2022: Stakeholders call for improved port efficiency, disbursement of CVFF

As year 2022 unfolds, maritime stakeholders have expressed divergent views on their expectations in the New Year, urging the Federal Government to focus more on infrastructure upgrade and improve port efficiency if Nigeria hopes to take her place amongst leading maritime nations.

Maritime lawyer and Chairman, Ship-owners Forum, Margaret Orakwusi, in a chat with the Nigerian Tribune, called on the Federal Government to focus more on improving the nation’s port efficiency and also improving on infrastructure upgrade in the nation’s maritime sector.

Port inefficiency

In a New Year message which she shared exclusively with the Nigerian Tribune, the renowned maritime lawyer explained that it is only improved efficiency amongst the agencies of government operating at the ports that can stop cargoes destined for Nigerian ports from being taken to neighbouring ports.

According to Orakwusi, “Infrastructural deficiency at our ports is one of the major reasons we lose cargoes to neighbouring ports. This year, I want the Federal Government to focus more on provision of infrastructure at our ports. Again, there should be efficiency-driven activities among government agencies at our ports.

“It is worrisome that people continue sending their shipments to neighbouring ports and these goods end up finding their way into the Nigerian markets through our many porous borders. The country is losing enormous revenue through this, so we need to pay attention to bringing efficiency into our port operations. We need to ensure that the roads leading into and out of our ports are working.

“Also, our waterways should be clear for navigation. Government needs to do more in promoting our inland waterways. Nigeria is actually a blessed nation with a lot of natural resources.”

CVFF

On the disbursement of the Cabotage Vessel Financing Fund (CVFF), Orakwusi called for an end to the politics being played around the disbursement process of the fund.

“I also believe that the year 2022 should see an end to the politics being played around the disbursement of the CVFF fund. Businesses are going down. Maritime businesses need funding to survive. We are a nation that generates a lot of cargo at our ports but we do not take part in the freighting of these cargoes. Due to this anomaly, people will think that it is only the indigenous shipowners that are losing out, but Nigerian insurance companies are also losing out. Even our commercial banks are losing out.

“If we keep allowing the cargoes that we generate at our ports to be taken out on Free On Board (FOB) basis, then our economy is partially losing. A situation where the buyer dictates the trade term is embarrassing for us as a nation. The country is losing in the area of insurance and our banks are losing out. Also, in the legal aspect of the trade agreement, we are losing out because the buyer dictates the trade term. With our population and the number of our children looking for jobs, we cannot afford to allow this trend to continue.

“As a mother, I am not happy. As a woman in the private sector that has to generate everything, including your own power supply, clearing your own water channel and dredging it, I am not happy. Until we get things right in the nation’s maritime sector, we will continue losing out in the area of revenue and wealth creation,” the Shipowners Forum chairman explained.

Illegal fishing

Orakwusi also used the opportunity to call on the government to kick against illegal plundering of the nation’s fishing resources by foreign shipping companies.

“As you probably are aware, I am also involved in deep sea fishing. For over 20 years now, we have been screaming and shouting on top of our voices about the illegal poaching activities of foreign shipping companies in our waters.

“These foreign shipping companies come and scavenge our water resources unchallenged. They fish in an irregular manner; from bottom to top because they have nothing at stake. These shipping companies come into our waters without any licence from our government and without flying our flag, and plunder our fishing resources. They catch the big fishes that have laid the golden eggs and also catch the juvenile fishes. This is not in compliance with fishing regulations. You dare not do this if you are in their waters, but they come into our waters and carry out such reckless modes of fishing.

“This year, African countries need to rise up against illegal plundering of its fishing resources by escalating it more at international fora,” Orakwusi lamented.

Lack of planning

Also speaking on challenges in the nation’s maritime sector, the President of the Ship Owners Association of Nigeria (SOAN), Dr. Mkgeorge Onyung urged the Federal Government to focus more on implementation of some laws in 2022.

“If Nigeria hopes to succeed in anything, there has to be a plan. The government has to let us know what their strategy is. There are a whole lot of opportunities in the Nigerian maritime sector, but operators are not thriving due to lack of implementation of some laws.

“We have the Cabotage Law and the local content law; are they being implemented or obeyed? The answer is no. If these laws are being obeyed, Nigeria’s maritime sector won’t be where it is today. There are opportunities in Nigeria’s maritime sector. The Cabotage Law ensures these opportunities are available for indigenous operators while the local content law ensures the participation of Nigerians in these businesses.

“All that is left for the Nigerian Maritime Administration and Safety Agency (NIMASA) is to do its job and protect indigenous ship-owners. The question is ‘has NIMASA done enough to protect and provide jobs for indigenous operators?’ The answer is no.

“The CVFF fund, is it still meeting the reason it was set up? If it is no longer meeting the reason behind its set up, why are we (indigenous ship-owners) still contributing monies into the CVFF fund? These are issues that need answers in 2022.

“In 2021, NNPC became the biggest provider of employment opportunities in the Nigerian economy. They did it in the upstream sector successfully and we expected that they would replicate that in the downstream sector, but that has not happened due to lack of implementation of these laws. If these laws are not implemented, whatever we expect to happen in 2022 will remain a dream. That was why we failed to win elections into IMO Category C last year. We failed because there was no planning,” the SOAN President told the Nigerian Tribune exclusively.

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