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THE GUARDIAN, Wednesday, February 20, 2013
MaritimeWatch
Kefas, chairman, NIMASA
Anenih, chairman, NPA
Umar, Transport Minister
The global context, the challenges before new NPA, NIMASA’s boards By Moses Ebosele HE clock started ticking immediately the T boards of Nigerian Port Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) were inaugurated on February 7th, 2013, in Abuja Minister of Transport, Idris Umar, who inaugurated the boards emphasised the expectations of the Federal Government from the new boards and the need for members to abide by laid down performance indicators in the two agencies. Though NPA and NIMASA are not the only Federal Government agencies in the maritime sector, their activities and operations according to experts are critical to the economic growth of the nation in terms of revenue generation, which is next to oil and gas coupled with reported prospects for numerous employment opportunities. Stakeholders in separate chats with The Guardian on Monday appealed to the new NPA board to put machineries in place to decongest the ports in Lagos metropolis. According to them, there is the urgent need to revive existing ports outside Lagos State and where necessary enter into collaboration with the private sector as part of measures to decongest activities in and around Lagos ports. An economist, Matthew R. Otoide said: “The new NPA board should take the pain to find out why ports outside Lagos are not attractive to stakeholders. What is the problem? The challenges should be identified and efforts made to remedy the situation.” He added: “It does not make sense for majority of all the cargo coming into the country to come in through one channel. We must tell ourselves the truth. Lagos is congested. That is one of the reasons why the roads are congested. Apart from making ports outside Lagos viable, the board of NPA should collaborate with the board and management of Nigerian Railway Corporation (NRC). With a viable railway, the congestion in and around Lagos ports may be a thing of the past”. Otoide also used the opportunity to appeal to the members of the NIMASA board to implement fully the Cabotage law and support ongoing efforts to offer prospective Nigerian seafarers adequate training. But, indigenous ship owners, under the aegis of Indigenous Ship Owners Association (ISAN) have threatened to drag the Federal Government to court over the appointments of some members of NIMASA board. General Secretary of ISAN, Capt Niyi Labinjo explained in an interview with The Guardian on Monday that some NIMASA board members are not qualified to occupy their positions. He said section 6 of NIMASA act specify that any prospective board member must have “cognate experience in the maritime sector”, adding that the group would approach the court any
moment from now to challenge the appointment of those who allegedly lack the necessary qualification to be part of the NIMASA board. ISAN is also calling on NIMASA to map out strategists on how to develop the sector by deploying the Cabotage Vessel Financing Fund (CVFF), adding that the fund should not be seen as another source of revenue. Members of the group had also recently urged NIMASA to adopt it as Nigeria’s national carrier. The issue of security in Nigerian waters and alleged theft of crude oil is also expected to be given priority by the new NIMASA board. In a brief interview with The Guardian during the inauguration ceremony in Abuja, Chairman of NIMASA board, Lt Col (rtd) Agbu Kefas pledged the commitment of the board to contribute positively to the growth of the sector, adding that there is need for “attitudinal change”. Chairman of the NPA board, Tony Anenih, who responded on behalf of others after Minister inaugurated the boards said members would strive at all times to maintain a good working relationship. Anenih said, “I want to assure you that we shall dedicate ourselves totally to this assignment. As we all know, the parastatals are at the hearth of the economy of this country. We shall strive at all time to maintain a good working relationship.” The NPA board is also expected to wade into recent protest by workers against reported plan by the Bureau of Public Enterprises (BPE) to concession marine operations. Senior Staff Association of NPA, recently, urged the Federal Government to shelve its proposed concession of maritime services. According to the senior staff, the proposed concession of maritime services if implemented would lead to security threat, loss of government revenue, high cost of services, mass sack and “denial of common user facilities in the ports.” Speaking at an interactive session with journalists in Lagos, President of the Association, Umar Omeiza Jimoh, explained that the decision to concession marine services by BPE was contained in a letter addressed to the managing director of NPA dated January 18, 2013. The letter, according to Jimoh, lacks legal backing, “it would amount to re-concession of already concessioned services under public private partnership.” Umar added, “the move of BPE to snatch marine/harbours ancillary services from NPA has no legal backing and the port activities enable NPA to involve PPP in all her service.
“BPE should remember that the terminals conccesioned by BPE, NPA and other government agencies was done under the port act of 1999.” He described NPA as a healthy organisation, “carrying out all these services beneficially for the nation and there is no need for BPE putting plan for the concession of the services.” The labour leader also advised BPE to stay away from NPA and beam its search light on areas where it has allegedly not performed well. Jimoh said, “NPA is healthy and we are on top of maritime business. BPE should flash its touch light on areas it has not performed well like NITEL (Nigeria Telecommunication), PHCN (Power Holding Company of Nigeria) and others not NPA.” Making reference to the security implication of the proposed concession, the labour leader said, “the country has witnessed enough insecurity in the recent past. With her marine and harbours in the hand of private operators, one can imagine the chaos this will trigger security-wise. “Today, government is earning revenue in its totality from services of marine/harbours and its ancillary services to the port users. If given to private hands, revenue coming to government will reduce tremendously while the cabals will be smiling to the bank and government will be strangulated. NPA has been effectively performing her responsibility in rendering monies to federal government account as when required. “The cost of services rendered at the terminals (concessioned areas) today is three to four times higher when compared to charges of NPA then. This high rate has driven some of our customers to other sub-West African countries. We should be careful. “The level of unemployment in the country is very high which is directly proportional to the level of crimes that have taken all facets of our life. This government is not in support of further loss of jobs both in public and private sectors. BPE, the advocate of job loss, should note that further job loss in NPA would be highly resisted by the entire workforce. It should be noted that as a result of terminal concession, over 8000 of NPA workers were sacked in 2006. “If the BPE is allowed to forge ahead with her plan, common users facilities guaranteed under NPA management of marine/harbour and its ancillary services will not be guaranteed anymore.” Inaugurating the boards, the minister said with the appointment, the Federal Government has bestowed enormous responsibilities on the chairmen and members, adding, “as members of the governing boards, you are expected to work in harmony with the agencies in implementing government policies and pro-
Section 6 of NIMASA act specify that any prospective board member must have “cognate experience in the maritime sector”, adding that the group would approach the court any moment from now to challenge the appointment of those who allegedly lack the necessary qualification to be part of the NIMASA board.
grammes. The minister explained that President Goodluck Jonathan has signed performance agreement with all ministers in his resolve to transform and change the approach to governance in such a way that each sector is challenged to deliver not only on the inputs and output “but also the outcome and indeed the direct impact of each project to the citizenry.” Explaining further, the minister said, “Your appointments into these boards have come at a time when the implementation of the Transformation Agenda of the president is being vigorously pursued. The Maritime Sector remains a key sector of the economy, whose enormous potentials need to be further harnessed to meet the expectation of the government. “It is in realisation of its contribution to the Nation’s Gross Domestic Product (GDP) and the numerous potentials that Mr. President decided to host a Maritime sector retreat in July, 2012. The retreat provided a unique opportunity for stakeholders to identify and highlight challenges and offered suggestions on how to move the industry forward based on four key issues namely safety and security, local content and cabotage, ports and customs and revenue enhancement. “These are the four modules upon which specific finding and recommendations were premised. Let me use this opportunity to inform you that the outcome of the retreat is currently receiving necessary government attention. At the appropriate and in no distant future, an approved action plan on the implementation strategy would me made,” said Umar. He explained that the Federal Government towards ensuring the development of the deepsea ports, adding that the resolve is the ultimate solution to the overstretched existing ports, is making concerted efforts. Umar said, “in this regards, the ground breaking for the actual development of the Lekki Deep Sea Port will be performed soon, while in the case of Ibaka Deep Sea Port, Akwa Ibom State, a steering committee has since been constituted with membership drawn from the Federal Ministry of Transport, Nigerian Ports Authority, Akwa Ibom State government and the Infrastructure Concession Regulatory Commission.” The minister told the board members that the committee has commenced its assignment, pointing out that a transaction adviser has been appointed. He added, “I also wish to state that discussions are in progress between the Federal Ministry of Transport, Nigerian Ports Authority, on one side, the Lagos State government and some investors to develop the Badagry Deep Sea Port. “Efforts are equally in progress for the establishment of a port at Ogidigbe, near Escravos, which is expected to be the hub for gas revolution initiative of the Federal Government