MARITIME THIS WEEK Recap of News Events

MONDAY FEBRUARY 3, 2020

Abiodun OBA

NPA Gambit to Decongest Lagos Ports

Recently, the Nigerian Ports Authority (NPA) made a proclamation that vessels which stay longer than necessary (about four days) to discharge at a terminal due to lack of space will be asked to proceed to another terminal in the Lagos Pilotage District.

In the event that such vessels still do not get space in any of the terminals in the Lagos Pilotage District, they will then be diverted to the ports in the Eastern axis.

This measure, according to the NPA, was due to the burgeoning congestion at Lagos ports which is caused by the collapsed infrastructures at the ports.

According to the agency, the diversion became necessary to improve the turnaround time of vessels which has worsened over the period of time and impacting on federal government Ease of Doing Business effort.

This directive, which was supposed to have taken effect January 27, 2020 and as good intentioned as it is to solve the build-up of cargo at Lagos ports, has thrown up some issues which NPA needs to resolve.

Who bears the extra costs which the diversion will engender?

Freight Rate Increases as Shipping Companies Adjust Rates

From 1st of February, 2020, all shipping charges that warrant Value Added Tax (VAT) at the Nigerian ports will henceforth be based on the new Federal Government policy of 7.5 per cent and no longer 5 per cent.

In an advisory note to its client base, leading French shipping line, CMA-CGM, on Friday, stated that it will be complying with the new Federal Government directive as stipulated in the 2019 Finance Bill Law.

According to the notice which was sighted by newsmen “Following the signing of the 2019 Finance Bill into law on the 13th of January 2020, the Ministry of Finance has announced the 1st of February 2020 as the commencement date for the application of the value-added tax of 7.5%.

TUESDAY FEBRUARY 4, 2020

Maritime Security: FG Declares Secure Anchorage Illegal
… to fine vessels which anchor at facility

Following the controversy that surrounded the Secure Anchorage Area (SAA) operated by a private security firm, Ocean Marine Solutions Limited (OMSL), the federal government has waded in and declared the security arrangement illegal.

Speaking yesterday during a maritime security meeting on the deep blue project to secure the nation’s territorial waters against Piracy organised by the Federal Ministry of Transportation in conjunction with parastatals in the maritime industry, the minister of Transportation, Hon. Rotimi Amaechi said the facility was declared illegal in 2017 and further patronage must stop immediately.

According to him, any vessel (Local or foreign) that patronises the facility is breaking the law of the Federal Republic of Nigeria.

NUPENG Protests Non-Payment of Benefits in Lagos

In a bid to drive home their point, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) protested over non-payment of terminal benefits to its members by General Electric.

The action which took place in Lagos on Monday morning saw the protesters paralysing business activities at the corporate headquarters of the organisation for

non settlement of terminal benefits of their ex-staff 4 years after.

The protesting NUPENG members were demanding for the protection of their rights after several years of failed promises of their former employer.

WEDNESDAY FEBRUARY 5,

Nigeria Vessels Set to Return to International Routes – NIMASA DG

With a reformed ship registry, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside yesterday said Nigeria is ready to flag vessels that will ply international routes and move cargoes around the world.

Dakuku restated the agency’s effort at building capacity and making sure Nigerian Shipowners acquire vessels that would participate in carrying cargoes around the world.

He stated this at the Nigerian Ship Registry Interactive Forum with Shipowners in Lagos on Tuesday.

Peterside, therefore, pointed out the need to grow the country’s fleet and input its footprints in international commercial trade, assuring of the disbursement of the Cabotage Vessels Finance Fund (CVFF).

Customs records cash haul at Lagos Airport – seizes $8m cash from currency traffickers

The Murtala Muhammed International Airport (MMIA) command of the Nigeria Customs Service (NCS) has intercepted a whopping $8,061,000(N2.9billion at the prevailing rate of N360/$) from suspected currency traffickers.

Speaking at a press briefing in Lagos yesterday, the Comptroller General of the Service, Col. Hameed Ali (rtd) said the currency was intercepted in a bus belonging to the Nigerian Aviation Handling Company (NAHCO) at the airport tarmac.

But, NAHCO, in a statement made available by the spokesman, Tayo Ajakaye stated that they have no connection whatsoever with this alleged act.

THURSDAY FEBRUARY 6, 2020

FG Beckons on National Fish Association to promote fish production

The Federal government has called on the National Fish Association of Nigeria (NFAN) to join hands and ensure self-sufficiency in fish production.

The Minister of Agriculture and Rural Development, Sabo Nanono, says following Federal Government’s effort to, Nigeria

The Minister of Agriculture and Rural Development, Sabo Nanono made this call while receiving a delegation from the National Fish Association of Nigeria (NFAN) led by its National President, Dr Gabriel Ogunsanya in Abuja.

Nanono said the time had come for Nigeria to look inward to tap into the huge potential in fisheries and aquaculture for local consumption and export.

Coronavirus: Airbus closes China plant

Aircraft production facility of Airbus has been closed in Tianjin, near the Chinese capital Beijing, due to the coronavirus outbreak.

The aircraft manufacturer Airbus on Wednesday, said, “China domestic and worldwide travel restrictions are posing some logistical challenges. The Tianjin Final Assembly Line facility is currently closed”.

The Tianjin facility, the first of its kind for Airbus outside Europe, is a completion centre for single-aisle A320 aircraft and can also handle the larger A330.

Tianjin is a port city 150 kilometres (93 miles) from Beijing. Airbus did not indicate when the centre might reopen.

Customs gets Senate nod for N238.15bn budget

The Senate on Tuesday approved the sum of N238,149,325,832.70 for the Nigeria Customs Service for the 2020 financial year.

The approval came following presentation and consideration of the report of the Senate Committee on Customs, Excise and Tariff.

Chairman of the Committee, Senator Francis Alimikhena (APC, Edo North), in his presentation said out of the total expenditure for the year 2020, N98.61 billion representing 41.41 percent is for Personnel cost; N15.95 billion representing 6.70 percent is for Overhead Cost; and N123.59 billion representing 51.89 percent is for Capital Cost.

According to the lawmaker, the Nigerian Customs Service (NCS) has a revenue framework of N1.5 trillion to be remitted to the Federation account; and N178.7 billion to Non-Federation account for the 2020 fiscal year.

FRIDAY FEBRUARY 7, 2020

Nigerian Importers Risk Increased Freight Rate Over Coronavirus

Shippers around the world including Nigerian shippers should expect more blanked sailings and increased freight rates if China’s coronavirus outbreak extends factory closures further.

Also, Nigerian factories that rely on raw materials from China will be affected as factories remained closed.

Recall that the Chinese government had extended the lunar new year holiday until 2nd February to contain the virus but workers in major cities like Shanghai and Ningbo have been told to stay home until 10 February.

Rescue Operations: Presidency Inducts Newly Acquired Combat Helicopters

The Federal Government of Nigeria inducted 3 newly acquired combat helicopters meant for rescue operations in the country.

President Muhammadu Buhari launched the combat helicopters on Thursday in colourful ceremony in Abuja.

The combat helicopters according to the Nigerian Air Force (NAF), are two Augusta 109 and one Mi-171E combat helicopters.

The unveiling was done during induction ceremony of the Nigerian Air Force’s at the Eagle Square, Federal Capital Territory.

At the occasion, so many air displays and simulation exercises focused on rescue operations and engagement of bandits and others threats to national security were displayed.

Under the Buhari administration, NAF has procured and inducted several fighter aircrafts, helicopter gunships.