Monday, 6 May 2013


 Maritime Safety: NIMASA Losing the War


Director-General-NIMASA-Mr.-Ziakede-Akpobolokemi

In this piece Babalola Yusuf Abiola examines how the nation’s crude oil are being stolen with impunity, transported through the high sea for sale in foreign land and how vessels are hijacked in the middle of the sea without any form of challenge from agencies of government that are to ensure safety in the country territorial water

Of all the troubles facing the country, Oil- theft has been the most challenging of them all as it has caused a significant drain on the economy of the country, Nigeria loses about N2.5billion daily, and over N900billion annually to this menace.

Recently, in an interview with cable network news (CNN), Minister of Finance, Ngozi Okonjo-iweala admitted that Nigeria loses over 150, 000 barrel of crude oil to theft daily, according to her “We have — Mexico and Nigeria suffering from this problem, you can check.”

The Nigeria National Petroleum Corporation, NNPC, has also said Nigeria loses about $1.23 billion (N190 billion) due to drop in crude oil production in the first quarter of 2013, January to March, caused by the incessant theft of crude oil.

In a statement issued by the corporation’s acting Group General Manager, Public Affairs, Tumini Green, the corporation attributed the drop to incessant crude oil theft and vandalism along the major pipelines within the Niger Delta.

He said, “On a daily basis, crude oil production during the period fluctuated between 2.1 and 2.3 million barrels per day (mbpd) compared with the projected 2.48mbpd.

“Expectedly, this fall between actual production and forecast in first quarter 2013 has resulted in a drop in crude oil revenue of about 1.23 billion dollars ,’’ which should have accrued to the Federation Account.”

The Corporation explained that the NNPC/SPDC JV (Shell Petroleum Development Company Joint Venture), recently declared a force majeure on Bonny Crude, due to incessant crude oil theft.

The theft are believed to be done in collusion with top government and security agents which made transportation out of the country to an already made market in foreign communities easy.

Admitting the failure of the government and relevant security agencies to nip in the bud crude oil theft, the minister of finance in her interview with CNN’s correspondent Christiane Amanpour, called on international community to come to the rescue of the Nigeria government. 

She said, “We have international people who also buy that stolen oil. We need them to treat this stolen oil like stolen diamonds, the blood diamonds. Make it blood oil. Help us so that those people don’t have a market to sell this stuff.” 

However, not only crude oil theft and its transportation to foreign countries go unchecked in the country territorial water, also hijacking of fuel laden vessels in the middle of the sea by sea pirates has been an order of the day.

What has been a source of concern for Nigerians and stakeholders in the sector is the unabated level of impunity in the country territorial water when there is The Nigerian Maritime Administration and Safety Agency, (NIMASA), the apex maritime agency that has one of its responsibilities to be ensuring safety in the nation territorial water -that includes checkmating the menace of attack on ship and theft of crude oil through the use of Nigerian ship.

But, rather than reduce, Pirates’ attacks, hijacking of vessels; transportation of stolen crude oil to foreign countries, kidnapping of foreigners on the sea for ransoms and other marine crimes flourishes.

For instance, it was reported early in February that three crew members of a British flagged cargo ship, Esther C, were kidnapped about 80 miles offshore. Shortly after, gunmen killed a Filipino crew member when they attacked a chemical tanker and three days earlier, some crew men were killed on a vessel that deployed a private armed team.

There was also the case of a Russian ship that was reportedly attacked in Port Harcourt, Rivers State, and its captain kidnapped. Recently, pirates hijacked and demanded N200 million ransoms for the release of six foreigners kidnapped, which was the latest of at least five attacks recorded on Nigerian waters.

These dare-devil pirates had also attacked an oil barge in the troubled Niger Delta region, which claimed the lives of two soldiers and one crew member. The list is endless.

The Nigerian Trawlers Owners Association, umbrella body for all indigenously owned industrial fishing companies has its woe tales over this upsurge in the activities of pirates and sea robbers, saying its members have lost a whopping N118.5billion in the last eight years.

According to the figures released by the association’s president, Mr. Joseph Overo it showed that its members lost a total of N5billion in 2003, N6billion in 2004, N7.5billion in 2005 and N12billion in 2006. Other details show that in 2007, members lost N13 billion, N15billion in 2008 and N17billion in 2009 even as N20billion and N23billion were lost in 2010 and 2011, respectively, bringing to a total of N118.5billion.

But, in other to fight this ugly scourge NIMASA recently took delivery of about twelve patrol boats to fight high sea crimes, these boats are fortified with engines and bodies of the boats bulletproofed, making them difficult for pirates to target the crew onboard. Also, the boats were equipped with state-of-art technological facilities that could do 200 nautical miles before refueling.

The boats: NIMASA Burutu, NIMASA Port-Harcourt, NIMASA Lagos and NIMASA Warri were specifically built to withstand any adverse effect and tropical weather, hence their suitability for the control of piracy and illegal activities on the country’s territorial waters.

With this procurement, safety on the Nigerian coastal and territorial waters is expected to be improve but still Nigeria territorial water is still prone to attacks making a Malaysian-based piracy watchdog, International Maritime Bureau rating Nigerian waters second most dangerous after Somalia.

Also, In view of the negative effects of the upsurge in piracy and sea robbery on Nigeria’s maritime domain, former President Olusegun Obasanjo expressed fears that the high level of insecurity in Nigeria will continue to inhibit investment in the maritime industry of the country.

The former president said, “I want to make an appeal to the Federal Government and the littoral states and a serious one for that matter, there should be urgent and concerted efforts at fighting the menace of piracy on Nigerian waters now”, he noted.

Also, United States Consul General in Nigeria, Mr. Jeffery Hopkins has also raised concerns over the recent upsurge in sea piracy and robbery on Nigeria’s maritime domain. The diplomat, who spoke at the Maritime Exhibition and Conference, tagged NIMAREX 2013 noted that the upsurge in piracy and sea robbery portend negative consequences for the nation’s economy. 

According to the envoy, “Piracy, sea robbery and other crimes on Nigerian waters have been on the increase and you can agree with me that this is a disincentive to the expected inflow of Foreign Direct Investment into Nigeria”

“Ships coming to Nigerian shores have to move in a convoy to avoid being attacked by these pirates and robbers and you know that this might likely bring about additional cost of shipping for goods meant for the Nigerian market”, Hopkins queried.

Meanwhile, a reliable source has confided in Nigerian compass that hijack and theft of vessel’s especially oil cargo like others in the past cannot be achieved without the backings of some powerful Nigerians who are in the business for financial gains. He described the business of ship hijacking as highly lucrative, explaining that there were a huge numbers of trained pirates in the country today.

According to him, “I gathered that once there is a ship to be hijacked, the powerful sponsors get across to the pirates who then move to get the details about the vessel from the Ministry of Petroleum Resources, NNPC and then seek support from relevant security agencies to have a successful operation”.

However, in a telephone conversation with NIMASA Head of Public Relations, Hajia Lami Tumaka, she said the agency has all it takes to combat piracy and win the war over them; though she debunked the allegation that high government officials and security agencies conspire to give the sea robbers information about vessels to be hijacked.

She said, “The government has a political will to fight piracy on the country territorial water and that the government or security agent conspires with sea robbers are not true,” she said.

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