Dr Eugene Nweke is a frontline freight forwarder. He was a former National President, National Association of Government Approved Freight Forwarders (NAGAFF), in this Interview with ANDREW UTULU, he speaks on the efforts of the Federal Government in trying to reposition Maritime and Blue Economy sector of the economy. Excerpts:
Sir, how are the Federal Government policies affecting the maritime sector in Nigeria and what are the major challenges faced by the sector?
From my own vantage position and experience, under President Bola Ahmed Tinubu, the challenges of the maritime industry have been itemised, and I see a Minister or a government that is trying to address them in bits or according to priorities.
So, I will prioritise the issue, the challenges, and how to tackle them.
You see that these challenges are there, but if you look closely, you will see government effort towards addressing them.
Let me give you three or four instances of the challenges and the efforts of government towards addressing them.
Number one, an industry regulator. There’s no maritime industry in any country that is not regulated by an umpire.
Where other stakeholders, once this agency says no, this will not happen, for the interest of common good of every other person, both the stakeholders and Nigerians, then that ombudsman must always be there.
But in Nigeria, from concession era, prior to the concession, after concession, we don’t have the last man, a referee, a central referee.
Now, Shippers’ Council was given that task or mandate, but it was not, it was a mandate lacking legislative backing under President Jonathan.
But today, you and I have seen the metamorphosis through the legislative effort, and now we have an agency which bill has passed through the National Assembly with a constitutional accent. And from fillers presidency, the president is ever willing to consent and sign into law. That very Agency.
And once that is done, the Shippers’ Council will metamorphose into a full economic regulator of the maritime industry.
That is a key, a key challenge, and you can see the solution being proffered, so that we will ameliorate and deal with the problem.
Two, in the maritime industry, there a creation or separation from the Ministry of Transportation, now having what’s called Marine and Blue Economy Ministry.
If you have watched the way the minister handled the affair of this creation, some of the issues that revolved around operational bottlenecks and conflict of interests, have been resolved. You won’t see it being feasible, but internally, it has been managed.
To this creation, you see that Mr. President has graciously signed and approved the Marine and Blue Economy Development Policy Plan into effect.
In this Maritime Development Policy Plan, every architecture of advancing the course of maritime is contained in this very framework, enabling framework.
So, it’s no longer a situation in which every government can do what he or she wants and go, and we are just seeing ourselves rigmarrolling in a vicious cycle. It’s no longer like that.
Any development, as far as maritime industry is concerned, that’s what my term is, must be followed, it should be sequenced with what has been established or signed into law.
Anybody who does anything in the contrary, for whatever agency or strata, will be confronted as doing the wrong thing, and the National Assembly will call that person to order, because it negates the development plan. The development plan didn’t just come from executive.
The National Assembly had their input on it, so they are aware.
Now, the critical issue, that has been very worrisome, is the government’s inability to manage its foreign exchange administration. That has been a very critical issue. It has led to inflation. It has also led to capital flight in one way or the other.
At the end of the day, it has also affected the purchasing power of the people and causing hunger and hardship.
Now, what is the government doing to ameliorate that? You see government rushing to sign a contract with China on the currency swap. That programme has been there, but this government picked it up.
You can also see this government trying to grant waiver on stable foods, in order to also address the issue of food scarcity and curtail the excess of hunger in the society.
Yes, 12% to 18% may not be much, but it is better than none, right? So you also see the same government, also through Customs, advancing the cause of what we call a National Single Window, so that some of the excesses and bottlenecks in the center, within the trade flow, will be addressed.
Single Window is being pursued vigorously. Customs have signed into what we call Advanced Ruling. Customs has also signed up what we call Authorised Economic Operator.
Customs has also signed a border agency contract for the freedom of cargo movement along the corridor. And the same customs, again, has also, you can see the revenue generation will tell you that.
The same customs have signed off what we call a grant to dignify suppression, looking at excellence, looking at integrity, looking at transparency, looking at accountability.
So all this is geared towards moving from the old order and to re-engineering the international trade clearance process within the country, vis-à-vis, looking at the mandate of the Presidential Ease of Doing Business in the country, chaired by the former Vice President.
So, put all this together, and again, you see a government that made up its mind within some few months ahead, to disburse the CVFF.
Cabotage Vessel Finance Fund is about to be disbursed. Companies have been shortlisted for it.
What does that tell you? It also wants to make sure that the local ship owners have their own bit of controlling the waterways.
Because we cannot be talking about marine and blue economy without taking charge. The essence of blue economy is for us to take charge of our marine domain. And if we don’t have indigenous vessels plying the international deep blues, then what are you talking about?
So it’s now that we’re going to see the beauty of Carbotage law through the disbursement of the CVFF fund once it’s been disbursed.
This government is willing to do that. So, other issue, you see collaboration for the very first time, interagency collaboration being meaningful. That’s why you can see the level of revenue generation in spite of low cargo throughput.
Custom is also doing what? The revenue is going up. That means loopholes or leakages are being sealed up. While inter-agency is sharing information and networking to serve the Nation.
So, I can go on and on trying to address some of the issues in place, but one thing that I’m not very proud of, that critical issue that I’ve been ringing, which has to do with being a maritime nation without national fleet.
Government is trying to overcome it. Now, you see the level of, what do you call it, in the maritime industry, under the oil and gas, you can see the role of Dangote at the Lekki axis. You can also see the role of the deep, Lekki deep seaport.
Today, we are positioning. Then, another leap was when the government came to flag off and ship Nigerian made goods into the Africa-Continental Free Trade Agreement, which was done sometime late last year.
So, in all, Andrew, I think if you have been in the industry, if what I have said is correct, then you give it to the government for their own little effort.
It means the government is focused. The government is still mindful of the fact that this maritime must be managed by professionals.
Now that the government is making frantic effort to reposition the maritime industry in Nigeria, what would be your advice to other critical stakeholders, importers, exporters and by extension agents and the freight forwarders?
Every critical stakeholder in the maritime industry by now will know that there is a wind of change. As that wind of change is blowing, either you flow with it, or it will blow you away.
Let me tell you one thing you may not know. Did you watch the war between Ukraine and Russia?
The military strategy in that war is drones. Being used to attack and launch to targets. In the same manner, the freight forwarding space where I belong for instance, drones are now being used to lift cargo from one port to the other.
Machine landing is the order of the day. AI application in freight forwarding has gone far. So, today, freight forwarding is now gearing towards 11,12 logistics provider.
That means, not just door-to-door. But door-to-door to extended outdoors. That is where we are going now in the freight forwarding industry. So, what does that require? If you are still thinking that you require documents, you are still waiting for the time importer will transfer money to you to do a job, you better wake up.
What we need now is a formal concept, by ICT communication, importer give you specifics, you go on his behalf, manufacture those things, get its specifics, then deliver it. Sponsor it till you and deliver.
Then, send your bill, you get your money. That is the spirit of total logistics. That is where the industry is going. Then you now look at other stakeholders.
Our indigenous shipping, they have reason why you see them crying out that they don’t want to be left out.
If they don’t, they way we are going, investors are willing to deploy their own vessels under a third party arrangement.
They will still be taking our freight outside and be collecting our money. That is for ship-owners.
Let’s looks at the Chandlers, another critical stakeholders. Chandlers should know that there is a new order in handling services.
Why? Because, post Covid-19, with ICT-driven system, you don’t just wait for vessel to come and say you have gotten, no. Whatever you want to do, you have accessed them, send it to them to make enquiry, about the quality of what you are supplying.
This is not the case of rejecting any one. Before vessel berth, you have known what you are expecting and get it on board.
Now, on the security aspect, Tantita and some other security apparatus for the sea-water have helped to redeem our image of illegal bunkering. That is also commendable. You can see Tantita deploying drones into its security surveillance arrangements.
The truckers, and their Eto, time is moving against them. I am aware certain group of people has been coming and discussing their interest in the trucking business. If they succeed with their discussion with the government, and they launch in like 5,000 trucks into the industry, some of these truckers will lose business.
They are coming in to do business under PPP arrangement. So, if government grant an approval for such investment, just like Dantata tried to do it some years before, if that system come back, these ones they are asking to go and improve their services, the truckers- Trucking is an integral part of freight forwarding.
But, whereby, the Council for the Regulation of Freight Forwarding has not given them formal training, vis-à-vis, their business outline and what it should be, it becomes all comer’s affairs system that does not require standard.
That is giving Shippers’ Council concern. And other integral related services that come up from trucking are being neglected.
Another aspect we need to look at that government should give support and they too should define their purpose with mindset of rendering service, are the tug operators.
If these people are properly organised and go with sense of rendering pure services, then, there is no reason why our roads (access corridor) should be dominated by/with so many trucks.
Cargo must be seen to be moving seamlessly within the waterways. Then NIWA, is another Agency.
You can see this government taking the bull by the horn, setting up committee to review the mishaps at sea and come out with solutions on how to tackle it.
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