Following the schedule and subsequent cancellation of the Nigerian Presidential and National Assembly elections at the weekend, Nigerian ship owners have raised alarm on the billion of dollars incurred as a result of the cancellation.
Speaking with Shipping Position Daily in Lagos yesterday, President of Nigerian Shipowners Association (NISA) Alhaji Aminu Umar said the uncertainty in the elections has equally led to an increase in insurance premium paid by the ship owners as a result of perceived risks.
He said that some of the shipping companies have since closed shop at the weekend to allow their staff travel for voting, however many of them have not recovered because they are unsure if the elections would hold this weekend.
Umar lamented that ships are picking cargoes but they cannot discharge them, while demurrages accrued. He also said that tank farm owners at the weekend could not take delivery of products because of the closure in business.
He said "We have our customers crying because of their tank farms have been shut down, the truck drivers that are supposed to load cargoes out of the port have closed and gone, trucks have loaded cargoes but are left at the terminals because the drivers have disappeared to go and vote"
"In terms of shipping activities, it (elections) has tremendously affected us, most of our importers and exporters have closed down their companies, most of us have closed down in order to allow some of our staff to be able to partake in the voting, unfortunately the date has been changed and this has impacted negatively on business"
"Some of the companies have not recovered because they are unsure if the staff should return or stay there, and if they should come back, does that mean they are not going to vote again? These issues have impacted on various communities"
"I cannot quantify the losses on monetary terms, but for a whole industry to shut down for over a week, it shows you the kind of losses that companies are facing, remember that overhead cost of the company is still running, it is the revenue that is not coming, the interest at the bank is also running, your staff salary is still there, even if he is not at work you have to pay him"
"So, the losses to be honest with you is in billions of dollars that shipowners have lost in this one week" he said
According to the shipowner, instead of taking two days, most shipping company staff have now taken one week, and it is after the elections before activities can normalise.
"The uncertainty brings increase in our insurance, whenever any uncertainty comes in, the risk becomes high, so our insurance premium have gone up because of the risks" he added.
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