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Nigeria to adjust foreign trade policy

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…Switches from FOB to CIF

HOUSTON,TEXAS – The Nigerian government has decided to change its foreign trade policy from the present Free on Board, FOB, to Cost, Insurance and Freight, CIF, which most countries across the world uses because of its economic benefits, before the end of the year.

The FOB makes it mandatory for the buyer to determine who ships and who insures the goods to his port of destination, while the CIF ensures that the seller determines who ships and who insures the goods bought from him.

FoBPresently, goods bought from Nigeria are on FOB basis while Nigerian trade with other nations is done on CIF basis.

Speaking on the position of the Nigerian government, at the ongoing Offshore Technology Conference, OTC, Special Adviser to President Goodluck Jonathan, Leke Oyewole, said work has been completed on the document for the change in policy so as to help indigenous operators.

Oyewole explained that a document to that effect has been completed and inputs from the Ministries of Finance, Trade and Investment, Petroleum and others has been made after it first went to the President.

According to him, all that is left now is for the Economic Management Team, EMT to take a final look at it before it returns to the President for his endorsement and the change in policy to take effect.

“The EMT always have a long list of issues to attend to, they were to have that meeting last month but it was not possible, but I can tell you that within this month, most likely it will be discussed and when it is discussed and agreed upon at that level, then it will be left to the President to sign off on it. Once he signs, it becomes an order.”

Asked whether the policy would be reversed before the end of the year, the Special Adviser said, “Am hopeful, am very very hopeful but you also know that if today the President gives the go ahead for the policy to be reversed, Nigerians would not begin to carry it out tomorrow. We need to give sufficient time, enough for Nigerians to acquire vessels to begin to carry.”

He noted that country presently “operates on FOB, in which case, as soon as we put cargo onboard the ship, the fund, the money is released to Nigeria. When we go on CIF, it will mean that until the cargo is delivered before the money will come to Nigeria, there will be a gap, that gap must not be too wide, otherwise it will hamper the national funding because we get most of our revenue from these products (petroleum products).

“We have stayed back for too long, we cannot lunch suddenly into the mainstream, otherwise we will not be able to cope with the dynamics of international politics that will be involved. We need to find a way to move in gradually and all these has been taken care of in the document I told you has been moving from table to table, so that we have a sustainable re-entering into the international market and trade.”

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Maritime

Maritime Stakeholders Back Bill For Nigeria Coast Guard At Public Hearing

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Read Farewell Address By Osun Governor, Mr. Gboyega Oyetola

 

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.

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Maritime

How Innovative Financing Would Aid Africa’s Maritime Sector – NIMASA DG

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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.

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Oyetola Counts On Nat’l Marine and Blue Economy Policy To Chart New Course For Dev’t

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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.

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