Oluyinka Onigbinde
Six years after setting up the National Fleet Implementation Committee that is expected to midwife the establishment of a National Fleet for Nigeria, the idea has remained a mere dream.
An investigation by our correspondent has revealed that paucity of funds may have stalled the establishment of a vehicle company which is expected to win the fleet, six years after a committee was set up for that purpose.
Recall that the committee was set up in 2016 by the Minister of Transportation, Mr. Rotimi Amaechi, for the sole purpose of having a National fleet that will boost the participation of Nigerians in seaborne trade.
Nigeria and a Singaporean shipping line had reached an agreement to establish a private sector driven National Fleet with equity of 60 to 40 per cent respectively.
The agreement was reached in Singapore between the Nigerian delegation led by the then Executive Secretary of the Nigerian Shippers Council (NSC); Mr Hassan Bello, and representatives of Pacific International Lines (PIL).
PIL is expected to own 40 per cent of the stake, while Nigerians (especially ship owners) are expected to own the remaining 60 per cent.
However, six years after the agreement was reached, Nigerian ship owners have failed to provide the 60% fund expected to complement the 40% provided by the Singaporean firm.
Speaking to our correspondent, a member of the National Fleet Implementation Committee who spoke on the condition of anonymity informed our correspondent that 90% of the Nigerian ship owners do not have the required 60% equity to meet up with the 40% provided by the Singaporean firm. He declared that most Nigerian ship owners are surviving on bank loans.
He informed that 50% of Nigeria ship owners are currently on the Asset Management Company of Nigeria (AMCON) list of debtors, adding that it will be a herculean task to see shipowners who will come together to raise the 60% stake.
He told our correspondent that: “National fleet is not just easy as you speak; of course there is a paucity of fund to meet up with the 40% provided by PIL
“Most of us are running on loans, in fact more than 50% per cent of us are on the AMCON debt list, ship owners are suffering, I tell you, it will be a herculean task to see shipowners who will come together to fund their part of the ratio”
Shipping Position Daily also recalls that at several fora, the Minister of Transportation had openly placed the blame for the failure of the efforts to establish the national fleet on the doorsteps of Nigerian shipping operators. Amaechi, while regretting the failure of the venture at a function last year, said the failure was caused by Nigerian ship owners who could not raise the 60% equity allotted to them.
However, speaking to our correspondent, the President of Shipowners Association of Nigeria (SOAN); Dr McGeorge Onyung said the Minister should be in a better position to state why it has been difficult to come up with the national fleet six years after.
He also questioned why the Cabotage Vessel Financing Fund (CVFF) cannot be used to fund the national fleet
“The Minister should be in a better position to tell you why it has been difficult to acquire the national fleet. Meet with NIMASA ask the chairman of the national fleet committee, because they direct the affairs of the industry.
“We cannot just be talking, if you look at the maritime media, there is so much talk going on, the shipping industry is the biggest company in the world now, 10 shipping companies made $10 billion last year, which means each company made about $1 billion and Nigeria is still struggling to be a maritime nation and that’s what it is. How do we become a maritime nation, if acquiring a fleet will make us a maritime nation, then why waste time?
“So what do they mean by ship owners do not have the required fund, what is CVFF for, is it for security alone” he questioned.
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On his part, a member of the Nigerian Indigenous Shipowners Association (NISA) Prince Ayo Adedoyin lampooned the Minister of Transportation for saying that ship owners do not have the required funds, even as he questioned why the Minister will reach an agreement with the Singaporean firm without consulting Nigerian ship owners who own the business.
He said: “Did he discuss with the ship owners and ask them whether they could come up with it, did he show us the terms and conditions of the agreement he went to reach on behalf of the ship owners, or is he one of the ship owners. You see; this is one of the issues we need to face, you cannot continue to talk down on us and think that you are too intelligent and you know everything, meanwhile you don’t. He has never operated a vessel in his life, but he feels he knows what they need, this is the arrogance of our people when they are in power.
“Especially Rotimi, he believes he knows everything about everything. CVFF is our money; that can be used for that, we contributed that money, it is only in Nigeria that government does not fund policies; they make policies but they will never make money available for those policies to work
“Tell me one significant thing Rotimi has done in the maritime industry since he became Minister of Transportation?”
“I challenge him to say there was never a boat he abandoned in Portugal that he never went to collect, so don’t let him tell us that ship owners do not have the required funds, let him partner with one or two ship owners to build it. They will source for the fund, they will sit with the Singaporeans and they will come out with things that are workable”, he said.
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