, Ms Christel Kvalvik, Managing Director, Equinor Nigeria Energy Company Limited, one of the Agbami Parties, expressed her delight with the project. “Equinor is happy to work with other Parties in the Agbami Field to ensure Nigerians have access to technical skills, quality education and employment opportunities through the execution of projects in various parts of the country,” she reiterated.

Esimaje Brikinn, General Manager, Policy, Government and Public Affairs, Chevron Nigeria Mid-Africa Business Unit appreciated NNPC for its support for the Agbami Parties. “We thank NNPC for partnering with the Agbami Parties on Social Investments in the areas of Education, Health and Economic Development.” “We are also proud that this project was built, one hundred percent, by Local Community Contractors.”

Esimaje also thanked the Delta state Government for the continued support of the operation of Chevron Companies in Delta State while appreciating the presence of top Government officials like the Secretary to the Delta State Government, Mr. Chiedu Ebie; Member Representing Ughelli North/South/Udu Federal Constituency – House of Representatives Hon. Rev. Ejiroghene Waive; Commissioner for Oil & Gas Ministry Hon. Emma Amgbadugba, Permanent Secretary, Ministry of Basic and Secondary Education – Comrade Sam Dietake and others, at the virtual event.

[3/25, 9:15 AM] Mohammed Shosanya:

by Online Editor — March 25, 2021 in Maritime 0

NPA Goes Tough On Illegal Jetties Operators

The Nigerian Ports Authority (NPA)has clamped down on unsea-worthy barges while three illegal jetties have been sealed

The NPA explained that the decision followed the establishment of an inter-agency committee comprising of representatives of the NPA, Nigerian Maritime Administration Agency (NIMASA), Nigerian Inland Waterways Authority (NIWA) and the Lagos State Inland Waterways Authority (LASWA).

It said the committee is spearheading the “clearing of the waterways of lay-by barges and tugboats along Ibeji/Ilashe axis and as far as the Kirikiri Lighter Terminal and Mile Two Bridge, as well as the removal of wrongly anchored barges that are obstructing visibility along the Kirikiri channel”.

Soliciting for the cooperation of stakeholders to ensure barge operations are executed according to laid down regulations, the committee expressed its commitment to sustaining the current tempo of enforcement until operators totally comply with all laid down regulations.

“To this end, regular patrol of waterways will be carried out and sustained,” the statement added.

by Online Editor — March 23, 2021 in Maritime 0

FG Brings Back Cargo Tracking Note

Insecurity: FG refloats Cargo Tracking Note to curb proliferation of

The Federal Government has reintroduced Cargo Tracking Notes in the nation’s ports.

The Cargo Tracking Note (CTN) or the ECTN (Electronic Cargo Tracking Note), is a system for collecting documents and processing information, when exporting by sea in order to obtain prior information, to participate in security measures, statistics, and generally in order to participate in the World Trade Organization (WTO) and the World Customs Organization (WCO) recommendations on trade facilitation and security.

President Mohammadu Buhari has since directed the Minister of Transportation, Rt. Hon. Rotimi Amaechi to reintroduce Cargo Tracking Notes (CTN) in order to curb the proliferation of arms and increase in banditry across the nation.

Amaechi has further directed the Nigerian Shippers’ Council(NSC) to commence preparation to undertake the responsibility of administering CTN as it commences.

The Executive Secretary, NSC, Mr. Hassan Bello, whose Council is to handle CTN describes it as “another instrument that will add tremendously in shipping development”.

He added:“It will boost the revenue of the government in customs revenue collection in the sense that it will abate under – declaration and concealment. It will boost the revenue of NPA because there will be no more alteration of the manifests. It will boost the revenue of NIMASA because under – declaration on the weight of ships will not be there any longer.

CTN is also a veritable source of data and some economic experts describe this as the best quality of the electronic based platform.

“You will know everything that is coming into your country. We have had many African countries having this because it is the initiation of the Union of African Shippers Council (UASC),” the NSC boss said about CTN last year”

by Online Editor — March 22, 2021 in Maritime 0

Lagos Chamber Canvasses Dispute Resolution Framework For Customs, Business Community

The Lagos Chamber of Commerce and Industry(LCCI) has expressed the need for the Federal Government to create an independent dispute resolution culture between the Nigeria Customs Service and the business community in the country.

It advised that the initiative should done within the framework of executive order.

Muda Yussuf,Director-General of LCCI,said the development was necessary to restore the confidence of investors in the international trade process.

He said:’’The reality is that the Nigeria Customs Service has a weak Trade Facilitation culture and an absence of customer service orientation. This disposition is hurting investment, frustrating trade, and creating a negative investor sentiment.

‘’Managing disputes with the Nigeria Customs Service on matters of product valuation and harmonized system of product classification is one of the most distressing encounters experienced by investors in the Nigerian economy.

‘’A major shortcoming in our international trade process is the absence of an independent, credible, and prompt appeal mechanism. It is a situation that is hurting investment and weakening investors’ confidence. Importers are left entirely at the mercy of the customs in the absence of a credible, independent window for dispute settlement between the customs and the private sector. Under the present arrangement, the Customs Service is the accuser and the judge.

‘’This mechanism is unfair to investors and not consistent with the principles of natural justice. Many companies have been compelled to pay outrageous additional charges on imports thus distorting their investment plans and projections’’.

He explained that a presidential intervention has become inevitable, especially with the onset of the African Continental Free Trade Area [AfCFTA],adding that there is a need to ensure a balance between regulatory controls, revenue generation and trade facilitation functions of the Nigerian customs service.

by Online Editor — March 15, 2021 in Maritime 0

Truck Owners Express Support For NPA’s E-Call Up System

Truck owners have vowed to support the electronic call-up system recently introduced by the Nigerian Ports Authority (NPA).

Remi Ogungbemi, national president of the Association of Maritime Truck Owners (AMATO), said that the electronic method of admitting trucks to the ports is the best way to go.

“E-call up system of admitting trucks into the terminal is the best way to go. It is what I had been clamouring for, ” he said.

We so much applaud this new system by NPA, and we are giving everything, except our lives, to support the system to work.The call-up system is one that will not have human interference. This is because favouritism, extortion, corruption and bribery will continue to exist if we allow human interference.”

Speaking, Abdullahi Mohammed-Inunwa, Lagos state vice chairman, dry cargo sector of the National Association of Road Transport Owners (NARTO), urged the NPA to integrate satellite truck parks in its operations to increase efficiency.

According to him, members of the association used satellite parks to harbour their trucks before securing approval to access Lilypond and Tincan truck parks.

He expressed optimism that the electronic call-up system would tackle challenges encountered in the ports.

“We believe that, if well managed and sustained, it will eradicate all the bottlenecks along the port corridors, improve on the ease of doing business and restore our ports’ lost glory,” he said.

The NPA commenced the electronic call-up system to control the movement of trucks in and out of Lagos seaports on February 27.

The new system is based on a first-come-first-served basis.

by Online Editor — March 3, 2021 in Maritime 0