The issue with NPA
It may interest you that despite its recent move to dismantle Secure Anchorage Area (SAA) on Lagos water, the Nigerian Ports Authority (NPA) played a critical role in establishing the zone, built with huge capital by OMS (Ocean Marine Services) Ltd for ships calling at Lagos ports.
- The SAA is a child of circumstance created after a steering committee set up in 2013, by the Nigerian Navy, NPA, Nigerian Maritime Administration and Safety Agency (NIMASA), Department of Petroleum Resources (DPR) and other agencies of government that are stakeholders in the maritime environment.
The Committee held meetings for over five months to address the issues of security for ships on the Lagos waters. There were critical issues at that time which included illegal arms importation, piracy, and robbery at sea, which were making Nigeria waters to be given the designation of “High Risk Area” (HRA) by International Maritime Bureau (IMB).
Before the arrival of SAA platforms, it was common practice for international vessels coming into Nigerian waters to arrive with hired mercenaries onboard to provide security for the ship, her crew and cargo. The cost of one mercenary was $2,500 a day and the ships would carry three mercenaries for the whole voyage. They could carry three mercenaries for 30 days. The situation also added problems of bringing arms illegally into Nigeria. We are all aware of the arrest of a Russian ship with arms in 2012.
- The insecurity situation at the time affected shipping, with most of the shipments destined to Nigeria being redirected and discharged in Cotonou, Togo and Ghana, because of the situation in Nigeria waters.
The owners of SAA, Ocean Marine Services (OMS) Limited which already had a relationship with the Nigerian Navy coming from its partnership with the Navy to stem incessant attacks on International Oil Companies (IOCs) operating in the Niger Delta, was invited to provide a similar service for ships waiting offshore Lagos waters for Ship-to-Ship (STS) transfer operations or allocation of berthing space at the Ports.
Leveraging on the success that OMS had in the Niger Delta, the Nigeria Navy in 2013 invited them to the steering committee with all the agencies of government in the maritime environment to find a solution to what was happening to the Lagos roadstead. At a time, this meeting was moved to the NPA Headquarters in Marina, Lagos, chaired by the NPA. The Committee met for over five months and after series of meetings and deliberations, came up with some solutions.
- The solutions were one, demarcation of the Lagos Harbour approaches that is the free anchorage area where people can anchor on their own based on the general security provided by government. There is the STS where people can do ship to ship transfer operation; there is no anchorage area because of marine cables and at the end of all these demarcations, the Committee also came up with the SAA to serve as just like we have on land, you can have a place where there is security round the clock. If you wish, you bring your ship there and pay a small fee, but if you don’t wish, you continue to depend on the security provided generally. This kind of arrangement is also present at the airport where you have the lounge which is provided by the airport authority; but you also have executive lounge which if you want extra service, you can move in and pay a token and get extra service. So, that was how it was agreed upon and NIMASA published the statutory Notices to Mariners in the Guardian Newspaper of 27th November, 2013 to inform all stakeholders of the new regime and indicate the availability of that dedicated service, in addition to all the other services. The NPA subsequently also published own Marine Notice in 2014 recognizing the existence of SAA. The public notices by NIMASA and NPA are attached herein.
- It is important to clarify that the patrol boats that are used in the SAA are 100 percent owned by Ocean Marine Solutions Ltd, but given to the Navy to man and operate. They were acquired by OMS to Navy’s specifications that they must have Navy colours, Navy call signs and operated only as Navy assets to give that service. In addition to providing the platforms, OMS also logistically support the platforms.
It is very important to note that the SAA is situated 10 nautical miles offshore from the Fairway Buoy, an area which by NPA Act is clearly outside the NPA’s jurisdiction. This means that only the NIMASA has power of regulation over the SAA.
- This arrangement has been very beneficial to Nigeria, the Nigerian government and the international shipping companies because they have confidence in the service. But, as time went on, a new regime in NPA appears to have misunderstood it saying they are collecting money due government, anchorage fees into their private pockets. The fee charged to ships that opt to utilize the dedicated security service offered in the SAA is not anchorage fee, but security fees. OMS is giving security and collecting stipends from the ships that use their service to cover for the cost of investment in the platforms and logistics and the international ships are happy to use the service and pay. Now, the crew can sleep with their eyes closed.
- Contrary to NPA claims that its services were adding to cost and leading to compromise in national security, OMS has brought succor to international shipping lines coming to Nigeria.
The allegation that SAA is adding costs to ships coming to Nigeria does not hold water. On the contrary OMS service is cutting down cost for ships coming to Nigeria.
We the concerned shipping services and port users wish to state and maintain that OMS is contributing immensely to the economy. The SAA is not adding to cost of doing business in Nigerian ports at all. Rather, it is making cheaper because we all know that the value of ransom on kidnapped crew or hijacked vessel is better not imagined. The SAA is also helping to cut the shipping lines overhead cost, because they will not need hire mercenaries to come here at over 300 percent of what we charge or more. They will not be tempted to bring in arms into this country. You recall in 2012 when a Russian vessel was arrested here with a catchy of arms, they were trying to protect themselves.
- Again, the allegation that SAA constitutes threat to national security is a big lie. It is the Navy that still mans the platforms. All that OMS does is provide the patrol boats and the necessary logistics as force-multiplier for the Navy. The Navy is a legitimate government agency that is tasked with same responsibility.
The Navy cannot constitute a security threat to the nation. The shipping lines are happy; it is safer for them; they sleep with their eyes closed while they are on our waters.
The allegation of using Nigerian Navy boats to deliver security service at a fee and proceeds going to private pocket is not true.
It should be understood that OMS is not using Nigeria Navy boats. The company provided the platforms and logistics to the Navy to provide security to the ships that wait for berthing at our anchorage. The boats are bought by the company completely and they are even registered with NIMASA because you can’t bring in any boat or operate them without NIMASA’s approval and paying their dues and tax.
The stipend charged ($2000 the first day and $1500 for subsequent days) is to cover the cost of providing the service at the SAA. The most important thing is that this service is not compulsory and the international shipping lines utilizing the service are not complaining. SAA is at no cost to government and offered offshore to international shipping.
- There is another allegation that the SAA is within the purview of NPA. The NPA Act gives the authority limit administration from the Fairway Buoy inward. The SAA is 10 nautical miles offshore from the Fairway Buoy and that is the area in control of NIMASA
We have to clarify this because there is so much misinformation in the media. Sometimes, it is difficult to tell if the misinformation is deliberate or out of lack of knowledge, because this matter *has been* argued with NPA left, right and centre for the past five years.
- The company is a major force-multiplier to the Nigerian Navy in safeguarding the waters. It may interest Nigerians to know that OMS works with the NNPC and the corporation can tell you that without OMS it would have been a different story. OMS is biting the bullets to secure this country, not to talk of the teeming youths the company provides employment and legitimate business opportunities for. THE SAA is a home-grown solution and capacity building.
- The service that OMS is rendering to shippers started with very huge investments and if the NPA dismantles the SAA and leave employees jobless, Nigeria loses and unemployment is encouraged.
This company crisscrossed over the whole world to market Nigeria – Sweden, Denmark, Norway, Greece, Germany – – letting vessel owners and operators know that this service was available, that Nigeria Lagos waters is no longer a High Risk Area; that they come to our service.
It’s well known that the Nigerian Navy has gaps in platforms holding and even funding for maintenance of 24/7 operational presence in the 84,000 square nautical miles of the nation’s maritime space.
OMS has volunteered to bridge the security gap in the water and the shipping lines who are using it are not complaining. If anything, a company such as OMS should be encouraged by the government.
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