In this interview on the sidelines of his recent birthday celebrations, Dr. Kayode Farinto, the immediate past Acting National President of the Association of Nigeria Licensed Customs Agents (ANLCA) speaks extensively with our Assistant Editor; Oluyinka Onigbinde on the state of Nigeria’s Blue Economy, river ports, foreign dominance, indigenous capacity, the Cabotage Vessel Financing Fund,, the Shippers’ Council, and the urgent need for a holistic overhaul of the maritime sector.
- CVFF no longer intact, it was tampered with during Buhari’s government
- There are many untapped resources under our waters
You have spoken in the past about the need for structural reforms in the transport sector. What is your assessment of the Ministry of Blue Economy so far?
If you look at it and say there isn’t national awareness, I will only tell you that before the advent of the Blue economy, I’m one of those that called for it. I remember I used one English, I said we need to “debulkanize” the transportation ministry. And why did I say so? I saw a ministry that was too big and it was not well-harnessed and there were too many things that were lacking, vis-a-vis the fact that the world is a global village and it’s moving forward. When I advocated for it, I said we need to have a Ministry of Blue Economy. It looked as if I was talking to Mr. President one-on-one. And before you know it, when he came on board, this ministry was created.
However, it’s almost two years or thereabout that the ministry has been created. I want to say that it is not at the level it’s supposed to have been by now. I’m seeing a Ministry of Marine and Blue Economy that would have moved farther than this. Two years back, the United Nations spoke about Sustainable Development Goals. There are seven principles of sustainable development goals. If you look at the seven goals, there are areas that talk about aquatic lives, good water and what have you. That is why we are keying in, and that is where the issue of Blue Economy came from.
However, government needs to do more than what is being done now, for the industry to be known and for it to yield more revenue. I see a Blue Economy that, if well harnessed, can generate even half of what Nigeria Customs Service has been generating for the whole year. There are too many things that are lacking and untapped.
How should government structure funding for research and industry education?
The first thing government needs to do is sensitization. They must key in with the maritime industry media. I remember saying it at one of the MARAN forum, that we need advocacy for the ministry of Blue Economy to grow. If you’re talking about advocacy, you must earmark money for research work so we will come out with ideas. If you look at the Blue Economies of advanced countries, you will see we are far behind. In fact, we have not met the Sustainable Development Goals agenda at all. We are very behind. Government should look at media platforms like Shipping Position newspaper, and even online media — and earmark money quarterly for research work and educational advocacy on how the industry can move forward. Government will collate these ideas, form a committee to implement it and move forward.
What is the current state of aquaculture in Nigeria?
In our waters, there are many aquatic splendors being tapped by individuals and government is not making money from it. That is what we call aquaculture. Aquaculture is where you create an artificial environment for aquatic life, nurture them and government makes revenue from it. We do not have it structured properly. Look at the coastal states. How many coastal states do we have? Imbibe Blue Economy into the educational curriculum so that from scratch, a child is enticed and says, “I want to be an expert in Blue Economy.”
How can environmental enforcement be strengthened in port areas?
Go to Tin Can Island port. There are several vessels abandoned there. That is corrosion. The corrosive elements are killing aquatic lives and nobody is penalized. Yet the Nigerian Ports Authority and Nigerian Maritime Administration and Safety Agency collect pollution charges. What happens to that money? These funds should be channeled toward Blue Economy development. There is what we call Blue Finance. Under it, we must protect the aquatic ecosystem, address waste management, and invest in renewable energy. You see the Federal Government removing duty on electric vehicles — that is part of renewable energy. It ensures capacity building in the ecosystem. But above all, we need rejuvenation. A round peg in a round hole. I’m not saying Mr. President cannot appoint just anybody, but we need a coalition of experts — younger, creative, enlightened people. Today in Nigeria, you can renew your passport in two days. It was never like that before. That is courtesy of younger people brought on board. The same innovation must happen in maritime.
How does the absence of reliable data affect maritime policy decisions?
We need institutions with reliable data. This is lacking. How did we know our economy improved in recent months? Courtesy of IMF statistics. There is no domestic data bank telling us clearly what is happening in maritime for empowerment and growth.
What is Nigeria missing in terms of maritime tourism development?
Tourism is another untapped area. I went to Amsterdam and saw vessels that carry people — leisure cruises. We don’t have that here. Someone should be able to leave Marina on Friday night, travel, and return Saturday. Government can acquire such vessels through Public Private Partnership. It’s not more than Six million Euros. You want to visit Cotonou for the weekend? Passport stamped onboard, hotel arranged, return trip scheduled. That is tourism revenue. Even at the Igbokoda area of Ondo state, canoes were operating and improving local employment. We still do not have local boats transporting goods along coastal waterways properly. Yet we have coastal laws that are not being implemented.
How can the Cargo Defense Fund be utilized to empower indigenous shippers?
I remember when we had issues with a shipping company and I went to court. Over N3Billion was won. That money is lying idle in the Cargo Defense Fund with the Nigerian Shippers’ Council. It is meant to empower Nigerian shippers. It is not being harnessed. If I meet Mr. President, I will suggest that whoever becomes Executive Secretary of the Nigerian Shippers’ Council must have a stake in the industry, even a maritime journalist who knows his onions can perform better than a civil servant. Freight forwarders, importers — people who understand the fund — should be involved. But what do we have now? The N3Billion is lying in an escrow account and nobody accounts for it. It is not adding value to the economy unfortunate.
How can National Maritime Day be repositioned as a revenue-generating platform?
Do you know that Egungun Festival, if properly organized by the Federal Government, can generate revenue under the Blue Economy? We have turned the Egungun Festival to a tourist attraction where it has been localized. Nobody from overseas comes purposely for that anymore. These are the things that add value to the Europeans. This will open up our horizon. Imagine if Americans hear Nigeria is celebrating Egungun Festival March 3rd next year and it is properly sensitized, government will generate revenue. So there are too many things that are still lacking and I believe that no Eureka. No Eureka in the sense that, we are not yet at the Promised Land. This is not the kind of blue economy that I want. I want a better one. And I know that there are many lives, many untapped resources under our waterways that government is losing billions of Naira to individual pockets and this is very unfortunate. Tourism, fisheries, cultural promotions are all part of the Blue Economy.
How can civil society increase accountability in maritime revenue management?
I also want to say that NGOs have a role to play to make sure our blue economy is well harnessed and increases revenue generation. This is because I know that if the NGOs key into it and government encourages them by way of subvention, before you know it, we’ll be having a blue economy that will be competing with a general consumption revenue generation.
What is the state of Nigeria’s river ports?
That is a very technical question. Government believes river ports should add more value than they are today. But they are localized and centralized to their locality. They are not opened up. Before you know it, they will start saying there are challenges at the Niger Delta and all that, but these are not issues. The Marine police should patrol waterways effectively. The government should buy speed boats and empower them. The various river ports have not be harnessed properly. I know how much was spent during Jonathan’s administration on the last river port in the East. Immediately after commissioning, no value again. No barges. At a time, barges moved cargo from the East to Lagos. Now it’s gone. River ports are supposed to add value to Blue Economy, but they have not done so. It is very unfortunate.
You have projected that Nigeria can generate a minimum of N3Trillion annually from the blue economy. What empirical indicators support this estimate?
If we harness aquaculture, capacity building and education properly, federal government should generate minimum of three trillion naira yearly. I stand to be corrected. I know what I’m saying. I’m an expert in this maritime industry. Unfortunately, only a few individuals are making mega amounts privately. Yes, we are losing about three trillion naira annually. When I was on the Governing Council of CRFFN, I developed a proposal on indigenization of freight forwarding. It cost me about one million naira to write because I saw it coming, foreigners taking over. They are in freight forwarding. They are in mineral resources. In the far North, crises are linked to mineral plundering. If government does nothing in two years, there may be xenophobic attacks like in South Africa. On our waterways up to 10 nautical miles, you see foreign vessels operating. We don’t even have indigenous ship owners anymore. They are going extinct. On that alone, government can generate over one trillion naira.
Why has successive government struggled to disburse the CVFF?
On CVFF, I stand to be corrected — that money is not intact anymore. It was tampered with during Buhari’s government. Government keeps celebrating readiness to disburse. I say: disburse it. Stop window dressing. If it is intact, show us records and interest accrued over 20 years. If I meet President Bola Tinubu today, I will advise a holistic overhaul of the maritime industry. It is long overdue.
What would a “holistic overhaul” of the maritime industry entail in practical terms?
Bring in experts. Not people with 1973 railway knowledge. Even railways under the Chinese have gone nuclear. You cannot bring DVR ideas into 2026. Whoever becomes Executive Secretary of the Nigerian Shippers’ Council must understand the industry. Not just a Level 14 bureaucrat promoted into office. I once challenged Hassan Bello on container deposit funds and repatriation. If Shippers’ Council does not sign repatriation forms, shipping agents cannot repatriate funds abroad. That is where the leakages are. President Tinubu is trying to revitalize the system, but he needs to do more. If we generate three trillion naira from Blue Economy alone, Nigeria Customs will wake up and increase their performance too.
What are your final thoughts on the above raised issues?
There are many untapped resources under our waters. Government is losing billions of naira into private pockets. That is very unfortunate. We need sensitization. We need research. We need capacity building. We need indigenous empowerment. We need accountability. Above all, we need a holistic overhaul of the maritime industry.
