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Ports Dev And Policy Implications

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There is a popular saying that “when two elephants fight, the grass suffers” this scenario could better explain what has come to be of the Nigerian Port Authority (NPA) with the policy of ports concession introduced a few years back after a very serious clash of interest between the government and the Maritime workers Union of Nigeria (MWUN), over the policy.

The federal government embarked on privatisation and commercialisation of Nigerian ports, policy in 1991 which eventually disengaged over 8,000 officers and staff of the authority.

Out of this number terminated that year, about half were professionals, trained by the authority in various universities abroad and two-thirds of the remaining number were people who understudied the Hamburg Port Consultant (HPC), according to records.

Port experts from Germany had operated the Nigerian ports effectively, before some greedy Nigerians who envied their position maneuvered to chase them out of operations and quickly occupied their quarters which were given to them for their services as consultants.

When these foreigners were in service as expatriates, both revenue and operations were not disrupted, as operating cost and wastage in term of fraud was almost absent.

From records, operations of the NPA began to dwindle when Nigerians who understudied the expatriates with the view of taking over from them, as well as the majority of the middle-level manpower who were trained in various universities and ports all over the world were disengaged, leaving about one third of the workforce.

As a result of this, much pressure mounted on the remaining workers, and there was serious cargo and ship congestion to the extent that office staff, including typist were deployed to the traffic department, on board ships, at shore quay apron and staking areas of operations.

As unskilled labour then, a lot of things took place among shipping companies, freight forwards and stevedoring companies. A lot of losses were recorded by the NPA, forcing the authority to go into mass employment of graduates, secretaries and other required officers, who were used to fill the gap so created by the rationalising policy.

That apart, today, another policy popularly known as port concessioning has been introduced, without minding the consequences, not only to the maritime sector, but to the economy also. Developed economies that opted for concessioning did put their economic indices intact, but our economy is so loose and almost unregulated.

The Structural Adjustment Programme (SAP) we thought would improve our economy just led to more debt and borrowing, whereas in other developing economies, the policy improved their economy, and we are living testimonies that the negative effect of SAP is still telling on the Nigerian economy.

Then military head of state made a significant statement that “Nigeria’s problems have defied all economic principles, and are we sure the leakages that pushed SAP to our optimal financial mess will not repeat itself?

Port concessioning chronicled from port privatisation, which means  that most of the area of services in the port will be privately operated under a lease agreement.

The term concessioning agreement means that NPA is restricted to being a regulatory body of the port (landlord) and will no longer offer services, as the role of NPA on the new arrangement could be said to be mere fanciful.

The NPA lack the political will and could not check the concessionaire firms, even the charges they impose on importers for one service or the order. Importers who may be compelled to use the services of these private firms cry over high charges, as the NPA can not dictate how much charges the firms should impose on their client.

Such scenario will also lure the multinational shipping companies to introduce  multiple charges on Nigerian importers and the effect will be transferred to the Nigerian consumers.

Talking about duplicated charges by shipping operators, it was sometime reported that the Nigerian Shippers Council (NSC) detected about eleven charges imposed by the multinational shipping firm, some of which are not applicable in Nigerian ports.

Such charges include: Shipping companies terminal charges, terminal handling charge; transfer charge; port operations surcharge, commission on turn-over charge, documentation and administrative charge, manifest amendment charge, container deposit, container demurrage and rent/equipment charge. Apart from the above charges, NPA still collect some of their charges from importers.

In the Rivers Ports, especially the Port Harcourt port complex, the activities of some concessionaires create room for one to question the viability of the policy in terms of accelerated development and employment generation.

The Bua ports and Terminal Limited, one of the concessionaires in Port Harcourt wharf had apart from reducing the workforce it inherited which are mostly dock labour workers, it has also up till now failed to rebuild the collapsed quay apron (Berth) in its area of operation.

One could begin to wonder if the terms of concessioning agreement did not cover the aspect of port development and other areas like development of the host communities within which the concessionaires operate.

Rather than pursue programmes that will upgrade the general port condition to make it better than how they met it, some of these concessionaires had  remained adamant to issues of port development and employment generation, and this simply suggest that their focus is only on how they will maximise profit, and whatever the effect, implication with respect to their activities on the environment is not much of concern to them.

On the part of the NPA that has lost substantial number of their professional manpower to the concessioning policy, it has now known that most of those staff lost through retrenchment in concessioning are still needed to run the organisation, particularly for those vital technical and specilalised areas that could not be easily be replaced.

In that regard, the NPA had turn-around to re-engage some of these old staff so as to enable it cope with the work load  and dire demand for adequate manpower to accomplish stated goals.

From all indications. The new  regime of port concessioning has not yeilded the desired objective so envisaged. In the past six years of its implementation. Rather than create employment, it has reduced the workforce, and on the other side, the development of both the port environment and the host communities  have not been properly attended to.

The fact that the NPA is still in need of some of the staff it lost to the concessioning policy, for which it engaged some of them on contract, and the fact that port development so envisaged as well as in employment which had not changed suggest that the concessioning policy though might be good, but the timing and implementation leaves much to be desired.

It is ideal that policy makers take their time to look at the various aspect of the implication, irrespective of the perceived profits.

Corlins Walter

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Maritime

NSC Decries Police Interferences With Cargoes At Seaports

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The Nigerian Shippers’ Council (NSC) has decried interferences with cargoes by police at the seaports.
NCS said such action has disrupted cargo dwell time, increased demurrage and storage charges payable by consignees.
Executive Secretary, NSC, Dr Pius Akutah, made this known at a one-day training programme for officers of the Maritime Police and other security stakeholders, in Lagos.
The training with the the theme: “Facilitating Port Efficiency: The Strategic Role of the Police,” was organised by the NSC in collaboration with the Maritime Police Command of the Nigeria Police Force.
Represented by the Director, Regulatory Services Department, NSC, Mrs Margaret Ogbonnah, Akutah said that police interference with cargoes had also led to increase in the cost of doing business in Nigerian ports.
He noted that several reports brought to the attention of the NSC by stakeholders pointed to incessant interference in the cargo clearance processes, placement of detention orders on duly cleared cargoes, thereby barring its exit from the port terminals.
Akutah said that port operators, especially personnel of shipping line agencies and terminals, also complained of intimidation by the police officers, who, in turn, claim that they are acting on intelligence reports.
The Secretary explained that the council had on several occasions carried out investigations on the matter to ascertain the veracity or otherwise of the claims.
He said that intimidation of ports operators had in most cases been confirmed, adding that these practices were carried out by various police formations without the knowledge of the Assistant Inspector General of Police (AIG).
“This development, therefore, led to robust engagement by the council with the Inspector General of Police (IGP) to put a stop to these practices and to ensure adherence to process in matters of container detention and other port related issues.
“As a result, the Assistant Inspector General AIG, Maritime Police Command notified key stakeholders vide a letter dated Dec. 11, 2018 about its decision to collectively streamline the plethora of letters being issued by various un-authorised persons on behalf of the Police.
“The IGP also directed all key stakeholders to disregard any correspondence without the signature of the AIG or officers nominated by him.
“Together, we have achieved quite a lot, although we cannot rest on the past achievements because some of these infractions still occur either deliberately or due to ignorance on the part of the officers involved.
” Our main focus has to be firmly on attaining international best practices”.
“In essence the meeting between the NSC and the Inspector General of Police; the issue of capacity building for officers of the maritime police was discussed in order to enlighten and educate them on the nitty-gritty of port operations and the role of the police,” Akutah said.
Also Speaking, Assistant Inspector General of Police, Chinedu Oko, represented by the Assistant Commissioner of Police Administration, Ports Authority Police (Western) Command, Olufikayo Fawole, explained that the Maritime Police, was a specialised arm of the Nigeria Police Force.
Fawole said that the maritime police played a critical role in securing maritime assets, mitigating threats, combating cargo-related crimes, preventing pilferage and vandalism, and ensuring the smooth flow of legitimate trade.
“Our mandate is not just to enforce the law but also to protect the economic lifeblood of our nation.
“Nigeria’s competitiveness in the global maritime economy is influenced greatly by the level of safety, predictability, and confidence that stakeholders experience at our ports.
“This is why continuous training is essential. The operational landscape is evolving, new technologies, changing criminal patterns, multimodal logistics, and international compliance requirements all demand that our officers become smarter, more proactive, better informed, and better equipped.
“Through this programme, participants will gain valuable insights into modern port operations, cargo handling procedures, supply-chain vulnerabilities, and best practices for promoting trade facilitation while maintaining robust security,.
The AIG pledged the police’ continuous commitment in ensuring secure port system, adding that the force would contribute more to national prosperity, economic stability, and Nigeria’s overall competitiveness in global trade.
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Maritime

NIMASA :FG Appoints Iyelolu As Registrar Of Ships

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The Minister of Marine and Blue Economy, Chief Adegboyega Oyetola, has approved the appointment of Barrister Adenike Adeyele Iyelolu as the Registrar of Ships
 for the Federal Republic of Nigeria.
Her appointment, which is for a four-year tenure, follows the recommendation of the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola.
In line with the NIMASA Act 2007, the Registrar of Ships will report directly to the Director General for the effective administration of the Nigerian Ship Registry.
The Act provides that “the Registrar of Ships shall, with the approval of the Minister, be appointed by the Director General from among the staff of the Agency.”
According to a press statement issued by the Head of Public Relations, NIMASA, Edward Osagie, the new Registrar who is currently a Deputy Director in the employ of NIMASA is an accomplished legal and maritime governance professional with over twenty-five (25) years of post-call experience spanning maritime and legal practice, arbitration, procurement, contract administration, corporate governance, and institutional leadership amongst others.
Barr. Iyelolu’s appointment comes following the retirement of the former Registrar of Ships, Barr. Tajudeen Giwa, after years of commendable service.
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Maritime

Cargo Tracking System’ II Save Nigeria N900bn In Revenue Leakages ……SEREC

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The Sea Empowerment and Research Centre (SEREC) says implementing the International Cargo Tracking Note (ICTN) will save Nigeria an estimated N900 billion annually in revenue leakages.
Head of Research at the Centre, Dr Eugene Nweke, stated this in a document on its policy commentary on
the Urgent Imperative of Implementing the ICTN in Nigeria, and made available to newsmen.
Nweke said that the system, when implemented, could cut cargo clearance time by 25 to 35 per cent and curb trade malpractices by 40 per cent within 18 months, boosting Nigeria’s competitiveness and credibility in the regional maritime economy.
The Director described ICTN as a trade facilitation system aimed at improving transparency, security and efficiency in Nigeria’s ports.
According to him, it enables pre-arrival processing of cargo data for faster clearance, reduces demurrage and documentation time, curbs illicit trade, closes revenue leakages and enhances Nigeria’s competitiveness in global maritime trade.
He disclosed that the Nigerian Shippers’ Council (NSC), under the supervision of the Federal Ministry of Marine and Blue Economy, is the lead agency implementing the ICTN.
“The NSC would do it in collaboration with the Nigeria Customs Service (NCS), the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA)”
He expressed concern that in spite of the Federal Executive Council approval of the implementation of the ICTN in 2023, it was yet to be implemented.
“Without this pre-verification system, Nigeria’s trade regulators would continue to operate in a reactive intelligence model, allowing room for cargo concealment, under-declaration and falsified manifests.
“Experts estimated that the delay in implementation could lead to an estimated annual loss from non standardised cargo declarations and transshipment concealment between N800 billion and N1.2 trillion.
“Ghana, Senegal, Ivory Coast, and Angola recorded an 18 to 22 per cent rise in customs revenue and a 30 per cent drop in port clearance delays within two years of adopting ICTN.
“The countries also saw a 40 per cent fall in false declarations during the same period.
“The delayed implementation could also affect the smooth implementation of the National Single Window (NSW) projected for the first quarter of 2026 and the modernisation drive of the Nigerian Customs Service,” he explained.
Nweke added that with customs modernisation advancing rapidly and the NSC approaching rollout, Nigeria must not operationalise these systems without ICTN integration or risk reinforcing data fragmentation.
“Government must recognise ICTN not as a competing system, but as a strategic enabler of all other reforms.
“The ICTN should serve as the data feeder layer into the National Single Window, Customs modernisation and port efficiency frameworks,“ he stated.
The Director also noted that although various digital modernisation efforts were underway in the maritime sector, the ICTN remained the key missing link needed to fully integrate trade intelligence across the system.
He emphasised that the continued delay in ICTN deployment poses critical national risks, including revenue leakage, national security exposure, reputational deficit and a fragmented digital ecosystem.
“The absence of verifiable pre-shipment data weakens Nigeria’s ability to detect high-risk or illicit consignments (arms, drugs, waste cargo, etc.) before arrival.
“Nigeria remains among the few major trading nations in West and Central Africa without an operational electronic cargo note system, affecting investor confidence in its maritime sector.
“It has also impacted the country’s compliance ratings under the World Customs Organisation (WCO) SAFE Framework of Standards and the International Maritime Organisation (IMO) International Ship and Port Facility Security (ISPS) guidelines”, Nweke said.
By: Chinedu Wosu
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