By Godwin  ORITSE

DESPITE the ban on mid-stream discharge, the illegal but very profitable business has continued unabated, with attendant huge economic losses to the nation.

Because of the huge profit that comes with it, a lot of underhand deals and other illicit activities take place in the mid-stream, such that it has remained almost impossible to tackle, despite the efforts of governments to address the menace.

Such international issues as smuggling and piracy are part of the unwholesome business of mid-stream discharge that has persisted despite the efforts of various governments to wipe them out.

The unwholesome business of mid-stream cargo discharge particularly that of oil and gas, has been enhanced by the continued presence of unregistered vessels or vessels that are not captured by the data collection system of maritime authorities in Nigeria.

It would be recalled that part of the corruption associated with the fuel subsidy regime, has to do with mid-stream discharges, as the mother vessels used for such activities are too big to dock at the Nigerian ports, thereby requiring the use of smaller vessels to trans load the products to the jetties.

The result, as discovered in the course of the subsidy probes is that in many cases, the mother vessels, allegedly used to import the products, could not be traced, or were not at the point of destination when the subsidy claims were filed.

Offshore offloading

In the maritime industry parlance, midstream discharge is described as the loading and off-loading of shipping cargo offshore as opposed to the ports. It is done on the high seas where there is limited access for agencies of government and the general public.

Such Mid-stream activities could be undertaken for two reasons. It could either be done for fraudulent purposes, or it could be authorized in some cases.

A ship owner can reach an agreement with his client, the owner of the cargo to discharge a consignment mid-stream into waiting barges which take such goods to private jetties where security may have been compromised.

When this happens, there is a high likelihood that the importer may not get caught.

Even where he is caught, the importer may have his way by offering inducements to the authorities to get its goods released.

Authorized discharges

Exceptions may however occur when such consignments have security implications for the country. Even at that, a source said, there is no guaranty that such security will not be compromised if the price is right.

Although, some observers argued that, there have a drastic reduction in the rate of mid-stream discharge activities because of the obvious criminality implications of such businesses.

A Chief Surveyor with NIMASA, Captain Jerome Angyunwe, said that there are a few shipping firms like Baco liners that are allowed to do mid-stream discharges, adding that any unauthorized mid-stream discharge is a criminal move and in isolation.

An official of the Nigerian Maritime Administration and Safety Agency (NIMASA), who preferred anonymity, said that Nigeria does not have the capacity to monitor activities that takes place at sea, a situation that placed the perpetrators at a vantage position.

Speaking with Sweetcrude on unapproved mid-stream discharges, the spokesman for the Nigerian Ports Authority (NPA) Chief Micheal Ajayi, said that it is only the Managing Director of NPA that approves or authorizes such discharges, adding that in the absence of the Managing Director, an Executive Director could be directed to do so.

Some stakeholders have called on the government to curb the menace caused by these unscrupulous elements. They have threatened to shut down the ports if something is not done to checkmate the issue of mid-stream discharge.

Multinationals biggest culprit

For instance, the President General, Maritime Workers Union of Nigeria’s (MWUN), Comrade Anthony Nted Emmanuel, decried the activities of some multinationals in the industry that discharge their vessels at mid-stream instead of the ports. Emmanuel, who spoke in Lagos, said the illegal activities have rendered the dockworkers jobless and revenue that is supposed to come into the Federal Government coffers has also been lost.

He said the Union has resolved that if no action is taken urgently, all seaports in the country would be shut down, and called on the NPA and NIMASA to address these illegal activities at the nation’s territorial waters, or be ready to have a face-off with the union.

According to him, there would be no operation at the nation’s seaports if the two maritime agencies failed to ensure that these activities are stopped to enable the dockworkers and seafarers perform their duties in the ports.

The union leader also warned companies and multinationals in the maritime business that such vessels should henceforth come into the conventional seaports to discharge their cargoes, adding that ‘Any vessel(s) that do not come directly to the port, is going against the regulations of the country, which may eventually lead to breakdown of law and order.

“Anytime we notice multinational discharges offshore and NPA and NIMASA do not address the issue of the illegalities, we are going to shutdown the ports,” he stressed, adding that the country not continue to lose such huge revenues to sharp practices.

Government should curb menace

Emmanuel further warned that the nation’s seaports would experience industrial unrest if the Federal Government failed to live up to its billings.

He said, “The illegal activities have deprived dockworkers from performing their duties and also the Nigeria seafarers are suffering, and nobody is addressing the situation and as it is, if the Federal Government does not meet up with their responsibility, we are going to run a zigzag port, which means, we will close down the ports.

“What we are seeing in the industry is an eyesore, especially with the shipping companies offshore whereby they offload mid-stream and run away, this is a big problem that needs urgent attention by the government.”

The Union boss attributed the high level of unemployment in the maritime sector to the fact that those vessels are not coming into the ports, and enjoined the authorities to brace-up or face an unpleasant situation.

It will be recalled that members of the House of Representatives Committee on Marine Transport , had called for urgent need to enforce the ban on the mid- stream discharge of cargoes as well as the use of private jetties to discharge and load import and export cargoes.