By Godwin Oritse

NIGERIAN importers of oil and gas cargoes have carried out their threat to divert cargoes away from Onne Port as they now consign their goods to ports of neighbouring countries and then move them into Nigeria. It will be recalled that the last administration had ordered that all oil and gas cargoes be consigned to Intels Logistics terminal in Onne, Rivers State, a development some importers kicked against, saying charges at Onne were too exorbitant for them.

Port-Terminal

The importers threatened to divert their cargoes to ports of neighbouring countries if government did not rescind its decision. FG frowns at arbitrary charges, undue delay at ports  The Federal Ministry of Transport last week said that arbitrary charges and undue delays had become key problems militating against port concession exercise.

Permanent Secretary, Federal Ministry of Transport, Mr Mohammed Bashar, made the disclosure in Lagos in a message to a one-day conference on Review of Port Concession Agreement. Ports were concessioned to 26 private terminal operators in 2006, among which Intel is one. Bashar, who was represented by the Director of Shipping in the ministry, Alhaji Sani Galandanshi, said the challenges of port concession included arbitrary charges, undue delay to cargo clearance.

He said other challenges were abuse of the concession agreement and other general oppressive tendencies as observed by stakeholders. “It is these negative tendencies, and to address them that in February 2014, the Federal Government appointed the Nigerian Shippers’ Council as the Interim Port Economic Regulator.

The Port Economic Regulator was established for effective regulatory regime in Nigerian ports for the control of tariffs, rates, charges and other related economic activities. The interim regulator will address the negative impact of the port concession activities on the economy and realise the optimal benefits derivable from port reform.

“The regulator will as well carry out other related incidental activities,” Bashar said. The permanent secretary said the conference would critically analyse areas of ambiguity, duplication of contractual obligations and failure to clearly separate responsibilities and accordingly, proffer solutions.

Bashar said the conference would go a long way in the realisation of dividends of port concession by all parties. He, however, explained that port concession had had positive improvements in the quality of port services, infrastructure development, improved safety of cargo and increase in cargo throughput. Bashar said the concession was meant to create efficiency and quality of service rendered at ports and encourage investments in the port sector through Public Private Partnership (PPP).

He said concession was meant to reduce costs of doing business at the ports, increase revenue generation for government, create employment and promote competition in port services. Also speaking, Mr Benjamin Dikki, Director-General, Bureau of Public Enterprises (BPE), said the concession operation in Nigeria was basically the efforts of both the Nigerian Ports Authority (NPA) and the BPE.

Dikki said the failure of the passage of the Port and Harbour Bill and Transport Commission Bill led to the establishment of Port Economic Regulator to checkmate the activities of both the terminal operators and other stakeholders.

Mr Hassan Bello, Executive Secretary of the Nigerian Shippers’ Council (NSC), called on key players to come together to review the concession agreement periodically. Bello said that NSC was primarily concerned with seeing reduction in the costs of doing business in Nigerian ports. The executive secretary expressed NSC’s readiness to transform the ports through its new port order which revolved around introduction of electronic platform.

However Oil and gas importers now bring heavy materials meant for   oil and gas industry through  the Port of Cotonou in Benin Republic. Confirming the development, a staff of the Commercial and Marketing department of the port, Mr. Oladele Romare who spoke passable English told Vanguard that there has been an increase in the volume of oil and gas cargoes imported by Nigerians in the port.

Romare added that most of these cargoes are finally trucked to Nigeria through the Seme border. Speaking in similar vein, Mr. Toure Nurudeen who tried to arrange a meeting between our reporter and the Director-General of the  Cotonou port said that Nigerian importers are one of their biggest customers. He also said that cargoes belonging to Nigerian importers are treated with dispatch. Efforts to reach the Director-General of the port, Mr. Samuel Batcho was futile as he was said to be away when Vanguard got to his office in Cotonou.

The Comptroller of the Seme Customs Command of the Nigeria Customs Service, (NCS), Ndalati Mohammed said that importers have the right to consign their cargoes to any port of their choice. He explained that most of these cargoes are so large  that it is practically impossible to move them by road. Mohammed further said that some are also urgently needed that they are air-freighted to their point of use. “What we are more concerned about is that duties are paid since they are dutiable.”

He, however, confirmed that some drill pipes come through the border and if there is no reason to stop them they are allowed to come. Also speaking on the development, President of the Nigerian Association of Licensed Customs Agents, (ANLCA), Prince Olayiwola Shittu said that importers now freight their cargoes through ports of other countries because they refused to be blackmailed into using the  Oil and Gas terminal in Onne.

ANLCA, which decried government’s moves to grant such monopoly, has said that it would instruct its members and principals who handle oil and gas cargoes to henceforth direct their vessels to ports of neighbouring countries and use trucks to move such cargoes into Nigeria. Shittu said: “What they (former administration) have done was very irresponsible. What they did was create a monopoly that is anti-people, and not in the interest of the economy.

“Everybody should have a choice of where they want to take their cargoes to. “The government concessioned the ports, all of them (concessionaires) signed the same documents. Why do you have to force people to take their cargo to Onne so that they can charge them in dollars, and not only that, their charges are 300 times more than regular charges in other ports.”

According to the association’s leader,  “We have started our campaign also to call for the boycott of Onne port facilities. In addition, we are prepared to take our oil and gas goods through Cotonou. If that discrimination is going to happen, then we go through the border. “It is very unfortunate because Intels have been a problem and it is like a country of its own. That is because the promoters held the last government by the  jugular. It is very unfortunate,” he said.

An official of the Nigerian Shippers’ Council who refused to have his names in print told Vanguard that the Council was discussing the matter with the management of Onne Port. The official also said that the government does not support the issue of monopoly, adding that the matter will be resolved in no time.

The President of the Nigerian Chamber of Shipping, Ms Ify Akerele-Anozodo told Vanguard that  former President Goodluck Jonathan’s decision to consign all oil and gas cargo to Onne was not a wise decision adding that it must have been politically influenced. Akerele-Anazodo also said that if the trend was allowed to continue, it will definitely affect the Local content project the government embarked upon years ago.

She said: “Besides, operators of Onne Port had said that it was not going to create a monopoly but assist the growth of the local capacity. “I am very baffled and I want to appeal to the Buhari-led government to reverse the decision so as to allow the growth of the local oil and gas and maritime industries.”

In his reaction, former Senior Special Assistant to President Goodluck Jonathan on Maritime matters, Mr. Oyeleke Oyewole said that creating a monopoly at Onne will not be in the best interest of both the Nigerian government and its businessmen. Oyewole added that it will be more costly to import these categories of cargoes through the port of Cotonou as importers will pay duty in that country as well as in Nigeria.

He opined that it was wrong to compel businessmen to consign their cargoes to a particular port. On the implication of the development, the President of the National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA), Mr. Lucky Amiwero said that Nigeria has lost its international freight component to Benin Republic.

He explained that importers of such cargoes will pay the shipping charges, terminal handling charges and other sundry charges to the Benin terminal operators. Amiwero also said that Nigeria has also lost its employment opportunities to the ports of neighbouring countries. All Nigeria gets from this deal is that importers will pay for transit from Benin to Nigeria adding that government  made a mistake by directing all oil and gas cargoes to be consigned to a particular logistics base  despite earlier directives that importers are free to consign their cargoes to any port of their choice.

A ministerial report under President Olusegun Obasanjo,  recommended that “NPA should ensure that cargo owners are free to patronise any truck of their choice for the freight of cargo discharged in the Oil and Gas Free Zone” In addition, “importers of oil and gas cargo should be free to choose their ports of preference”.

However, in 2008 the then     Minister of State 2     for Transportation, Prince John Okechukwu Emeka, during Umaru Musa Yar’dua’s tenure unilaterally, reversed Obasanjo’s directive. The late President cautioned Prince Emeka and ordered him to publish his directive in a national newspaper.

And in compliance, the Honourable Minister of State 2 for Water, Prince Emeka published in the Guardian of Monday, August 18th     2008, thus, “Notice is hereby given that importers of oil and gas related cargoes are free to choose their port of discharge for their cargoes”. And finally, that,” This notice supersedes an earlier directive stipulating particular ports of discharge for such cargoes”.

Although, the Seaports Terminals Operators Association of Nigeria, the Lagos Deep Offshore Logistics, (LADOL) base and Port and Terminal Operators Limited, (PTOL), are currently in court. Speaking in defense of Intels, Mr. David Kalio told that the importation of oil and gas cargoes through the port of Cotonou was a rumour and directed the reporter to forward a questionnaire for their legal department’s response.