Headlines

Terminal operators groan under scarcity of dollars

–as NPA insist on dollar-denominated payment

—-concessionaires may push for increase in tariff

Eyewitness reporter

Terminal operators in the nation’s seaports are groaning under the acute shortage of dollars which adversely affecting their services.

The shortage was the direct consequence of the policy of the Central Bank of Nigeria which recently stopped forex sale to the Bureau de Change(BDC).

Apart from leading to the scarcity of dollars, the policy has also sent Naira into a free- fall in the foreign exchange market, as the local currency has crashed to about N522 to a dollar.

This development has therefore set the terminal operators on a collision course with the Nigerian Ports Authority (NPA) over the payment of royalties.

Under the concession agreement, the terminal operators are expected to pay some royalties such as throughput charges, ship dues, and others to the NPA in dollars.

However, a source close to the terminal operators told our reporter that the concessionaires are finding it difficult to access dollars because of its scarcity.

The source further disclosed that all entreaties to the NPA to receive the payment of these royalties in the Naira equivalent were futile as the agency insisted on payment in hard currency.

Princess Vicky Hastrup, Chairperson, Seaports terminal operators Association of Nigeria(STOAN)

It was further gathered that this hardline posture by the NPA, despite the challenges in accessing dollars by the terminal operators, may pitch the two parties against each other.

“The dollar scarcity is adversely affecting our services and profit margin.

“Apart from the fact that it is scarce, we get it at greater cost due to the continued fall in the value of the Naira.

“It is difficult to get it at the official rate while the rate at the black market is quite high”, a source close to one of the terminal operators lamented.

“Quite ironically, we are still charging old rates for our services as the regulatory agencies have refused us to make adjustments in our tariffs to reflect the current market realities” the source further said.

The source declared that the operators may have to push for an upward review of their charges if they hope to stay in business.

“The only way we can remain in business is to jerk up our tariffs or in the alternative, NPA should accept payment of its royalties in naira equivalent until the crisis in the forex issue is sorted out by government” the source noted.

However, it appears that the NPA may not accede to such a request.

Even though the General Manager, Corporate and Strategic Communications of the NPA, Mr. Olaseni Alakija, was not available for a comment as he was said to be away on an official assignment when our reporter went to his office, but a source in the agency ruled out the possibility of such concession.

“At what rate in naira equivalent would they( terminal operators) want to pay?

“Is it in the official exchange rate or black market rate?

“If they want to pay the Naira equivalent in the official rates, who pays the shortfall?

“And you know the disparity will affect the revenue of the NPA as well as the remittances to the Federal Government.

“These are the knotty issues that may arise which may not allow the agency to accept payment in Naira.

“Even, apart from that, the dollar-denominated payment is in the concession agreement, so both parties should fully comply” the NPA source, who begged to remain anonymous, observed.

In the same breath, the Nigerian Shippers’Council, which is the economic regulator, is unlikely to accede to the request for a hike in terminal charges.

It would be recalled that the Council has always maintained that the operators could not impose arbitrary charges on the users of their services, a matter the agency has constantly been at loggerhead with the operators.

Headlines

NIMASA pledges to priotise safety of dockworkers

Funso OLOJO

The Nigerian Maritime Administration and Safety Agency (NIMASA) today declared that the safety of dockworkers in their workplace is a right and not a privilege, and urged employers of labor to renew their commitment to improved workplace safety for the Nigerian dockworker.

The Agency’s Director General, Dr. Dayo Mobereola, who made the declaration in Lagos during the 2024 Day of the Dockworker commemoration event, stated that efficiency in the workplace can only be guaranteed when the safety of dockworkers is assured.

Mobereola, whose address was delivered by the Agency’s Executive Director of Maritime Labour and Cabotage Services, Mr. Jibril Abba, assured stakeholders that under his leadership, the Agency will endeavor to create an environment that enables maritime labor to function according to international best practices.

In his words “NIMASA is committed to supporting you with the tools, resources, and training necessary to enhance efficiency.

“By working smarter, we not only boost our productivity but also ensure the sustainability and competitiveness of our maritime industry on the global stage.

Mr. Abba also announced the launch of the Reviewed Minimum Standard for Dock Labour Industry booklet at the event, stating that, “It is very instructive that we have concluded, as part of the activities of this great day, to launch a document that encapsulates our commitment as an Agency to ensuring that Nigerian dockworkers are treated fairly by the terminal operators and stevedoring companies.”

He added that, “This document codifies the implementation of approved conditions of service and collective bargaining agreements on minimum standards.”

The President General of the Maritime Workers Union of Nigeria (MWUN), Comrade Adewale Adeyanju, used the occasion to advocate for employers at the port terminals to provide insurance policies for dockworkers and their families.

MWUN also called on the Nigerian Maritime Administration and Safety Agency (NIMASA) to focus on regulating and compelling terminal operators to ensure that the health and welfare of dockworkers are prioritized.

Adeyanju noted that the inherent risks associated with cargo handling and their unique operations must be considered in line with their well-being.

In his words “As a union, we strongly urge the terminal operators to prioritize the safety and wellbeing of dockworkers by providing adequate Personal Protective Equipment.

” We further advocate for employers to provide group life insurance coverage to all dockworkers, recognizing the inherent risks associated with cargo handling and their unique operations”.

On his part, the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, noted that the dock labour industry is a force to be reckoned with.

In his paper presentation, delivered by the General Manager of Marine and Operations, NPA, Dr. Charles Okaga, Dantsoho called on other government agencies to support dockworkers in capacity building for effective port terminal operations.

In her address, Chairperson of the Seaports Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, described dockworkers as unsung heroes but commended NIMASA for recognizing their contributions.

Headlines

Exclusive: The real reason why Effedua resigned as Rector, MAN, Oron

Funso Olojo

On November 13th, 2024, Commodore(rtd) Duja Effedua, tendered his letter of resignation as the Rector of Maritime Academy of Nigeria(MAN), Oron, to the Minister of Marine and Blue Economy, Adegboyega Oyetola, in a dramatic way that left maritime stakeholders dumbfounded.

They were shocked at Effedua’ s sudden resignation because of several reasons.

Firstly, Effedua still has over one year in his 8 – year tenure .

He was first appointed by the former President Mohammad Buhari in 2017 and subsequently reappointed for a second term in office in September, 2021.

Also, Effedua had run an impactful and effective administration as he repositioned the Nigeria’s apex maritime training institution which he patterned along the international maritime organization(IMO) model for maritime training institutions.

He has also cleaned the institution of its age- long rot, boosted the morale of staff through impressive welfare packages and thrust the institution into the global recognition.

More intriguing was the fact that Effedua was then just appointed by the Minister as a member of the high- powered ministerial committee to drive Nigeria’s reelection bid for the IMO category C seat.

Why then will a government appointee, despite his high performance and efficient service, resign when he still has over a year to complete his tenure, a decision alien to the culture of sit- tight syndrome of government appointees who dig in their feet even against overwhelming allegations of incompetence.

However, our reporter has stumbled on the real reason why the high- performing Rector signed.

Even though, the retired Commodore attributed his sudden decision to “personal reasons” but sources close to the former Rector whispered to our reporter that Effedua resigned because of his opposition to the controversial Nigeria Coast guard bill currently before the National Assembly.

It was alleged that the ministry of Marine and Blue Economy is hell- bent to have the bill sail through the national Assembly.

Even though, it could not be independently confirmed yet why the ministry has such high interest in the passage of the bill( other than the proposed body will domicile under it), despite the overwhelming opposition of the maritime stakeholders, it was however gathered that the Ministry instructed all the heads of the agencies in the industry, to support and buy-in to the ministry’s crusade of getting the bill scale through the national Assembly.

It was gathered that prior to the Public hearing of the bill at the National Assembly which held on December 9th, 2024, the ministry has convened a meeting in November with all the heads of the maritime agencies which include the Nigerian Maritime Administration and Safety Agency(NIMASA), Nigerian Ports Authority ( NPA), National Inland Waterways Authority( NIWA), Nigerian Shippers’ Council and Maritime Academy of Nigeria(MAN), Oron.

At the meeting, the heads of these agencies had allegedly been mandated to support the passage of the bill.

It was further learnt that though most of these heads of the agencies have their reservations against the bill because of its potential to create bad blood among other agencies such as NIWA and NIMASA and create over lapping functions with the Nigerian Navy, but they lacked the will power to voice their opposition for fear of reprisal action from the ministry.

It was further alleged that NIMASA was particularly uneasy with the bill as it is being speculated that the agency may fund the NCG if the bill eventually trasmutes into an Act.

So all of the heads of these agencies alleged swallowed their opposition and grudgingly accepted to support the crusade.

However, sources close to the meeting claimed that it was only Duja Effedua, who allegedly voiced our his opposition to the bill, giving his reasons why the proposed legislation may not be in the best interest of the Nation.

As a Naval officer, though retired, he explained the implications of having another body in the maritime space which may spark off unhealthy rivalry with the Nigerian Navy.

Knowing the consequences of his act of bravery, the ex- Naval officer was said to have later tendered his letter of resignation to the ministry of Marine and Blue Economy.

Though he said his decision was personal, but Effedua alluded to what may befall him if he fails to throw in the towel.

” It is best to leave when the ovation is loudest, not when they ask you to leave” he has told reporters who were pestering him for his reasond shortly after his resignation.

Headlines

Opposition mounts against Nigeria Coast guard bill

— as Navy, lawmakers, maritime lawyers shoot down the bill.

Funso OLOJO

Concerned maritime experts and other stakeholders have mounted a groundswell of opposition against the Nigeria Coast guard bill currently before the National Assembly.

The bill seeks to establish a military service which is a branch of the Armed Forces of Nigeria to ensure maritime safety and which will domicile under the ministry of Marine and Blue Economy.

At the public hearing held at the Library of the National Assembly complex on December 7th, 2024, the introduction of the bill met stiff opposition from majority of speakers at the event.

Despite the attempt of the Minister of Marine and Blue Economy, Adegboyega Oyetola, to deodorize the bill, stakeholders picked holes in the proposed legislation.

In his presentation, Oyetola acknowledged the roles of the Nigerian Navy in safeguarding the Nigerian waters but believed that the establishment of the Nigeria Coast guard will complement these roles.

“The state of boat accidents on Nigerian inland waterways is also a justification for the need to strengthen our maritime safety and enforcement of our maritime laws and regulations in inland waterways” the minister submitted.

But majority of the speakers at the public hearing disagreed with the minister.

The Chief of Naval staff represented by Olusegun Ferreira, said the proposed creation of Nigeria coast guard will lead to duplication of functions on the Navy.

According to the Chief of Naval staff, Nigeria is currently enmeshed in a challenge of myriad of overlapping and duplication of functions of government agencies and the establishment of Nigeria coast guard will only compound the problem.

Adams Oshiomole, a Senator representing Edo North, asked what the proposed body will do differently from what Navy is presently doing.

Philip Agbese, a member of the house of representatives retorted” the bill on coast guard should return to where it has come from”

Emeka Akabogu, a maritime lawyer, gave the position of the Nigeria Maritime Bar Association on the bill.

According to him, the bill is not in the best interest of the country.

Stakeholders were unanimous in their submissions that creating Nigeria Coast guard negates the efforts of President Bola Ahmed Tinubu to reduce the costs of governance in the country.

However, the Chairman, Senate committee on Marine and Transport, Wasiu Eshilokun , who is also the sponsor of the bill, said the public hearing was held to eliminate over lapping functions in the bill.

However, sources claimed that the ministry of Marine and Blue Economy is pushing hard to ensure the bill scales through despite the overwhelming opposition from the industry stakeholders.

It was learnt that the Ministry’s position, which was described as selfish, was predicated on the fact the the proposed Coast guard will be domiciled in the ministry while it may be funded by the Nigerian Maritime Administration and Safety Agency(NIMASA).