Headlines

Ameachi blames indigenous ship owners over Nigeria’s inability to own national shipping line

Rotimi Amaechi, Minister of Transportation

Eyewitness reporter

The Minister of Transportation, Rotimi Amaechi, has said that the inability of indigenous ship owners to raise 60 per cent equity shares in the proposed joint venture national shipping company was responsible for the failure of the proposed national carrier to take off.

Nigeria, in 2016, has proposed the establishment of a national shipping line in a joint venture arrangement that will replace the collapsed Nigeria National Shipping Line(NNSL) in the 90s.

Towards this end, the Federal Government signed a Joint Venture (JV) partnership with Pacific International Line( PIL), a Singaporean consortium, on shareholding of 60:40 for the establishment of national carrier.

The 60 percent equity share was to be held by a group of indigenous shipping firms while the remaining 40 percent shares go to the foreign firm.

However, six years after, the proposed joint venture business has gone awary as the foreign investors have since pulled out.

Amaechi revealed that the failure of the Nigerian investors to raise their own 60 equity shares led to the collapse of the agreement and the disengagement of the foreign investors.

“Unless Nigerians provide 60 percent of the investment as required by law, establishing a national shipping line would not be realisable”, Ameachi declared at the weekend in Benin, Edo state during the thanksgiving service to mark the 71st birthday celebration of the Chairman , Starzs Investment Company Ltd, Engr. Gregory Utomwen Ogbeifun.

The minister further revealed that the law requires that 60 percent of the funding be provided by Nigerians while the remaining 40 percent be contributed by the Singaporian consurtium .

He said the plan has become practically impossible due to the unwillingness of major players in the maritime industry to raise such amount.

He said though a foreign firm had assured of providing 100 percent of the money required for setting up the shipping line, Ameachi said he would not grant such approval as doing so would amount to flouting the law.

” For not having a national shipping line, some stakeholders in the maritime sector think that I may not have done well. The law setting up a national shipping line says that Nigerians would provide 60 percent of the investment and foreigners will provide 4o percent”

“So, I went to Singapore, got a company that accepted to bring the forty percent but unfortunately, till today, no Nigerian has been able to provide the remaining sixty percent. The company had said to me that they would bring all the 100 percent and hire some Nigerians as stakeholders, but I disagreed because that would amount to breaking the law”.

“There is also a company in Dubai that said they would set up the national shipping line by providing the 100 percent but I have told them that the law only allows them (foreigners) to provide 40 percent.”.

“Unless we amend the law to enable us allow foreigners to own 60 percent of the investment and employ Nigerians, but as the law is today, there is no way a foreigner can have 100 percent.

“As a minister, my job is not to bring the money but to create an enabling environment for business to thrive”, Amaechi explained.

Related Topics:featured Why National Carrier project

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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).