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Home » Again 2021 Ends With NIMASA Floating Dock Untested, Idle Three Years After Purchase

Again 2021 Ends With NIMASA Floating Dock Untested, Idle Three Years After Purchase

by Joshua
December 20, 2021
in News

Despite promises by the Nigeria Administration and Safety Agency (NIMASA) at the beginning of the year to put the N50 billion floating dock to use, investigation by Shipping Position Daily has revealed that the floating dock has remained idle three years after purchase.

NIMASA Floating Dock

Recall that the management of NIMASA had in 2018 procured a floating dock for about N50bn, expected to generate N1 billion monthly or N12 billion yearly, when fully operational. However since the purchase of the floating dock, it has since remained idle thereby losing out on huge revenue earnings.

Shipping Position Daily also recalls that during a courtesy visit to the Nigerian Ports Authority (NPA) in June 2020, the Director General of NIMASA, Dr. Bashir Jamoh, had assured that the floating dock should be operational by the end of July 2020. The NIMASA DG also said that the facility would employ hundreds of Nigerians directly and also earn huge amounts in revenue for the country.

He had said in June 2020: “We are finalizing arrangements with the NPA to get a permanent berth for the floating dock and by the end of July, this facility should be operational. The interesting thing is that, aside from earning a huge amount of revenue, it also has the capacity to employ over 300 Nigerian youths directly”.

However, about one year six months after those assurances, nothing has been said or heard again about the floating dock.

In a chat with our correspondent, the President of SOAN, Dr. Mkgeorge Onyung explained that what has happened to the floating dock is due to the fact that no stakeholder or ship-owner was consulted before the facility was procured by NIMASA. According to the SOAN President, “SOAN is currently suggesting an idea to NIMASA concerning the floating dock.

“Ship owners who are supposed to be benefiting from the floating dock now see it as a problem to the maritime industry, because the facility is sitting down there idle, doing nothing. We are now thinking of proffering a solution that will be a win-win for everybody and save the country the embarrassment. The floating dock has become an embarrassment, so we want to proffer solutions to NIMASA. We want to engage NIMASA in such a way that we can find a solution to the current situation the country finds itself concerning the floating dock.

“We were not consulted when this floating dock was procured, no ship owner was consulted. That is where NIMASA made a mistake. The agency bought equipment that is not of use to anybody due to non-utilisation. The floating dock has not been utilized at all since purchase. That is why we are set to make a suggestion to NIMASA in order to enhance shipping development and ship repairs.”

Read Also:  NIMASA Cuts Offshore Stevedoring Rates

For the Nigerian Association of Master Mariners (NAMM), the procurement of a modular floating dock by NIMASA was a misplaced priority that shouldn’t have happened. The President of NAMM, Captain Tajudeen Alao, had recently explained to our correspondent that instead of NIMASA dabbling into the ownership of a floating dock, NIMASA ought to have backed some private organizations in the ownership and operation of the facility.

According to Captain Alao, “First of all, it was unfortunate that NIMASA dabbled into such a venture of procuring a floating dock. This is entirely outside the scope of the agency. The Shipping Act of 1987 is quite clear on this; the agency is to promote shipping not dabble into shipping. Also the Cabotage Act of 2003 is clear on the roles of NIMASA as regards shipping, NIMASA is to support shipping with funding through the Cabotage Vessel Financing Fund (CVFF), not to partake in the shipping business.

“Moving forward since the deed has been done, NIMASA should be ready to let go of the floating dock to private operators. The agency should allow private operators to operate the facility while it gives the necessary backing, otherwise, the government will continue to spend money on wasteful ventures. For the past three years, the facility has been lying idle, doing nothing and NIMASA has been paying the Navy for keeping the facility safe and intact. Economically, this is wasteful. NIMASA can auction it or give it to private operators to run.”

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