Headlines

FG grants firm approval for $2.9bn contract to construct deep seaport in Delta.

Eyewitness reporter

The Federal Government has given a Nigerian firm, Mercury Maritime Concession Company (MMCC), a provisional approval through the Ministry of Transportation to construct a deep seaport at Escravos, Delta State tagged Escravos Seaport Industrial Complex (ESIC-1) for the sum of $2.9 billion.

The project will be home to eight other projects including a deep seaport, a free trade zone, a crude oil refinery and gas complex and a nature conservation park.

The promoters of the project said it will promote massive collateral investments in commerce, industry, mining, power, housing, recreation and tourism, etc estimated at $50 billion.

The Chairman of MMCC, Rear Admiral Andrew Okoja, who was addressing a stakeholders’ meeting at the weekend, revealed that the project, which is a maritime-driven project, would generate about 40,000 employment and eliminate criminalities such as piracy in the region.

Okoja said the Escravos seaport project, which would be on 30,000 hectares of land in South West of Warri in Delta State, would decongest the Lagos ports and bring in more people into the maritime industry.

He further declared that all the industries in the world have something to do with maritime, as it carries 90 percent of the world’s resources.

“We have gotten a provisional approval from the Federal Government.

“They told us to lodge in $1 billion and to lodge in your money, you have to go through some certain protocols before you bring out that money. We are to lodge in the money as the capacity to funding not that we are going to give the Federal Government.

“The provisional approval was given through the Ministry of Transportation and we were given a condition, pay $1 billion, we will give you a license. It is like when you need land, you register and you are asked to pay this amount and after paying it, you would be given the land,” he added.

He said the project will be ready in five years, adding that it would boost the economic and national development of Nigeria particularly, Delta State.

Engr. Stephen Kema Okoja, one of the promoters, said Escravos seaport is conceptualized as a modern deep seaport that would handle container Ro-Ro vessels, specialized cargo and general cargo.

“The seaport is designed to primarily serve ESIC-1 and also support Nigeria’s regular international seaborne trade, thus accentuating the contribution of Delta ports to Nigeria’s economic development as well as boosting contributions of Delta State seaports Nigeria’s International seaborne trade from its present to three percent share.”

“Project conceptualized to take advantage of the quick and direct access of ESIC-1 Seaport to the Atlantic ocean as its multimodal transport access to approximately 80 percent of hinterland Nigeria and it’s landlocked countries to transform Delta State into a regional multi-modal transport hub of West Africa,” he added.

Speaking on the specific benefits of ESIC-1, Prof. Charles Asenime, said the central location of ESIC-1 grants Delta State direct multimodal transport accessibility to 70 percent of the Nigerian landmass (four (4) geo-political zones including Abuja) and the littoral nations of the world.

“The development of ESIC-1 project will transform the coastal/foreshore line between Benin river and Forcados river into prime lands for seafront/sea-view property development.

“Such development will check ocean incursion on Delta State coastal land arising from earth warming/sea rising effects caused by depletion of the atmospheric ozone layer.

“ESIC-1 Seaport will substantially eliminate congestion in the Lagos seaports. It will provide a solution to the accessibility and low-draft disincentive to mariners that are associated with sailing to Warri Port, Burutu, Koko, Onitsha, and Port Harcourt ports.

“Will directly open up Delta State and five other geopolitical zones of the nation to International trade, commerce and industry,” he said.

Economy

Prices of cooking gas to crash as federal government exempts LPG, allied products from Customs duty,VAT

The Federal government has directed that imported Liquefied Petrolium Gas(Cooking gas) and all its allied equipment like cylinders should be excepted from the payment of Customs duty and Valu-Added Tax(VAT).

This directive is expected to crash the galloping prices of the product which is being sold between N950 to N1200 per 1 kg

The Ministry of Finance disclosed this in a letter (dated November 28, 2023) to the Special Adviser to the President on Energy; the Comptroller-General of the Nigeria Customs Service (NCS); and the Chairman of the Federal Inland Revenue Service (FIRS).

According to the ministry, the exemption aligned with President Bola Tinubu’s commitment to enhance Nigeria’s investment climate, and promote clean cooking practices.

“In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99,” the letter reads.

“Accordingly, the importation of LPG utilising HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is exempt from Import Duty and Value-Added Tax. Consequently, the Importation of LPG shall incur a 0% duty rate and 0% VAT rate, effective immediately.”

The ministry instructed the NCS and FIRS to comply with the directive pending its official gazetting. \

Also, the ministry directed the NCS to comply with the presidential directive, dated July 29, 2022, and withdraw all debit notes issued to petroleum marketers who have imported LPG “using codes 2711.1.2.00.00 and 2711.13.00.00 from August 26, 2019, to the present date”.

Other items exempted from VAT and duty payment are LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, LPG trucks, among others.

Before now, 7.5 per cent VAT was slammed on the product which made its prices in the market to hit the roof.

Headlines

Maritime media charges federal government on disbursement of controversial CVFF

President Tinubu

The Eyewitness Reporter

Worried by the stalemated disbursement of the controversial Cabotage Vessel Finance Fund (CVFF) which has lingered for so long, the League of Maritime Editors (LOME) has urged President Ahmed Tinubu to expedite action on the release of the funds to trigger the development of indigenous shipping industry.

The group also called for urgent rehabilitation of collapsed critical port infrastructure at the nation’s seaports.

The President of LOME, Timothy Paul Okorocha, made these calls at the League’s 25th anniversary held in Lagos on Wednesday, with the theme ‘Harnessing Nigeria’s Potential in Marine & Blue Economy’,

While congratulating President Bola Tinubu for the further unbundling of the Ministry of Transportation and the establishment of the Ministry of Marine and Blue Economy, Okorocha appealed to the President to exercise the required political will to push further by ensuring that the routine talk about the rehabilitation of collapsed critical port infrastructure receives urgent executive attention.

“As development partners, the League looks forward to the effective participation of the respective agencies in the current administration’s renewed agenda template; and wants to see the Nigerian Ports Authority move away from the ritual of endless talk and lamentations into doing the needful, the reconstruction of broken down asset and infrastructure,” he said.

Also worried by the lingering delayed disbursement of the CVFF, the League further urged President Ahmed Tinubu to provide the Minister of Marine and Blue Economy, Adegboyega Oyetola, and his ministry, the needed impetus to bring to an end, the unending rat race of the disbursement of the CVFF, saying that the fund established since 2003 would jump-start a new lease of life for the capacity development of indigenous ship-owners.

He added that this would enable Nigeria to participate meaningfully in seaborne trade; especially with the proposed commencement of the implementation policy of the blue economy.

The LOME President noted the genuine struggle by the Nigerian Maritime Administration and Safety Agency (NIMASA) and its leadership, especially under the present administration to disburse the CVFF but observed that the efforts suffered political disruptions.

“As insiders, the League over the years has seen the genuine struggle by the Nigerian Maritime Administration and Safety Agency (NIMASA) and its leadership, especially under the present administration to disburse the CVFF in its commitment to grow local capacity building, but observe the otherwise disruptive tendencies within the field of political play.

“We appeal to Mr. President to use his good offices to prevail on the relevant authorities to respond to the needs of our industry as there can be no better time than now,” he said.

Speaking on the theme of the conference, Doctor Charles Okoroefe of Nigeria Maritime University also hailed the unbundling of the transportation ministry which he said was a misnomer.

He has decried the untapped potential of marine resources, especially in the area of tourism in Nigeria, regretting that marine tourism is lacking in Nigeria unlike in Gambia and the Caribbean where marine tourism is a major source of income where marine tourism rakes in billions of dollars.

“Egypt made about $14 billion in tourism from the Nile in 2022,” he added.

“People troop in into the Bahamas. Do we (Nigeria) have the potential? Yes. But the question is how prepared are we?” he queried.

He stressed that marine tourism is a solution in terms of job creation and that the time has come for Nigeria to progress from potential to actuality.

“So talking about job creation. All of these elements I mentioned are potential areas for job creation because it is a major issue in Nigeria today.

” A lot of young people are jobless. Meanwhile, we have an area that is green where a lot of jobs can be created.

“So I think we have to look at that potential area of driving our marine and Blue Economy,” Okoroefe stated.

He also called on the Ministry of Marine & Blue Economy to synergise with the Ministry of Agriculture to harness the potential of the sea.

“So, I believe the Ministry of Marine and Blue Economy has to synergise with the Ministry of Agriculture and also harness exotic seafood for export,” he explained, saying we cannot be depending on imports alone.

He urged the ministry to look at other fundamental seafood we have in excess that we can process through the rivers for export.

The marine expert regretted that Nigeria still imports palm oil from Malaysia, the same people who came to Nigeria to learn how to plant seedlings and today Nigeria is importing palm oil from Malaysia, “these are exportable items. So I believe the Ministry of Marine has to do a lot.

“With the Ministry of Agriculture for instance, with the Ministry of Power and the Ministry of Tourism, these are resources that we need to address in order for us to develop and come out of potential to thrive. On our ocean and marine resources, we’ve been talking endlessly.”

Headlines

Tantita refutes, describes allegation of oil theft by Navy as libelous, defamatory

Capt. Warredi Enisuoh

The Eyewitness Reporter

Following an allegation of involvement in the alleged oil theft incident against Tantita Security Services Limited by the Nigerian Navy, the security outfit has described the accusation as laughable and an attempt by the Navy to cover up the truth.

The security outfit, which has received widespread commendation for its efforts in combatting the menace of oil theft in the country, debunked accusations of any involvement of its operatives in the incident while lampooning the Navy for underestimating its operatives.

Reacting to the development, the Executive Director – Operations and Technical, Tantita Security Services Nigeria Limited, Capt. Warredi Enisuoh in a statement described the Navy’s claim as “defamatory and libelous”.

The statement said: “The activities going on inside the Nigerian Navy’s FalconEye should be investigated as the ship was only a few kilometers off the coast of Ondo State, well within view of the Nigerian Navy’s FalconEye, but they never reacted”.

“We are indeed saddened and disappointed that the Nigerian Navy could descend so low as to make such bizarre accusations against our organisation, knowing the same to be false,” he added.

“Perhaps they are not aware that video evidence of what transpired between the Tantita operatives and the Nigerian Navy at the scene exists and has been transmitted to the highest authorities.

“We will therefore not join issues with the Nigerian Navy as we are well aware that Nigerians know who is who.”

It would be recalled that the activities of Tantita and other security outfits have saved the country a whopping $43.2m from oil theft daily.

Recalled that on Thursday, December 7, 2023, the Nigerian Navy had disclosed that 17 people said to be engaged in the illegal siphoning of crude oil in Ondo State were nabbed aboard a 77-meter-long Motor Tanker (MT) VINNALARIS 1 Lagos.

Navy spokesperson, Commodore Adedotun Olukayode Ayo-Vaughan, disclosed in a statement, saying the suspects were nabbed at the Forward Operating Base (FOB) Igbokoda in the early hours of Thursday.

However, a day later, the Navy turned around to accuse Tantita Security Services Limited (TSSL) of complicity in the incident.