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FG to release N100bn for capital projects

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  • As FG replies USA: says All states in Nigeria are safe

The Federal Government has disclosed plans to release N100bn for capital projects in a few days’ time, having earlier released N322bn for the same purpose.

Vice President Yemi Osinbajo disclosed this on Thursday in Lagos during the Presidential Policy Dialogue session organised by the Lagos Chamber of Commerce and Industry.

He said, “We have also pledged to keep capital budget spending to a minimum of 30 per cent. We have already made capital releases of N332bn which is more than the entire amount released last year, with another N100bn set to be released in the next few days.

“The funds are for power, works, housing, transportation, defence and agriculture. “

Osinbajo said the government had been able to save close to N1.4tn in fuel subsidy payment since May when it deregulated the downstream petroleum sector and pegged the pump price of petrol at N145 per litre.

The government officially ended fuel subsidy payment on May 11 when it increased the pump price of Premium Motor Spirit from N86.50 to N145 a litre, and asked whosoever had the means to import the product to do so, with foreign exchange sourced independently.

The decision, according to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, was taken at the end of a stakeholders’ meeting presided over by Osinbajo, and was aimed at increasing and stabilising the supply of the product, adding that the government expected that the policy would lead to improved supply and competition, and eventually drive down the pump price.

Although the policy has not led to a reduction in pump price of fuel three months after its implementation, the vice president said it had led to a reduction in the daily demand for petrol and a saving of N1.4tn during the period.

He said, “The deregulation of the downstream petroleum sector was an important decision of this government. This has reduced the daily demand for fuel from 1,600 trucks to 850 trucks, and resulted in savings of about N1.4tn on subsidy payment.

“Of course, the long term decision is to fix the refineries because one of the largest foreign exchange spending for us is on importation of petroleum products; and at the moment, our refineries are not producing enough.

“In addition to the Dangote refinery with its 650,000 barrels, we also intend to fix the existing refineries and expect that by the end of 2017, most of the refineries will function.”

He said in the area of financial management, the government was also able to save N8bn monthly from the Integrated Payroll and Personnel Information System embarked on by the Federal Government.

On his part, the President, Dangote Group, Alhaji Aliko Dangote, noted that the most vibrant private sector in Africa was still in Nigeria, adding that he did not believe the report making the rounds that   South Africa had replaced Nigeria as the number one economy on the continent.

He said, “Last night, I was watching the news that Nigeria had been displaced by South Africa as the number one economy in Africa. I don’t believe that report; it was something that was just said to embarrass us.

“They said South Africa is $4bn above Nigeria and I said it depends on the exchange rate that they used. I am sure they must have used the wrong exchange rate. Be rest assured, we are still the number one economy in Africa.

“Nigerians are known for their drive, doggedness, tenacity, industry and creativity. These qualities are an embodiment of the Nigerian spirit and are on display in the private sector. All that the government needs to do is remove obstacles that stand in the way of a bigger and more productive private sector.”

In the meantime, the Minister of Information, Lai Mohammed, has condemned the United States of America for issuing a travel warning to its citizens against travelling to 20 of the 36 states of Nigeria. The report released by the Department of State last week advised Americans of the risk of kidnapping, robberies, and other armed attacks in north, central and southern parts of the country.

Mohammed scorned the report while hosting a delegation of the Association of Tourism Practitioners of Nigeria (ATPN). He said the report was in bad taste as it projected Nigeria in negative light to the rest of the world, insisting the country is safe for investment and tourism.

According to him, in spite of the security challenges in the Niger Delta region and the North- east, Nigeria remains a beautiful environment inhabited by people of acclaimed quality. Mohammed, who warned the Nigerian media to desist from negative news capable of hurting domestic tourism, faulted the report and insisted that the US is not insulated from security issues as it is faced with gun laws, indiscriminate killings of African- Americans by police that fuel rioting and wanton shooting of school children across the country.

“There was a report in the media that 20 states out 36 states in Nigeria are not safe. Who said so? The United States! Is there any week that they are not killing people in the US, either through shooting in schools, on the drive ways or suicide attacks or by race motivated killings? How can you tell us that 20 out 36 Nigerian states are not safe? It is just not correct. There is no part of Nigeria that is not safe today. If they are telling their people not to come to Nigeria, it is not for our media to help them in echoing it, ‘’ Mohammed said.

Punch with additional report from Thisday.

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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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