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NIMASA, Shippers Council, others identify infrastructural deficit, corruption as major industry setbacks

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COST REDUCTION: Shippers Council threatens action against companies, operators, over arbitrary charges

…Presidency says Nigeria targets sub-100 ranking in Ease of Doing Business***

A cross-section of maritime stakeholders on Tuesday in Abuja have identified infrastructure deficit and non-enforcement of maritime regulations as two major challenges hampering the sector’s development.

They took the position during a dialogue organised by Integrity Organisation, a non-governmental organisation (NGO), and Action Aid Nigeria, with the theme ‘‘Nigerian Regulatory Framework in the Transport Sector.

In his speech at the forum, Dr Dakuku Peterside, Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA) had fingered infrastructure deficit, corruption and lack of enforcement were major parts of maritime challenges; and argued that while the maritime sector was guided by international

Regulations, it was clear that the enforcement of such existing regulations was lacking.

“I spoke about the fact that the regulations are not the problem. It is perhaps the way we go about enforcing them. However, regulations in the maritime sector are international in nature.

“So, they are literarily the same, apart from a few areas that are different. The challenge in Nigeria therefore is how we go about the enforcement of those regulations. But people can testify that there is a lot of improvement.

“The real challenge in Nigeria is the issue of infrastructure. Our ports were built several years ago, not for the tonnes or capacity they are receiving now. Also, access roads to the ports are bad.

“Most of the ports’ infrastructures are not in place to support growth. The ports are not growing but services or the goods coming into the ports have been growing over time.

“Another problem is the issue of corruption. Nigerians must be unanimous in the fight against corruption, and we shouldn’t be selective whenever we are talking about corruption,’’ he said.

Dr Ene Obi, the Country Director of Action Aid Nigeria, who posited that Nigeria must take the issues of transport regulations seriously, tasked stakeholders to to obey the right regulations and be ready to fund the processes of such regulations.

“Nigeria’s debt profile is about 73 billion dollars. What are they spending it for? Who are they spending it on? What is the government doing with that kind of debt profile?

“If it was spent on industries, it would have been better. When we sing `Arise O Compatriots’, those leaders that are corrupt, do they actually join in the singing, or take the national pledge?

“Are we taking our National Anthem seriously? Are we taking our patriotism seriously?’’ she asked.

Mr Hassan Bello, the Executive Secretary, Nigerian Shippers Council (NSC), agreed that one of the challenges in the ports was infrastructure deficit.

Bello, who was represented by Mrs Ifeoma Ezedema, NSC’s Director of Regulatory Service, said the Apapa Port was operating above the capacity it was initially designed for.

DAKUKU PETERSIDE, NIMASA DG

He, however, noted that there was the need for private investors to come into the industry, pointing out that government could not do it alone.

But despite the identified waves of corruption, infrastructural deficit and nonchalant attitude to regulatory compliance, the Presidential Enabling Business Environment Council (PEBEC) has announced a determination to pursue the goal of moving Nigeria into the top-100, on the 2020 World Bank Doing Business Index (DBI).

The Presidency in a statement said the target was disclosed at the 10th Presidential Quarterly Business Forum which was held on Monday in Abuja.

It said that the forum was attended by leading members of the organised private sector and other key stakeholders.

Also in attendance were ministers, including Industry, Trade and Investment, Finance, Budget and National Planning and Power, Works and Housing.

The statement said that Dr Jumoke Oduwole, the Secretary, PEBEC and Senior Special Assistant to the President on Industry, Trade and Investment, spoke on the sub-100 target.

“We know it is bold, but we are quite clear on what our mandate is and are motivated by the impact we know these reforms will have on the lives of Nigerians.

“This year, we intend to strengthen the collaboration with MDAs and partners to consolidate and build on the work done.

“We will be pursuing the implementation of much-needed legislative reforms, specifically the passage of the Company and Allied Matters (CAMA) and Omnibus Bills.

“The expansion of the regulatory reform programme started with NAFDAC and NAICOM to include other regulators; the establishment of a National Trading Platform for ports; and the concession of our major international airports.

“We will also continue to cascade the Ease of Doing Business(EoDB) initiatives down to the sub-national level working with the state governments, and will release the first sub-national survey report in April 2019.

“We remain firm in our conviction of the immediate and long-term benefits of the PEBEC reforms,’’ the statement quoted Oduwole as saying.

PEBEC is chaired by the Vice President Prof. Yemi Osinbajo, with the Minister of Industry, Trade and Investment as Vice Chairman.

The Council has nine other ministers, Head of Civil Service of the Federation, Governor of CBN and representatives from the National Assembly and private sector as members. The DBI is an annual ranking that objectively assesses prevailing business climate conditions across 190 countries based on 10 EoDB indicators.

The Index offers comparative insights based on private sector validation of reforms delivered in the two largest commercial cities in countries with a population higher than 100 million, and the report consequently features Lagos and Kano states for Nigeria.

The World Bank has reported an improvement in Nigeria’s Distance to Frontier (DTF) score by more than 11 basis points over the past 3 years.

Economy

Import Licence: NNPCL Asks Court To Strike Out Dangote Refinery’s Suit 

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Import Licence: NNPCL Asks Court To Strike Out Dangote Refinery’s Suit

The Nigeria National Petroleum Corporation Limited (NNPCL) has asked a Federal High Court in Abuja to strike out a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE, describing it as “incompetent.”

The NNPCL, in a notice of preliminary objection filed by its team of lawyers led by Kehinde Ogunwumiju, SAN, before Justice Inyang Ekwo, argued that the suit was premature.

The application, marked: FHC/ABJ/CS/1324/2024 dated and filed on Nov. 15, was sighted on Wednesday.

NNPCL seeks two orders, which include an order of the honourable court striking out the suit for lack of jurisdiction and alternatively, an order striking out the name of the 2nd defendant (NNPCL) from the suit.

Giving a six-ground argument, the corporation argued that Dangote Refinery lacked locus standi to institute the suit.

“The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.

In the affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co, counsel to the NNPCL, he said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address told him that an examination of the processes showed that NNPC sued by the refinery was a non-existent entity.

Popoola averred that the court lacked jurisdiction over the 2nd defendant sued as NNPC.

“This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address as “Nigeria National Petroleum Corporation Limited (NNPC)”

“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC).”

 “The printout of the said search is hereby attached and marked as Exhibit A,” he said.

According to Popoola, the 2nd defendant/objector is not the same as the 2nd defendant sued by the plaintiff.

“The registered name of the 2nd defendant/objector is Nigerian National Petroleum Company Limited and this is the only name it can be sued by,” he added.

He said the NNPCL as sued by the refinery in the instant suit, is not a competent party or a juristic person.

Popoola, who averred that the suit was incompetent and ought to be struck out, prayed the court to grant their application in the interest of justice.

It had been earlier reported that three oil marketers had also prayed the court to dismiss the suit.

The oil marketers, in a joint counter affidavit marked: FHC/ABJ/CS/1324/2024 filed on Nov. 5 in response to Dangote Refinery’s originating summons, told Justice Ekwo that granting that application would spell doom for the country’s oil sector.

According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

Besides, they argued that there was nothing placed before the court to prove the contrary.

Dangote Refinery had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

Also listed as 3rd to 7th defendants respectively in the originating summons dated Sept. 6 are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

It prayed the court to nullify import licences issued by NMDPRA to the NNPCL and five other companies to import refined petroleum products.

The company also prayed the court to declare that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

It also urged the court to declare that NMDPRA violates its statutory responsibilities under the PIA for not encouraging local refineries such as the company.

The company equally sought N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products.

These it said are Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) in Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

Justice Ekwo had fixed Jan. 20, 2025, for the report of settlement or service.

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Economy

PETROL: ‘Be Wary Of Substandard Product Dumping’, Dangote Refinery Tells Nigerians

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PETROL: 'Be Wary Of Substandard Product Dumping', Dangote Refinery Tells Nigerians

…Says citizens’ health and vehicle longevity are seriously at risk!

The Dangote Refinery on Sunday warned that Nigerians may soon begin to buy substandard petrol, without much concern for either the citizen’s health or the longevity of their vehicles, except care is taken to prevent low products dumping by those open to connive with certain international traders.

The Group’s image maker and spokesman, Anthony Chiejina gave the warning, saying the group was constrained to raise the alarm, despite its desire to refrain from engaging in any media fights.

“We have lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations. 

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports”, Chiejina stated, stressing that the issue on ground was not about being able to land relatively cheaper petrol on ground, but the quality of such products.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

“Post deregulation, NNPC set the pace by selling PNS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

“In good faith, and the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, intending to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty”, the Group Chief Branding and Communications Officer further said.

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YULETIDE Decorations: LASG To Divert Traffic At Ajose Adeogun

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YULETIDE Decorations,: LASG To Divert Traffic At Ajose Adeogun

The Lagos State Government will divert Traffic, away from a section of Ajose Adeogun Street in Victoria Island, for the mounting of end-of-the-year decoration, for a duration of three weekends starting from Saturday 19th October 2024.

The aforementioned exercise, according to Commissioner for Transportation, Oluwaseun Osiyemi,  will be carried out in three phases with each phase focusing on different sections of the street. 

To this end, the following alternative routes have been mapped out for motorists during the cause of the mounting; 

 During the First Phase which will cover Jubril Martins to Chicken Republic – (Saturday, 19th and Sunday, 20th October 2024)

Traffic inward Eko-Hotel Roundabout will be diverted to the other half (existing section) of Ajose Adeogun Street by VCP Hotel to form contra-flow traffic and exit at Eko-Hotel Roundabout to continue journeys.

Alternatively, Traffic inward to Eko-Hotel Roundabout from VCP Hotel will be diverted through Jubril Martins into Muri Okunola to link Patience Coker and access Ajose Adeogun Street to connect destinations.

During the Second Phase which will cover Molade Okoya Thomas to Mounis Bashorun section – (Saturday, 26th and Sunday, 27th October 2024). 

Traffic inward Ajose Adeogun Street from Eko-Hotel Roundabout will be diverted to a right turn into Molade Okoya Thomas to link Younis Bashorun to access Ajose Adeogun Street to continue journeys. 

During the Third phase of the project spanning 10 meters inward Ajose Adeogun (Saturday, 2nd November, 2024).

Motorists from Adetokunbo Ademola Street will maintain a lane movement for about 10 metres into Ajose Adeogun Street to connect their destinations, while Motorists inward Eko-Hotel Roundabout on Ajose Adeogun Street will maintain a lane movement for about 10 metres into Eko-Hotel Roundabout.

The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi while imploring Motorists to note the ease of movement plan assured that the State’s Traffic Management Authority will be on ground to manage vehicular activities along the corridor to minimise inconveniences.

The Commissioner therefore advised Motorists to be patient, as the Partial closure is part of the traffic management plans for the commencement of End of Year Decoration of Ajose Adeogun Street, Victoria Island, Lagos, by Zenith Bank PLC.

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