Differ on extension of destination inspection

FOR stakeholders in the maritime sector, there was little or nothing to celebrate in 2012.

According to them, the sector, which is next to oil and gas in terms of revenue generation, has over the years, sustained a sliding profile due to policy somersault, incompetent managers and alleged wide spread corruption.

Reviewing the activities of 2012 and pointing the way forward in separate chats with The Guardian, they challenged the government to demonstrate the political will to reposition the sector by appointing qualified Nigerians into key positions and allowing them carry out their functions devoid of unnecessary interference.

Former President, Nigerian Association of Master Mariners, Captain Ezekiel Adewale Ishola advised the government to turn around the dwindling fortunes of the sector in 2013 by facilitating more indigenous participation in the sector.

While calling on the government to support indigenous ship owners to participate in the lifting of crude oil, Ishola said Nigeria is the only OPEC (Organisation of Petroleum Exporting Countries) member nation where indigenous participation is not encouraged.

He said the involvement of foreign firms in the lucrative business is responsible for the reported capital flight in the sector, adding that local participation would create jobs, develop the sector and boost the larger economy.

He added, “the government should design a plan for the maritime sector. Indigenous participation should be encouraged. The sector can grow and generate revenue like oil and gas.”

Making reference to capacity building, Ishola, who is also chairman/ chief executive officer, DORKIEL Management Consultancy Services, said training institution such as Maritime Academy of Nigeria (MAN) should be strengthens are facilities made available for training purposes.

He also called on the government to ensure qualified persons are allowed to served on the boards of  parastatals  in the sector, adding,  “government should make  good use of professionals.”

Explaining further, he said when appointed into board position, professional would be in a better position to serve in the interest of the sector.

Speaking in a similar vein, the National President of the Council for Managing Director of Customs Licensed Agents (CMDCLA), Mr. Lucky Amiwero advised the government to build on existing infrastructure and focus on how to build human capacity.

Amiwero also advised the government to focus on Customs reforms, adding that it should be with international best practice.

According to him, NIMASA Act should be fully implemented, pointing out that indigenous participation should be encouraged and supported. He also threw his weight behind the recent extension of destination inspection by six months with effect from January 1, 2013.

The agreement elapsed on December 31, 2012.

His view was, however, in contrast with that of the   National President of Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu.

Shittu in a chat with The Guardian explained that the six months extension was unnecessary, “it should not be more than 90 days.”

The three service providers namely Cotecna Destination Inspection Limited (CDIL), SGS and Global Scansystems, were engaged in 2005 for a seven-year contract that commenced in January 2006 to supply cargo scanning machines on a Build, Own, Operate and Transfer (BOOT) basis, as well as, train Nigeria Customs Service (NCS) officers on risk management, valuation and classification.

The stakeholders also advised relevant government agencies to initiate result-oriented policies and ensure resources are provided promptly in the interest of the sector and the general economy.

They emphasised the need for government to adequately carry stakeholders along in its policy formulation strategy through interactive sessions and enlightenment.

Managing director of one of the  firms in the sector, who spoke on condition of anonymity, drew The Guardian’s attention to the controversial  Customs bill, adding that it was allegedly put together “without adequate consultation.”

He said, “to make significant progress this year (2013), the  government  must  work hard and carry people along.

“For example, the controversy surrounding the Customs bill is an indication that there is problem ahead.  How can they propose such a law for a complex sector like maritime.”

He also described corruption and alleged incompetence  on the part of managers as the bane of the sector, “government should sincerely tackle corruption and ensure  only qualified managers are  have access to sensitive positions.”

Rising from a meeting put together by the Maritime Industry Advocacy Initiative (MAIN) in Lagos, recently, Stakeholders in the Maritime sector appealed  to the President  and members of the Senate to reject the amended Customs & Excise Management Act (CEMA) bill passed by the House of Representatives.

According to the stakeholders, the process leading to the passage of the bill at the House of Representatives was allegedly shoddy, as they were not carried along in the process.

Beside, the stakeholders resolved to meet with the Leadership of the National Assembly on the issues with   the aim of making the peoples representatives come out with a Legislation that will help achieve what they identified as a modernised Customs Service and “fashion out laws that will advance the cause of the national economy.”

The stakeholders explained that the bill as passed by the House of Representatives conflicted with other exact legislation and functions of sister agencies of government including usurping the power of the president and the minister of finance.

A press statement issued by the organisers and made available to The Guardian said, “agencies like Nigerian Port Authority (NPA), Standard Organisation of Nigeria (SON), National Drug Law Enforcement Agency (NDLEA), National Agency for Drug and Administration (NAFDAC) , Central Bank of Nigeria (CBN) and Federal Ministry of Finance also have their functions remove even when their enabling laws are subsisting.”

Apart from allegedly distorting the post -Port Concession arrangement between the Bureau for Public Enterprises (BPE), NPA and various concessionaires, the  meeting which according to the statement was attended by representatives of NPA, SON, NAFDAC, Seaports Terminal Operators Association (STOAN), National Association of Chambers of Commerce Industry, Mines and Agriculture (NACCIMA), Licenced Customs Agents,   viewed some amendments  as obnoxious and not in line with best international practice.

Explaining further, the statement signed by MIAI’s Executive Director, Mr.  Sesan  Onileimo  and Executive Director, Port Gists on TV,  Kayode Farintos Collins, said, “Captain Ihenacho Ebubeogu, NPA  general  manager in charge of Marine and Operations, advised the Senate to consider the Ports and Harbors Bill presently lying in the National Assembly side by side with the new version of CEMA and address various areas of duplication or an attempt to cede the authority’s status as embedded in the Ports Acts.

“Representative of the SON Director General, Mr. Yunusa Mahammed described some aspects of the Bill as an infringement on SON’s responsibility which may cause delays in the goods clearance process at the Ports and approved border stations.”

According to the statement, Mohammed noted that  Customs lack the  mandate to declare any product as being of acceptable standard or substandard, adding that “a Customs  Laboratory for testing, which the Bill provides for will create duplication and subject importers to avoidable delays.

He added that the Nigerian Customs Service (NCS) should concern itself with importers’ compliance with Import Guidelines, quality and value of products for the purpose of detecting violation and collection of duty payment.

“Customs which has no mandate or technical know -how on quality control shall not prohibit SON from performing its quality and control mandate including performance of Confirmatory Test, since this functions well beyond the scope of customs,” Mohammed added.

In 2012, some agencies in the sector experienced change of baton in boards and management positions.

At the NPA, former Managing Director, Omar Suleiman handed over to Habib Abdulahi while Hassan Bello, a director at Nigerian Shippers’ Council was recently appointed to head the agency.

In 2012, infractions continued on Nigeria’s waterways despite the surveillance efforts of Nigerian Maritime Administration and Safety Agency  (NIMASA) while the Nigerian Customs Service (NCS) had a busy time curtailing the activities of smugglers.

Though some Nigerians are of the opinion that the NCS is not doing enough to curtail smuggling, the agency repeatedly make public its efforts in this regards.

Rice Importers, Millers and Distributors Association of Nigeria (RIMIDAN), recently argued that for the Federal Government’s policies and initiatives aimed at making the nation to become self-sufficient in rice production through local cultivation and the plan for the country to become a food exporting nation in 2020 would not materialised except the activities of smugglers are successfully  curtailed.

Specifically, the association through its National Chairman, Tunji Owoeye sought government‘s intervention, through the banning of rice importation into Nigeria through land borders.

It contested that since land borders have become the main avenue for smugglers to flood the Nigerian market with rice, without regard for other concerns of the economy and the government, what was done in the case of frozen foods would be appropriate and effective in curbing the economic malaise.

The group argued that none of Nigeria’s neighbours is a rice producing nation, adding that its strange for  any importer  to  prefer to import parboiled rice first to Contonu before bringing it into Nigeria, with its attendant cost of double duty and tariff.

The group said, “rice occupies an important place being the staple food of Nigerians. According to government statistics, yearly consumption of rice is about 5.5 million tonnes with local production accounting for about 1.8 million tonnes, thus necessitating the need for importation to bridge the gap. Unfortunately, 50 per cent of these imports are smuggled into the country,” the association added.

According to available statistics, the total loss of revenue to the government from this unwholesome activity for the period commencing January 2012 till date is over $200 million, or N32 billion.

“What the smugglers are riding on is the increase in levy on imported rice and also the porous land borders. Thus there is a situation whereby thousands of bags of rice are being smuggled into the country on a regular basis especially through the rivers linking Nigeria with the Republic of Benin, while genuine processors are left in a lurch.

“The association’s call is for the Federal Government to strengthen its mechanisms for policing the land borders especially the Seme Border flank, as well as, other related areas, where much of these acts are being perpetrated.”

Meanwhile, the Senate has expressed commitment to checkmate activities of smugglers in the country in order to prevent a situation whereby genuine millers would be making huge investments in the economy, generating employment and supporting the country’s economic growth only for the smugglers to jeopardise it.

Senate President, David Mark, while receiving members of the association in Abuja, recently, said RiMIDAN actually deserves the support of the relevant agencies of the Federal Government in its efforts to ensure food availability and that one way of doing this is to stop the smugglers, who are spoiling business for the genuine millers.

The action of smugglers, he said, is also harming the policies of the federal government as it regards food availability and job creation.

He said the Senate would as part of its contributions and in the carriage of its functions, collaborate with relevant agencies of government to ensure that the smugglers are stopped from ruining the rice business and by extension the economy.

The Senate’s promise is coming amidst increasing concerns by the RiMIDAN over the activities of the smugglers.

Owoeye said though they had complained repeatedly in the past, but that the problem had persisted.

He added, “the truth is that the unscrupulous elements behind this unwholesome business are not only unrelenting, but are daily intensifying and refining their activities thereby undermining government’s policies and programmes directed at boosting local food production. It is disheartening to note that these persons connive with some bad elements in our security services to perpetuate their illicit acts. As an association and also as stakeholders in the Nigerian economy, this is of great concern to us.”

Also, to successfully prepare for life after retirement, Maritime Workers Union of Nigeria (MWUN) towards the end of 2012, advised members to design result oriented business plan.

Speaking at a one-day workshop tagged: “Managing New Beginning: Personal Retirement Planning,” the President-General of MWUN, Comrade Anthony Emmanue Nted said the programme was put together to enable the workers learn fresh insights and strategies for life- after-retirement.

He explained that the workshop organised in conjunction with Starfield Consulting, is expected to strategically position maritime workers for the challenges ahead after retirement.

According to Nted, the economic situation in the country had made it imperative for workers, especially those about to retire from active service, to begin in time, to design their after-retirement business plans to enable them also become better entrepreneurs.

Nted said the union intended to organise similar workshops in other parts of the country, particularly Calabar, Port Harcourt, Warri and Onne, adding that   most employers and industry regulatory bodies, who were approached to support the project refused to key into it and vowed that the union would continue to build capacity of members with limited resources at its disposal.

He said, “this seminar is the best thing to happen to maritime workers. In the last three years, we have trained no fewer than 5, 000 workers who belong to this great union. And it is a trend we intend to continue for a long time. Our goal is to ensure that our members live an active retirement life when the leave the service.

“The tendency is for most workers to emphasise Christmas bonus, promotions and possibly their gratuity and pension. These are good. But when they leave the service, they will no longer be getting salaries. This is the time to think about their future,” said Nted.

The guest speaker and facilitator of the seminar, Prof. David Ugwu remarked that less than 20 per cent of Nigerians retire fulfilled, adding that most Nigerians, who have retirement plans, started too late.

Ugwu explained that people with retirement plans live longer. He also observed that 60 per cent of Nigerian workers think that retirement benefits and pension would see them through, pointing out that it is a wrong approach.