By Stephen Ubanna
Barely four years after Nigerian Maritime Administration and Safety Agency, NIMASA, under Leadership of Dakuku Peterside, the then Director General and Ghana Maritime Authority,GAMA, under the Leadership of Kwame Owusu,,signed a Memorandum of Understanding , MoU, to optimally harness the natural potential the two West African member countries,some officials of the GAMA, are currently in Nigerian to understudy the NIMASA Cabotage regime to facilitate its implementation in Ghana.
The Owusu, led GAMA, may have taken advantage of the MoU, between the two West African Maritime nations which was informed by the ‘’knowledge transfer, sharing initiative between the two countries maritime Administration, joint capacity building initiative, joint comparative research initiative, Cabotage enforcement joint study initiative, and joint efforts to combat piracy and terrorism initiative’’, to send a team to NIMASA , on Tuesday, May 2, 2023.
The visit by the GAMA , Team for a training programme in NIMASA, is coming on the heels of the extra-ordinary summit of the Heads of State and Government of the Gulf Guinea Mission, GGC, conveyed in Accrea, the country’s Capital. The GAMA visiting Team was said to have been led by Patience Diaba, Direcor, Legal/ Board Secretary.
There is no gain saying the fact that Bashir Jamoh, Director General, NIMASA, who had travelled to several counrie across the world with Owusu , in the last three years, may have developed interest in him to help in restructuring GAMA, to leave up to its mandate.
Jamoh, the NIMASA boss, had revealed during the GAMA officials visit that there was a time his GAMA, Counterpart had problem with a group who were said to have petitioned Mahamudu, Bawumia the country’s Vice President about him ostensibly to facilitate his removal from his office.
Given that GAMA and NIMASA, are’’ one and very united’’, may have informed, why the NIMASA , Director General had stepped into the Owusu matter to help him out from his trial moment in the agency .
As a prelude to the training programme of the GMA, officials, in the maritime regulatory agency, Jamoh, the NIMASA , Chief Executive officer, CEO, accompanied by Victor Onyekachi Ochei, an Engr. and the agency Executive Director, Maritime Labour and Cabotage Services, Olamide. A. Odusanya, Director, Audit, and some other top officials of the agency were said to have welcome him to the board roomto welcome the GAMA officials.
Engr. Ochei, who was given the nod by the NIMASA , CEO, to give the opening remarks may have made the GAMA officials to understand that they will be ‘’gaining the skills to run a perfect maritime Administration without the inclusion of the pitfalls passed by the agency under the current Management ‘’to attain its current leve’’l that the international maritime Community and the Leadership of the International Maritime Organisation, IMO, have come to recognise its efforts.
The NIMASA Executive Director, had told the GAMA officials that the agency have ‘’evolved many ways to get it to its present enviable level, particular, the implementation of the cabotage regime’’. The Cabotage regime expert may have gladdened the heart of the GAMA officials who are anxiously waiting to start the training programme because of what they have seen on ground may have been given snippets of what to expect from the trainers when he said that they chronologically intended ‘’to take them on the enabling legislations and instruments that had empowered the agency over the years to operate and on historical journey and overview to strengthen them on the four famous pillars of the Cabotage regime, as well as enforcement procedures’’ among others.
According to him, one of the critical aspects of the nation’s Cabotage Administration was’’the desire ‘’to build indigenous capacity through robust financing which gave to the government establishment of Cabotage Financing Fund, CVFF’’.
Given an insider information of the CVFF, he asserted that ‘’it is a method employed to ensure that the indinous shipping Companies are able to properly compete and eventually overtake foreign participation in the country’s maritime domestic trade’’.
He may have made the GAMA officials to also understand that the agency had made the cabotage regime ‘’flexible by coming up with ‘’waiver regulations that should serve as buffer for the intended shocks that may arise from the protectionist policy’’. He noted that the waiver regime had continuously been phased out to the extent that ‘’it has been less attractive to the industry operators in the nations maritime domain’’.
Aware that the agency cannot do everything alone, for instance tackle piracy and other criminal activities in Nigeria waters and the Gulf of Guinea, Engr. Ochei, who may have given an insight to GAMA, officials of what they should be expecting to hear from their trainers had said that they had ‘’to build collaborations with relevant public and private agencies to ensure effectiveness in achieving its mandate.
He had alluded to the close working relationship with Engr. Smbi .K. Wabote led Nigerian Content Development and Monitoring Board, NCDMB, which was said’’ to have helped in the conduct of audit of existing ship yards and training institutions in the country’’.
He may have put it at the back of the GAMA officials, as well that as they acquire the requisite knowledge, they should be aware that ‘’Collaboration is the key to achieving the success, GAMA, desire in the administration of the country’s cabotage regime’’.
He may have spoken the mind of theNIMASA, Director General when he said that the agency would continue ‘’ to support GAMA as it strives to grow enviable capacity in Ghana’’. Ochei, a one-time member of the House of Represenatives from Delta state, may not have taken the GAMA officials through the sources of funds of the Cabotage regime as that may have been left it for the Director General to handle in his keynote Address.
The NIMASA helmsman had said that Cabotage fund is financed through a surcharge of two percent of the contract sum performed by any vessel involved in coastal trade. The Value News findings shows that other monies generated from the coastal and shipping like tariffs, fines and fees for licenses, waivers and other service levies that may be stipulated by the National Assembly from time to time and which must be paid to assist the indigenous ship owners in their drive for ship Acquisition to increase the country’s tonnage .
At present the fund which grows on a daily basis has accrued to over 16 , and $350 million because the levy is collected in both local and the North American country of the United States, US, dollars. The NIMASA Chief had Cooroborated what Engr. Ochei said that the Cabotage fund if disbursed as expected will give Nigerian ship owners access to cheap funds to procure new vessels in order to fully participate in the country’s coastal and inland shipping business.
Jamoh, who may have spoken on the sidelines may have given an insight why the five banks approved by the government to disburse the funds are still delaying in implementing the government mandate. Recall that the Katsina state born Nigerian President, who is counting days in office to hand over to Asiwaju Bola Ahmed Tinubu, the President –elect on the Platform of the ruling All Progressive Congress,APC, had approved last December for immediate disbursement of the n16 billion and over $350 million in the CVFF accounts.
Going by the funding formular for the Cabotage regime, Act 2003,, the government , through NIMASA , which collects the two percent levy , from the ship owners , from all contracts executed in Nigerian waters will contribute 50% , the five banks approved by the government- Polaries, Jaiz, Zenith, Union and UBA, are to contribute 35% each while the beneficiaries would cough out the remaining 15 percent of the funding of their vessel project.
He had regretted that the two maritime icons, who had contributed meaningfully to discussions on the establishment of the CVFF and disbursement of the funds, Otuna Olakunle Folarin and Mrs. Margret Orakwusi, a Lawyer, are not alive to rap the fruit of their labour.
Given that the Banks are still trying to make things difficult for the ship owners in accessing the CVFF, by insisting on 8.5% interest rate to be paid by the benefiting shipping Companies which looks unattractive may have informed why the response appears to be very slow.
The NIMASA, helmsman concern to reduce the burden on the Ship owners may have informed why he has reached out some Development Banks to know how much they could charge as interest rate if included to disburse the CVFF as well . He may have adopted this steps in order to put the card on the table to get the best bargain from the five banks for the ship owners.
He was said to have also taken up the matter with the Godwin Emefiele led Central Bank of Nigerian, CBN, to ensure that the apex bank makes available forex to be disbursed to the indigenous shipping companies that would be approved to access the CVFF, at the official rate instead of making things difficult for them.
An appreciative Jamoh, had said that ship owners have every cause to be happy his time around over all the amendments that had been made to the 2003 Cabotage Act, taking into cognizance the demands of the operators which is expected to be signed into Law and released by the outgoing Nigerian President before he leaves office on May 29, 2023.
In carrying out the amendments to the 2003, Cabotage Act , the Nigerian President may have had one thing at the back of his mind’’ to ensure that beneficiaries of the CVFF Loan would have cargo to carry to be able repay their loan and effectively overtake the foreign shipping companies which had dominated the Nigerian maritime domain over the years.
The worry of many was that even if the total amount in the CVF Account is given to one shipping Company alone to procure a vessel, it may not be enough , let alone disbursing the over 350 million that had accrued to the fund to tens of indigenous shipping Companies that need financial assistance to buy vessels to increase the country’s tonnage.
This is because shipping business is capital intensive, depending on the tonnage. CW.Kellock and Co. and the sister Company , Forester, both ship broken firm Practioners , may have given an insight to the price of ships depending on the size. .Take for instance, the capsize, Kamasarmax, PPanamax, Ultramax, Supramax, Handymax, or the smaller bulky carriers , panama , chemicals and other takers were said to realy very expensive.
The two ship broken firms had said that whether ships are new build or fairly used , it runs into millions of dollars to acquire while some could go for as much as a billion dollars or more. The Liquefied Petroleum Gas, LPG ,, carriers , Container vessels , multi-purpose RORO and General Cargo vessels or refrigerated freefer vessels, are not cheap either.
There is no gain saying the fact that owning a cargo carrying vessel is expensive , not just the purchase price but the operation and maintenance costs which could be a significant percentage of the value of the cost of building new cargo vessel in a shipyard.
Going by The online Magazine findings , a Nigerian shipping Company would need between $200 million to several millions of dollars depending on the kind of vessel the company might want to purchase while several thousands of dollars would be needed to buy old second hand small size vessels, which NIMASA Authorities would not encourage to avoid turning Nigeria into a dumping ground of substandard vessels.
Diaba, the Leader of the GAMA, delegation had expressed appreciation to Jamoh and Managaement Team for the lavish welcome granted to them in Nigeria.
