THEY have shouted themselves hoarse. Several petitions have been written. Numerous presentations have been made. Not even a law enacted on April 30, 2003 has been able to facilitate the lifting of crude oil by indigenous ship owners.
Indeed, the law, which was initiated to bridge the gap between foreign owned vessels and their indigenous counterparts has over the years failed to address the expectations of stakeholders due to alleged lack of adequate commitment on the part of some government agencies to its implementation. The waiver clause in the law has also been identified as an impediment to its implementation.
Besides, while their foreign counterparts are popping champagne due to huge financial returns to the tone of $2 trillion (N300 trillion) yearly, according to the Minister of Finance, Ngozi Okonjo-Iweala, Indigenous Ship Owners say they are at the verge of closing shops.
Quoting from the figure made public by the Indigenous Ship Owners, Okonjo-Iweala said Nigeria loses over $2 trillion yearly to capital flight following inability of indigenous ship owners to fully participate in crude oil exports.
However, some Nigerians argue that Indigenous Ship Owners lack the capacity, while others disagree emphasising that all that is required is adequate government support and commitment.
Under the aegis of Indigenous Ship Owners Association of Nigeria (ISAN), the group at the weekend accused the enforcement agency in the sector, Nigerian Maritime Administration and Safety Agency (NIMASA) of not doing enough to advance their course thereby denying the nation huge prospect for economic growth.
But, when contacted on Monday to react to the accusation leveled against NIMASA by the Ship Owners, the agency’s head of Public Relations unit, Lami Tumaka, simply said: “We (NIMASA) have nothing to say to that”.
In a chat with The Guardian at the weekend, Secretary-General of ISAN, Captain Niyi Labinjo, said those who claim ISAN members lack the capacity are deliberately “misinforming Nigerians”.
According to him, the first step is for stakeholders or anybody who require the services of a ship to sign necessary agreement with service provider.
He said: “The first step is for those who require the service of a Ship to sign an agreement. The agreement would specify the type of ship and what it would be used for. If that is done, the process of getting the ship would follow. You don’t just get a ship and keep it somewhere waiting for those who need it. It is not a car or truck. Several processes are involved. The first step is to sign the contract”, said Labinjo.
The ISAN scribe who accused the Federal Government of not doing enough to reposition the sector through the implementation of the cabotage law explained that as a nation we (Nigeria) are yet to realise that maritime is very important and should occupy the pride of place.
Labinjo said: “We are losing over $2 trillion annually in the maritime sector and that we can create five million jobs. We thought the government has been sensitized enough and would take positive action. Is the action they are taking in the direction of growth?”
According to the group, alleged lack of qualified managers is one of the factors responsible for the present crisis of confidence associated with the sector despite its huge potential to drive sustainable economic development and growth in Nigeria.
Labinjo explained that if adequately positioned, the maritime sector is capable of contributing significantly to the growth of Nigeria’s economy through employment opportunities and contributing to revenue generation more than the oil and gas sector.
He also criticised recent appointment into the boards of some parastatals in the sector, pointing out that those appointed lack the necessary skills needed to reposition the sector.
Labinjo said:“ Why should the government appoint people who cannot add value heads of parastatals? Why should the government appoint people who are looking for jobs into the boards of parastatals in the maritime sector? Who is representing the maritime sector in the economic management team?”
Former President, Nigerian Association of Master Mariners, Captain Ezekiel Adewale Ishola in a chat with The Guardian advised the government to turn around the dwindling fortunes of the sector by facilitating more indigenous participation.
While calling on the government to support indigenous ship owners to participate in the lifting of crude oil, Ishola said Nigeria is the only OPEC (Organisation of Petroleum Exporting Countries) member nation where indigenous participation is not encouraged.
He said the involvement of foreign firms in the lucrative business is responsible for the reported capital flight in the sector, adding that local participation would create jobs, develop the sector and boost the larger economy.
He said: “The government should design a plan for the maritime sector. Indigenous participation should be encouraged. The sector can grow and generate revenue like oil and gas”.
Making reference to capacity building, Ishola said training institution such as Maritime Academy of Nigeria (MAN) should be strengthens are facilities made available for training purposes.
He also called on the government to ensure qualified persons are allowed to served on the boards of parastatals in the sector, adding that “government should make good use of professionals”.
Explaining further, he said when appointed into board position, professional would be in a better position to serve in the interest of the sector.
An economist, Matthew R. Otoide, while urging ISAN to put necessary structures in place said: “Do they have the capacity? Lifting of crude is serious business. It has an international dimension to it. I am not convinced that they can do it. Let them put the structure in place and make effort to collaborate with their foreign counterparts.”
Otoide added: “Do they have the personel? They should compete not just in Nigeria but around the world.
Chairman of the association, Isaac Jolapamo had while addressing members of the ad hoc committee of the House of Representatives which probed the importation of petroleum products into the country during the crisis generated by subsidy removal, explained that indigenous shipping companies have what it takes to freight both crude and refined petroleum products.
He explained that contrary to insinuations, the indigenous shipping companies have the capacity both in terms of vessel tonnage and human resources to freight the nation’s petroleum resources but regretted that they have been sidelined over the years, “The insulation that Nigerian owned shipping companies do not have properly classed vessels is just a clear case of giving the dog a bad name in order to hang it”.
Jolapamo told members of the committee that ships are not items that one buys off the shelf and keep even where there is no assurance that there would be cargo for them to lift, adding that it is very expensive to maintain such idle ships as the full compliments of the crew would be maintained whether she has product to lift or not.
Okonjo-Iweala who spoke at a one-day presidential retreat on maritime safety decried the lack of proper implementation of the cabotage laws to allow indigenous participation in shipping.
The Minister said: “Increasing Nigeria’s participation in this sector will not only ensure that most of these incomes are retained locally, but will lead to increased jobs for Nigerians.
“Philippines for example has been able to position itself as a global supplier of seafarers, creating a lot of jobs and significant foreign income for the country. Why can’t we replicate this in Nigeria?’’
Okonjo-Iweala also said that security threats in the Gulf of Guinea of which Nigeria is a major stakeholder had steadily risen from 45 per cent in 2010 to 64 per cent in 2012 threatening Nigeria’s more than $600m potential in fishing business.
The minister said the development had created major economic problems for the country and should be urgently addressed.
According to the cabotage law, foreign vessels are not allowed to partake in any domestic coastal trade as obtainable in other developed countries of the world, while it will at the same time promote the development of indigenous tonnage and to establish a Cabotage Vessel Financing Fund (CVFF) and for related matters.
The law stipulates that Nigerians should carry goods, passengers by vessel, or any other mode of transport, from one place to another, either directly or via a place outside the country.
It further stipulates that only vessels wholly owned, manned, built and registered by Nigerian citizens, shall be engage in the domestic coastal carriage of cargo and passengers within the coastal territorial inland waters, or any point within the waters of the exclusive economic zone of Nigeria, except a foreign vessel is given waiver by the Minister of Transportation to carry out such job.
ISAN as a group has repeatedly called on NIMASA to wake-up to its responsibilities, alleging that there were influxes of foreign vessels into the country, adding that it should be stopped.