The coast is now clear for indigenous shipping companies to compete with their foreign counterparts in transporting crude oil in and out of the country after many years of inactivity. There are indications that they will also be involved in moving petroleum products across the world.
This followed the promise by the Director-General, Nigerian Maritime Administration and Safety Agency, Mr. Patrick Akpbolokemi, to immediately commence the capacity assessment of some companies that had applied to the organisation.
He was particularly excited by an indigenous firm, Ocean Marine Tankers’ purchase of two high-capacity oil vessels, each of which could move 45 metric tonnes of oil.
The ships were recently unveiled in Warri port, Delta State, with a lot of fanfare.
Although a number of local firms had applied to the Federal Government through NIMASA for a national carrier status to ply the international harbours, there were fears about their ability to execute massive oil shipping contracts successfully.
According to the Senior Special Adviser to the President on Maritime Sevices, Mr. Olugbenga Oyewole, some foreign players, who have taken advantage of the absence of indigenous shippers at the international arena, have challenged Nigerian agitators for a slice of the shipping business to prove their worth.
He said, “Critics have said, ‘If Nigerians have what it takes to carry the Nigerian cargo, they should show it.’”
But Oyewole, who recalled that the shipping light went out on the nation 17 years ago with the liquidation of the Nigerian Shipping Line, declared that the hope of returning to the global business was gradually being restored.
He said, “They thought it impossible, but here we are, MT Abiola and MT Igbinosa have landed. They are 45,000 MT vessels to carry the Nigerian cargos.
“These ships will herald Nigeria, once again, at the international harbours. Nigeria is back in the international shipping business.”
He urged other indigenous shipping firms to take up the challenge, noting that with 10 of the 45,000 MT ships, Nigeria would reduce its capital flight by $300m every month.
Nigeria has remained without a national carrier in the shipping industry since 1995 when the Nigerian National Shipping Line was liquidated. Since then, multinational agencies have dominated the shipping operations including the crude oil shipment within the nation’s territorial waters.
The Chairman of Indigenous Ship-owners Association of Nigeria, Chief Isaac Jolapomo, said many Nigerian owned-companies that had the capacity were denied the contract to carry oil even within the country.
He said the claim that Nigerian ships were not seaworthy enough to be engaged by the Nigerian National Petroleum Corporation and other multinational oil companies was not entirely true.
Many experts have also expressed the view that some Nigerian ships may not be good enough, but they insist that there are local companies with seaworthy vessels.
Jolapomo, who said the few Nigerian vessels that had jobs were on sub-contract, lamented that many were forced to shut down due to lack of business, leaving just few operators struggling to keep afloat.
The Executive Secretary, Nigerian Content Development and Monitoring Board, Mr. Ernest Nwapa, said Nigeria lost over $100bn during the period it allowed its crude oil to be carried exclusively by foreign owned tankers.
He also lamented that the country lost the opportunities to build solid national carrier fleet on the back of the hundreds of millions of barrels being exported annually.
Experts say this worry (the low participation of indigenous shipping companies in international shipping trade) prompted the government to sign into law the Cabotage policy in 2003.
The Cabotage Law and Nigerian Content Law stipulate that 50 per cent of the government’s cargos should be carried by Nigerian vessels.
A provision was also made for $180m Cabotage Vessel Financing Fund to assist indigenous shipping operators to acquire their own ships.
NIMASA was said to be involved in the disbursement of the funds through some appointed banks.
Some stakeholders, however, noted that the Cabotate Law had not significantly improved the situation as the shipping business was still being dominated by foreign firms.
But the NIMASA boss said, with the acquisition of the two vessels, Ocean Marine Tankers Limited had positioned itself as the first indigenous firm to be granted the national carrier status and fly the Nigerian flag in the international harbours.
“In a matter of weeks, we’ll want Ocean Marine Tankers to be given the national carrier by NIMASA. I think that will propel, encourage and motivate others who are interested in going into the maritime sector that there is hope,” he said.
Nwapa has also declared the government will soon come out with regulations to enforce the relevant provisions of the Nigerian Content Act, which stipulate that Nigerians owned tankers must be utilised significantly in the transportation of crude oil.
While the awaiting the approval to fly the national flag at international harbours, the Ocean Marine Tankers’ two new vessels would supply crude oil to Warri and Kaduna refineries, the Federal Government said.
The Chairman of the company, Capt. Idahosa Okunbo, said the firm had previously relied on hired foreign vessels to execute its shipping projects.
He was optimistic the new vessels and other tankers would help the firm to achieve an efficient and effective delivery of crude oil to refineries.
Ocean Marine Tankers is a member of the OMS Group of Companies, which has employed about 1,000 Nigerians, according to Okunbo.