The June 28 Lagos fuel tanker fire has brought to the fore again the debate over the best means of combustible product. Experts argue that the use of railway tank wagons will address the problem, writes ADEYINKA ADERIBIGBE
The story is not whether the Nigerian Railway Corporation (NRC) has the capacity to move wet cargoes, especially inflammable liquid such as petroleum products, at least closer to the end users. The question is when the NRC add this to its bouquet of services.
The missing link in this matrix are marketers, many of who continue to hesitate to move by rail a commodity that has almost become an exclusive preserve of the road and motorised means of transportation.
Though moving refined petroleum products has for decades been exclusively by pipelines, these got ruptured as vandals took over.
To bridge the supply chain, marketers turned to the roads, flooding the already bad and abandoned network of roads across the country with equally rickety vehicles, with locally fabricated tank compartments.
Over the last four decades that the roads have become almost the exclusive means of moving petroleum products, there has been ceaseless, but futile agitation to change the narrative as the roads began to cave in due to sheer pressure, resulting in fatal accidents.
For a short period, the railway came in and was actually moving the product to Kano from the Atlas Cove at Apapa, Lagos.
Rather than sustain the initiative, the contract ran into a storm and had to be abandoned. But railway claimed it had much more sophisticated rolling stocks to move the commodity for any marketer, especially with its acquisition of modern tank wagons in 2012, for those who may want to patronise it.
That was when railway took delivery of its first set of 20 DOT 111 tank cars, otherwise called tank wagons, built to the United States standard. A year later, it added another 20, making a total of 40 tank cars.
In the main, oil marketers in 2015, signified their intention to have the NRC lift their products and started negotiating with the corporation. They, however, slowed down when concerns about the wagons’ safety were raised.
The NRC insisted that it had since doused these agitations, as it claimed the wagons were industry’s best, but the marketers were yet to be brought back to the table.
Capacity
Whereas a petrol tanker has 33,000 litres carrying capacity, checks revealed that each of the wagons’ capacity is 45,000 litres. The 40 wagons if fully operational could move 1.8 million litres of petroleum products from Apapa, Lagos to Kano.
The 1.8 million litres, it was further gathered, equalled 550 petroleum tankers taken off the road, with the tanker chain entering Lagos put at close to 8,000 daily, 550 tankers would be a good slice that could be growing geometrically as the corporation acquires more rolling stock.
This, no doubt, would have brought the needed relief to the roads, as the tankers would have moved in as last mile operators, to move the product from the inland tank farms to sales destinations.
What happened to the initial enthusiasm about the wagons and their capacity to the narratives of wet cargo movements?
What happened to the September 2015 letter by the Major Oil Marketers Association of Nigeria (MOMAN) to move its oil? In the letter signed by its Executive Secretary, Mr. Obafemi Olawore, MOMAN hoped that the partnership would be mutually beneficial.
The agreement was in reaction to the incessant accidents involving petroleum tankers in which lives were lost and properties destroyed.
Though the deal is yet to take off, MOMAN still believes in using rail to freight its cargoes. Olawore, said rail haulage would no doubt make the roads safer.
Challenges
Though officials of the oil marketers refused to comment on the issue, a top official of the NRC, who spoke on condition of anonymity, said lack of accessibility to the tank farms might be a major challenge. Many of the tank farms operators were said to have flouted the consideration for rail cargo, which made their farms inaccessible to rail services.
“Out of all the oil majors operating tank farms in Apapa, only Mobil and Oando are said to be accessible,” the source said.
He said the failure to link these tank farms with the rail lines might have caused the delay in the realisation of hauling products by rail.
NRC Managing Director Fidet Okhiria told The Nation last week that beyond the question of inaccessibility, the tank wagons might have been caught in the web of what he described as “the Nigerian factor”, which seeks to cripple any good initiative.
He said only road accidents remained what now make oil marketers to look the way of the railway for alternative to move their products.
He urged marketers not to shut the window by the partnership with the corporation, adding that oil can be moved twice a week from Lagos to Kano within 72 hours.
Invariably, 3.6 million litres of petrol or diesel, he said, could be moved by train weekly by the marketers; a development he described as huge, compared to what was being presently moved by road.
“We believe our customers would have more confidence in us after upgrading the rail tracks. This is because it would assure them that we have reliable tracks and wagons, that can better safeguard their commodities,” Okhiria said.
He said the wagons is fitted with safety valves to prevent spillage in case of accidents, and now has modern braking systems.
The corporation, he said, would continue to pursue that objective of linking all the tank farms at Apapa because they are built on its land and “the agreement is that companies should carry their products by rail”.
Okhiria could not confirm the status of the track laying contract awarded in 2015, which should have been delivered in November of that year. He merely said the corporation has not abandoned the project.
The tracks, he said, have been upgraded from 60 pap to 85 pap, which means the tracks are stronger and could withstand the pressure associated with cargo services.
“We are changing the tracks from 60 to 85 rail pap. So, instead of the rail tracks breaking off as a result of heavy load or pressure, it will endure,” he said.
Since it came to power, the Buhari administration has shown its determination to make the railway a major segment of transportation.
Power, Works and Housing Minister Mr Babatunde Fashola in 2016, urged marketers to patronise the rail.
The government, he said, is deepening investments in the rail sector.
Between 2015 and now, the government has invested massively in a modernised cargo and passenger train system.
According to Okhiria the wagons remain a strategic window for marketers to make products available nationwide. He disclosed that the lack of patronage had stopped the corporation from acquiring more wagons.
With more investment aimed at boosting rail’s capacity, Okhiria hopes the country would soon join the one-billion cargo tonnage club, adding that countries with a billion tonnage rail cargo yearly, such as China, Russia, India, and United States also have the highest truck count.
“We have been clamouring for inter-modal transportation where some cargoes will be moved by road and others by rail. In fact, more than 50 per cent of the containers and other cargoes ought to be moved by rail,” he added.
Silver lining
The Managing Director disclosed that the wagons are getting rutted for lack of use. He, however, disclosed that an independent marketer had approached it to move diesel from Lagos to Dagbolu, in Osun State.
When this finally takes off, perhaps, in the next couple of weeks, it may stimulate other marketers and reopen the window of safer movement of the highly combustible cargo that has caused needless grief to families of concerned victims.
IBADAN-OYO State has been listed among sixteen states of the federation that would benefit from a $200 million World Bank grant to improve livestock production in the country.
The state Commissioner for Agriculture, Water Resources and Rural Development, Barrister Oyewole Oyewunmi stated this yesterday during a press conference with representative of the World Bank team on Agriculture held at the conference room of the ministry.
Barrister Oyewunmi pointed out that the grant when accessed, would assist in boosting the various sectors of livestock production some of which include Poultry, Piggery, cattle and goat rearing, bee keeping, among others.
“World Bank and Federal Ministry of Agriculture are determined to intervene in rejuvenating the livestock industry in Oyo State and some others.”
“The livestock covers some value chain, namely poultry, piggery, sheeps and goats, cattle and honey. So also, we have some byproducts such as hides and skin as well as dairy.”
He stated that the World Bank would support the states through grants and soft loans from the listed focus areas.
The commissioner said that youths and women would benefit from the programme, adding they constituted 70 percent of the population.
Fielding questions from newsmen on whether the state would consider the Federal Government initiative to establish cattle colonies in twelve states of the country which Oyo State is one, to end the perennial farmers and herdsmen crises in the country, the commissioner said details and modalities of the Federal Government planned cattle colony were still being looked into.
Oyewunmi, however, allayed the fears of the people on the issue of ranching, saying the programme was aimed at livestock productivity and development of value chain.
“We heard that the Federal Government is considering building ranches as a way of solving the perennial crisis between herders and farmers in other to curtail the social and political crisis it was leading to.
“That idea has been proposed on the face of it, it would be the right move for government that ranching is a modern way of breeding cattle.
“Oyo State has not taken any position on the issue of ranching, we have to see the modalities and methods to be used by the Federal Government.”
He, however, said: “Ranching for herders will be treated as a private venture. The Land Use Act of the Federal Government has neither been amended nor repealed as the Act still vested on the state governor ownership of land to hold in trust for its citizens.”
Earlier, the World Bank Senior Economist, Mr Samuel Taffesse, said areas of intervention on the program were being examined in other to ensure its success.
“The demand for livestock in Nigeria is higher than the supply. Federal Government of Nigeria sought the assistance of World Bank in developing the livestock.”
“About sixteen states, including Oyo State has signified interest as requested by the Federal Ministry of Agriculture,” he said.
Taffesse said that the objective of the programme was to improve livestock productivity, develop resilience and strong value chain.
These guys were buying up non performing loans without having control over asset? These companies were already in default so its better to go after assets. No wonder these guys have been jerking yall around for 7 years lying about repayment plans. The list is seconday make sure you get this amendment done first.
`One of the major areas for amendment is the matter of vesting proprietary interest of all collateral assets acquired by AMCON from commercial banks.
The National Assemble has been enjoined to as a matter of urgency empower the Asset Management Corporation of Nigeria (AMCON) to go after recalcitrant obligors.
Sen. Rafiu Adebayo Ibrahim, the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, made the plea on Thursday in Lagos.
Ibrahim, who delivered a keynote address at the opening of a two-day retreat on the importance of AMCON Act Amendment Bill, said the corporation had been up and doing.
He said AMCON had tried its best over the past seven years to resolve those debts, but was still encountering resistance from obligors.
He said that the only way AMCON could meet its mandate of achieving the mandate for which it was set up in 2010.
He said the Senate under, the leadership of Sen. Olubukola Saraki, had no option than to urge AMCON to compile and publish the list of all debtors in major daily newspapers in the country.
The move, he said, would place before Nigerians who were holding the nation’s economy to ransom since they account for 80 per cent of AMCON’s N4.8trillion obligation.
He said that the Upper Chamber, as part of its oversight function, had decided that AMCON in its lifespan, must be given all the support it required to perform as expected by all Nigerians.
He, however, urged the management of AMCON to collaborate with the other relevant bodies to propose that the President issued an executive order on seizure of assets of persons who were indebted to AMCON.
He said that Federal Ministry of Finance (FMF), office of the Attorney General of the Federation and Central Bank of Nigeria should champion the move for the order.
Ibrahim said the upper chamber planned to have serious discussions with major stakeholders such as the CBN, the FMF, the Nigerian Deposit Insurance Corporation (NDIC) and relevant committees from the legislature among others.
This, he said, would allow them to deliberate on issues hindering AMCON from performing optimally which include the funding of its model to enable the recovery agency finish its assignment.
“The Upper Chamber will at this stage bare its fangs by amending the AMCON Act because AMCON has been a key stabilizing and re-vitalizing tool in the Nigerian financial system.
“It will be supported by the legislature to enable the corporation achieve its statutory objectives,” Ibrahim said.
He said the legislature supported the proposed plan by AMCON to publish the list of the 350 obligors that accounts for nearly 80 per cent of the total huge debt of the corporation.
Earlier, the Managing Director of AMCON, Mr Ahmed Kuru, reminded the committee that failure by the corporation to recover its debt, principally owed to the CBN, could not be quantified beyond economic cost.
Kuru said that AMCON’s total debt obligation of N4.8 trillion represented more than 55 per cent of the 2018 national budget.
Given the current demands on the Federal Government, Kuru said he was convinced that the government could afford to check AMCON’s debt in the short term.
He said:“It was for that reason, AMCON, after seven years of negotiating with the obligors with no commensurate recovery result, has decided to change its strategy.
“The corporation now pays strict attention to enforcements as a way of compelling, especially the recalcitrant obligors to come and pay up their debts.
`One of the major areas for amendment is the matter of vesting proprietary interest of all collateral assets acquired by AMCON from commercial banks.
“The proposed amendment will have retrospective effect.
“The vesting of proprietary interest of all collateral assets in the resolution vehicle was implemented in Malaysia and was instrumental to their success in recovering debt obligations.
“Our second challenge has to do with the disposal of assets due to the economic downturn.” (NAN)
Ship-owners Association of Nigerian, SOAN, yesterday, called for the review of the law that imposes high Customs duty of 15 percent on importation of Nigerian flagged vessels, whereas vessels flying foreign flags are required to pay as little as one percent.
Speaking at a stakeholders meeting organized by the Alumni of Maritime Academy of Nigeria, Oron, President of SOAN, Mr Greg Ogbeifun, said it was grossly unfair for Nigerian flagged vessels to pay much more customs duty than vessels flying foreign flags.
He told Vanguard that the group went to the Presidency last Monday to register their protest over the issue.
Ogbeifun described the situation as unfortunate, adding that payment of higher import duty on vessels has put Nigerian ship-owners at a very disadvantaged position and given the foreign vessel owners a competitive edge.
He stated: “There is a contention between the Ministry of Transport and that of Finance, while the Transport Ministry is working towards reducing the payment of such high duty on vessels, the Finance Ministry through the Nigeria Customs Service, wants to maintain the duty in a bid to meet or surpass its targeted revenue collection.
“There is a fundamental problem with the industry and we must put our fingers on the issues affecting the industry. Already being a Nigerian flagged vessel, you are at a disadvantage and this is not good for the industry. We must look into the law with regards to this issue.”
I dont see a conspiracy against Nigeria. The coast simply arent safe and nigerians are wailing. Nigeria has 2nd highest piracy figures going by federal giverbments own figures. If the danger was over blown domestic insurance would offer cheaper rates.
By Godwin Oritse & Godfrey Bivbere *As report pressures freight, insurance rates *Nigeria may still lead Q2 ‘18 piracy ranking There are indications that the upcoming security report on Nigeria’s marine space may worsen with operators accusing international interest groups of mischief over the report.
But Nigerian maritime industry stakeholders also indicated that despite the controversial nature of the figures on piracy attacks the number of incidences would certainly increase and Nigeria would maintain lead on the global piracy ranking in the second quarter, 2018.
The International Maritime Bureau, IMB, in its first quarter 2018, Q1’18, reports, noted that Nigeria currently leads in global pirates attacks against vessels.
In the IMB report, Nigeria alone recorded a total of 22 of the 45 as against Indonesia that recorded nine attacks and Venezuela has five attacks in the first three months of the year.
Global pirate attacks while four other countries namely Venezuela, Indonesia, Republic of Benin and Bangladesh recorded a total of 23 attacks.
A breakdown of the report showed that Bangladesh recorded four and Republic of Benin had five while.
Although, maritime security experts have contested the figure of the IMB, saying that number of attacks recorded in Nigeria during the quarter is likely to be lower, some foreign shipping firms confided in Vanguard Maritime Report that Nigeria do not have credible data as information on attacks go straight to the foreign ship owners who in turn report to the international organisation (IMB) rather than Nigerian authorities.
Some Nigerian operators have played down the figures, attributing it to plans by the developed countries to paint developing countries such as Nigeria, in security bad light, leading to increase in freight rates and marine insurance. Speaking with Vanguard Maritime Report, President of the Ship-owners Association of Nigeria, SOAN, and Managing Director/CEO of Starzs Marine and Engineering Limited, Greg Ogbeifun, said the report should not be taken serious as it is only meant to promote the interest of international operators.
According to him, “Personally I am not too bordered about piracy or whatever, they are always working to paint Nigeria black. I am not moved by their comments and that is the truth. They are the ones that are encouraging all these strives and unrest in all the developing countries and then they will also turn around to begin to complain.
“I said there wouldn’t have been piracy in this country if there were no international connection to illegal bunkering. Those people are the ones behind all these problems we talk about. So they should stop stoking all these improprieties against developing countries, they should stop encouraging it.
“All the piracy money, all the kidnapping money that they are collecting, who is collecting it, are they paying the money into Nigerian banks? They are not paying the money into Nigerian backs; they are paying it into foreign countries.
“They are the ones encouraging it, some I do not think that we should be overly blaming ourselves or feeling bad because some foreign body says that Nigeria has now become a hub for piracy.”
On whether members of SOAN has not been affected he responded, “Am not aware of any of my members who have been affected, most of the piracy attacks take place far away from the coast of Nigeria, it is not necessarily in-country attack. There was a time we use to have such attacks but for sometimes now we have not had in-country piracy attacks.”
Similarly, the Chairman of the Port Facility Security Officers, PFSO Forum, Dr. Ignatius Uche, agreed with school of thought that there could be a conspiracy against Nigeria in this regard.
He said that the issue of pirate attacks on vessels at the terminal has put virtually every government agency operating at the ports on their toes as the management of the Nigerian Ports Authority, NPA, has approved money for the purchase of patrol boats to checkmate the activities of these criminals.
Uche described the situation as very embarrassing adding that the trend was beginning to put Nigeria on the spot in the international maritime comity.
He said that figures being bandied by the IMB are not the same with what is recorded by the Nigerian authorities.
According to him the official Nigerian figure should be around 13 attacks in Q1’18.
But going by this figure Nigerian would remain the global leader in piracy as the second highest number of attack recorded by IMB is Indonesia with 9 attacks.
However, Uche said “the more these criminals are allowed to operate, the more money and credibility the country is losing.
An official of International Ship and Port Facility Security, ISPS Code Unit of NIMASA who spoke to Vanguard Maritime Report on the condition of anonymity said that the issue of pirate attacks on vessels was an international conspiracy by the international shipping community. The officer said that Nigeria get reports of these attacks from the international maritime organisations as crewmen make these report directly to the principal abroad.
The official explained that when these attacks take place, it places high freight premium on Nigerian bound cargoes which attracts more freight payments and marine insurance premium.
Former Senior Special Adviser to Ex-President Goodluck Jonathan, Mr. Leke Oyewole, told Vanguard Maritime Report that “as long as that security gap remains, that there is no proper patrol around the ports and the anchorage, this trend will continue.
“For the second quarter 2018 report the figure is likely to increase if nothing is done to stem the tide of pirate attacks on vessels.”
The fear of increase in pirates attack is coming against the cancellation of a maritime security contract by President Muhammedu Buhari due to the protest by a section of maritime stakeholders against what they saw as unwholesome interest in the deal.
The cancellation of the contract was commended by maritime security experts saying that it was absurd for the nation’s Navy to work under a foreign private security firm as provided in the contract terms.
The Nigerian piracy headaches had come a long way prompting the former management of NIMASA to structure an international security contract with Global West Specialist Vessels to address the problem.
Under the arrangement NIMASA and Nigerian government was not going to pay any contract sum for the security, rather the contractor would be expected to beef up security to enable NIMASA make money from the ships. In turn the contractor would earn a percentage of the extra revenue.
But this arrangement was cancelled by the current administration on grounds that the contract was a conduit pipe to siphon monies from the agency.
However, a new security contract was initiated by the present administration where Nigeria would pay USD195 million (about N60billion) to a private security firm for beefing up security at the territorial and coastal waters.
But the contract amount raised so much dust that the National Assembly was forced to invite the Minister of Transport, Mr. Rotimi Amaech, who refused to appear before its committees set up to look into the contract.
Eventually President Mohammadu Buhari was forced to cancel the contract and ordered that the USD50 million upfront payment be recovered by the way of getting the foreign contractor to supply items equivalent to the amount.
The contract, signed off by the Federal Executive Council in December 2017, would have seen the contractor, HSLi, an Israeli security firm, rake in $195 million in exchange for an undisclosed number of special mission aircraft, special mission helicopters and 12 fast intervention vessels for the Nigerian Navy.
Reacting to the cancellation of the contract Amaechi, Oyewole, while commending President Buhari for cancelling the contract, said that if that contract had been allowed to work, it would have been worse than the Global West contract. He said that the Nigerian Navy is the authority with legal powers to monitor and protect the nation’s maritime domain adding that the Navy should be funded and provided with patrol boats.
“I fully support the cancellation of that contract simply because it would have been worse than the Global West contract because the Navy cannot be subjected to work under a foreign private company.
“It is odd for the Nigerian Navy to work under it. It is an absurdity that is inconsiderable. To that extent I support the cancellation of that contract.
“In the time of Global West, though it was not security firm, the whole of Nigeria cried foul.
“The Navy is the only authority that has the mandate to secure the nation’s maritime space. The Navy should be properly funded and patrol boats should be provided for them.
“During the Jonathan era, Global West contract with NIMASA worked out perfectly. What they (NIMASA) did was to sign an MOU with the Navy and gladly enough, Navy came on board to subdue piracy in Lagos and other maritime space across the Nigerian waters which continue until 2015.
“As soon as the NIMASA-Global West was pulled down, there was space for the rascals to operate again.
“They started by operating off-shore, now they have developed the effrontery to operate even at the ports which is very bad for Nigeria because the freight of goods coming to Nigeria will increase.
“This development is not telling any good story about Nigeria.”
Way forward
Oyewole suggested that the NPA, the Nigerian National Petroleum Corporation, NNPC, and the NIMASA should form a synergy to provide a security platform, where NNPC can provide fuel and NPA and NIMASA can provide money to buy the boats for Navy to operate so as to build a sustainable arrangement to protect the territorial integrity of Nigeria.
He suggested that there is a need for the country to have a robust surveillance system adding that all processes of ship operations and payments are integrated with the surveillance system.
Oyewole said that there must be electronics platform to report any infractions by vessels anywhere in the country.
“A special maritime force should be created and sustainable funding mechanism and the Automated Identification System, AIS, be replaced with a better technology.
The AIS should be improved upon and make our waters safe so that the payment of high freight rate and marine insurance premium which has been the target of the foreign shipping firms be stopped,” he stated.
Nigeria never prepared for these projects when 12 years later their major issues. The last decade were wasted. Dry port story is just as pathetic as river port story. The kaduna ICD already has port of origin it just needs rail wagons to facilitate activity.
In 2002, the Nigerian Shippers’ Council mooted the idea of establishing Inland Container Depots (ICDs) in different parts of the country.
The idea was driven by the desire to take shipping services to the hinterland as well as decongest the already over-stretched Lagos ports.
After going through the labyrinth of government bureaucracy, the idea crystallised into a project which effectively took off in 2006.
The project, which was patterned on Build, Own, Operate and Transfer (BOOT) model, consists of seven ICDS and Float Stations concessioned to private business interests.
They are cited in the six geo-political zones of the country .
Dala Inland Dry Port Nigeria Limited oversees the ICD located in Zawachiki, Kano state with TEU capacity of 20,000 while the one cited at Heipang, Jos, Plateau state with 20,000 TEU capacity is being managed by Duncan Maritime Services.
Equatorial Marine Nigeria Limited operates the Float Station of 10,000 TEU capacity cited at Zamfarawa, Funtua while Migfo Nigeria Limited operates the Float Station of 10,000 TEU capacity located at Jauri, Maiduguri, Borno state.
However, no sooner had they won the bid to manage these dryports than they went to sleep, thus keeping this laudable project in limbo for several years.
nigeriamaritime360.com is saddened by the state of inertia to which this project has sunk.
After 12 years of unnerving inaction by the concessionaires, the only flicker of hope was given by the ICNL whose ICD in Kaduna was commissioned by President Muhammadu Buhari early this year.
It took the threat by the Nigerian Shippers Council, the Facilitator of the project before some operators revved into action.
Hassan Bello, the Executive Secretary of the Council had last year threatened to withdraw their licences if nothing was done on the project.
The threat however had little impact because it was only one out of the seven ICDS that was completed, 12 years after the project kicked off.
While two ICDS at Jos and IsialaNgwa are in various stages of completion, the rest showed no sign of life, despite the threat.
The situation became so frustrating that Bello said he would revoke the licences of two of the operators for lack of seriousness.
In as much as this platform recognises the passion of Barr. Bello and Rotimi Amaechi, the Minister of Transportation to see to the full take-off of this project, we believe that government is not tackling the real problems that are threatening to stifle the realisation of this vital project.
It goes beyond mere threat or rhetoric to ginger the promoters of the ICDs into action.
Why would the promoters of the project suddenly develop cold feet and abandon what they fought in a competitive bidding process to win?
We don’t need to look into any crystal ball to know that government has not created the necessary enabling environment to stimulate the quantum of investments this project entails, hence the frustration and lethargy of the promoters.
Firstly, government failed to define the legal framework that will underpin the operations of the concessionaires in the initial agreement, a lacuna which the operators noticed that makes them to abandon the project.
However, government discovered this lapse very late before it was corrected in a new agreement with the promoters.
Also, this platform finds it intriguing that the project was initially conceptualised and agreement struck with the promoters without factoring in the support and cooperation of the host state governments.
Some of the promoters of the project initially did not enjoy the support of their host states.
In 2005, the structure of the ICD cited in Jos was said to have been demolished by the state government.
However, we commend the efforts of the present leadership of Shippers Council and the minister of Transportation who have changed the narrative in the relationship between the operators and their host states who have started to appreciate the importance of the project to the economic wellbeing of their states in particular and the nation in general.
Another critical factor which is fundamental to the survival of the project is rail connectivity.
As a matter of fact, rail connectivity is at the core and the whole essence of the dryport project.
By virtue of its location at the hinterland, ICDs are to be fed regularly with containers from the conventional ports. This is done through railway for efficiency and cost effectiveness. We however noted with sadness that this is not the case with the ICD project.
As presently conceived, the ICD project is designed to malfunction. In as much as we don’t want to sound pessimistic, it is imperative to be blunt with the truth. Even, if the remaining ICDs are completed, they may have to struggle to survive as the only functional ICD in Kaduna is presently doing.
Currently , the ports in the country are yet to be linked with rails, except the Apapa port which is sadly linked with narrow gauge which is outdated.
This is why the Kaduna ICD is still struggling and it’s promoters lamenting underutilisation of the facility due to lack of much activities.
The Managing Director of ICNL, Yusuf Ismail has declared that activities in the dryport are still low. Despite the assurances of the Nigerian Railway Corporation to move cargoes to the dryport, the promoters of the facility are still relying on road transport to get cargo from the port.
We found out that the Nigerian Railway does not have the wagons and the locomotives to pull cargo from the Apapa port to Kaduna ICD.
The Railway authorities have promised that the equipment will arrive this month after the initial date of May failed.
It is also disheartening to note that presently, the NRC could move 50 boxes per week from Apapa to Kano due to the narrow gauge of the rail track. Even though the ongoing rail project of the Federal Government is standard gauge, but that one is from Lagos to Ibadan which is the first phase expected to be completed this December or early next year.
The above scenario only signposts the lack of seriousness of government to nurture the ICD project to fruition. The travails of the only ICD currently in partial operations will certainly send a wrong signal to other operators of what awaits them when they become operational.
It is also a bad advertisement to foreign investors who might want to invest in the project. Equally, it will not encourage banks to commit their funds into the project given the lack of basic infrastructure that is germane to the survival of the project.
We believe that it was as a result of these infrastructural gaps that the rest of the operators are foot dragging to commit their resources into the project, at least for those who are lucky to get financial reprieve from the banks.
If government is sincere with this project, it should as a matter of policy include rail connectivity from all the ports in the country to the ICD sites spread across the country.
To us, there is not much evidence on ground to support the prediction of Engineer Fedelis Okhiria, the Managing Director of Nigerian Railway Corporation , that all the ICDS will be connected to rail by 2020.
We would however wish to be proved wrong and see this prediction come to pass. Anything short of that will be a mockery of the objective of the project which is to take shipping services close to the shippers at very competitive prices.
No amount of threat by the regulatory authority will change the present apathy of the promoters of the project if it fails to do the needful.
Until the whole architecture of the project is changed through railway connectivity and granting the ICDs full designation of port of origin that will attract requisite investments, we still have a long walk to making the ICD project an attractive alternative to the conventional ports for shippers in the hinterland.
FriendNG: Nope. Grazing reserves are natural reserve. No issue of the so called lease or purchase. Any herder who want to voluntarily ranch his cattle can do that just like the President or Ganduje. They have private ranches.
Is Ganduje doing this for free. Even better they should run there as soon as its ready.
It is not the issue of affordability rather it is a matter of choice to do or not to do. We have many farmers who can afford to construct boreholes for irrigation yet the government provide dams. Y not grazing reserves?
Grazing reserves fall into private sector business. The who country doesnt need to subsize business because they arent willing to invest. We dont for every other ranch farmer and individual.[/quote]Yes they have the right to reject it but my point still remain that, in states that are ok with grazing reserves the federal government will fund it and not herders.[/quote]Herdsmen are going to fund it. Every press statement says they will pay a fee for services. They will also pay taxes so thats false.
You are still not getting it. Let me paste your post
Typo. I meant it would not be private if goverment owned. Osun already set up ranch years ago for example. Akwa plans to asweell.
Meaning even when states set up low interest loans for ranching it has nothing to do with the issue of grazing reserves. Herders who are voluntarily interested in private ranching can utilize such offer from the state government but that dosent mean the issue of open grazing is solved. The government has to provide Nigeria owned grazing reserves just like it provide Nigeria owned irrigation dams.
The fedeal government plans on doing low interest as well. I get point though. The issue of open grazing doesnt go away since open grazing not illegal in majority of states. Theres nothing that stop then from grazing or herding cattle anyway. Don't farmers pay water bill to federal government for service? (It would be dumb but not shocking if they didnt.)
FriendNG: Nope. Grazing reserves are natural reserve. No issue of the so called lease or purchase. Any herder who want to voluntarily ranch his cattle can do that just like the President or Ganduje. They have private ranches.
It is not the issue of affordability rather it is a matter of choice to do or not to do. We have many farmers who can afford to construct boreholes for irrigation yet the government provide dams. Y not grazing reserves?
Grazing reserves fall into private sector business. The who country doesnt need to subsize business because they arent willing to invest. We dont for every other ranch farmer and individual.[/quote]Yes they have the right to reject it but my point still remain that, in states that are ok with grazing reserves the federal government will fund it and not herders.[/quote]Herdsmen are going to fund it. Every press statement says they will pay a fee for services. They will also pay taxes so thats false.
You are still not getting it. Let me paste your post
Typo. I meant it would not be private if goverment owned. Osun already set up ranch years ago for example. Akwa plans to asweell.
Meaning even when states set up low interest loans for ranching it has nothing to do with the issue of grazing reserves. Herders who are voluntarily interested in private ranching can utilize such offer from the state government but that dosent mean the issue of open grazing is solved. The government has to provide Nigeria owned grazing reserves just like it provide Nigeria owned irrigation dams.
The fedeal government plans on doing low interest as well. I get point though. The issue of open grazing doesnt go away since open grazing not illegal in majority of states. Theres nothing that stop then from grazing or herding cattle anyway. Don't farmers pay water bill to federal government for service? (It would be dumb but not shocking if they didnt.)
FriendNG: So you're suggesting the government should illegally seized more land (according to the video you posted.
Its not illegal under our laws. All land is vested in the state. The government is only obigated by law to pay compensation before work begins.
Why should they purchase land? They will not. Either the state government will create the reserve itself and they pay for utilizing it or the federal government will buy the land from State government and make it a national reserves for all people even you. But herdsmen won't pay for it, they are also Nigerians except the few from ecowas region. If the government can create Dam for irrigation y not grazing reserves? Grazing reserves are also national assets.
Grazing reserves are not new, the Sardauna of Sokoto have create such before.
The land should be purchased if its a private sale or youll have to lease it from private entity. Thats how it works for every farmer, rancher or business owner. Unless government wants to give you land.
Herdsman are more than able to do buy land. They just dont want to change lifestyle or business model. Thats how the other ranchers, farmers and other private people do it everyday.
Its non issue since willing states and federal land are providing land. Sates like Edo, Osun Ebonyi and Benue already said no and federal government is pushing along fine.
The amount will be increased based on political reasons and not cost of production. Because same people that are rejecting grazing reserves are OK with it when Jonathan allocate 100billion for same. No noise about it but today because a Fulani is the president they are against it. Today because a Muslim is the president CAN are against it.
Ok if you say so. Lol why stop at cattle legislage. Do every agricultural product. If they do I'll gladly eat my words.
That's not my point. I mean to willing farmers that want private ranching and not states.
Akwa Ibom should look into having National carrier patronize MRO. The state needs to be proactive with this opportuinity. Getting cargo opperations as soon as possible is just as important. Other than that Ive never cared for this national carrier plan.
Lol they better be correct about being ready. Anyway the ASATM will make flying cheaper. Its too expensive flying around Africa anyway. A flight from Nigeria to Mauritius cost a fortune.
According to him, it will also take advantage of the Africa Single Air Transport Market and will be the best player if the government gets it right.
“But if we don’t, it will become a threat to us. But I believe we are on the right track.
Even today we have people that ranch their cows in Nigeria. But what I don't believe is the saying that herding is a private business and that they (herdsmen) are the ones to purchase land from state government and use it as reserves.
I disagree with you on that point. Why shouldnt the buy land from state governments. If the governments want to lease it fine. The point is they will pay.
That's what I suggest. Meat, skin etc processing industries should also be constructed by willing private investors or the state itself.
Understood. Btw your comment about government needing to raise prices is unnecessary. The price of beef will probably jump because of all the new input cost of ranching short term. Then the transport cost will increase since they arent herding most likely.
The price wont drop untill the cattle population increases after a few years. The meat production and dairy productiom will jump.
Although Boko Haram have been degradee but it's unwise to do such now as the insurgent might launch surprised attack especially when they heard cattle are being reared. I suggest sambisa should be a long term planing and not immediate solution.
I agree its a meme for now but it seems like a logical end goal. The cows have little grass then they just need to buy feed in dry season.
This should be for those willing to do ranching and not something mandatory. Reserves should be provided by government and not herders.
I can compromise there since you agree its willing states participating. If thats case whats the big deal.
The proposed national airline for Nigeria would be unveiled before the end of the year, the Minister of State for Aviation, Hadi Sirika, has confirmed.
Mr Sirika, a former pilot, gave the assurance while receiving the Outline Business Case Certificate of Compliance for the establishment of the airline from Chidi Izuwah, the Director General, Infrastructure Concession Regulatory Commission (ICRC).
The minister said that the presentation of the certificate was a testament on how far the project had gone.
The proposed airline will gulp $8.8 million preliminary cost and $300 million as take-off cost.
The Nigerian government is not fully funding the airline as it has adopted midwifing it via the option of a Public Private partnership, to deliver a national carrier that would stand the test of time and be world class in operation and management, he said.
According to Mr Sirika, Nigeria will receive the first set of five airplanes for the airliner on December 19.
The airline will make profit in three years after operations, he said.
“We will make the investments and follow the business plan through private sector management.
“We intend to get a 30 aircraft market in five years. But we will begin with five aircraft on the day of lunch. It was not clear whether an order has been made for the aircraft, but the minister in May met a team from Boeing in Abuja.
“At Farnborough International Public Airshow coming July 18, 2018 in London, we will unveil the name, logo, colour scheme, the structure and the type of airplane about the national carrier.
“We will also place the order for the aircraft at the event,” he said.
Mr Sirika explained that the government would step in to cover the funding gap at the onset and ease out thereafter.
He said the government would not get involved in the management of the national carrier.
He said Nigeria’s population of over 180 million people is huge enough to support aviation, adding that the airline would take advantage of Bilateral Air Service Agreement (BASA) that the country has with over 70 countries.
According to him, it will also take advantage of the Africa Single Air Transport Market and will be the best player if the government gets it right.
“But if we don’t, it will become a threat to us. But I believe we are on the right track.
The minister also gave an assurance that the national carrier would not kill the domestic airlines operating in the country.
The Director General of ICRC, Mr Izuwah, said the presentation of the Certificate of Compliance was an official green light to proceed with the procurement process.
He explained that the government would bring its contribution to kickstart the airline, adding that the amount of equity the partners would hold would determine government contribution.
According to him, start up cost over the next three years is about $300 million, but pre-start-up is $8.8 million.
“The rest of the investment will be equity injection which will happen in tranches because you do not need all the monies at once.
External capital injection also depends on the profitability of the airline.
“Though, you need that initial government financial to make it take off, but what is important is that the national carrier will be entirely private sector controlled.
“There will be zero government interference. But if that happens, it invalidates the certificate and the entire process.
“This is a bankable business, and the government will get a strategic partner who will invest in the national carrier and when we get through the bidding process, more facts will emerge.
“The government will have to spend the pre-start up cost like the brand name, the office and other start up.
“ It will be a world class airline with domestic, regional and international operations,” he said. (NAN)
FriendNG: It was created by state not the cattle owners against what opposition are clamoring for now. The tax herders pay is a source of revenue for the state.
Im not sure what your arguing correct me if misinterpreting point. I agree a sovereign wealth fund is created by the state. I think your talking about the grazing land. Legally since state government can take land for that purpose. Jigawa seized 12,000 hectares for Chinese firm. The Federal government does also provide for nomadic education the quality I don't know.
Ranchers did purchase land from privately as well that's how ranches Like King Ranch Started in 1853 before the sovereign wealth fund. I don't know if King ranch was first ranch or just the largest. Again states are more than free to copy Texas if they have land to devote to herders. The federal government can take swath of land it owns in Sambisa forest like you all suggest and use it for ranching. The other option is work with willing states like its doing and set up low interest loans for ranching business.
igbodefender: The Falgore ranching solution, as proposed by Governor Ganduje of Kano, remains the Solution to these crises.
Its not enough considering it holds a little over 5 million cattle. The Cattle population alone is around 20 million. More states would need to be ready to copy his proposal. The states willing to participate in federal grazing reserve scheme or start their own.
Im surprised u guys dont find this aspect of the article more interesting. This fund pays for the University of Texas system and Texas A&M today.
Keep in mind, the first Sovereign Wealth fund in the world was The Permanent School Fund (PSF) created in 1854 by the state of Texas to benefit primary and secondary schools The PSF was endowed with public lands, which cows ranchers paid grazing leases for access to the land by their cows.
The Chairman of ECOWAS Authority and Togolese President, Faure Gnassingbe Eyadema, has said that leaders of the region will soon deliberate on the persistent outbreak of farmers/herdsmen clashes in some countries in the region, including Nigeria where scores have died.
Mr Gnassingbe stated this when he addressed reporters after a closed-door session with President Muhammadu Buhari in Katsina, Katsina State, on Friday.
According to him, the violent clashes between farmers and herdsmen are not peculiar to Nigeria alone.
He said the problem is being witnessed across the ECOWAS member states including his own country, Togo.
He said: “This is a problem that many countries experience. I was telling the President (Buhari) in my country in Togo, every year we have that issue between the cattle herders and farm owners.
“In Benin, we have the same situation; in Ghana we have the same situation and also in Ivory Coast.
“So I think is a good idea and the President has accepted that issue can be discussed among the Heads of States. Within ECOWAS also it is an important issue.
“So, it is in many countries; it is not a religious issue; It is not religious; it is not an ethnic issue but it’s an ancient problem which (we) can resolve if we have the courage to discuss it and try to find solution as much as possible,’’ he said.
The Togolese President said he used opportunity to invite President Buhari to the meeting between member states of the Central African countries (ECCAS) and the Economic Community of the West African States (ECOWAS), slated for July 30.
“I also inform the President that we have scheduled a joint meeting between Central African countries (ECCAS) and the West African countries (ECOWAS), and that meeting is scheduled for July 30.
“And I respectfully invited Mr President to attend that meeting. And the following day, July 31, there would be ECOWAS Summit in Lome,’’ he added.
FriendNG: We don't have land for such. We cannot accept fulani domination and the continuation of Danfodio Jihad.
Seriously Nigeria and Nigerians cut down trees and make no Provision for new ones.
Well that's distrust of herdsmen just a reality. The land fir frazing reserve law was in the North back then. Everyone in south is rejecting grazing reserves today. This an issue they north has to solve itself. The benefits would be immense if they do.
The issues to tackle would be irritation and getting fodder in dry season. The rest of the stuff like dairy processing plants and meat processing will follow naturally. The beef will simply be transported by refrigerated trucks or something.
The only thing I find weird about commenters is the insistence that south or non willing states participate like Benue. These northern states should be happy to have less competition seeing how theres only so many herdsmen. Besides ranching works best in low population density environments.
I dont see why federal goveenment gas to step in especially if the author provided Texas how this grazing reserve would work. The state doesnt need to cede any to federal government and could run the reserve themselves. Setting up sovereign wealth fund sounds like great idea. Kano should look into this idea.
The main reason southern states reject ceding land to federal government is fact they dont want to relinquish control. The other reason is they simply dont care for herdsmen. States provide land for business the like example Akwa Ibom and jubilee syringe factory.
“The quality of solutions must be superior to the problem”
We have now arrived at a point in time where entire villages are sacked and razed because of access to grazing fields by herdsmen. How did we get here?
Nigeria has had nomadic cattle herdsmen before I was born, they move seeking green shoots of grass to feed their cows. This community of nomadic people have had a special status in Nigeria, the federal government set up a Commission of Nomadic Education to educate them.
However Let’s get down to it, we can’t in 2018 have cow walking from the Northern Part of Nigeria to the Southern part of Nigeria to graze, no sir, that system of agricultural activity is dead. Its dead for many reasons, the simplest being that cows walking lose weight, thus its meat yield is poor, if we simply kept the cows in one place, in a ranch and fed them, then processed them for their meat we will have fatter cows, more meat yield, and thus more protein for the nation. Let’s not even talk about cows trampling on farm produce as the go through “grazing routes” ….
So this article argues for grazing reserves, not grazing routes. The practice of cattle walking to grazing fields, in effect the nomadic tradition has to end, but everything comes to an end.
So lets focus on grazing reserves, this is not a new idea, in 1954, a study called the Fulani Amenities Proposal was done. The proposal suggested the creation of grazing reserves, a paper done by Dr Ismail Iro on Grazing Reserves Development states that By 1964, the government had gazetted about 6.4 million hectares of the forest reserve, ninety-eight percent in the savanna. Sokoto Province had twenty-one percent of the land, followed by Kabba, Bauchi, Zaria, Ilorin, and Katsina, with 11-15 percent each (Awogbade 1982).
In 1965, the Nigerian Government incorporated the Fulani Amenities Proposal into the Grazing Reserve Law. By 1980, Nigeria had established 2.3 million hectares of grazing reserves, At the close of 1992, the government has identified over 300 areas with twenty-eight million hectares for grazing reserve development. About forty-five of these areas, covering some 600,000 hectares, have been gazetted. Eight of these reserves, totaling 225,000 hectares, are fully established.
So we have grazing reserves, to be specific state lands , taken by the Federal Government and designated as grazing land. The problem today is that the grazing policy has not kept pace with realities on the ground. In 1964, when the Northern Government set aside 6.4m hectares of land there was no Abuja FCT, so Abuja “encroached” on the livestock grazing land…what land area was used to compensate the cattle herders?
This “compensation” and realigning of the grazing reserves earlier established to reality I believe is what the National Grazing Routes and Reserves Bill 2016 sought to correct. However, note that the past grazing bill was for lands in Northern Nigeria, the new bill is for land everywhere in Nigeria. Why? Climate change
The issue really is not grazing lands or routes but climate change. Climate change and massive deforestation has turned the North to deserts, cows cannot commercially graze in the North…. thus the simple solution is to move Southwards where there is still green grass. So what happens when the green field in the South are depleted? will we move our cattle to Cameroon? We must devise better solutions to the climate change and deforestation issue,
The short term solution are ranches in the Southern Part of Nigeria, owned by the states and private sector and leased to the private cattle owners to graze on.
Instead of a Grazing Commission appropriating private and state lands, crate a Grazing fund, the fund can get its revenue from taxing abattoirs per head of cattle killed, about 5,000 cows are killed daily in Lagos alone, a N500 tax per cow is N2,500,000 a day.
This fund will guarantee payment to private and states for the leasing of their land by the cattle owners. So the grazing fund will issue adverts for suitable land, specify amenities, etc states and individuals can bid and their land is designated grazing reserve land. The cows graze, the Fund pays the state or land owner. The lands left to fallow can easily become grazing reserves, the owners get paid. Let’s just keep it simple.
Keep in mind, the first Sovereign Wealth fund in the world was The Permanent School Fund (PSF) created in 1854 by the state of Texas to benefit primary and secondary schools The PSF was endowed with public lands, which cows ranchers paid grazing leases for access to the land by their cows. The funds raised went to fund schools in Texas.
According to the National Population Commission 2006 figures and Landmass complied from NPC Report, 1991, Benue and Plateau States have very low population density, eg Lagos is 2,695 but Benue population density is 124 and plateau is 55 So nothing stops Benue and Plateau States from creating land trusts to lease land to the grazing trust and earn cash. This way there Is a direct economic benefit of cows grazing to the people of Benue. its a clear form of IGR to the state, just as in Texas.
What will then also happen is a multiplier effect, as cows graze in one spot, they can get immunized, killed for beef, skin, etc, Benue and Plateau can become the center of a modern livestock ranching and vaccines industry in Nigeria, Cows don’t have to walk to Lagos they can be killed, shipped in refrigerated containers to markets across Nigeria from the grazing fields of the Benue Plateau
The narrative on grazing must change from rights of cows to graze to positive economic impact of cows grazing in one area.
Long term solution? we must defeat the Sahara Desert encroachment, its not impossible, Israel is a major exporter of fresh produce but half the land is desert, with no water, but Israel has turned their deserts green and feed themselves from that desert., The Governors facing desert encroachment should go to Israel and ask them how they keep cows in deserts.
If Israel is far, go to Sudan, in Sudan DAL farms keeps cows in air-conditioned pens away from the heat and can milk 56 cows in 10 minutes…this is Sudan.
Then fix the cutting of trees, provide subsidized coal from Kogi and Enugu to the North, provide gas to the villages, soon there will be no trees on Northern Nigeria at the current rate of felling.
Unless this is done, after the cattle, the people of the North will also migrate to the south to escape the deserts.
Fixing the encroachment of the deserts is really fixing agriculture and irrigation in Nigeria, and both are not rocket science., its just hard work
The Niger State government has said it is no longer possible to give free education to its students in tertiary institutions within and outside the country.
The government said its decision was based on the economic situation of the state coupled with dwindling finances and other contending demands.
Governor Abubakar Sani Bello disclosed this while reacting to the demand for free education and scholarship awards by students at the second combined convocation ceremony of the Ibrahim Badamasi Babangida University, Lapai.
Bello, who was represented by the Deputy Governor, Alhaji Ahmed Ketso said: “In view of the huge funds needed to run education, especially at the tertiary level, parents must also take some responsibilities, hence the payment of school fees by our students.”
The governor did not respond to the request for the payment of scholarship by the students, but said the government would set up a special fund for education in the state through which various shortcomings in the sector would be addressed.
Bello advised the students “to shun cultism, indiscipline and other activities bedevilling the nation’s education, especially acts of indiscipline,” adding that whoever is found wanting would be dealt with according to the law.
“Don’t say because you are the son of the governor or the deputy governor, you will misbehave, we will not spare anybody that is found wanting”
He also admonished them to complement the efforts of the government and the school authorities by safeguarding the infrastructure provided, promising that government would continue to look into the welfare of students and staff of the institution.
The Vice-Chancellor, Professor Nasir Maiturari had earlier said the institution elevated 37 out of the 104 academic staff to professors in the last three years, while 558 staff made up of 197 senior and 361 junior staff were also promoted to various ranks adding that promotion of all categories of staff “has been very regular.”
20. The Federal Government should provide low-interest rate loans for herders to develop ranching businesses in the country.
Cool with me. Anyone that supports ranching should look into getting loan if it becomes available.
11. Nigeria must assert its sovereignty amongst its neighbours, particular in the areas of arms control, drugs, terrorism, transhumance and economic sabotage.
In other words securing the border. What do they mean by economic sabotage. Anyone have some examples.
Lol half this list can be solved with either more funding or directive by President. There's only a few interesting items on this list worth discussing. The list comes off like the usual empty platitudes that drone on about in speaches.
7. Nigeria must reduce its dependence on importing its basic security equipment and must immediately develop its internal research and development capacities in order to meet our basic national security needs.
If DICON is not manufacturing your basic supplies what do they exist for? Invite the DG in for questioning and come up with real plan.
19. The Federal and State governments should work out a strategy to integrate the Almajiri system with the formal western educational system.
This is funniest one. Are they telling us Almajirir's are a security risk. I hope our favorite loud mouth Emir Sanusi II has suggestions.
Politics › Rail Wagons As Panacea To Fuel Tanker Fires by Blue3k2(op): 5:26pm On Jul 13, 2018*. Modified: 5:49pm On Jul 13, 2018
