Maritime
Ports Dev And Policy Implications
There is a popular saying that “when two elephants fight, the grass suffers” this scenario could better explain what has come to be of the Nigerian Port Authority (NPA) with the policy of ports concession introduced a few years back after a very serious clash of interest between the government and the Maritime workers Union of Nigeria (MWUN), over the policy.
The federal government embarked on privatisation and commercialisation of Nigerian ports, policy in 1991 which eventually disengaged over 8,000 officers and staff of the authority.
Out of this number terminated that year, about half were professionals, trained by the authority in various universities abroad and two-thirds of the remaining number were people who understudied the Hamburg Port Consultant (HPC), according to records.
Port experts from Germany had operated the Nigerian ports effectively, before some greedy Nigerians who envied their position maneuvered to chase them out of operations and quickly occupied their quarters which were given to them for their services as consultants.
When these foreigners were in service as expatriates, both revenue and operations were not disrupted, as operating cost and wastage in term of fraud was almost absent.
From records, operations of the NPA began to dwindle when Nigerians who understudied the expatriates with the view of taking over from them, as well as the majority of the middle-level manpower who were trained in various universities and ports all over the world were disengaged, leaving about one third of the workforce.
As a result of this, much pressure mounted on the remaining workers, and there was serious cargo and ship congestion to the extent that office staff, including typist were deployed to the traffic department, on board ships, at shore quay apron and staking areas of operations.
As unskilled labour then, a lot of things took place among shipping companies, freight forwards and stevedoring companies. A lot of losses were recorded by the NPA, forcing the authority to go into mass employment of graduates, secretaries and other required officers, who were used to fill the gap so created by the rationalising policy.
That apart, today, another policy popularly known as port concessioning has been introduced, without minding the consequences, not only to the maritime sector, but to the economy also. Developed economies that opted for concessioning did put their economic indices intact, but our economy is so loose and almost unregulated.
The Structural Adjustment Programme (SAP) we thought would improve our economy just led to more debt and borrowing, whereas in other developing economies, the policy improved their economy, and we are living testimonies that the negative effect of SAP is still telling on the Nigerian economy.
Then military head of state made a significant statement that “Nigeria’s problems have defied all economic principles, and are we sure the leakages that pushed SAP to our optimal financial mess will not repeat itself?
Port concessioning chronicled from port privatisation, which means that most of the area of services in the port will be privately operated under a lease agreement.
The term concessioning agreement means that NPA is restricted to being a regulatory body of the port (landlord) and will no longer offer services, as the role of NPA on the new arrangement could be said to be mere fanciful.
The NPA lack the political will and could not check the concessionaire firms, even the charges they impose on importers for one service or the order. Importers who may be compelled to use the services of these private firms cry over high charges, as the NPA can not dictate how much charges the firms should impose on their client.
Such scenario will also lure the multinational shipping companies to introduce multiple charges on Nigerian importers and the effect will be transferred to the Nigerian consumers.
Talking about duplicated charges by shipping operators, it was sometime reported that the Nigerian Shippers Council (NSC) detected about eleven charges imposed by the multinational shipping firm, some of which are not applicable in Nigerian ports.
Such charges include: Shipping companies terminal charges, terminal handling charge; transfer charge; port operations surcharge, commission on turn-over charge, documentation and administrative charge, manifest amendment charge, container deposit, container demurrage and rent/equipment charge. Apart from the above charges, NPA still collect some of their charges from importers.
In the Rivers Ports, especially the Port Harcourt port complex, the activities of some concessionaires create room for one to question the viability of the policy in terms of accelerated development and employment generation.
The Bua ports and Terminal Limited, one of the concessionaires in Port Harcourt wharf had apart from reducing the workforce it inherited which are mostly dock labour workers, it has also up till now failed to rebuild the collapsed quay apron (Berth) in its area of operation.
One could begin to wonder if the terms of concessioning agreement did not cover the aspect of port development and other areas like development of the host communities within which the concessionaires operate.
Rather than pursue programmes that will upgrade the general port condition to make it better than how they met it, some of these concessionaires had remained adamant to issues of port development and employment generation, and this simply suggest that their focus is only on how they will maximise profit, and whatever the effect, implication with respect to their activities on the environment is not much of concern to them.
On the part of the NPA that has lost substantial number of their professional manpower to the concessioning policy, it has now known that most of those staff lost through retrenchment in concessioning are still needed to run the organisation, particularly for those vital technical and specilalised areas that could not be easily be replaced.
In that regard, the NPA had turn-around to re-engage some of these old staff so as to enable it cope with the work load and dire demand for adequate manpower to accomplish stated goals.
From all indications. The new regime of port concessioning has not yeilded the desired objective so envisaged. In the past six years of its implementation. Rather than create employment, it has reduced the workforce, and on the other side, the development of both the port environment and the host communities have not been properly attended to.
The fact that the NPA is still in need of some of the staff it lost to the concessioning policy, for which it engaged some of them on contract, and the fact that port development so envisaged as well as in employment which had not changed suggest that the concessioning policy though might be good, but the timing and implementation leaves much to be desired.
It is ideal that policy makers take their time to look at the various aspect of the implication, irrespective of the perceived profits.
Corlins Walter
The Managing Director of National Inland Waterways Authority (NIWA), Mr. Bola Oyebamiji, has called for increased collaboration between the federal agency and state governments to enhance the safety and security of inland waterways transportation.
Speaking at a one-day consultative forum on safety and insecurities on inland waterways, organized by the Nigeria Transportation Commissioners’ Forum in Ilorin, Oyebamiji emphasized the critical role that safety and security play in fostering a thriving water transportation system.
The forum, themed “Prevalent Safety, Security Hazards and Practices in Inland Waterways: Passenger Transport Safety in Ilorin, Kwara State”, sought to address the pressing issues facing the inland waterways sector.
Oyebamiji acknowledged the ongoing efforts by NIWA to improve safety, such as the recent unveiling of the transportation code for public use, the inauguration of several operational assets including survey boats, gunboats, water ambulances, and a passenger ferry.
He also noted that safety campaigns have been launched across all operational bases, targeting local communities in their native languages.
The NIWA boss stated the support from the National Assembly, including the ongoing discussions on establishing coastal guards and the attention safety and security on inland waterways have received from the House Committee on Inland Waterways.
In his closing remarks, Oyebamiji appealed to the Commissioners for Transportation across relevant states to collaborate with NIWA in areas such as training, safety campaigns, infrastructure development, and financial empowerment.
He stressed that while the challenges are significant, they are surmountable through collective action.
The Federal Government has conveyed its support for the establishment of the National Coast Guard.
The Government also commended the proponents of the bill for having the hindsight to initiate a course of action that, when passed, will be the catalyst needed in unlocking the nation’s maritime potential.
In a statement by the Head of Press, and Public Relations for the ministry, Muhammad Tahir Zakari, Minister of Marine and Blue Economy, Adegboyega Oyetola, was reported to have made this known at the National Assembly complex at the 1-Day Public Hearing on National Coast Guard Bill (NCG).
The statement stated that the bill when passed, will guarantee maritime safety, sustainable marine resource development and enhance economic growth.
Highlighting the major need for the National Coast Guard, the Minister identified: Maritime safety; Environmental protection through enforcing environmental regulations and conservation of marine ecosystems; and Enforcement of civil maritime laws to uphold laws governing civil maritime activities and enforce fishing regulations while preventing illegal exploitation.
It also include search and rescue to maritime emergencies and also conduct timely search and rescue operations.
He cited a 2009 publication by the African Centre for Strategic Studies, which noted that 15 of the 21 independent maritime nations in sub-Saharan Africa have dedicated coast guards and identify themselves as such.
Despite this, none of these nations have Nigeria’s population or the extent of its inland waterways and coastline.
While acknowledging the significant role of the Nigerian Navy in safeguarding the Nigerian maritime space following the collaborative effort with the Ministry of Marine and Blue Economy in the Deep Blue Project, which has shown great results with zero piracy in Nigeria’s territorial water in the last three years.
He, however, stressed the need for the National Coast Guard to complement the efforts of the Nigerian Navy in playing a critical role in preventing accidents, crime, and other threats to maritime activities
“A vast coastline of 850 km, the equivalent of 10,000 km in two ways. It is also a place of rich and diverse economic sources.
“While these opportunities are promising, they also present challenges such as pollution, overfishing, and unsustainable use of marine resources. The proposed National Coast Guard is equipped to tackle these issues”, he stated.
He urged the Senate and the National Assembly to lend their full support to the bill, noting that, “Nigeria Coast Guard will act as a vital complement to the Navy, of fostering a safe and sustainable maritime environment”.
He appealed for the establishment of a flexible, adaptive implementation strategy that would evolve into a midwife for the bill to succeed, while urging those with reservations to see the pressing need of the institution.
Earlier during the hearing, the President of the Nigerian Senate, Godswill Akpabio, commended members of the Committee on Marine and Transport for their unwavering dedication in piloting the initiative and advocating for the establishment of the National Coast Guard Bill.
Akpabio, represented by Sen. Akintunde Yunus, said the essence of the bill was to make critical decisions that will guarantee the safety of the nation’s waterways and protect the marine resources.
He stated that “the establishment of the National Coast Guard is not merely a legislative formality, but a dire necessity”.
Speaking also, the Chairman, Senate Committee on Marine and Transport, Sen. Sanni Eshinlokun, said the Bill was first read in the Senate on the 3rd of October while the Senate at its plenary deliberated on the General Principles of the Bill.
Senator Eshinlokun said, “The Bill was read for the second time and referred to the Senate Committee on Marine Transport for further legislative action.
Former Executive Secretary of the Nigerian Shippers’ Council (NSC), Barr. Hassan Bello, has charged the Federal Government not to designate any of its agencies as the lead agency to drive the blue economy if it actually wants Nigeria to make progress in the sector.
Bello, who made this call in his remarks at the 10th anniversary, lecture and awards of the Primetime Reporters in Lagos, midweek, advised the Federal Government to avoid the mistake made during the Cabotage era when it designated an agency as lead agency and the rest was now history.
He said for the sector to succeed, it required everyone’s contribution, urging the Minister to allow the private sector to drive the blue economy.
According to him, “Two things which we must be very careful about is to make.mistake, like we did with cabotage. If we remember carefully, Cabotage was coastal and Inland shipping, but that inland shipping was not emphasized.
“It was just for supply of oil and gas to the mother vessel, we couldn’t trade as we were doing from Asaba to Baro in Niger State, or carry cement or even petroleum products. So, we cannot restrict that to customs.
“Secondly, don’t give the Blue Economy to an agency to say it is the lead agency because everybody must have contributions to the Blue Economy. As we want to do, we have seen agencies struggling to have seminars on Blue Economy, it’s not even a government thing.
“Allow the private sector to take over this blue economy, don’t create fantastic departments and overload into the private sector. This is what is our problem.
“When we had the Cabotage, it was a NIMASA thing and when you talk about Cabotage, no! don’t go there, what is your own with Cabotage? So, Cabotage was colonized, the Blue Economy should not be colonized. We should have the ramification of that Blue Economy to make sure that everything trickles down”.
He however, noted that there had been a lot of progress by the various organs of government even before the designation of the Blue Economy Ministry saying, “Blue Economy has always been there just as we had the red economy, which is characterized by China’s quest for export for state directed economy.
“We even have the grey economy, which is that which is informal. We have the green economy and all shades of economy. So, it’s not new that we have the Blue Economy, what has been the call by stakeholders is for us to have a ministry that will cater for transportation and transportation is a cardinal or even the paramount part of the Blue Economy.
“I know we have sustainable use of ocean resources and many other things, but when you talk about the Blue Economy, the central point is the use of ocean and the inland waterways and other resources for diversification of our economy as the Convener has said”.
“We have to be conscious, concerted and even calculated to make sure that it works for us. It’s not just fancy thing that there’s a ministry for blue economy. There must be active participation of stakeholders and the involvement of the private sector to harness the resources and not anything fancy or pretentious. The government must involve the private sector.
By: Stories by Nkpemenyie Mcdominic, Lagos