Maritime
Farinto Identifies Barriers To Intra-African Trade
Former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, has identified concealment of information as one of the stumbling blocks to the successful implementation of the Africa Continental Free Trade Area (AfCFTA) in Nigeria.
Farinto stated this in a paper titled, “AfCFTA: Dismantling Trade Barriers, Navigating Regional Trade”, which he delivered at the 2024 MARAN Annual Maritime Lecture, MAMAL, held in Lagos on Thursday, said pretending that all was well when it was not true would be the greatest undoing to Nigeria as country in maximizing the benefits inherent in the continent-wide trade.
According to him, “Nobody expected a hitch-free take off but we should stop pretending and deceiving all Nigerians as if all is well. We are all aware of the controversy surrounding the first shipment under AfCFTA where, according to Mr. Segun Olutayo, leaders of the AfCFTA Coordination Office in Nigeria endeavoured to window-dress this controversy by saying that receiving Certificate of Origin under AfCFTA is only a preliminary step akin to a starting point and does not necessarily indicate that a shipment has been made.
“It’s high time we stopped this our attitude where we conceal and distort real information to confuse and convince Nigerians that all is well when we know that with speaking out, people can profer solutions to whatever problem that arises.
“Giving out accurate information is one of the factors that can make AfCFTA a success (through information management).
“Concealing information from the public is not part of good information management and it runs negatively against the Freedom of Information Act. There’s nothing wrong with confirming to stakeholders when issues go wrong. All that is needed is allay their fears that whatsoever that is wrong can be corrected”.
He stated that if the Africa Continental Free Trade Area must succeed, the Nigeria Customs Service (NCS) must play a pivotal role in this, adding that one of the things that must be done was to ensure that trade was facilitated.
He said, “I watched with keen interest, Nigeria’s participation in the Biachara Africa 2024 Summit in Kigali where Nigeria businesses showcased their offering and was also delighted to hear a commital statement from the Comptroller General of Customs of the NCS, promising to ensure that trade facilitation becomes the focal point of the Service going forward, which has obviously been downplayed before now.
“It is not out of place for NCS to roll out her Standard Operating Procedure, SOP for AfCFTA.
“However, I am glad to inform this gathering that the NCS, for once, seems serious about facilitating good trade. I rely on a recent circular released to her officers to ensure that issues of alerts are not only streamlined but its incessant be addressed where every Deputy Comptrollers in charge of revenue has been given a marching order to ensure compliance by their officers.
“What is only needed to be added is sanctions for non-conformists. If this is achieved, the major monster that can kill the Africa Continental Free Trade Area agreement has been successfully eliminated”.
Insisting that the Nigeria’s maritime sector had not fared well in logistics management, he blamed it on the nation’s inability to embrace multi-modal transport system, noting that Nigeria’s reliance on road sector alone was a stumbling block and a barrier to free flow of trade.
“The Ministry of Marine and Blue Economy needs to liaise with the Ministry of Trade either on a Private Party Agreement (PPA) or taking it as her core responsibility to ensure that our over reliance on road is stopped.
“There is need for rail connectivity between the hinterland and our ports. Barge operation should be employed to reduce the congestion and traffic on road and to save time for the success of the Africa Continental Free Trade Area Agreement”, he said.
Noting that non-tariff barriers including technical barriers were very many in Nigeria, Farinto said virtually all federal government regulatory agencies had one fine or levy which he said was killing trade.
“Take for example, a regulated item by either SON or NAFDAC must pay many levies or taxes such as import permit, MANCAP, money for examination to be conducted, fees to be paid before labelling rights are granted”, Farinto said.
Earlier in his welcome address, the President of the Maritime Reporters’ Association of Nigeria (MARAN), Mr. Godfrey Bivbere, who acknowledged that AfCFTA represented a groundbreaking initiative by the African Union, designed to create a single market for goods and services, promote free movement across borders and unlock the immense economic potential of the continent, however, identified barriers such as inadequate infrastructure, regulatory bottlenecks and operational inefficiencies as hampering the seamless flow of goods across the continent.
He, therefore, said for Nigeria to maximize the benefits of AfCFTA, it must address critical requirements including: Improved Trade Infrastructure -Enhanced Roads, Transit Trailer Parks, and functional scanning facilities at ports; Efficient Procedures – Compliance with Rules of Origin (RoO) and streamlined export processes as well as Capacity Building – Training Customs officers and other stakeholders to align with AfCFTA protocols.
Others, according to him, include investment in maritime assets: “with intra-African freight expected to increase by 28% and maritime demand by 62%, we need significant investments, including the addition of 100 vessels to facilitate transport as well as Leveraging Technology and Innovation to Facilitate Trade.
“As laudable as AfCFTA is, some persons in Nigeria are worried that our lack of infrastructure (mainly energy and road) and inconsistent policy will continue to affect our production level.
“They are concerned that as a result of our low production capacity, our initial gain of shipment outside the country may fizzle out when other African countries with better production environment begin the shipment of their goods, while Nigeria may end up becoming a dumping ground”.
By: Stories by Nkpemenyie Mcdominic, Lagos
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