- As AfDB approves $600m loan for Nigeria
The Doyen of the Nigerian Maritime industry, Chief Adebayo Babatunde Sarumi on Wednesday urged the Minister Of Transportation, Rotimi Chibuike Amaechi to adopt some “protectionist measures” in favour of local operations and shipping, stressing that the “big fishes may not allow the smaller ones easy movements, without protectionism”.
Chief Sarumi, a former Managing Director of the Nigerian Ports Authority (NPA) made the observation, in his contribution to discourse at the World Maritime Day Celebration, at the Eko Hotels and Suites, Lagos, hinting that the vision behind the Local Content Act must not be abandoned.
The Ibadan High Chief tasked the Minister to focus his decisions based on economic exigencies, stressing that the country had suffered enough from “regional blackmails”, a development which he also noted had encouraged distractions, and sometimes, political rather than sound economically oriented policies.
Sarumi called attention to the importance of coastal rails, instead of another round of lower River Niger dredging, pointing out that maintenance of a Costal rails would be far too easier and cheaper, than dredging; a remark the Minister totally keyed into.
Subsequently, the Minister has emphasized that the NPA must show more commitment to the Single Window project, improved vessel traffic and fast track her automated cargo handling operations, in order to boost Private sector participations; and invariably enhance revenue generation in the port industry.
Also speaking during the 2016 World Maritime day celebration, Amaechi highlighted that this year’s event should be for reflection on the role of private sector, particularly in the continuous efforts to turn around the maritime industry.
He therefore enjoined members of Marine Transport Committee of the National Assembly to expedite action concerning transport sector reform bill, in order to give the industry effective performance across the board.
The minister who advocated for a re-examination of the free movement of cargo within the West African sub-region, as a result of the unwholesome activities of some companies doing business within nations bothering Nigeria, promised that everything would be done to ensure Nigeria actually maximizes her shipping potentials with a view to making more economic gains.
Speaking also on the occasion, the NPA Managing Director, Hadiza Bala Usman said she had given approvals for budgetary allocation which would ensure that all degenerated infrastructure can be repaired in order to increase traffic and operations in the Ports.
The Managing Director also expressed NPA’s determination to stick to the details Of the Authority’s 25 years master plan for development of the ports in the country, as this will remove overlaps and ensure NPA is properly repositioned for improved revenue generation, adding that a clear development plan will soon evolve.
She warned that the organization was in the process of reviewing all concession agreements stressing that sanctions would be applied to all those who falter in the MOU agreements earlier signed in the wake of concession, since NPA would do everything to ensure a level playing field for all Stakeholders.
Those present at the meeting included the Ship Owners Association of Nigeria (SOAN) Arrowhead, Engr Greg Utomwen Ogbeifun, foremost master mariner, Capt Niyi Adeyemo, the President of Nigeria Ship Owners (NISA) Capt. Dada Olaniyi Labinjo, SOAN Chieftain and trawler guru, Chief Mrs Margaret Orakwusi, NISA image maker and Lloyds Ambassador, Engr Emmanuel Ilori and Head of Mulifelong Motors, Princess M. F Sanni.
Also present, in addition to the Heads of parastatals under the Federal Ministry of Transportation (FMOT), were the former Executive Secretary, Nigerian Shippers Council, Capt Biu; Permanent Secretary FMOT, Alhaji S. Zakari, the Director General Of NIMASA Dr. Dakuku Peterside, amongst several others.
In the meantime, the African Development Bank’s Board of Directors on Wednesday approved a $600m loan for Nigeria, several months after the Federal Government had approached the lender for a budget-support facility.
The loan is meant to help Nigeria plug its budget deficit as the nation grapples with its first recession in more than 20 years.
The $600m loan is the first tranche of a total $1bn budget support package, according to a Reuters report quoting a senior bank official.
The second disbursement of $400m would be dependent upon the implementation of reforms and expected early next year, the bank’s Nigeria country director Ousmane Dore, said
The President, AfDB, Dr. Akinwunmi Adesina, had on September 26 said the bank was working on giving Nigeria loan facilities of $4.1bn between now and next year for critical sectors of the economy.
The loans include $1bn at a concessionary interest rate of 1.2 per cent for Nigeria to address the 2016 budget deficit and aid her economic recovery.
Adesina said this after a meeting with Vice-President Yemi Osinbajo and other members of the Economic Management Team at the Presidential Villa, Abuja.
According to the AfDB president, the package includes $1bn in budget support; $300m to create jobs for 185,000 youths; $250m towards infrastructure development in the North-East; $1m grant to deal with challenges of Internally Displaced Persons; $300m for infrastructure development around Abuja, and $200m for the Transmission Company of Nigeria to improve its facilities, among others.
Stressing that Nigeria was the largest shareholder in the bank, Adesina said that the bank was in the country to offer its support in the face of the current tough times.
He said, “I think the times are difficult but I want to commend the government for being bold in taking the right decisions.”
I think that the fact that the price of crude oil has gone down is a big challenge, because you have 98 per cent external forex revenue coming from the sector.
“So, it has created calibrations; I’m not going to go into the details of all the problems, but what is important is what we are going to do about it.
Additional report from Punch
