No doubt, the Nigerian maritime industry remains an interesting component of the nation’s economy. The sector is second to the oil and gas sector in terms of revenue earnings; it is also the pillar on which the huge revenue from the oil and gas rests.
There are institutions and personalities who run this industry, and whose actions or inactions determine so much of what makes the industry tick, thin, bright and gloomy. These persons and places hugely determine the shape of the industry.
In our annual once-in-a year forecast (People and Places to Watch), we bring forth (not in any particular order) these institutions and persons which and who we think will not only make huge headlines, but will also shape the Nigerian Maritime Industry in 2020.
The Nigerian Maritime Administration and Safety Agency
Right from the immediate past administration and to the current one led by Dr Dakuku Adol Peterside, the Nigerian Maritime Administration and Safety Agency (NIMASA) has always been in the news, in most cases for the wrong reasons.
NIMASA is the nation’s apex maritime regulatory agency, accountable for safety of cargoes, ships and crew on board, shipping development, maritime labour, capacity development and Cabotage, among others.
By virtue of the above responsibilities, the agency has always been of interest, not only to maritime industry stakeholders, but Nigerians as a whole.
For as long as we can remember, piracy and sundry maritime crimes have been a pain in NIMASA’s neck. The statistics are a common knowledge and are not positive at all, even after the global maritime conference during which the who-is-who in maritime safety and security from across the globe converged in Nigeria.
It may be apt to infer that the huge amount spent on hosting the global maritime conference in 2019 has not yielded the desired result, rather it has angered pirates into more daring assaults. 2019 ended with Nigeria assuming the unenviable ranking of epicentre of piracy in the Gulf of Guinea and a reference point globally.
For the recurrent embarrassment that piracy and maritime crimes Nigeria have become, NIMASA will feel the heat again this year.
Since the announcement was made that the Cabotage Vessel Financing Fund (CVFF) would soon be disbursed, there have been issues surrounding who qualifies and how it must be shared. The disbursement and the cacophony of interests in the Fund will surely put NIMASA in the spotlight. Apart from the issues above, perhaps NIMASA’s greatest headache is the inaccuracy of the figures been bandied about as the actual portfolio of CVFF. NIMASA will struggle with its image to push out and defend whatever figure it finally announces.
The Nigeria Ports Authourity
The Nigeria Ports Authourity(NPA) along with its Managing Director; Hadiza Bala Usman ‘fought’ some battles in 2019, that will ‘hunt’ them in 2020.
No doubt, Hadiza Bala Usman has succeeded in changing the narratives at the NPA, so much so that virtually all stakeholders now see the agency as a model, especially in the areas of revenue generation, service delivery and many others. The statistics for 2019 is a good indication that all is well at the NPA.
But last year, the managing director led NPA into three major battles, first with INTELS over concession of certain services at the Federal Ocean Terminal, Onne port, then with BUA Industries over a terminal in Port Harcourt port. The last ‘battle’ was against Ocean Marine Services Limited over the provision of Secure Anchorage in Lagos.
Without equivocation, the three issues above will put NPA and its Chief Executive Officer in the eye of the storm this year, hence NPA is a place to watch keenly.
For obvious reasons, the attack on INTELS is politically motivated, as with previous attacks, which simmers down immediately after elections. But the heat is always later turned on the instrument.
As for the ‘fight’ with BUA over the Port Harcourt terminal, those who know the history and economics of northern Nigeria and especially Kano, point at the lineage of the owners of BUA as deeply-rooted. They argue that, on the surface, NPA’s claim over the BUA Terminal in Port Harcourt Port sounds surefooted, but when dug deeper, it seems like there may be more to it. They point a contentious issues of obligations on the part of the NPA, they argue that there may be more to the decommissioning the BUA Terminal than meets the eye.
The contract for the provision of Secure Anchorage services in Lagos predates the present administration of President Muhammadu Buhari. It was awarded at the peak of attack on ships in Lagos, that was during the regime of ex-President Goodluck Jonathan. Of course, it was allegedly awarded to ‘a party member’.
Until the outburst against the contract, stakeholders, especially multinational shipping lines which patronise it, confirmed that the Secure Anchorage Contract was worth it.
This is one battle that NPA may not want to lose, its determination to see Messrs Ocean Marine Services Ltd out of the Lagos Anchorage may further draw negative attention to NPA in 2020.
The Maritime Workers Union of Nigeria
Certainly, the Maritime Workers Union of Nigeria (MWUN), under the leadership of Comrade Adewale Adeyanju had a good run in 2019, which climaxed in the payment of the much-delayed severance package to tally clerks and on-board security men who were disengaged.
Apart from the payment, the union was also able to secure the much-needed conditions of service for dockworkers, among other things.
We also recall that through the National Joint Industrial Council agreement (NJIC), the union was able to get the Nigerian Maritime Administration and Safety Agency (NIMASA), shipowners and the union to sign the Collective Bargaining Agreement, for seafarers.
However, the leadership of the MWUN failed to secure payment of wages owed dockworkers by International Oil Companies (IOCs). This was eve after a strike was embarked upon.
Like we said earlier, the MWUN did well for its members in 2019, but one issue which may hunt the union and its leadership in 2020 is the increasing cases of cargo theft for which dockworkers have been variously fingered.
Yes, the President General did well by dissociating dockworkers from theft and container broaching in the ports, but many port users insist that there are some bad eggs in the family of dockworkers. The union leadership will need to do more in 2020 to avert negative attention which may dwarf its achievements.
The National Inland Waterways Authourity
In 2019, a new Chief Executive was appointed for the National Inland Waterways Authourity (NIWA). Chief George Moughalu took over from Dr Olorunimbe Mamora who also had little stint as the head of NIWA before eventually becoming a Minister.
Because he did not stay long enough, Mamora could not be said to have achieved much, aside from using his Lagos state ‘indigeneship’ to force NIWA and the Lagos state Government into a family resolution of the supremacy battle over control of navigation and other rights on Lagos waters.
From successive chief executives of NIWA (including Mr Boss Mustapha), the battle over Lagos has been unresolved; leading to litigations. The unresolved litigation may rear its ugly head in 2020.
It is saddening to note the new CEO saying that NIWA is not known, yes, it is not known to many Nigerians. And that is why from Lokoja (its headquarters) to Baro, Onitsha, Warri and to other littoral towns, the superintending agency is little known, perhaps due to little efficiency.
The NIWA (and its CEO) will be in the news in 2020 for the wrong reasons, namely: boat accidents, the state and fate of the river ports in Onitsha, Baro, Oguta, Lokoja.
The agency will be more in the news over its readiness to stem the tide of boat accidents through enforcement of safety measures.
It will also have to contend with agitations over the concession of Onitsha and Baro ports.
The Association of Nigerian Licensed Customs Agents
For the greater part of its almost two years in office, the incumbent leadership of the Association of Nigerian Licensed Customs Agents(ANLCA) has not had a firm grip and control of the association. Its President; Mr Tony Nwabunike battled internal schism, occasioned by the outcome of the elections that brought him to power.
The two main organs of the association, that is the NECOM and the Board of Trustees were sharply divided, these went on until late 2019 when a semblance of hope appeared after the President announced the recall of the leaders who had been suspended in the wake of the in-fighting.
Since the recall became public knowledge, there have scepticisms, many say it may not last, while others say that beyond the pardon, there is need for genuine reconciliation among members of ANLCA.
In 2020, ANLCA will be watch on our watch list. There are issues that will put the celebrated reconciliation to test. Two main issues – composition of the chairmanship of the Board of Trustees, and elections into some chapters of the association, will shake the famed reconciliation.
The Council for the Regulation of Freight Forwarding in Nigeria
If there is any institution that has had a rancorous existence in the nation’s maritime industry, it is the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).
From inception, it has grappled with survival, it has been subjected to attacks by its own people (freight forwarders); for many years, it had no governing council, it also battled with funding.
It also had identity crisis as freight forwarders fought and even went to court to seek clarification over its status as a government agency or otherwise. As a further proof of its confused leadership, in its short lifetime, the CRFFN has operated from four different head offices (all rented), It started from Victoria Island in Lagos, moved to Abuja and back to Apapa GRA in Lagos, before it went back to Abuja and finally relocated to its present location in Lagos, which is a government-owned property.
The above were part of the history that ushered CRFFN into its present disposition which from all indications will be better.
Of course, CRFFN will be in the news in 2020 for the simple reason of collection of the Practitioners Operating Fees (POF). The novel idea, the huge accruable, the mode of collection, its sharing formula and of course, the relationship between the CRFFN and its five registered freight forwarding associations, will all combine to put the Council in public glare this year.
Since its creation, 2020 will definitely mark a new beginning for the CRFFN. This new era will need to be well managed by both the management of the Council led by the Registrar; Mr Sam Nwakohu and the Governing Council, led by Ahaji Abubakar Tsanni.
Already, ahead of the imminent commencement of collection of the POF, there are agitations among freight forwarding associations. This is even as an agreed sharing formula has been worked out. If collection and appropriate sharing of proceeds of POF does not tear CRFFN and its components apart in 2020, the nothing else can.
The Nigerian Shippers’ Council
No doubt, the Nigerian Shippers’ Council (NSC) enjoys a prominent place in the heart of maritime industry stakeholders.
Right from when it was only responsible for just shippers, and on to when the Federal Government added new responsibilities to the Council and it became the Economic Regulator of the ports, the Nigerian Shippers’ Council remains the toast of all. It is blessed with an approachable and amiable Chief Executive.
Nothing shocked maritime industry stakeholders last year more than the refusal of President Muhammadu Buhari to give his assent to the National Transport Commission (NTC) Bill. The Nigeria Shippers’ Council had done everything humanly possible to see that Bill passed and was waiting for what was to be a formality.
The Bill was to transmute the Council to the NTC, a development that everyone was waiting, until it became obvious that certain interests were uncomfortable with the likely position of the Shippers’ Council once the Bill was signed by the President.
The NSC is likely to go ahead with the Bill, by seeing that it is represented to the 9th National Assembly, for the ‘unacceptable clauses’ to be removed. If this happens, then the Council will be high on the watch list in 2020. If this is done, the Council will need to watch its shoulder!
Apart from the NTC Bill, the NSC will be prominent in 2020, if it succeeds with the plans to see the commissioning of more Inland Container Depots. It promised to see two commissioned.
Discussion about this post