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Freight Forwarders Condemn SFG’s Memo to CRFFN

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…As Lagosians Groan as Fuel Turns ‘Gold’, Sells for N350 Per Litre, N600 in Black Market

Freight forwarders weekend condemned the letter issued last week from the office of the Secretary General of the Federation (SGF) stopping all the activities of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) pending the constitution of a new board.

The memo appeared to have also affected the collection of Ports Operating Fees (POF), popularly known as Ports Practising Fees and being introduced by the CRFFN.

The collection of the fee was expected to begin fully today in all the ports in the country and border stations.

The memo which was issued by the office of the Secretary to the Federal Government, Senator Anyim Pius Anyim said no staff of the Council has the right to carry out any function without the Board of the Council.

The memo was issued based on the petition sent to the government by the factional President of National Council for Managing Directors of Customs Agents (NCMDCA), Mr Lucky Amiwero, who is also the Managing Director of Eyis Resources Limited.

But the President of National Association of Government Approved Freight Forwarders (NASGAFF), Dr. Eugene Nweke described the directive as an abuse of office and administrative procedure.

Nweke said that the official who signed the letter should be jailed for such directive.

He argued that the SFG failed to consider the fact that CRFFN was established under the Act of the National Assembly.

He also said that the office of the SFG ought to have consulted very well before issuing such a memo, adding that not even the Ministry of Transport was approached on the development.

Similarly, other leaders said that SFG should have sought clarifications from the Transport Minister, Senator Idris Umar since CRFFN is under him.

One of the freight forwarders who did not want to be quoted queried: does the SFG have such unilatateral power to act the way he did?.

Officials of the NCRFFN who pleaded anonymity said that what is surprising is that the office of the SFG acted on the basis of a petition from somebody who is not a member of the council, adding that the petitioner does no have the locus standi for his action against the CRTFFN.

He described Eyis Resources as not a registered freight forwarder.

It was gathered that some top officials of the Ministry of Transport and CRFFN told the leaders of freight forwarding associations to disregard the letter, insisting that it lacks relevance.
The officials said that what Amiwero did was misinformation.

LAGOS-300x247Meanwhile, NAGAFF and other three associations have described the action of the Association of Nigerian Licensed Customs Agents (ANLCA) whose members stopped the collection of the fees in Seme as unfortunate.

The associations at press conference last week said they will move against ANLCA, adding that for now, the association was simply playing to the gallery.

The associations will also meet today.

Officials of ANLCA had Wednesday mobilized its members and allegedly thugs to stop the collection of practicing fees from freight forwarders at the Seme Border Station about three hours after the exercise had commenced.

President of ANLCA, Prince Olayiwora Shittu had told SHIPPING DAY that a Committee made up of the former President of the association, Sir Ernest Elochukwu, the National Publicity Secretary of ANLCA, Kayode Farinto and others has been set up to come up with a recommendation on the issue.

Shittu gave an indication that the Committee would report to the NEC which will take final decision on the matter.

The ANLCA President said that the matter has gone beyond his personal decision alone. But it appeared that Shittu is not happy about the sharing arrangement on the collection of the practicing fees.

Incidentally, it is not clear when ANLCA would hold its NEC meeting to decide on the issue, and how long the Elochukwu Committee was given to carry out its assignment.

Meanwhile, business and social activities in Lagos came to a halt weekend following the continued scarcity of fuel in the city.

It was so bad that many Lagosians were full of lamentations about the hardship they have been going through in the past one week that the crisis worsened.

Some filling stations that had fuel sold a litre for N350,000.

It was a boom for black marketers who were selling fuel at N600 per litre after buying from filling stations under arrangement with the petrol attendants.

The situation forced many people who had social engagements to stay indoors.

The current crisis is attributed to the industrial action declared by the tanker drivers who are apparently protesting the order given to them by the Lagos State Government to move their tankers away from the Apapa port area that they have colonized for long now making life miserable for many residents, port users and other workers.

The other problem is the disagreement between the Finance Minister, Dr Mrs Ngozi Okonjo Iweala and the marketers on the actual amount they are being owed.

While the marketers claimed what is outstanding after the initial payment of N154bn is N200bn, the Finance Minister said government is only owing them N131bn.

Shipping Day

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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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