2015: Events that shaped maritime industry

2015 will go down as the toughest year in  the maritime industry when compared to previous years. This was as a result of the general election that was held mid year, and the emergence of a new government by the opposition party. By the end of the 2014, the focus of the previous administration, and indeed major players in different sectors of the economy shifted attention to the election. After the hand-over, there was delay, a resultant effect of the government’s inability to appoint ministers and as a result, operators could not work as there was no economic policy direction.   


AUTO POLICY
At the beginning of the year 2015, operators in the industry (especially the RORO port operations) were worried following the introduction of the auto policy two years before. The policy raised the  import duty and levy payable on both new and fairly used vehicles to 70 percent from the previous 20 percent. The two major RORO terminal operators involved in vehicle importation business are Five Star Logistics Terminal and Ports and Terminal Multiservices Limited, PTML both of which are located at Tin Can Island Port Lagos.

Both operators called on the  government to review the policy, in order for them to remain in business, because of rise in vehicle importation.   The RORO operators have said that the policy has killed automobile importation business in Nigeria and the only way for them to remain in business is to diversify their operations. As part of effort to diversify, the RORO operators now engage in container handling, general cargo handling and export handling.
General Manager of PTML, Mr. Tunde Keshinro had been quoted to have said the policy on vehicle importation is affecting the terminal; he said that there has been a significant drop in the volume of vehicles imported through the terminal. He stated that in 2013 and 2014 respectively, the facility experienced massive importation of vehicle but regretted that the situation has changed. They also disclosed that at the end of July 2015, there was report that importation of vehicles into Nigeria has further dropped by 70 percent.
Ban on importation of rice through land border
The introduction of ban on importation of rice (a major staple food) through the land border was also a source of worry for some importers, considering the fact that the government had earlier placed a complete ban on the importation of the product only to restrict it to land borders. In reaction to the restriction, the Association of Nigeria Licensed Customs Agents, ANLCA, Seme Chapter, called for the lifting of ban to stop smuggling of the product.
Chairman of the Chapter, Patrick Ozobialu, said importation of the staple food through the land border not only discourage smuggling but would create jobs as well as block revenue leakages through smuggling. According  to Ozobialu, “when you talk about rice production in a country, it is not something you start today and tomorrow you start getting result. It is a gradual thing; it takes about five to ten years planning. But now you cannot say because you want to stop the importation of rice through the land border that means they should be coming in through the seaport.
“You know that it is only one man that is licensed to bring rice through the seaport. So what they are saying is that rice should not come through any other source except through the sea and we know that it is only one man that is importing rice through the sea and now he is using a proxy in the senate to champion this his course.
On the impact of the policy on Nigerians he said, “It (rice) should not be sold more than N6,000. A civil servant collects N18,000 minimum wage, he goes to market to buy a bag of rice at either N9,800 or N11,000, how would the person buy other things needed in the house and how does such worker meet up with other necessities of the family? he quarried.
The  Comptroller-General of Customs, Col. Hameed Ali (Rtd), had reverted the policy after he was appointed and the Service had said that it collected N1,178,720,376 on rice Imported through the land borders in October and November 2015 before the it was again directed to commence implementation by the National Assembly.
Effect of FG’s  foreign exchange policy on port operation
The present government in an effort to control the use of forex in the country through the Central Bank of Nigeria, CBN, by directing importers to source their foreign exchange for their transactions which made it difficult for them to do business. A maritime expert, who is also the Managing Director, Micura Stevedoring Services, Michael Ubogu said the restriction of foreign exchange on about 41 commodities has adversely affected the maritime industry, especially stevedoring companies.
According to him, “41 commodities restricted from the forex is definitely affecting our business especially rice importation. “Rice is basically the commodity that importers bring in big tonnages because we are paid according to tonnages discharged. If the policy is pursued with human face, it will be nice because we cannot win all the time. We win some and lose some. “I hope the government pursues the policy to a logical conclusion without benefit to certain individuals but if it is for the general well being of everyone, we support it.”
Ubogu also said the industry had been experiencing downturn due to the forex restrictions and lack of policy direction by the government. “Obviously, from January till now, if there is any sector that is worst hit, I will tell you it is the maritime sector. There was down time and this was because a lot of people were waiting for the general election and after the election, people were waiting to see the handover and what is contained in the handover notes and after that there were no Ministers.
Nigeria Shippers Council as port economic regulator 
The Federal Government appointed the Nigerian Shippers Council, NSC has the port economic regulator which should have been in place before the concession agreement.  Under the NSC (Port Economic Regulator) Order 2015, the council is empowered to regulate tariff, rates, charges and other economic services at the ports.
The Council under the Act is saddled with the responsibility of regulating economic activities at the ports; setting and enforcing standard operating guidelines for the ports; regulating Nigerian ports concession agreements and carrying out other related acts that are incidental to its role as the port economic regulator.
Executive Secretary of the NSC, Hassan Bello, said  the law would help the Council promote competition, attract Foreign Direct Investment (FDI) and increased business activities at the ports. He lamented the high cost of doing business at the ports, which he said made them to be less competitive within the sub-region.
However, efforts to control the high cost of port, shipping charges was met by stiff resistance by terminal operators, shipping lines and shipping agents. These bodies that had operated unregulated for over five years dragged the regulator to court to challenge its authority to reduce some charges and levies considered to be illegal. The case is still in court.
Resignations, sack and Appointment of Head of parastatals
During the cause of the year, there were resignations, sacks and appointment of heads of parastatals, especially after the emergence of the new government. First to go was the Comptroller General of Customs, Dikko Abdullahi, was turned in his resignation in August. Dikko resignation resulted in the struggle for his successor by Controllers, Assistant Comptroller Generals (ACGs) and Deputy Comptroller Generals (DCGs) before President Mohamedu Buhari appointed  Col. Hameed Ali (Retd).
Then came the sacking of the Director General of Nigerian Maritime Administration and Safety Agency, NIMASA, Patrick Akpobolokemi and the power struggle between two Executive Directors,  Obi Callistus Nwabueze, Maritime Labour & Cabotage Services and Baba Haruna Jauro, Finance & Administration before the later finally settled down as Acting DG.
Similarly, during the cause of the year, the past administration sacked the Managing Director of Nigerian Ports Authority, NPA, Habibu Abdullahi and was replaced by Sanusi Ado Bayero. However, the position was again reversed a few months after the new government came to power.