Maritime
House of Reps Approves $360M CVFF Disbursement
The Nigerian Maritime Administration and Safety Agency (NIMASA) has received approval from the House of Representatives to disburse the $360 million Cabotage Vessel Finance Fund (CVFF) to qualified Nigerian shipowners.
The decision was reached following an investigation chaired by Hon. (Barr.) Legor Idagbo.
In its report, the committee acknowledged that due process had been followed in the planned disbursement of the CVFF.
The fund, established in 2003 by the Coastal and Inland Shipping Act, aims to develop indigenous ship acquisition capacity and provide financial assistance to Nigerian shipping operators.
During the investigation, NIMASA and the Ministry of Transportation were requested to provide detailed information on the total amount accrued to the fund and the disbursements made since its inception.
Osagie Edward Assistant Director, Public Relations, NIMASA disclosed this in a press statement dated June 2, 2023.
The report reads “The Committee requested the Nigerian Maritime Administration and Safety Agency and the Ministry of Transportation to provide detailed information on the total amount accrued to the Fund and disbursements since inception.
“The Committee met with the Minister of Transportation and the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) on Thursday, 11 May 2023 to find out about the details concerning the matter.
“After a thorough analysis of the various submissions, coupled with the explanations given by the Ministry and NIMASA, the Committee discovered that due process was followed in the planned disbursement of the Cabotage Vessel Finance Fund.
“The Committee notes that the Cabotage Vessel Finance Fund (CVFF) is a fund that was set up in 2003 by the Coastal and Inland Shipping Act. The fund was established to develop indigenous ship acquisition capacity and to provide financial assistance to indigenous shipping operators.
“The Committee further notes that there is a lack of capacity amongst indigenous/ Domestic Coastal operators in Nigeria, thus the reason Nigerian National Petroleum Corporation Limited (NNPC) still awards contracts to foreign shipping companies in contravention of the Cabotage and Nigerian Oil and Gas Industry Content Development (NOGICD) Acts. Some of these awards have been previously investigated by the Committee, which led to their cancellation.
“It was also discovered that the total funds of $360m in the Cabotage Vessel Finance Fund (CVFF) account with the Central Bank of Nigeria (CBN) represents 50%, while the remaining counterpart funds of 50% is from stakeholders and banks, which is 15% and 35% respectively”.
The committee commended the NNPC for its commitment to awarding shipping contracts to indigenous companies that have demonstrated the capacity to execute them successfully. This move aligns with the objectives of the Cabotage regime promoted by NIMASA.
Dr. Bashir Jamoh, the Director General of NIMASA, expressed gratitude to the House of Representatives for their interest in verifying the due process followed by the Agency.
He emphasized that NIMASA remains committed to transparency in all aspects of its operations and expressed optimism that the NNPC’s decision to prioritize indigenous companies would strengthen the Cabotage regime.
Dr. Jamoh also called for increased stakeholder support, highlighting that the CVFF has the potential to benefit more Nigerians, contribute to the growth of per capita income and the Gross Domestic Product (GDP) through the development of the maritime industry.
The disbursement of the CVFF to qualified Nigerian shipowners marks a significant milestone for the implementation of the Cabotage regime and is expected to bolster the indigenous shipping sector in Nigeria, fostering economic growth and enhancing national capacity in the maritime industry.
Maritime
Maritime Stakeholders Back Bill For Nigeria Coast Guard At Public Hearing
Stakeholders and experts in Nigeria’s maritime sector have expressed support for the Coast Guard Bill before the National Assembly, with many describing the proposed legislation as a boost to the federal government’s efforts in securing the maritime space.
At a public hearing convened by the Senate Committee on Marine Transport to discuss the bill for the establishment of the Nigeria Coast Guard (NCG), stakeholders presented varying views, with the majority supporting the creation of the NCG.
The majority of presentations voiced strong support for the establishment of the Coast Guard, with notable endorsements from prominent figures including Dr. Olisa Agbakoba, SAN; Dr. Ade Dosunmu, MON, former Director General of NIMASA; Mrs. Jean Anishere, SAN, representing the Nigeria Bar Association; and Rear Admiral Ekwerre U. Ekwerre (Rtd), former Flag Officer Commanding the Training Command of the Nigerian Navy.
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Dr. Olisa Agbakoba described the bill as timely but emphasized the need for professional input to address certain concerns within the draft. He expressed his willingness to assist in this process. Dr. Ade Dosunmu offered full support for the bill, suggesting that the Nigerian Navy should focus on blue-water operations and national defense against external threats, while the Coast Guard should address maritime crimes and incidents along Nigeria’s extensive 855-kilometer coastline using more adaptable resources. He referenced successful maritime nations such as India, Singapore, China, the United States, Japan, Egypt, Morocco, and the United Arab Emirates, all of which have well-defined roles for both the Navy and Coast Guard.
However, Dr. Dosunmu cautioned against assigning functions such as hydrography and oceanographic research to the Coast Guard, as these responsibilities are already managed by other agencies, and incorporating them could divert focus from the Coast Guard’s primary mission.
Jean Anishere, SAN, articulated her support for the bill while highlighting certain ambiguities that must be resolved before it can be enacted. She pointed out specific provisions in the bill that require clarification and further refinement.
Retired Rear Admiral Ekwerre U. Ekwerre addressed concerns raised by the Nigerian Navy and advocated that the Navy should concentrate on defense, showcasing military strength, and conducting diplomatic operations within territorial waters and the Exclusive Economic Zone (EEZ). He asserted that the Coast Guard should be responsible for enforcing maritime laws in the nation’s inland waters.
In summary, while the majority of stakeholders endorsed the establishment of the Nigeria Coast Guard, they also called for careful consideration of the bill’s provisions to ensure clarity and effectiveness in its implementation.
Maritime
How Innovative Financing Would Aid Africa’s Maritime Sector – NIMASA DG
Innovative financing models have been identified as the vital catalyst for achieving sustainable development in the African Maritime industry.
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, made the declaration at the 7th Association of African Maritime Administrations (AAMA) conference in Dar es Salaam, Tanzania.
He assured attendees of Nigeria’s commitment to advancing a future where Africa’s maritime sector thrives sustainably.
In his words, “Nigeria is committed to collaborating on technology and innovation to enhance safety, security, decarbonization, and the marine environment for a sustainable future.”
According to him, the conference presents a pivotal opportunity to address our shared challenges, particularly those related to sustainable energy, regional security, and economic growth.
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“We are here to advocate for innovative financing models and international support that will facilitate sustainable growth. As Nigeria pursues infrastructure development and digital transformation within our maritime sector, we call on our regional and international partners to support these efforts through technical and financial backing.
“Our priorities at the AAMA conference include exploring collaborative avenues to enhance maritime safety and security. By reinforcing our adherence to frameworks like the Djibouti and Yaoundé Codes of Conduct, we aim to solidify Nigeria’s role in combating piracy and maritime crime across West Africa,” he stated.
The AAMA was established to lay a firm foundation for regular consultations, enabling African maritime administrations to build joint positions on issues of common concern in the maritime sector.
When Nigeria hosted the 3rd AAMA conference in 2017, a master plan was developed outlining the measures necessary to advance the maritime agenda as envisioned in the African Maritime Transport Charter. The Association has also created a platform to strengthen cooperation at the regional, continental, and international levels, harmonizing policies and goals essential for the growth of the African maritime sector.
Maritime
Oyetola Counts On Nat’l Marine and Blue Economy Policy To Chart New Course For Dev’t
The Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola is of the view that a National Policy on Marine and Blue Economy is essential for the development of the Nigerian maritime sector.
Biztellers reports that Oyetola shared the view, on Tuesday, while declaring open a stakeholders’ validation session aimed at developing the National Policy on Marine and Blue Economy in Nigeria, in Lagos.
The former Osun State Governor emphasized that the National Policy will create a sustainable pathway for economic growth in fisheries, aquaculture, renewable energy, tourism, and seabed mining, while also ensuring environmental sustainability.
He further noted the need for a robust National Policy to address challenges in the sector, including environmental degradation and illegal activities such as Illegal, Unreported, and Unregulated (IUU) fishing.
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In his words, “A robust National Policy will ensure that we address these issues through a comprehensive framework that aligns with international best practices while safeguarding our marine resources for future generations.
“It is worth noting that Nigeria has achieved notable progress in maritime governance, including the ratification and domestication of international protocols and conventions. These measures have strengthened our safety and security framework, resulting in a remarkable three-year period with zero incidents of piracy in our waters. Nonetheless, the recurring boat mishaps underscore the pressing need for immediate action.
“This policy seeks to implement comprehensive strategies to ensure the safety of all waterways. However, challenges such as the recent spate of boat mishaps demand urgent attention. Consequently, this policy aims to establish comprehensive measures that will enhance safety across our waterways.
“As we develop this policy, the Ministry remains committed to repositioning Nigeria as a dominant player in the marine and blue economy, both regionally and globally. We are also pursuing Nigeria’s candidacy for election to Category C of the International Maritime Organization (IMO), which underscores our determination to strengthen our voice in global maritime governance”.
In his welcome address, the Permanent Secretary of the Ministry, Olufemi Oloruntola, noted that the validation workshop is a key step in shaping the National Policy on Marine and Blue Economy — a framework designed to address Nigeria’s specific needs and aspirations while embracing sustainable development principles. “It provides an opportunity for stakeholders to review, refine, and enrich the draft policy through a participatory and inclusive approach,” he said.
The draft policy, which consists of nine parts, offers an elaborate overview of our country’s marine and blue economic endowments and their current state. It affirms our mandate, vision, and mission, setting the stage for the policy’s objectives and aspirations. It further dissects these aspirations into five broad parts of legal and institutional framework; maritime transport, trade and shipping; fisheries and aquaculture; marine abiotic resources; and marine innovation and technology. It also identifies a range of cross-cutting issues and concludes with an assessment of stakeholders to support the implementation structure. Overall, it is a comprehensive document.
Also present at the event were the Chief Executive Officers of all the agencies under the Ministry, including Dr. Dayo Mobereola, Director General, Nigerian Maritime Administration and Safety Agency; Abubakar Dantsoho, Managing Director, Nigerian Ports Authority; Barrister Akutah Pius, Executive Secretary, Nigerian Shippers Council; and Bola Oyebamiji, Managing Director, National Inland Waterways Authority.
Other attendees included Funmi Folorunsho, President, African Shipowners Association; Engr. Greg Ogbeifun, Managing Director, Starz Marine; and the President, National Association of Stevedoring Companies, among other stakeholders.