By Stephen Ubanna
Those who thinks that sea pirates and other Criminal elements operating within Nigerian waters would disrupt the prts operations of the $19 billion Dangote refining and petrochemical plant designed to process 650,000b/d crude oil into Premium Motor Spirit, popular, petrol, Dual Purpose Kerosene, DPK, Automotive Gas Oil, Popular, Diesel and Aviation Jet Oil, would be disappointed.
This is because Bashir Jamoh, OFR, led Nigerian Maritime Administration and Safety Agency, NIMASA, which oversees the $195 million maritime security equipment comprising of 17 interception boats, 16 vessels for Coastal Patrol, Two Special Mission Vessels, Two Special Mission Aircrafts for surveillance of Nigerian Exclusive Economic Zone, EEZ, three Special Mission Helicopters and four Unmanned Aerial vehicles from Messrs HLSI Security Systems and Technologies Limited, an Israeli security firm has taken over effective control of Nigerian waters and the Gulf of Guinea, described in maritime circles as an important hipping zone transporting oil and gas , including other goods to and from West, Central and southern African countries.
Until, Jamoh led NIMASA Management , deployed the agency maritime security equipment, particular, the ones managed by Vice Admiral Emmanuel Ogalla led Nigerian Navy, into the Nigerian waters and the Gulf of Guinea, Piracy, sea robbery, kidnapping of seafarers, illegal fishing in Nigerian waters, smuggling, human trafficking and other transnational organized crime pose a major threat to the economic development of Nigeria and the West and Central African region in general.
Indeed, the completion of the $1.5 billion Lekki deep seaport in Lagos, the nation’s Commercial nerve center and the establishment of heavy industries at the port, may have encouraged NIMASA and its sister security agency, Nigerian Navy, to step up patrol of Nigerian waters and the Gulf of Guinea to contain the activities of the criminal elements operating Nigerian waters and the Gulf of Guinea.
The take- off of the $19 billion Dangote refining and petrochemical plant in Lagos and the PortHarcourt refinery which is expected to start production soon and other Nigerian National Petroleum Corporation, NNPC, rebaptised Nigerian National Petroleum Company Limited, NNPCL, with the passage of the Petroleum Industry Bill by the National Assembly in 2021, which total production level is put at 1.3 million b/d, may have informed why the maritime regulatory agency and the Nigerian Navy are alive to their duties.
Going by a recent Statement issued by Aliko Dangote , a multi-billionaire President of Dangote Group about the commencement of production by the Dangote refinery to produce diesel and Aviation fuel, may have encouraged Jamoh, the NIMASA, Chief Executive Officer, CEO, to give his words to Dangote, the multi-billionaire business mogul that there was no cause to worry about security of its vessels mand products for sale both within and outside the Nigerian shores.
Jamoh, the NIMASA, CEO, who could not hide his feelings was said to have also made it clear to those that cares to listen that the agency is committed to ensuring that the business of the Dangote Ports Operations and the refinery would not be hindered by the activities of Pirates or the agency implementation of the its regulatory instrument under the provisions of the Cabotage Act.
Note that in pursuant of the Coastal and Shipping , Cabotage Act, 2003, as passed by the National Assembly and signed into Law by former President Olusegun Obsanjo, the agency was said to have been mandated with ‘’the responsibility of enforcing the provisions of the Act provides that a surcharge of two percent contract sum on contracts performed by any vessel engaged in Cabotage trade including tariff, fines and fees for Licenses and waivers shall be paid into the fund from time to time as determined and approved by the National Assembly.
There are indications that not many shipping companies are regular in making the payments which may have informed why the agency had embarked on aggressive recovery of all the debts and levies from 2004 till date, in collaboration with its recovery agent-Bulls Plus Limited.
At present the Legislation that are being implemented by the agency in relation to the Cabotage Act includes Merchant Act, 2007, Coastal and Inland shipping, Cabotage Act, 2003, Coastal and Inland shipping, Bareboat Registration Regulation,2006, Coastal and Inland shipping Cabotage, Detention of ships Regulation , 2006, Guidelines on implementation of Coastal and Inland shipping ,Cabotage Act, 2003.
The NIMASA boss may have taken advantage of the recent visit of a delegation from the Dangote Ports Operations and the refinery led by Akin Omole, the Managing Director, to reassure the Management team that ‘’the implementation of the provisions of the 2003, Cabotage Act would not in any way affect its operations.
The NIMASA boss was said to have promised the Dangote ports and refinery delegations that the agency will work with them to ensure that that ‘’the Dangote Group does not breach any Federal government Laws and regulations as regards to Wet cargo afreightment’’. The two parties were said to have agreed ‘’to set up a working Committee to address the operational concerns at the refinery within 14 working days.
Given an insider information on how the idea of setting up the Committee came about, Jamoh, the NIMASA CEO, disclosed that he had suggested ‘’the setting up of a joint Committee with members drawn from the agency and the Dangote Ports and refinery in order to sit down and look at all issues objectively’’ .He noted that though ’’its priority as the country’s maritime regulator is the implementation of the provisions of the Cabotage Act,2003 but‘’ it will ensure that the Dangote refinery Operations are not impeded’’.
Although, the coming on stream of the Dangote refinery would lead to a drop in NIMASA’s monthly, revenue generation from vessels carrying imported refined Petroleum products, such as petrol, diesel and Aviation fuel into the country as it would reduce drastically, he however noted that it is good for the country’s economic growth and long term benefit to Nigerians.
He was emphatic that the coming on stream of the Dangote refinery is to the advantage of the country, isisting that ‘’the immediate revenue generation is not the major concern of the NIMASA for now’’. The Nigerian Ports Authority had reported that 3,778 vessels entered into the Lagos ports of Apapa, Tincan Island and Port Terminal Multi-services Limited, PTML, Kirikiri Lighter Terminal , KLT, phases I and II, and the south eastern ports of Onne, Rivers port, Calabar port , in Cross river state and Delta port, Warri , in 2023, when the country was still importing Petroleum Products into the country.
Babatunde Fashola, a former governor of Lagos state and immediate past mister of Works under former President Muhammadu Buhari’s Administration may have given a hint that the vessels call at the nation’s port, particular wet cargo vessels will drop significantly this 2024, as Dangote refinery had commenced production and other refineries, both private and public, are also expected to commence production this year. Recall that over the years Petroleum Products imports have accounted for the pressure on the naira because of the estimated 30% demand on the US dollar had come from NNPC and the marketers.
There are indications that the demand for the US dollar at the Autonomous Foreign Exchange Market, AFEM, by NNPCL and the marketers have reduced since Dangote refinery resumed operation as the naira currently exchanges for N891.00 to one US dollar. It is expected to drop further with the coming into being of the PortHarcourt refinery between now and early February 2024.
Omole, the Managing Director of the Dangote Ports Operations may have used the opportunity of the visit to NIMASA to reassure Jamoh and his Management team that the operations of the multi-billion refinery at Lekki port will not contravene the provisions of the Cabotage Act, 2003. He had confirmed that the delegations from the Dangote Ports and Refinery had talked about their business being done at the Lekki port in a way that ‘’there would be no obstructions or delay in the delivery of cargoes to Customers ad outside the country.
He has every reason to speak out. This is because in shipping, a day’s delay could cause a shipping company or charterer of the cargo vessel an average of over $50,000 demurrage at the port. This is in addition to increasing fuel costs to keep the vessel engine running non- stop on a daily basis, and labour expenses to the surge in regulatory compliance costs.
The Dangote Ports Operations Managing Director would want the NIMASA Director General to assure him that ‘’this kind of delays are not going to be experienced at the port any longer. He was said to have appealed to Jamoh, the NIMASA, CEO, to do everything within his powers ‘’to ensure that all administrative bottlenecks , regulations that may cause hindrances and cause delays to its ships operations are addressed jointly and collaboratively by the Dangote and NIMASA teams’’.
