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NSC Labels Nigerian Seaports ‘Import Ports’

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  • NSC Labels Nigerian Seaports ‘Import Ports’

The Executive Secretary and Chief Executive Officer, the Nigerian Shippers Council, Mr. Hassan Bello, has said that Nigerian seaports were only structured to take out exports and not to bring in imports.

Bello stated this on Tuesday while presenting a paper titled, “Nigerian Transport Policy; Maritime Dimension,” at the second edition of the Association of Marine Engineers and Surveyors’ Nigerian Maritime Technical Summit.

“Maritime transportation must be a two-way affair, we must export, just as we import. We cannot keep having containers coming in laden with goods and leaving our shores empty,” he stated.

He described the ports in Apapa and Tin Can Island as well as the one in Warri as ‘water ports,’ maintaining that they were not deep seaports and were not accessible to big foreign vessels.

“Navigation is very difficult in these ports and I am now worried about the connection to Lekki deep seaport. Government must ensure that existing access to Lekki is appropriate. We cannot have the Apapa mistake.”

He listed the challenges in the maritime transport sector as infrastructure, funding, lack of stable government policy, lack of transparency and predictability.

He called for increased private sector participation in maritime transport, arguing that it was not the role of government to run business but to regulate and provide enabling environment for businesses to thrive.

According to him, while government strives to mobilise as an enabler, the private sector must be seen as the driver, particularly of government’s interest and policies for the overall benefit of the common man.

Bello however cautioned that the private sector, in order to prove itself worthy of moving the economy forward, must be responsible and accountable to the people.

He said that Nigerians might continue to experience hiccups in the transportation sector, until an inter-modal approach, with a utilitarian value, was fully adopted.

A former Managing Director, Nigerian Ports Authority, Chief Adebayo Sarumi, who chaired the occasion, thanked AMES for its continuing efforts towards growing the nation’s shipping sub-sector, just as he commended the government, particularly the Minister of Transportation, Rotimi Amaechi, for his determination and genuine commitment to uplifting the Nigerian maritime industry.

“We are here to assist the policymakers. The policymakers have to be assisted and supported by all of us, whether as pseudo or core professionals,” he said.

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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Economic Downturn Triggers Drop in Nigerian Air Cargo Activities

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Activity in Nigeria’s air cargo sector declined with cargo volumes dwindling across airports in the country.

The decline fueled by a myriad of factors including rising production costs, diminished purchasing power, and elevated exchange rates, has underscored the broader economic strain facing the nation.

Throughout 2023, key players in the sector, such as the Nigerian Aviation Handling Company (NAHCO) and the Skyway Aviation Handling Company (SAHCO), reported notable decreases in their total tonnage figures compared to the previous year.

NAHCO recorded a six percent decline in total tonnage to 61.09 million kg, while SAHCO’s total tonnage decreased to 63.56 million kg. These declines were observed across various services, including import, export, and courier.

According to industry experts, the downturn in cargo volumes can be attributed to the escalating costs of production, which have soared due to various factors such as higher diesel prices, increased supply chain costs, and fuel surcharges.

Also, the adverse impact of elevated exchange rates, influenced by Central Bank of Nigeria’s policies on Customs Currency Exchange Platform, has further exacerbated the situation.

Seyi Adewale, CEO of Mainstream Cargo Limited, highlighted the challenges facing the industry, pointing to higher local transport and distribution costs, as well as the closure of production/manufacturing companies.

Adewale also noted government policies aimed at promoting local sourcing of raw materials, which have added to the complexities faced by cargo operators.

The broader economic downturn has led to a contraction in Nigeria’s economy, with imports declining as a response to the prevailing economic conditions.

Ikechi Uko, organizer of the Aviation and Cargo Conference (CHINET), emphasized the shrinking economy and reduced import activities, which have had a ripple effect on air cargo volumes.

Furthermore, the scarcity of foreign exchange and trapped funds experienced by carriers have contributed to the decline in cargo operations.

Major cargo airlines, including Cargolux, Saudi Cargo, and Emirates Cargo, have ceased operations in Nigeria, leaving Turkish Airlines as one of the few carriers still operating, albeit on a limited scale.

The absence of freighter cargo airlines has forced importers and exporters to resort to chartering cargo planes at exorbitant rates, further straining the air cargo sector.

 

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Point of Sale Operators to Challenge CAC Directive in Court

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Point of Sale (PoS) operators in Nigeria are gearing up for a legal battle against the Corporate Affairs Commission (CAC) as they contest the legality of a directive mandating registration with the commission.

The move comes amidst a growing dispute over regulatory oversight and the interpretation of existing laws governing business operations in the country.

Led by the National President of the Association of Mobile Money and Bank Agents in Nigeria, Fasasi Sarafadeen, PoS operators have expressed staunch opposition to the CAC directive, arguing that it oversteps its jurisdiction and violates established legal provisions.

Sarafadeen, in a statement addressing the matter, emphasized that the directive from the CAC contradicts the Companies and Allied Matters Act (CAMA) of 2004, which explicitly states that the commission does not have jurisdiction over individuals operating as sole proprietors.

“The order to enforce CAC directive on individual PoS agents operating under their name is wrong and will be challenged,” Sarafadeen asserted, citing section 863(1) of CAMA, which delineates the commission’s scope of authority.

According to Sarafadeen, the PoS operators are prepared to take their case to court to seek legal redress, highlighting their commitment to upholding their rights and challenging what they perceive as regulatory overreach.

“We shall challenge it legally. The court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent must register with CAC,” Sarafadeen stated, emphasizing the association’s determination to pursue a legal resolution.

The crux of the dispute lies in the distinction between individual and non-individual PoS agents. Sarafadeen clarified that while non-individual agents, operating under registered or unregistered business names, are subject to CAC registration requirements, individual agents conducting business under their names fall outside the commission’s purview.

“Individual agents operate under their names and are typically profiled with financial institutions under their names,” Sarafadeen explained.

“It is this second category of agents that the Corporate Affairs Commission can enforce the law on.”

Moreover, Sarafadeen highlighted the integral role of sub-agents within the PoS ecosystem, noting that they function as independent branches of registered companies and should not be subjected to the same regulatory scrutiny as non-individual agents.

“Sub-agents are not carrying out as an independent company but branches of a company,” Sarafadeen clarified, urging for a nuanced understanding of the operational dynamics within the fintech and agent banking industry.

In addition to challenging the CAC directive, Sarafadeen emphasized the need for regulatory bodies to prioritize addressing broader issues affecting businesses in Nigeria, such as the high failure rate of registered enterprises.

“The Corporate Affairs Commission should prioritize addressing the alarming failure rate of registered businesses in Nigeria, rather than targeting sub-agents,” Sarafadeen asserted, calling for a shift in regulatory focus towards fostering a conducive business environment.

As PoS operators prepare to navigate the complex legal terrain ahead, their decision to challenge the CAC directive underscores a broader struggle for regulatory clarity and accountability within Nigeria’s burgeoning fintech sector.

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NNPC E&P Ltd and NOSL Begin Oil Production at OML 13, Akwa Ibom State

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NNPC Exploration and Production Limited (NNPC E&P Ltd) and Natural Oilfield Services Limited (NOSL) have commenced oil production at Oil Mining Lease 13 (OML 13) located in Akwa Ibom State.

The announcement came through a statement signed by Olufemi Soneye, the spokesperson of NNPC E&P Ltd, highlighting the collaborative effort between the flagship upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) and NOSL, a subsidiary of Sterling Oil Exploration & Energy Production Company Limited.

The production, which officially began on May 6, 2024, saw an initial output of 6,000 barrels of oil. The partners aim to ramp up production to 40,000 barrels per day by May 27, 2024, reflecting their commitment to enhancing Nigeria’s crude oil production capacity.

Soneye said the first oil flow from OML 13 shows the dedication of NNPC E&P Ltd and NOSL to drive growth and development in Nigeria’s oil and gas sector.

He stated, “The achievement does not only signify the culmination of rigorous planning and execution by the teams involved but also represents a new era of economic empowerment and development opportunities for the host communities.”

For Nigeria, the commencement of oil production at OML 13 holds immense significance. It contributes to the country’s efforts to increase its oil production capacity, essential for meeting domestic energy needs and driving economic growth.

Moreover, Soneye reiterated NNPC E&P Ltd and NOSL’s commitment to operating in a safe, environmentally responsible, and community-beneficial manner.

This partnership underscores their dedication to sustainable practices and fostering positive impacts in the local communities where they operate.

The commencement of oil production at OML 13 marks a pivotal moment in Nigeria’s oil and gas industry, signifying not only increased production capacity but also the collaborative efforts between industry players to drive growth and development in the nation’s vital energy sector.

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