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Environmental disruptions impact trade performance

Nigerian maritime industry, which has been beleaguered by operational challenges and poor cargo delivery, has been severely disrupted by the Russia-Ukraine war as shipping and freight rates are skyrocketing daily, BAYO AKOMOLAFE reports

 

Maritime activities, which started with the challenges of cargo clearance, strike by customs agents, extortion and gridlock in the first three months of the year has been severely interrupted by the Russia- Ukraine war and the incursion of foreign navies in the Gulf of Guinea. For instance, some liners from Asian countries were unable to sail directly to Nigeria to offload their bulk cargoes.

Also, the European Union, in a memo to its member states under a Coordinated Maritime Presences (CMP), said that France, Portugal, Denmark, Italy and Spain should send ships to Nigeria and other waters in the Gulf of Guinea for first eight months in 2022.

The decision was taken when a body of global shippers largely dominated by European ship owners, Baltic and International Maritime Council (BIMCO), called on Nigeria, Togo, Benin and other countries in the Gulf of Guinea region to take responsibilities and step-up prosecution efforts when pirates are apprehended by international navies.

In the memo dated January 12, 2022, EU said: “The Gulf of Guinea in West Africa continues to be particularly dangerous for seafarers.”

At ports in Lagos, the roll-on roll-off terminal was clogged with used vehicles when a new database for imported vehicles to checkmate import duty evasion and theft at the seaports collapsed.

Also, clearing agents embarked on strike at the port to protest the enforcement of vehicle Identification Number introduced by the Federal Ministry of Finance, leading to payment of demurrage and storage charges by importers and agents at the Port and Terminal Multi-service Limited and Five Star Logistics. In the process, no fewer than six vessels were trapped with used vehicles at the neighbouring port of Benin.

Also, movement of bulk cargo traffic to Lagos seaports by operators under the umbrella of Barge Operators Association of Nigeria (BOAN) has dropped by 60 per cent due to extortion and traffic congestion in the period.

Notwithstanding the challenges, government moved to re-designate Lilypond Container Terminal in Ijora, Lagos as export terminal in an effort to reduce congestion in the major ports.

 

Liners

Worried by the anti-trade practice by multinational shipping lines operating in the country, the Federal Government, through the Federal Ministry of Transportation, officially reported to the global maritime regulator, International Maritime Organisation (IMO). It was learnt that the liners deliberately leave their empty containers in the country, leading to gridlocks and congestion at port access roads and terminals.

 

NPA

Early in the year, Nigerian Ports Authority (NPA) was compelled to explore alternative sources of attending to decaying port infrastructure and revenue performance. Managing Director of the Authority, Mohammed Bello-Koko, said that NPA had engaged multilateral financial institutions like the French Development Agency (AFD) African Development Bank (AfDB), European Investment Bank (EIB) and Sanlam Infraworks (a Central Bank of Nigeria approved fund manager for InfraCorp) to access long term low-interest credit for port infrastructure upgrades and expansion.

 

NIMASA

The Nigeria Maritime Administration and Safety Agency (NIMASA) said during the period that its N50 billion floating dock would become operational in the first quarter of 2022 on Public Private Partnership (PPP) basis.

The Agency said that its officials had traveled to Dubai to inspect the facilities of the managing partner.

It also explained that Nigeria had entered into Memorandum of Understanding (MoU) with Maritime Transport Coordination Centre (MTCC) on Climate Change for Africa to commence activities towards ensuring Green House Gas (GHG) emission reduction in the maritime sector with emphasis on achieving 0.5per cent Sulphur Oxide (SO2) in bunker fuel oil.

To ensure this, its Director General, Bashir Jamoh, explained that the Agency had embarked on establishment of bunker (fuel oil) supply register, accreditation of laboratories for testing bunker oil, capacity building on emission of reduction and establishment of Compliance Monitoring and Enforcement Team (CMET).

Shippers’ Council

In a bid to make the six Inland Container Depots (ICDs) and freight stations located in each of the geo-political zones of Nigeria operational, the Nigerian Shippers’ Council (NSC) and Infrastructure Concession Regulatory Commission (ICRC) held a meeting in January with the concessionaires of the projects.

The meeting, which was at the instance of the ICRC that is charged of regulation of all government concessions and Public- Private Partnerships (PPPs), sought to find solutions to the factors hindering the completion of the dry ports whose contracts were signed since 2006.

Customs

 

Within the period, Nigeria Customs Service (NCS) contended that the introduction of the e-valuator and e-invoicing for import and export by introduced by Central Bank of Nigeria (CBN) should have been jointly reviewed to make it acceptable to stakeholders and global trade best practices.

For instance, the Service’s Public Relations Officer, Deputy Comptroller Timi Bomodi, said that Customs should be the final authority on the issue of valuation, saying that CBN embarked on the introduction of the policy without first seeking NCS’s opinion.

 

NIWA

Also, the National Inland Waterways Authority (NIWA) sought adequate security from Nigeria Navy for the safe passage of cargo between Lagos ports and Onitsha river port. Managing Director of the Authority, Dr George Moghalu, said it has become imperative to improve security in the nation’s maritime environment in order to enhance safe operations.

Last line

Shipping activities are at low ebb in the country as government has not made adequate commitment to support the industry with necessary infrastructure.

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