Foremost maritime lawyer; Barrister Emmanuel Osuala Nwagbara in this interview with Roland Ekama talked about the recent Memorandum of Understanding that was signed by both the Nigerian government and a Singaporean firm to engender a national fleet. He also opened up on the Nigerian Maritime Expo and the crisis ridden- Council of Managing Directors, among other things.
What is your view about the appointments of the board members of NPA and NIMASA?
It is very necessary that all the parastatals in the ministry of transportation should have board of directors because the board of directors give general directives on the running of the agencies under the ministry. They give general policy direction and which way the agency should go. The executive directors and managing director or director general as the case maybe, work together and carry the issues that drive the policies that are being guided by the board and if there is no board in place, then it will constitute a clog in a wheel of progress.
How would be the best way for you to react on the move for the government to float a national fleet?
There has been a clamour for the Nigerian maritime sector to own a national fleet for obvious reasons. A country that has national fleet enjoys the prestige in the comity of maritime nations; beyond enjoying prestige and respect, it is this national fleet that will come handy in terms of external aggression because a state has the right to acquire all the ships under its flag and use them to execute war or use them to control external aggression at sea and indeed in terms of other emergence can be positioned for national interest. Therefore it’s a great idea to think of having a national fleet. As regards the arrangement with the Singaporean company, specifically PIL, it is a welcome development but however, I do not understand the broad content of the MoU. PIL is a sister company or affiliate to the Singaporean Port Authority which is purely a shipping company. I don't know how the MoU would result in satisfying or meeting the aspirations of Nigeria having a national fleet, but I think what I know about PIL is not a ship building company and I do not know whether this MoU is looking at supply of ships from Singapore because I know that the country is a ship building country. I don't know whether it will flow in the terms of the shipping company facilitating acquisition of platform from Singapore and in turn being guaranteed by NIMASA for private sector investor in the maritime sector. It is just possible that PIL could act as foreign partners; in this instance ,they could facilitate the building and delivery of new platforms for Nigerian investors because the company is into the ship building, there is more confident that PIL underwriting will be respected and where such company guarantees ship building yards that foreign company that have placed order to perform, it is more likely that the ship yard will have more confidence in building ships for delivery to the foreign company that is guarantee by the local company in the ship builder’s country. But I do not know I must emphasis whether the MoU is looking at that but it’s a possibility. If for instance PIL guarantees a ship building yard in Singapore that Nigerian investors will take all the ships that they ordered for building and pay upfront ,it could even get hold of those ships under despondent ownership arrangement where the Nigerian ship owners take delivery of ships as if they are the owners, operate them and pay over to the facilitators money for the cost of the ships, interest of cost overtime and guarantee by viable Nigerian banks, through viable Nigeria government, therefore if it is in that direction , I am looking at a chain of events where a foreign company guarantees a ship building yard for Nigerian investors ,apparently because the company is also established here in Nigeria, because PIL has its presence in Nigeria. Therefore, it is a confidence- building relationship which is probably a starting point into sign this MoU of fleeting the Nigeria shipping sector, so if that is the direction it is looking at, it is likely that a company like PIL is guaranteeing a ship building company in Singapore to supply ship to Nigerian ship investors and in turn secures a guarantee from NIMASA to ensure that the terms of payment is secured through the ship building yard.
Between a national carrier and a national fleet, which would you prefer for the country?
Fleeting the Nigerian maritime industry is purely a private-driven enterprise and to that extent, I believe that where Nigeria registered companies embarked on procurement of ships of all classes and types and they are just guaranteed by government in terms of their obligations in this area; I think it will give us the opportunities to own many ships under the Nigerian flags. Also, I think that national carrier is suggested to have an element of government participation and I would go for national fleet rather than national carrier, because national fleet would just showcase Nigeria registry, showcase Nigerian name but may not have government element participation or control expect in terms of guarantee obligation which the government responsible for guarantee obligation will also have to take out indemnity in the case of default of the investors who the government is supporting. Therefore it is business all the way, unlike national carrier which may feature representatives of government who may want to exercise control and by so doing nepotism, bureaucracy, tribalism will come into play and at the end of the day, there will be distraction from the aim of the country to be a foremost maritime nation in the world. The aim to create maritime sector that will create employment, put food in people's table, that will expand our economy and all of that may not be achieved if it goes the way of national carrier. But I believe that if we are talking about national fleet, we will have thousands of ships, we will no longer be talking about 29 or thirty ships because government is involved ; rather private investors will go all out if government can guarantee backing of the business they will go all out to acquire thousands of ships that can sail globally and locally.
From a legal point what is your view about the fear that the debts incurred by NNSL may witch hunt this project?
If for instance, corporate Nigeria is owing under Nigeria National Shipping Line because government was a participant in the business of shipping then, national fleet is a different ball game all together because it is a purely private sector enterprise and government has no investment in it rather government only guarantees just like what they do in civilised world; it is just to guarantee investment of creating an enabling environment. It is an investment and it is expected that they should pay back. There is no court or authority overseas that will detain a ship that is in the national fleet, because corporate Nigeria was owing on liquidated NNSL or in any government participating business, therefore it is not correct at all to say that if we have a national fleet which is private sector-driven but backed and encouraged by government, a foreign company will detain a ship flying Nigeria flag under the guise of national fleet.
As a former secretary of the NIMAREX which held in 2015 how true is it, to say that it will hold in the last quarter of this year?
I am not aware that NIMAREX will hold this year; much less next month which is September or October. First, because I have not seen any activities in the maritime industry in that direction. Secondly, I serve as the secretary in the last NIMAREX and naturally, I should show interest in what develops around NIMAREX to be able to have information and I show that interest but no information. Again, it will be too short a period to believe that at the end of August you think it will be easy to plan and execute an event of that magnitude under two months. I don't think it is visible that NIMAREX this year will hold mostly between September or October as speculated. Thirdly, the Maritime Arbitration Association of Nigeria is a stakeholder in the maritime industry and I am the Secretary of that association and we have not been invited to participate; knowing fully that we are stakeholders and we ought to participate. Fourthly, I am not sure that we would have a successful hosting of the event in magnitude of NIMAREX without the ministry of transportation and indeed the parastatals under it and I am also aware that it takes a lot of hard work in planning and to galvanise participants in the country and attract foreign participants to have a worthwhile NIMAREX event. I think the period we are talking about or summarising is too short. But it is not impossible to hold NIMAREX this year and I do support and I urge the minister of transportation to ensure that it hold this year, because it will be impetus to the pursuit to the national fleet that we are talking about. NIMAREX is the rich potential to the maritime sector in Nigeria and a lot of investors have benefited from the industry; courtesy NIMAREX. In fact, the current lull we have in the industry today is because of the absence of NIMAREX this year.
You have been known to be in forefront as Counsel to Mr. Lucky Amiwero in time past. Why did you dump him?
I didn't dump Mr. Lucky Amiwero; I simply felt that I have served his course when it was worthwhile. I am stakeholder in the maritime sector and the step I take is to serve the purpose of the industry, you just have to take it as accomplished, stand up and walk away. I have helped him to realise his balance because he lost his balance and I helped him to stabilise. There was the issue of being beaten by the Police and at a point locked up. I ensured that the situation was brought under control. Then there was a time the Customs beat him and messed him up, and tried to intimidate him with some charges that do not have any basis in the law, I stood behind him and brought the situation under control; there was also a time that a faction wanted to usurp the National Council of Managing Directors of Licensed Customs Agents from Amiwero and I insisted that due process must be followed etc. Now having done all these; like I said I thought he will put in place a process to democratise the association, but regrettable he did not do that and he did not show willingness to do that and since I know that majority of practitioners of the Council of Managing Directors and indeed other stakeholders are of the view and rightly so that it is time to put in place a process to democratise the association, I felt it is time to take a bow because having spoken with Mr. Amiewo on several occasions to put in place a democratic process without rancour and he turned all of those persuasions down ,is time to leave and not to work with the opposition but to work with both sides to ensure that the association is properly positioned through a democratic process for members to have benefit for the association because in a factionalise state, all the members of both factions are joint losers. So when people say I dumped Mr. Lucky Amiwero, I will say it is not right, it is just that I felt I have stabilised his position and I want to do what is right by working with all stakeholders who show interest in the survival of the National Council of Managing Directors of Licensed Customs Agents to ensure that it survives.
Looking at the recent death of the factional president of the association, it appears there is no leader in that group and as an insider what is the best way out?
I think it is up to the order faction to nominate a representative that will continue to press for the coming together of both factions, so that the council will be up and doing again. Apart from that, I think all the elders in the maritime industry irrespective of associations should make an input into the on-going discussion for the Council to be properly positioned and both sides burry their hatchet, come together on a round table and agree to initiate a process that will bring to the emergence of a president or leader that both factions will elect in a democratic manner.
Do you ever regret taking a walk as Counsel to Amiwero?
I am happy and fulfilled and indeed I am particularly happy that I left Lucky Amiwero even before Festus Ejiofor died, because if it were otherwise, one would think that our goal is to edge out Ejiofor dead or alive; no, but I left believing that both factions should come together
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