Business

February 16, 2013

How FG can support maritime practitioners – Tony Dania

By Bashir Adefaka

Barrister Tony Dania, is a foremost legal practitioner and maritime expert. In this interview with Saturday Vanguard Business, he gives legal points on germane issues that bother on Nigeria’s national economic development with regard to the maritime, oil and gas business challenges. Excerpts:

Is Nigeria a maritime nation given the attention to this sector by successive governments and industry practitioners?

Nigeria is a maritime nation, emphatically and without an iota of doubt Nigeria is indeed a maritime nation. The whole southern coastline of this country is bordered by the Atlantic Ocean. We, the practitioners in the maritime sector of the Nigerian economy, have done our bit.  But successive governments have not taken the maritime industry as serious as they are taking industries such as the oil and gas, banking, telecommunications, power to mention afew.

Successive governments have failed to do what is needful to develop and harness the vast and limitless potentials of the maritime sector, despite several efforts made by technocrats such as Chief Olisa Agbakoba and others to get government to do this.

Tony Dania

Tony Dania

Take the pronouncement made by former President , Chief Olusegun Obasanjo in respect of developing Nigerian maritime infrastructure through a specialised national maritime investment platforms that would encompass the establishment of a $1 billion maritime fund and a maritime bank.  All these laudable aspirations did not see the light of the day. These developments made the industry to become one where practitioners now do everything by themselves.

Banks are not supporting this industry and stakeholders are not encouraged to do so.  Operators look for financial leverages to support their businesses on their own.  That is why oil theft abound in the industry, when indigenous motor-tanker vessels have to look for jobs.

You have always championed the establishment of a “Cargo Society.” Is this among the developmental platforms that can accelerate the development of the Nigerian maritime industry?

Every maritime nation has a Cargo Society.  This society ensures that indigenous vessels have jobs. Do you know the quantum of associated businesses and employment opportunities that come with ferrying a million barrels of crude oil?  Cargo societies are organised platforms that ensure that our national branded vessels have businesses that can sustain them and operators can fill the local content quotas.

If you mention the absence of a cargo society, what of docking?
These services are practically absent in our sector.  Niger-Dock is a mere name they are not carrying out docking services. Naval Dockyard is well equipped to do docking yet they are not because of obvious reasons that should not be.   As a maritime expert, what is your take on the discovery of oil in Lagos and what steps can be taken so that agitations associated with oil exploration and exploitations in the Niger-Delta will not arise in the state?  What role do you expect Lagos State Government to play in this direction?

We should establish the fact that crude oil management and administration belong to the Federal Government of Nigeria. With this development, Lagos State will become one of the oil producing states in the country. I heard a commentator saying the state should take the lead in this development.

According to the Constitution, Lagos State Government can neither manage nor administer crude oil if found in its domain.  My professional and candid advice to the state government is to quickly establish a full fledge commission or a committee peopled by seasoned maritime practitioners and technocrats in relevant fields.  And their appointments should be devoid of political colourations or sectional considerations.

This commission or committee will have as part of its mandates; to interface and negotiate with the Federal Government on behalf of the state. Lagos State cannot assume ownership, control and administration of crude oil found in its domain. The state House of Assembly should constitute a committee to make bye-laws that will guide oil exploration activities in the state; this is where state power ends according to the Constitution.

Lagos State Government has the right to go into oil and gas business.  They can do this by partnering with any oil company of their choice and with this vehicle they can now enter into a joint venture agreement with the Federal Government.

I heard that Capital Oil and Gas wants to partner with the state to build an 80,000-barrel per day (BPD) refinery.  They can do this as long as they have the requisite license from the Federal Government.