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Business Drags as 24 Government Agents Inspect Ships

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Ship Aveon Offshore
  • Business Drags as 24 Government Agents Inspect Ships

The ease of doing business initiative of the Federal Government is under a serious threat from the activities of some government agencies at the seaports.

Our correspondent learnt that about 24 personnel from more than seven government agencies would go aboard ships for inspection whenever a vessel berthed at the country’s port.

According to some concerned port operators, most of the time, what the agents do inside the vessels is either to loot or extort their owners.

The delays to vessels calling at the ports due to the multiple checks conducted by government agents aboard ships led to a recommendation by an inter-agency and port stakeholders’ committee on the implementation of Acting President Yemi Osinbajo’s Executive Order on port operation, that the number be reviewed.

Stakeholders have said that the processes of the agencies slow down ship discharging operations.

Those agencies listed for vessel inspection are Port Health Authority (four or five personnel), Nigeria Immigration Service (four personnel), Nigeria Customs Service (three personnel), Nigerian Maritime Administration and Safety Agency (three personnel), Marine Pollution (three personnel), Department of State Service, (two personnel), Nigerian Ports Authority’s International Ship and Port Facility Security (one personnel), State Port Control (four personnel).

Our correspondent gathered, for instance, that cargo operations could not commence except the following documents were issued: free pratique, which is issued by the Port Health Authority; break bulk, which is issued by the Customs.

Also, it was learnt that Immigration would go through all the crew contracts thoroughly, a process which was said to be of no importance to the government of Nigeria, as the contract was strictly between the ship owners and the crew.

According to global best practices, only Port Health Authority should board vessels.

A search by our correspondent showed that in almost all the countries operating a maritime system, representatives of government agencies would not board vessels except for the purpose of determining the safety standard of such vessels or in the event of suspected terrorism.

Also, pre-arrival documents are sent through email for distribution to government agencies.

The Chairman of the International Freight Forwarders Association, Sunny Nnebe, faulted the practice in Nigeria, noting that since the cargo was to be brought down from the ship, there was no point in agencies boarding ships to inspect any cargo.

“The agencies physically examine the consignment after they have been offloaded from the ships; so there is no point in boarding ships and causing delay at a time we are working towards achieving the ease of doing business at the ports.

“Also, after the inspections at the port, police still stop containers along the highway over claims that the goods were not properly checked, as if they were not part of the government agencies that examined the cargo at the port earlier,” he said.

While confirming the allegation of extortion levelled against some of the agents by operators, Nnebe noted that some shipping companies encouraged it.

He said, “Some shipping companies bring in things and fail to reflect them on the manifest and when the security agencies discover this, the shipping companies will buy their silence through bribery,” he alleged.

He, however, noted that the problem was that the agencies were now charging a fixed amount, whether there was an infraction or not.

A maritime expert and lead researcher at the Lagos Chamber of Commerce and Industry, Dr. Vincent Nwani, also said that government agencies were not needed aboard vessels.

He pointed out that the vessels were not the items of import but the cargo which should be checked by the Customs when uploaded at the terminals owned by the terminal operators.

The activities of the government agencies aboard vessels, according to him, cause delay and have privacy implications for the vessels.

“Government agencies should stop going into ships, except for engineers who are supposed to check if the ship is in good condition or officials of the Nigerian Ports Authority that handle cases of bunkering where such arise.”

Responding, the General Manager, Corporate Affairs, NPA, Mr. Ibrahim Nasiru, said that some workers of government agencies were authorised to board ships, depending on what was found in the ship.

He said, “What determines the number of agencies that go on vessels is similar to what happens when a cargo is on the ground. When an agent goes on board the ship and suspects that there may be hard drugs, the National Drug Law Enforcement Agency will be called in and when there is health issue, the PHA will be called in; the NIS will also be invited when there is suspicion of breach of immigration laws.

He pointed out that Nigeria could not eliminate ship inspection by agents completely because most processes in the country were still being done manually.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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