“The next priority thing to do is to get our jobs back which we shall do immediately. We will get our jobs back so that all those usurpers can then leave our shores and we take over our jobs.” That was the charge of the newly-elected chairman of Nigerian Shipowners Association (NISA), Capt Niyi Labinjo shortly after his election about two weeks ago.
“The next priority thing to do is to get our jobs back which we shall do immediately. We will get our jobs back so that all those usurpers can then leave our shores and we take over our jobs.” That was the charge of the newly-elected chairman of Nigerian Shipowners Association (NISA), Capt Niyi Labinjo shortly after his election about two weeks ago.
Capt Labinjo was apparently aware of the age-long plight of indigenous ship owners who have consistently claimed to be on the receiving end in the lifting of Nigeria’s dry and wet cargoes. He therefore chose no other opportunity than his first day as the new NISA chairman to declare what his interests would be. Whether or not his tenure will bring the much-desired change is another thing altogether.
His predecessor; Chief Isaac Jolapamo spent the 10 years during which he presided over the association to sing the same song –a song of marginalization of Nigerian shipowners.
The INSA chieftain, at a recent event shouted for the umpteenth time that about 50 percent of ship owners in Nigeria have been out of business in the past few years. Those still operating are battling to stay afloat owing to huge debts incurred by most firms.
Jolapamo, had attributed the cause to lack of access to loans, huge debts and poor business environment that have combined to derail growth in the shipping sector.
He said: “I owe banks billions of naira and I have nothing to show for it. I knew about shipping in my 20s, I did star shipping in my 30s and now I’m close to 70 and I haven’t made headway.”
His case is representative of many members of NISA, except that his is still a lot better than many, who have not only gone out of business, but who are also being chased by creditors.
Instructively, virtually all those who contested to the chairman of NISA had the same mantra of marginalization running all through the campaign period.
They claimed to have the same solution, which is – proper implementation of the Cabotage Act and the Local Content Act.
Yes, the two Acts were passed by the National Assembly to adequately protect indigenous players in the Nigerian oil and gas as well as shipping sector.
While signing the Nigerian Local Content Bill into law President Goodluck Jonathan had expressed optimism that the new law will “address the compelling need for us as a nation to have indigenous participation in the oil industry”
Apparently elated, he had declared that: “Henceforth, there shall be exclusive consideration to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute jobs in the Nigerian oil and gas industry”.
Similarly, the Cabotage Act was fashioned after the 1938 Jones Act of the United States of America. The Nigerian Cabotage Act was signed into law by former President Olusegun Obasanjo, who also at that time expressed optimism that the law would usher-in a new vista for indigenous ship owners.
Perhaps the interrelationship between the Local Content Act and the Cabotage Act is underscored by the fact that Nigeria has about 22 ½ billion cubic metres of crude oil deposits, 3 ½ trillion cubic metres of hydro carbon and 42.7 billion cubic metres of bitumen deposits.
The natural endowments have been explored and exploited by foreign interests for decades, hence the twin Acts.
We strongly think that it is too simplistic on the part of NISA members to put the blame for the current fate of indigenous ship owners on the failure of Cabotage or on the Local Content Act.
It is true that Cabotage has not impacted as much on the operations of local ship owners; it is also true that the main ingredient that would have been used to re-fleet indigenous capacity, that is, the Cabotage Vessel Finance Fund (CVFF) has not been available.
Some highly placed stakeholders have however labeled those who cry marginalization as only playing to the gallery and expecting to be spoon-fed by the government be ‘decreeing’ favours for them.. This group said that, there are many indigenous players who are doing very well, but they are not the loud Lagos-based players. One of those who belief that there are many silent but successful players in the Coastal states of Rivers and Delta is a former director general of NIMASA; Mrs Mfon Ekong Usoro. She once told this newspaper so.
We also think and do advise that the incoming executives of NISA should change tactics and engage the government and its apparatuses more. We hope to see a NISA that can engage NIMASA, and the Local Content board.
Beyond this, the new leadership of the association will need to do a lot more to win the confidence of its members, especially those outside Lagos, who are erroneously being seen as ‘outsiders’.
The challenge before Capt Labinjo is how to prove to skeptics that he is not an old wine in a new wineskin.
While commending Chief Jolapamo and those who conceived the ISAN idea back then, we think that a lot more challenges are ahead for the new executives, and we are worried by signals that many members don’t quite want its newly elected chair.
The beauty of democracy is that, majority would always carry the day, but the minority must also not be taken for granted. In a body like NISA where members are business men , the least that the new executives can do is to win the confidence, support and loyalty of all its members. Most important however the new chairman would need to hit the ground running, he needs to prove that he has what it takes to take NISA to the next level. Unfortunately, some key members don’t think he has.
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