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Court ruling: NERC agrees to reverse 45% electricity tariff hike

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  • UN accused of failing as north-east Nigeria comes at risk of famine

The Nigerian Electricity Regulatory Commission (NERC) on Thursday said it would uphold the court ruling mandating it to reverse the 45 per cent increase in electricity tariffs across the country, six months after implementing the Multi Year Tariff Order 2, which brought about the hike in the tariffs.

A Federal High Court in Ikoyi, Lagos had on Wednesday reversed the 45 per cent increase in electricity tariffs by NERC and the Federal Government in a landmark judgment. The court declared that the increase was illegal and ordered that it should be reversed immediately.

The court held that the implementation of the tariff hike constituted a violation of its interim order, and awarded N50,000 cost against NERC. This is coming as the power distribution companies said that they had appealed against the Federal High Court ruling and filed for a stay of execution.

The Acting Chief Executive Officer, NERC, Dr. Tony Akah, told our correspondent that after consulting with his legal department, the commission resolved to comply fully with the judgment before considering any other option if necessary.

He said, “We have not obtained the full court ruling so that we can study it and, of course, respect the decisions of the court and evaluate any other option, if necessary. But of course, we have strong respect for the judiciary and we will definitely comply with the ruling before considering any other option that we may decide on.

“However, I want you to know that our lawyers have not got the full copy of the ruling and we have not studied its contents, because anybody can be speculative. There are different speculations and I don’t know if anybody has seen the detailed contents of the ruling in order to evaluate and interpret.

“But that notwithstanding, NERC as a responsible institution, will and must respect the decision of the court and we are going to respect the order by the judiciary. We will also consider the advice of our legal department for any other option if necessary.”

Also reacting to the ruling, the Executive Director, Association of National Electricity Distributors, an umbrella body for the Discos, Mr. Sunday Oduntan, told our correspondent that the case was only lost at the Federal High Court. He said the Discos had appealed the ruling and were prepared to pursue the case up to the Supreme Court if need be, adding that nothing had changed as the power firms would still go ahead to collect what they used to charge as electricity tariff.

Oduntan said, “In that case and at that level, we lost the case but we are appealing, and we have filed for a stay of execution, which means everything remains the same. We respect the court and as a lawyer, I’m a counsel in the temple of justice and respect any ruling given by any court of competent jurisdiction.

“So, we have no problem with the ruling but we are appealing it; because at that level, it is not final. For that reason, we are going on with our business without any distraction and we will continue to fight the case up all the way to the Supreme Court if need be. Therefore, in essence, nothing has changed.”

But the Nigerian Labour Congress lauded the court judgment, describing it as a courageous one and added that it was in the interest of the people and was a victory for Nigerians against arbitrariness in governance.

In the meantime, the UN has been accused of failing to act quickly enough to save hundreds of thousands of lives in northern Nigeria where a food crisis already killing hundreds of people a day is poised to become the most devastating in decades.

Nigerian authorities, who maintain tight control over humanitarian and media access to the region, have also been accused of deliberate negligence and attempting to conceal the scale of the crisis.

The UN Office for the Coordination of Humanitarian Affairs (OCHA) has categorised 4.4 million people in the Lake Chad region as “severely food insecure” – meaning they are in need of urgent food aid.

Toby Lanzer, UN assistant secretary general and OCHA’s regional humanitarian coordinator for the Sahel, said: “This is about as bad as it gets. There’s only one step worse and I’ve not come across that situation in 20 years of doing this work and that’s a famine.”

“We have to step in and quickly or we are going to have hundreds of thousands at risk of dying in the north-east of Nigeria.”

Boko Haram’s seven-year insurgency has left Borno’s farmland – which previously fed Nigeria – devastated and abandoned. This will be the region’s third year without a harvest.

The hunger crisis is claiming lives even in Maiduguri, the capital of Borno state and the hub of humanitarian and security forces in the region. The city has doubled in size in two years and now hosts 2.4 million displaced people. Food prices are soaring in the markets, where it now costs $100 (£75) to buy a large bag of rice.

Lanzer said UN agencies have not had the resources necessary to tackle the crisis and has called on international donors to prevent a greater catastrophe. Of the $279m (£210m) required, only $75m has so far been secured.

Isabelle Mouniaman, head of Médecins Sans Frontières operations in Nigeria, said MSF has been raising the alarm in northern Nigeria for two years and UN organisations have failed to respond.

“We’ve been calling to the UN, to the headquarters of Unicef, WFP [World Food Programme], OCHA and their response has been ‘Yes, we’re doing this and that’… But you cannot just be satisfied to say you built X number of latrines, delivered X bags of food when people are dying. It’s not enough,” Mouniaman said.

“The Red Cross is doing their job, MSF is doing their job, but the vast majority of humanitarian organisations are failing in their responsibility towards the crisis in Borno.”

International aid agencies have focused on Maiduguri’s overstretched camps, but more than 80% of displaced people in the city, around 1.9 million people, are living among the community, the vast majority without access to food aid or medical support.

The most desperate crisis is unfolding outside Maiduguri, where aid agencies fear hundreds of thousands of people are trapped, cut off by Boko Haram and the military operation against them. As the Nigerian army clears more of these areas, the true scale of the crisis is only just becoming clear; those who have escaped tell of watching children die from hunger and being prevented from calling for help.

Mouniaman said: “We’re talking about areas in which 39% of children have severe acute malnutrition. This is a really, really dramatic situation. In my whole MSF career – since 1999 – I’ve never seen anything like it.”

In June, a humanitarian convoy reached Bama, Borno state’s second largest city. It was recaptured by the Nigerian army in March 2015, but the 37-mile journey (60km) from Maiduguri is still considered too dangerous to make without military escort because of Boko Haram attacks and landmines.

They found Bama destroyed and a camp of about 30,000 people, mostly women and children. Many were starving. MSF found the graves of 1,233 who had died in the camp, 480 of whom were children. More than 3,000 severely malnourished people were evacuated by the state governor to Maiduguri for emergency treatment. Several died en route.

The Guardian was refused entry to Bama by the Nigerian military on security grounds. But Maj Gen Leo Irabor, who leads the military operation against Boko Haram in the region, said hunger in the Bama camp was “relative”.

“Very largely I think their needs are being met,” Irabor said.

Several people evacuated to Maiduguri agreed to speak to the Guardian on condition of anonymity. One man, a civil servant, said he had seen people die every day in the camp as a result of hunger and poor sanitation.

Food rations were delivered once a day by civilian militia and distributed by local community heads. This was often raw rice, which there was no means to cook. Complaints about hunger and deaths were ignored.

“How many times we cried out or we complained … But when we were in Banki, the army confiscated all our mobile phones. If the army saw you making a telephone call, wow would they give you a beating,” he said.

Humanitarian agencies are still struggling to get an idea of the scale of need in tens of towns they have not been able to reach. In Mondugo last week, MSF estimated 100,000 displaced people were in need of assistance; this week, their revised estimate was 200,000. There is even less information about large communities in Dikwa, Konduga, Gwoza and Kale/Balge, where the situation is thought to be even worse than in Bama.

Grema Terab, chairman of the State Emergency Management Agency (Sema) in Borno – the body leading the state’s humanitarian response – until early March 2015, believes the crisis is the result of “total neglect and carelessness on the part of the government”. He said the government was aware of the extent of the hunger, but failed to deliver a plan to tackle it and attempted to prevent media coverage of the issue for fear of embarrassment.

“The government chose to conceal the issue of IDPs [internally displaced people] because they were afraid of indictment. There has been a lot of long-term neglect and a refusal to act upon the plight of the IDPs and this is why starvation is occurring in most of the camps,” he said.

“The IDPs are kept under lock and key because they don’t want them to communicate with the outside world.”

The current Sema chairman, Satomi Saleh, told the Guardian these allegations were “blackened lies and political connivances”. He said Sema, alongside the National Emergency Management Agency, has reached 150,000 people in the camps in Maiduguri with food assistance, but admitted the crisis has now exceeded Nigeria’s ability to respond alone.

A nutritional emergency has been declared in Borno state, where the governor, Kashim Shettima, is now working closely with UN agencies. The WFP was invited into Nigeria by the government in March to assist the relief effort. They are rapidly scaling up their operation and now hope to reach more than 700,000 with food aid by December.

“I don’t think anyone was quick enough to understand how serious the situation was. We can criticise each other, but the main point is … what are we going to do to make sure this situation doesn’t deteriorate,” Lanzer told the Guardian.

“We can make every plan on earth … [but] if we do not get resources from the donor community very little of that will actually happen.”

Punch with additional report from Guardian

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

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…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

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Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

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Wind Farm Vessel Collision Leaves 15 Injured

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…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

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