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Engaging A Foreign Firm For Nigeria's Maritime Security: To Whose Benefit? - Politics - Nairaland

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Engaging A Foreign Firm For Nigeria's Maritime Security: To Whose Benefit? by stainlesx: 1:29pm On Aug 17, 2020
By Patrick Ochoga

Emphasis has always been placed on the need to promote local content and the idea has been one of the cardinal points of the present administration to facilitate a viable economy through the promotion of indigenous companies to enable them compete favourable by international best practices.

Thus, the responsibility of responsive government even in the face of international pressure is to ensure that indigenous businesses in their countries remain competitive.

This, therefore, informed the need for the Government to put in place frameworks to enhance the ability of local companies to exploit local opportunities while staying competitive globally at the same time. It is indeed, one of the bedrocks of national economic growth and development.

By implication, the legislation gives the indigenous companies the right of first refusal as long as they meet the explicit requirements that qualify them to carry out their operations.

Away from our maritime security that has become a topic of debate in recent times, on the land, the country is currently battling to end insurgency, kidnapping and banditry. Recent developments have proven that our security agencies have been in a way overwhelmed, though they have done commendably well, the president has also said their efforts have not been good enough.

Before now, the debate to establish local police and vigilante groups to help security agencies in intelligence gathering had gained traction in many quarters. The essence is to allow the locals who may not only be familiar with suspected criminals but also understand the terrain better than.

No doubt, this was why South West Nigeria recently launched its own local security outfit, AMOTEKUN to check security breach in the region. It takes a huge chunk of responsibility from the government and security agencies in the country and gives a sense of belonging to the indigenous people who are now part and parcel of the entire security architecture in the region.

This is by the way a scratch on the surface of the topic of discussion as it affects the Nigerian Maritime industry and Security and the many politics orchestrated to deliberately push away an indigenous security operative company Ocean Marine Securities Limited (OMSL) that had over the years paid the price to keep the Lagos Secured Anchorage Area secured and made a safe haven for ships.

It would only take the understanding of those who have followed developments in the maritime sector in the last decade to understand what is at play. OMSL came to the rescue years ago when the country's image in maritime security before the international community was at its lowest ebb.

The company had invested so much from its purse and initiated a private security operation system to salvage the country's bartered image as it concerns the safety of vessels traveling along its coastal region and these efforts had in the last few years put the country back on track.

Unfortunately, the truth has been neglected and certain individuals out of sheer greed and unpatriotic spirit have decided to place their knees on the neck of the economic benefits of OMSL operations to the Nigeria state.

Recently the Minister of Transportation, Rotimi Amaechi who is believe to be working side by side with the Managing Director of the Nigerian Port Authority, Hadiza Bala Usman, had among other unfounded claims, put up a false claims to instigate the public over monies he alleged OMSL realises through its operations at SAA, Lagos.

This was even coming a few days after the Senate cleared and commended the operation of the security company owned by a Benin based billionaire and philanthropist, Captain Hosa Wells Okunbo.

Amaechi had after all the claims in a live TV programme said they were to provide an alternative security and $195 million was already approved by the Federal Government to an Israeli company, Messrs HLSI Security Systems and Technologies.

But the Minister failed to explain one critical question to Nigerians who were keen to understand where his decision was driving the country to.

He failed to explain to his viewers what it takes to maintain the ships involved because of his limited knowledge on how companies are run. Amaechi also failed to explain to Nigerians the long-run financial implications of such deals, which by every measurement the country stands to lose millions of dollars annually.

This again raises another question as to whose benefit is the Minister and his collaborators in the maritime sector working for? The country or for themselves when an indigenous company has not only invested so much on the sector but has also beat expectations?

Why did the Minister and his co-travellers forget so soon that that huge investment was first put in place as approved by the government by OMSL before now?

Investigations carried out by this writer have shown that the SAA project which is a partnership between OMSL and the Nigerian Navy the cost of vessel acquisitions and operational running cost is at no cost to the Government. It is also not mandatory for ships but for those ships that desire the service (A willing buyer willing seller arrangement).

What about the economic value of OMSL to the country which analysts have said cannot be overemphasized?

Now let's look with statistics analogies. First, the operation of the Lagos SAA, OMSL was berthed with patriotic passion by the Chairman, Captain Wells Hosa who has always put national interest above every other things. This is evident in the company's modest charging cost that covers operations and maintenance.

Captain Hosa had during his presentation at the National Assembly joint committee that investigated activities of the company explained to that "The Company has always operated on the charges incurred by fund collected from ships operating under the SAA"

Again, further investigation has clearly revealed that it cost vessels that patronize OMSL operated SAA an average of $11,500, which works out to be $2500 for the first day and $1500 for the remaining days in a seven day period which is a maximum period that most vessels berth at SAA for the service provided.

Objections raised by analysts from recently generated data have shown that what we have above is against having three mercenaries that will cost the shipping "company $225,000 on a one month voyage at a cost of $2500 per mercenary which works out to at least $7500 a day over a total one month voyage of 30 days from Europe and much higher from farther destinations like singapore and United States and Far East. To this end, it leads to saving at least $213,500 as against an initial cost of $225,000 before the SAA was introduced by the Navy and OMSL".

Also investigations carried out by analysts have shown that the daily traffic at SAA in a day has not been more than "20 vessels at any particular time. At each vessel paying a stipend of an average $1,650 per day works out to be $33,000 per day as earnings to OMS and with 8 vessels operating in SAA".

This then shows that operational cost and that of hiring these vessels average $4,150 per vessel if the vessels were to be hired by NPA or the relevant Agency. Meanwhile, the same vessels are hired to the oil companies for at least $8,500 per day.

Shocking and interestingly is that while Amaechi and his associates are after the head of OMSL, NIMASA under his supervision is hiring similar vessels with a contract running at $10,500 for each vessel per day and they currently have six of such vessels working with Nimasa for enforcement at a total cost of $63,000 which has no security bearings coming at almost double the cost of OMSL in rendering this very critical and security arrangement.

There should be no reason for pushing aside an indigenous company without concrete reasons or claims and usher in a foreign security company that knows nothing or little about our waterways even with the huge financial implication at expense of the country's economy.

That OMSL was not consulted before the decision to sack the company was hatched and executed shows that the actors behind it had no interest in the country at heart given the economic benefits and gains the company has brought on board.

That concern over the security in our vast waterways and ports in some parts of the Niger Delta other coastal areas that have constantly been ravaged by sea pirates and operators, is enough for anyone to have a rethink to prevent us from international embarrassment and to keep the country's reputation intact.

What the country needs now and what the Minister should be thinking of now is to call for the replication of the same OMSL and the Nigerian Naval partnership services in other ports like Warri and Port- Harcourt to reduce the rates of piracy to increase revenues generation for the government. This will help decongest the Lagos port that OMLS has made a safe haven for ships.


Patrick Ochoga, sent this piece from Benin City.

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