PROTOCOLS:
It is my pleasure to welcome you members of the 4th estate of the realm to this meeting, where we intend to share our journey of stewardship at the Nigerian Maritime Administration and Safety Agency, NIMASA with you.
This morning, our purpose for coming together is to share ideas on how we can collectively make waves with our service at NIMASA while also bringing you up-to-date about some modest reforms that have taken place at the Agency recently.
I will like to start this message by first appreciating the immense support we at NIMASA have enjoyed from you members of the maritime media. You have committed valuable space in your various print and electronic media to inform and educate Nigerians and beyond about our activities.
As a regulatory and enforcement Agency, we are committed to ensuring that our core mandates are accomplished in such a manner that will provoke economic development for Nigeria, while growing indigenous capacity in line with international best practices.
In conforming with the mantra of President Muhammadu Buhari GCFR, which requires a new dimension and purposeful push, our quick strategic implementation initiatives, adopted slightly above two years ago have started yielding fruits.
SHIPPING PROMOTIONS:
Earlier this year, when operators requested for a downward review of freight rates benchmark along prevailing realities, NIMASA introduced a reviewed freight rates benchmark which has fostered harmonious regulator-operator relationship leading to improved patronage. So far in 2018, total cargo throughput from January to June stood at 96,626,737 MTs showing a 31.4% increase from the same period of 2017 which was 73,628,546 MTs.
Also, the final billing system occasioned by our automation drive will ensure that within a short period of time of a vessels call at Nigerian ports, the final bill would have been issued and all records reconciled. This will also allow the Agency issue an electronic sailing clearance to vessels, which is intended to improve turnaround time of vessels and reduce the human interface, thereby giving room to transparency and efficiency.
CHANGE OF TERMS OF TRADE: Since we started the clamor for a change of terms of trade from Free on Board (FOB) to Cost Insurance and Freight (CIF) terms of trade for the affreightment of Nigerian crude oil cargo, more stakeholders are now better informed. This is because we observed that one major factor that edges Nigerians out in the affreightment of Nigerian cargo especially crude oil lifting is the prevailing Free on Board trade terms.
Under FOB trade terms, Nigeria as a nation practically has no control in the distribution of its crude oil with respect to carriage, insurance and other ancillary services; however, under a Cost Insurance and Freight (CIF) arrangement, the tide would change in favour of indigenous operators.
To stem this tide, we are engaging with the NNPC and other relevant government Agencies and I am glad to inform you that these engagements are now yielding fruits.
NIGERIA SEAFARERS DEVELOPMENT PROGRAMME;
At the moment, the programme can boast of 243 graduates and 1600 cadets at various stages of completion of the programme, 887 of which are ready for sea-time training. We are currently tackling the issue of sea time head-on; via full sponsorship. The Agency is now directly facilitating sea time training in partnership with some international institutions that have access to ocean going training vessels. In the first phase of the NIMASA fully sponsored Sea time training, 150 cadets have commenced their on-board Sea Time training, facilitated in conjunction with the Arab Academy of Science, Technology and Marine Transportation in Alexandria, Egypt, while another group of 89 cadets are now onboard training vessels facilitated by the South Tyneside College, UK, making a total of 239 cadets in the first phase of this programme.
As an Agency, we want to use this avenue to assure all beneficiaries of the NSDP Scheme that they will all be given a fair and equal opportunity to do their mandatory Sea Time training. We will continue to engage our local and foreign partners for allocation of cadets on their ocean going vessels.
SURVEY, INSPECTION & CERTIFICATION PROGRAMME:
Under our Survey, Inspection & Certification Transformation Programme, Certificate of Competency CoC examinations were conducted at the Maritime Academy of Nigeria, Oron leading to the issuance of different categories of CoCs to successful candidates. In 2017 alone, NIMASA issued 3,752 certificates to successful seafarers. Representing a 149 % increase from the CoCs issued in 2016.
We are also enjoying the confidence of stakeholders as they now willingly verify certificates with us without prompting. A total of 1,880 certificates were authenticated for stakeholders in 2017 alone, a significant rise when compared to the 1013 CoCs verified in 2016.
Ladies and gentlemen, it gives me great pleasure to inform you that the 6 fast intervention security vessels the Agency leased under the maritime security strategy project are making great impact. Port State inspections rose by 10.53 % in 2017 moving up from 475 in 2016 to 525 in 2017. Flag State inspections are also experiencing an upswing from 77 in 2016 up to 98 in 2017 representing an increase of 27% and it’s sure to increase by the end of 2018.
CABOTAGE:
The number of Nigerian Seafarers placed onboard vessels from January to June this year (2018) is 2,337 representing a 58.9% increase in the number of seafarers employed. This has led to job and wealth creation in line with the Federal Government’s Economic Recovery and Growth Plan, ERGP. We have also witnessed an increase in total number of wholly Nigerian owned vessels on the Nigerian Cabotage register. Half year result shows 125 vessels registered representing a 33% increase when compared with the 94 registered in the corresponding period in 2017.
Our policy to encourage Nigerians to go into joint ventures and joint ownership of vessels on a 60-40 basis is yielding fruits as 21 new names are flying the Nigerian flag under this arrangement as against 1 solitary last year. While bareboat charter of vessels witnessed an increase, foreign owned vessels on our Cabotage register has witnessed a decline from 68 to 55.
This current administration has reactivated the domain awareness capability of the agency. The NIMASA satellite surveillance control and command center is still fully functional. Its coverage has now been extended to cover up to 312 nautical miles from our coastline. This is approximately 100 nautical miles off our exclusive economic zone. The system detects vessels with their AIS transponders switched off as symmetric aperture raider SAR images. This has enabled us to differentiate ship-to-ship STS operations from Cabotage trade. It may interest you to note that in the last 6 months, 284 out of the 1,685 tanker operations captured by the satellite surveillance system were lightened at the anchorage. NIMASA did not allow them participate in Cabotage operations.
INTER-AGENCY COLLABORATION:
CBN
The Agency is working on a special foreign exchange intervention for vessel parts acquisition and loan repayment processes to enable indigenous operators compete favourably with their foreign counterparts. We have a team working with the Central Bank of Nigeria on how best this policy can be implemented.
The teams are engaging the Central Bank of Nigeria (CBN) to create a specialized interest rate for acquisition of assets for our shipowners, aside working towards the disbursement of the Cabotage Vessel Financing Fund (CVFF) as this will also give room for a full-fledged Cabotage regime and more job opportunities created.
REGIONAL COLLABORATION:
Due to the Agency’s performance and its role on the issue concerning regional collaboration, the Ghanaian Maritime Authority (GMA) signed a Memorandum of Understanding (MoU) with the Agency as part of efforts to improve on their operations. The MoU has a life span of four years and renewable. It covers: Knowledge Transfer and sharing Initiative between both Agencies; Joint Capacity Building Initiative; Cabotage Enforcement Joint Study Initiative; Joint Comparative Research Initiative and Joint Efforts to combat Piracy and Terrorism Initiative.
It is my pleasure to also inform you that the Gambian Maritime Authority has indicated interest in working with us. All these are geared towards strengthening regional cooperation for the growth of the African maritime sector.
NIGERIAN MARITIME INDUSTRY FORECAST:
The Nigerian Maritime Industry Forecast for 2018 and 2019 which is the first of its kind in the sector is intended to serve as a compass for local and international stakeholders willing to do business in the Nigeria maritime domain. It is part of the initiatives of the current Management of NIMASA aimed at realizing a robust and virile maritime industry in Nigeria.
The forecast period 2018-2019 covers a time of continuous recovery from recession, to the 2019 general elections and finally culminates in the post-election era. Also, the forecast intends to review developments in the Nigerian maritime Industry in 2017, expected international and local developments in policy and regulatory environment for the maritime sector in 2018 and 2019 and also emerging opportunities and challenges with implications for the Maritime Industry.
It will interest you to know that we have done a 2018 half year review of the forecast, which shows the Nigerian Maritime Sector is set for greater heights, considering the level of developmental strides so far.
NIMASA SHIPYARD/DOCKYARD:
NIMASA has taken delivery of its modular floating dockyard considered the 5th largest on the African continent. Management is exploring the possibility of a Public Private Partnership, PPP arrangement to ensure it is optimally utilized. Aside providing in country capacity for dry docking of vessel which has been lacking, the facility will also be made available as a training facility for students on internship from institutions in Nigeria including MAN Oron, Nigerian Maritime University and others.
ENABLING LAWS:
The Management of NIMASA under this leadership has identified the need for a review of our enabling laws to take into consideration the realities on ground. We have initiated the process of reviewing all our enabling Acts and Regulations to enhance efficiency and responsiveness to the needs of the Nigerian maritime industry. It will also take into cognizance the need for future amendments to international laws and codes to be easily incorporated into our municipal laws.
IN-HOUSE CAPACITY DEVELOPMENT:
As part of the succession plan of the current leadership of the Agency, an in-house knowledge transfer session was introduced where the professionals in the employ of the Agency trains the younger officers in order to impart more knowledge about the sector to them. NIMASA is raising a generation of thorough bred professionals and I make bold to say that NIMASA is a knowledge based organisation, hence we can say, the future is bright for the Nigerian maritime sector.
To give a boost to our in-house capacity, we have also entered into partnership with the World Maritime University, Malmo, Sweden in a four-year renewable Memorandum of Understanding setting out the areas of cooperation between WMU and NIMASA. The MoU covers academic collaborative and reciprocal activities in the field of education, training, research and other areas of capacity-building to be provided by WMU to NIMASA.
IMO MEMBER STATE AUDIT SCHEME:
As we speak, teams from the International Maritime Organization, IMO are in Nigeria to conduct the IMO Member State Audit Scheme, IMSAS, which was made mandatory for all member states since December 2013. When the IMO conducted same IMSAS Audit for Nigeria in 2016, the identified gaps to ensure we meet our obligations and responsibilities as Flag and Port State Administration were corrected and we decided once again to open our doors to the IMO for audit. This shows clearly that through the support of all our Stakeholders, the Nigerian maritime sector is on the right path of realizing its dream of being a hub in Africa.
AAMA:
Distinguished ladies and gentlemen; members of the Association of African Maritime Administration AAMA are scheduled to converge in Egypt for the 4th Conference of the Association.
From the 3rd conference, where I was elected Chairman of the association, we have been able to launch Africa as a united front to demand for a better structure of the global maritime trade.
It is my strong belief that Africa would continue to move forward in our collective drive to maximize on the benefits of maritime trade.
This speech would not be complete without expressing our appreciation of the guidance by our supervising Ministry, the Federal Ministry of Transportation under the leadership of the Honorable Minister of Transportation, Rt. Hon. Rotimi Chibuike Amaechi.
Once again, thank you all for your unflinching support in transforming the Nigerian maritime sector.
DAKUKU ADOL PETERSIDE
DG/CEO NIMASA
