Posts in category: Monthly Post

Garba Abubakar and the Promotion of Efficiency, Productivity and Service Delivery at the Corporate Affairs Commission

They say the public service is the engine room of any country and that is true. If it stops functioning well, whatever plans a Government has will never be achieved. Alhaji Garba Abubakar Registrar-General/CEO, Corporate Affairs Commission (CAC) knows this very much, and he has made maintaining the integrity of service delivery his watch word.

Since his appointment by President Muhammadu Buhari in January this year, he has strengthened efficiency and improved the work ethos in that capitalist institution of the Federal Government. Under his watch at CAC now, regardless of what is on the calendar, service to the public should be provided unhindered to ensure that the Ease of Doing Business policy of the Federal Government is achieved. In this way the CAC will be able to best play its mandate role to help lead the private sector to the economic transformation of the country.

Public servants, over time, have always been challenged to improve their efficiency and effectiveness. That means they should learn to listen, look around with an open mind on what the society/community goes through daily. These are parts of what guide Abubakar’s activities at the CAC. Only if one goes out and experiences the hardship then you will feel and understand the people’s cry for service. Like they say, “you have to be in it to feel it”.

Abubakar listens and works with stakeholders, in order for the CAC to better able to help drive productivity in different industries in the country, leading to economic transformation.

Of course, Economic transformation of Nigeria depends on a transition from the mono-source oil economy to a diversified and competitive economy that is heavy on manufacturing and exportation of goods and services. The Corporate Affairs Commission regulates and supervises the formation, incorporation, registration, management, and winding up of companies. The responsibility also extends to registration of business names, limited and unlimited liability companies, incorporated trustees (communal, religious and charitable associations). The discharge of these functions has much to do with how well Nigeria with economic transformation and the role of the Corporate Affairs Commission in the Ease of Doing Business in the country.

 In the past the CAC seemed to have fared badly in leading the private sector to transform the economy because its ability is circuitously dependent on the strength of the nation’s economy which is ‘under the weather’.

Starting the business was quite straightforward, a clear testament of where Nigeria stands today with regards to its global ranking in Ease of Doing Business, published annually by the World Bank. What wasn’t easy though was choosing a name, to our own surprise, and the costs involved.

Choosing the name is probably our own fault for naively presuming that we will pick any name within a certain theme, and be fortunate enough to find that name available. We figured it out eventually, without having to go for any of our names, or that of a poet or a philosopher because of the push for high-sounding names.

The first thing to be done was to remove the then steep entry cost, as getting the trading and business registration used to cost a lot and take a long time to be processed. This is, of course, not taking into account costs that could come up in the future as more individuals are employed by the business. Then to be able to open a business was tough, and many people found this a bit bizarre and out of place. Here’s why.

One, if government is really ready and like to support entrepreneurship and the development of a vibrant environment for small and medium enterprises (SMEs), high start-up fees were surely not the way to go. The higher those business start-up fees were, the more they discourage individuals from starting their own businesses, encouraging them instead to find a job, and most probably in the public sector.

In addition to that, high start-up fees could affect the nature of the business that one would get into, getting into a business with the ability to make a quick money and recover those high start-up fees. For instance, getting into food and beverages (F & Bs) instead of manufacturing.

Cost of a name

Now for Nigeria to stay entrepreneurially competitive, that high start-up cost of business registration had to go. In many countries like the UK, for instance, start-up costs are negligible. The idea is that those start-ups should not be squeezed out of business before they have even started, especially when there are other costs to take care of, including rent and payroll. As such, governments make it easy and cheap to start a business, realizing that doing so will generate additional economic activities and tax revenue for government.

That is, those businesses will create jobs and will obtain loans to expand their business or even expand into other sectors, which by itself fuels additional economic activities. Governments are, therefore, better off allowing those businesses to actually grow with fewer start-up financial obligations in their first years, then make more money from income-connected corporate taxation.

And with the coming of Abubakar,  CAC   swiftly moved away from burdensome start-up registration fees . then corporate taxes will kick in. With growing businesses and incomes, government will generate higher government revenues than would, ever.

As an institution whose mandate it is to lead the private sector to transform the economy, the CAC collaborates with critical stakeholders, such as the different chambers of commerce as well as different professional bodies, holding dialogues with them on topical issues that concern its mandate. This is particularly in regard to the Ease of Doing Business protocols. One of such was the one-day stakeholders’ forum  the institution held with  the Council of the Nigerian Bar Association Section on Business Law (NBA-SBL)  in April this year.

Speaking during that one-day stakeholders’ forum, Ayuli Jemide, vice-chair NBA-SBL said the Section, which is the specialisation arm of the NBA, would constantly engage the CAC because the CAC is the company house where all the businesses are registered and for business lawyers, it is the hub for businesses.

He was upbeat, saying that beyond the collaboration, he was hopeful that a new Companies and Allied Matters Act (CAMA) would bring changes that would help the ease of doing business, as he expected both organisations to engage more on how to make sure that the law is not just signed but the intent of the law is put into operation.

Speaking on the Section’s expectations from the CAC, he said, “The need to go digital for CAC is urgent for us and has been there for several years. We have been talking about deploying technology to enhance efficiency and it has been a very slow-moving train but with the current registrar general (RG) and the new chairman, we see a stronger will to get achieve this and to cross the finish line.

“The NBA-SBL will engage and collaborate more with the commission, to try to raise money by way of grants and endowments to achieve these objectives on a private basis and see how we can roll this out.”

Chief Ademola Seriki, chairman of CAC, observed that the NBA-SBL and the CAC are creating enormous awareness for the public. He lamented that a lot of people meddle with files inside the CAC office and people point accusing fingers at CAC, stressing that it is high time both bodies create awareness so that people can know the importance and position of the law.

Seni Adio, SAN, Chairman of the NBA-SBL, who spoke earlier on reform initiatives by the NBA-SBL said, declared that lawyers were very much involved with respect to the enactment of the Companies and Allied Matters Act. He pointed out that this is a very revolutionary bill and once that bill is signed by Mr President it will further help ease of doing business in Nigeria.

“The NBA-SBL has always been at the forefront in trying to enhance the proficiency of commercial lawyers in Nigeria. SBL advocates for lawyers to become specialists, so that people become experts in their given areas of work and can provide legal services efficiency with expertise in the commercial space.”

Speaking during a fireside chat with the vice-chair of the NBA-SBL, Mallam Abubakar said he took over as the Registrar-general, he had identified areas that require urgent reforms.

“We are currently doing a review of our checklist and guidelines to make it more business-friendly and to remove unnecessary bottlenecks that slow down our processes and procedures. So, what we have done is that most of the requirements that were alien to the law have been removed.”

This is true indeed as it will help many small companies come on board. Equally The importance and growing influence of the digital space is also one aspect that all government institutions  and business players need to consider. Jumping on this trend, CAC is committed to delivering omni-channel services that provide potential business owners with consistency and continuity across all interactions. it has enhanced and implemented various digital tools to make SMEs’ online registration journey as convenient as possible.

There is no doubt that people have started seeing significant developments across the region in 2020, however, technology and innovation are unlocking a host of opportunities to enhance sustainable registration process, improve time and elevate entrepreneurs experiences and confidence – ultimately leading to sustained growth in different industries.

Another area of innovation from the Corporate Affairs Commission is the action it took last June to further remove barriers for business start-ups.  The recent step taken by CAC management to ensure that business start-up don’t go through the inconvenience of spending months going to the Federal Inland Revenue Service, looking for how to get Tax Identification Number is commendable, indeed as it will help businesses.

The Corporate Affairs Commission says certificates of registration of business and non-business entities will be issued with Tax Identification Numbers. The Commission in a statement in June said the development conformed with the Ease of Doing Business Initiative being promoted by the Federal Government. It explained that customers won’t need to apply separately for tax numbers from the Federal Inland Revenue Service.

The statement read, “This is to inform our dear esteemed customers that as part of the Ease of Doing Business Initiative, Certificates of Incorporation of Companies registered under Part A of CAMA will henceforth carry Tax Identification Numbers issued by the Federal Inland Revenue Service.

“This has dispensed the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation.”

This particular action by the CAC will provide much relief for business start-ups.

But why is Alhaji Garba Abubakar able to do things with so much passion to deliver on CAC mandate on Ease of Doing Business? He has been around at the CAC for a while, holding a strategic post.  He joined the CAC in April, 2004 as Principal Manager Compliance and rose through the ranks to become a Director in January, 2016. He was Special Adviser to Bello Mahmud the then Registrar-General of CAC between August, 2010 to October, 2017.

 Before joining the CAC, Mr. A.G Abubakar worked with the Nigeria Social Insurance Trust Fund (Formerly National Provident Fund) as Compliance Officer between 1991 to 1993. He also worked at NICON Insurance between June, 1995 to December, 1997.

A lawyer by training, he hails from Bauchi State. He was born on 14 October 1966. He attended the prestigious Ahmadu Bello University, Zaria. He was called to the Nigerian Bar in 1989.  He is a Member, Governing Council Nigerian Bar Association Section on Business Law, March 2017 – date, Member, Inter-Agency Committee Against Money Laundering and Terrorists Financing, 2007-date, CAC Focal on open Government Partnership, amongst others. He is also a Member, In-House Committee on the Review of the Companies and Allied Matters Act (CAMA)

 Abubakar is a great model to public servants on need for efficiency and productivity. Another area that should be improved on is the punctuality and productivity of public servants. Abubakar is straight up with what he expects of CAC departmental heads and that he does not tolerate laxity. The message, most times, is simple and clear, shape up or ship out.
To him the Nigerian habit or style of getting things done should stop. Starting work very late, frequent absenteeism, unnecessary breaks, bad habits and culture and abusing ones position for personal benefits should come to an end. Work ethics refer to a basic set of moral values associated with the way work is done whatever its nature or status.

The departmental heads, by now, should know what they want to achieve so it’s now about planning to achieve their target with the limited financial support and resources.We need public servants to be smarter in managing the limited funds to deliver services, even to remote areas.

If they copy Abubakar’s work etho, they would not just believe in Nigeria, but also, demonstrate their honesty, integrity and accountability at the workplace. For hardworking and committed people contribute to the country’s progress to the best of their ability. The challenge is now on everyone, especially those entrusted to deliver, to learn from Alhaji Abubabakar at the CAC and continue to chart and develop a new part for service delivery.

The Nigerian Export-Import Bank (NEXIM) represents a new era of hope with regards to its financial inclusion programmes and innovation. These involve the enhancement of corporate organizations, as well as the Small and Medium Enterprises (SMEs) to export, thereby preparing the country for prosperity growth, with the power to transform citizens’ lives for the better. These are happening under the watch of Mallam Abba Bello, Managing Director/CEO NEXIM Bank.

Abba Bello fits into Gregory Clark’s visionary personality. Clark, a professor of economics at the University of California – Davis, who specializes in analyzing the long-term growth and wealth of nations, made some valid points in his 2007 book A Farewell to Alms, A Brief Economic History of the World. He reiterates that the wealth of nations and their success in achieving economic progress and prosperity depend greatly on the principle of competitiveness and equal opportunities through flexible laws that can boost the development of economic activities in various sectors.

Therefore, it is imperative for visionary leaders of institutions as well as governments to provide the necessary funding for entrepreneurs and youth aspiring to improve their economic situation, through developing a spectrum of SME financing programs. These will lead to more job opportunities, increased income and higher demand, leading to effective and sustainable growth that contributes to changing people’s lives for the better. Abba Bello’s activities at NEXIM Bank relate to a charting of path towards all these.

Bello was appointed into office in April 2017, and ever since then Bello has been showcasing excellence in practices and putting on ground some innovations at NEXIM Bank. These activities have made the bank more visible to the public, making NEXIM image to go beyond the perception of mere trade facilitation between Nigeria and the outside world to an institution whose touch is seen in several aspects of the Nigerian economy, banking, transportation , education, environment and others.

He is an insightful, multifaceted personality, who enthusiastically embodies the corporate values of NEXIM;, an extremely wise, meticulous person, who has a flair for helping entrepreneurship grow and international trade bigger. He solid administrative acumen that few people have from the beginning, which helps him better able to relate with business people as they grow, providing  them useful advice to build a business empire.

As part of his insightful nature, he thought it wise to help support  crucial decisions related to a major infrastructure and economic development effort – the Sealink Project.  According to NEXIM website, the institution is facilitating the establishment of a regional maritime transnational company (the Sealink Project) in collaboration with the Organized Private Sector under the auspices of the Federation of West African Chambers of Commerce and Industry (FEWACCI). The proposed Sealink Project is aimed at mitigating current non-tariff barriers and high logistics costs that has hindered the growth of intra-regional trade and competitiveness of Nigerian manufactured exports regionally.

Of course, the Sealink Project is said to be essentially conceived as a Public Private Partnership initiative to be managed by the private sector.  “The Sealink is about to commence a pilot run of its services and is engaging with potential customers for service offtake, especially for bulk cargo in West and Central Africa, and is working with the National Inland Waterways Authority (NIWA) on collaborative partnership (between NIWA, NEXIM and Sealink) to undertake a joint survey of the lower Niger river, with a view to promote the use of Nigerian inland waterways for moving bulk cargo.” Says the report on NEXIM’s website.

Another great initiative from NEXIM Bank comes in the area of enhancement of  human capital development in Nigeria as its own form of corporate social responsibility. The presence of Bello as CEO has given impetus to NEXIM in this regard. The Bank under its Corporate Social Responsibility Programmes is committed towards supporting structures and initiatives across diverse areas of healthcare, education, sports, environment, human capital development and the Arts.

Its CSR initiative embodies an ardent commitment and social pact with all the stakeholders. Thus, the bank is committed to creating enduring partnerships for sustainable development whilst adding immense value to its diverse beneficiaries and stakeholders.

It was reported that in 2019, NEXIM Bank engaged and reached out to various entities by promoting skills development and acquisition, supporting small and medium scale enterprises, sports and educational development, healthcare management, sponsorship and support to Associations, and Disadvantaged groups.

Apart from brilliant initiatives, Bello also came out with an innovation to solve financing problems for even small and medium enterprises. This has to do with the introduction of factoring system into the Nigeria business landscape. This is to help business solve some financing issues.to do this, NEXIM bank, under the auspices of FSS 2020 is collaborating with the African Export-Import Bank (Afreximbank) and the Factor Chain International (FCI) to develop and implement a legal framework for Factoring in Nigeria.

According to reports, the Draft bill on this has been developed and is undergoing legislative processes following which it is expected to be passed into law towards promoting a legal/regulatory environment for factoring. This will help integrate Nigeria into the global factoring market

Factoring is a financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital. Factoring is very common in certain industries, such as plank trade, and the clothing industry, where long receivables are part of the business cycle.

In a typical factoring arrangement, the client (you) makes a sale, delivers the product or service and generates an invoice. The factor (the funding source) buys the right to collect on that invoice by agreeing to pay you the invoice’s face value less a discount–typically 2 to 6 percent. The factor pays 75 percent to 80 percent of the face value immediately and forwards the remainder (less the discount) when your customer pays.

Because factors extend credit not to their clients but to their clients’ customers, they are more concerned about the customers’ ability to pay than the client’s financial status. That means a company with creditworthy customers may be able to factor even if it can’t qualify for a loan.

Three misconceptions that need being corrected about factoring:  First, factoring is not a loan; it does not create a liability on the balance sheet or encumber assets. It is the sale of an asset–in this case, the invoice.

Second, some consider factoring to be one of the most expensive forms of financing, but that is not always true. Yes, when you compare the discount rate factors charge against the interest rate banks charge, factoring costs more. But if you can’t qualify for a loan, it doesn’t matter what the interest rate is. Factors also provide services banks do not: They typically take over a significant portion of the accounting work for their clients, help with credit checks, and generate financial reports to let you know where you stand.

Third, the idea that factoring is a last-ditch effort by companies about to go under is another misperception., and analysts say the opposite is true: “Most of the businesses that factors deal with are very much in an upward cycle, going through extremely rapid growth.”

As a business man if your company regularly generates commercial invoices but your clients are not paying on time, you could benefit from reducing the time receivables are outstanding. Factoring may provide the cash you need to fund growth or to take advantage of early-payment discounts suppliers offer.

Factoring is a short-term solution; most companies factor for two years or less. Analysts say the factor’s role is to help clients make the transition to traditional financing.  And with what NEXIM is trying to do, your banker may be able to refer you to a factor. Shop around for someone who understands your industry, can customize a service package for you, and has the financial resources you need. As an alternative trade finance instrument, Factoring is expected to promote financial inclusion and enhance the contributions of the Small and Medium Enterprises to exports, thereby reducing the incidents of informal trade.

But then who is Abba Bello ? Why has he able to introduce innovations at NEXIM Bank?

A kind of man who has devoted his working life to serve the nation and support people. Through NEXIM Bank, his ambition is to create more and more jobs by extending finances to entrepreneurs. Bello has exemplary work ethics and commitment to the nation.

With decades of experience in serving the private sector, he is the right one needed to stir the ship at NEXIM Bank where he is leading Government mandate to promote trade, productivity and growth and do everything needful to deliver trusted practical solutions to enable impactful government actions and transformation in regards to helping local businesses find their footing in the waters of  global competitiveness.

Mr Abba Bello has 28 years’ experience in banking, where he has held senior management positions in corporate banking, regional and commercial banking, and public sector banking in more than a decade. Abba also had a brief stint in auditing. Abba has cognate experience in international banking. He was the pioneer Managing Director/CEO of United Bank for Africa Plc’s subsidiaries in the Republic of Chad and Zambia for several years.

Abba has attended several courses in Nigeria and abroad in leadership, advanced management, and executive management. He is a member of Chartered Institute of Bankers Nigeria, and a Fellow, Institute of Credit Administration.

Prior to being appointed to head NEXIM Bank, Bello was Executive Director, Unity Bank Plc, in charge of Corporate Banking, Agriculture and North Directorate until he was appointed as Managing Director and Chief Executive Officer of Nigerian Export-Import Bank in April 2017. This wealth of experience he deploys to run NEXIM and  to enhance policy development, strategic planning programme and financial management, operations, auditing, deployment of technology and innovation.

Under Bello’s watch, NEXIM consistently attracts recognition to excellence in its core banking functions to facilitate international trade environment, with contributions to social, governance, and  to sustainable development

The staff share a rigorous method when it comes to building and managing a sustainable operation. Their boards set strict standards and clear goals on ESG (Environment, Social and Governance), as well as measure and monitor their progress towards meeting them. Their corporate culture places an uncompromising emphasis on ethics, productivity and is characterized by a strong drive to reach out to stakeholders and to promoting transparent reporting.

The actions of its board and its management have impacted the country in many ways. They have shown to business men- importers and exporters,  how to truly build a company with purpose, where every corporate action zeroes in on crucial goals around people, the planet and its products.

Through its self-imposed mandate of being instrumental in promoting financial inclusion for businesses and sustainable development in the country, NEXIM under the watch of Bello is helping Nigeria advance the pace of business in order to achieve inclusive prosperity and favourable of trade and balance of payment.

At what point does “creative tension” turn into something more destructive and sinister? This is a question that the Hon Minister for Transport, Rotimi Amaechi should ask himself. The management of the Nigerian Ports Authority (NPA) should ask themselves similar question. And they may be getting perilously close to stepping over the line where legitimate argument ends and direct challenge to the minister’s reputation begins for disregarding national morality. This is over role of the Ocean Marine Solutions Limited rumblings.

Three things guide the policy operation and investment drive of any progress-seeking capitalist economy. These are capitalist institutions, regulators and rule of law to guarantee safety of investments. The palaver being made by the minister and the Nigerian Ports Authority (NPA) with Ocean Marine Solutions Limited over the Secured Anchorage Area (SAA) is a direct kick on this basic principle of investment. This action has made a lot of maritime stakeholders, investors and observers to voice out serious concerns that this kind of action has the implication of discouraging investors from investing their money in Nigeria. It also has the implication of scaring away investors from Nigeria, thereby evacuating the country of investments.

The gist of the matter is that the NPA has concluded moves to push out Ocean Marine Solutions Limited from the Secured Anchorage Area (SAA) of Lagos port and replace it with a foreign company called HLSI Security Systems at a cost of $195million to the Federal government.  This   surprises industry stakeholders and analysts alike. And angry questions are being asked. Why paying $195 million to a foreign company for what Ocean Marine has been doing at no cost to government?

And this has set people thinking that apart from the implication of business evacuation, there also seems a grand agenda of opening Nigeria up for foreign take-over of the country. This is coming at a time when the noise generated by the controversial Chinese loan entered into by the ministry of transport is yet to die down.   And if this proposed plan with HLSI goes ahead, Nigeria may lose $195million, which is the value of the contract proposed for an Israeli-owned company, HLSI Security Systems and Technologies, Limited.

“Our very own country men and women are betraying us and selling our country to foreign maggots. And those with corrupted ego are putting their own self interests ahead of the nation’s and our collective interests.” Said Kunle Odetoyinbo, a Lagos public affairs analyst.

It is gathered that despite the fact that the SAA had been running successfully under OMSL for years at no cost to the Federal Government, some highly placed officials in government, for selfish reasons, are desperately rocking the boat. In fact, the champions of the agenda of stopping OMSL from operating the SAA are so determined that they resorted to blackmail while spewing out pathetic and spurious allegations against the operators of the SAA.

The OMSL mandate to secure in-coming ships came in 2012. And ever since that intervention of OMSL insecurity not only reduced but has been wiped out, creating a safe haven for foreign and local vessels to berth and operate.

 In October that year, the Navy seized a foreign-flagged ship carrying arms and ammunition on the nation’s territorial waters. At that time, insecurity in the maritime domain was rising. The insecurity prompted a series of intense talk among relevant government agencies such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Navy (NA) on how to protect ships and the environment.

The OMSL argued that the insecurity had compelled foreign vessels seeking to berth in Lagos to stay outside Nigerian territorial waters up to a distance of 200 nautical miles where they believe pirates would not reach them or prefer to come into the country with foreign mercenaries for their safety. By so doing, Nigeria was losing businesses and huge revenue to neighbouring countries such as Benin, Togo and Ghana as foreign vessels found comfort in ports in those areas. Consequently, the OMSL was given the mandate to provide security for incoming ships through the SAA.

The intervention of OMSL in 2012 was, however, not automatic. It followed due process. That is why a lot of people are worried about the rumored action of NPA and  he Ministry of Transport.  According to a source “In the first place, Ocean Marine pedigree as a result of successes recorded while being engaged by reputable firms caused the Nigerian Navy to introduce the company to NPA and NIMASA. The OMSL was subsequently invited to series of strategic meetings with stakeholders on how to provide security on the harbour approaches, and a deal was officially struck.

The intervention of OMSL was, however, not automatic. It followed due process. “The company went out of its way to provide the needed services by undertaking significant investment in the acquisition of assets and logistics backup required by the Navy to offer all-round patrol services.”

Surprisingly,  in November 7, 2019, the battle over the control of the SAA took a different tuen when a motion was raised at the Senate following an alarming letter by the Nigeria Ports Authority (NPA) on alleged illegal security activities perpetrated by OMSL at the SAA, Lagos port. But this is a false, according to the company.

With a newspaper report. that followed the allegation by the NPA, “the Senate then detailed a 44-man committee, including three members from the secretariats, joint committee, comprising Navy, Marine Transport and Finance to investigate the matter. Their terms of reference were to determine the legality of the operations, its revenue, security implications and the legality of the entire chain of the operation.

“It also mandated the joint committee to investigate the lingering quarrel among the agencies, with a view to resolving the security impasse it will bring to the nation as well as the legality of OMSL and its operations.

“The Senate, considering the importance of the matter allowed four weeks for the conclusion of investigation and reports, as well as approved three independent chairmen, to forestall manipulations of any kind. The chairmen were Senators George Sekibo, Mohammed Danjuma Goje and Senator Solomon Adeola Olamilekan.”

During the hearing, the chairman of OMSL, Capt. Hosa Okunbo, gave an insight into the history of SAA and its modus operandi. “OMSL started in 2007 at the height of militancy where this country was producing less than 300,000 barrels a day. The late Admiral Augustus Aikhomu, who was the first Chairman of OMSL, and who had been a one- time Chief of Staff, was the one who came up with this idea.

“He had referred to a company in London, that provides platforms to the Navy to protect the fisheries industry in the North Sea, and also referred to Indian Ocean where private companies would procure platforms to the Indian Navy to protect the oil and gas industry. At this time, it was just an intervention and we wrote to the Navy in 2007.

“We started this business with just three vessels because it was pertinent to open risk tracks, which had shut down with production of 70,000 barrels per day. There were bullet holes on Shell EA Field; Addax was attacked on a daily basis, and Shell was going to close the whole of Eastern production because of hoodlums in Bonny. There were numerous challenges and we came in. We intervened, in national interest.

“I want to see one Nigerian businessman, who would want to procure a vessel of over three, four million dollars, sometimes up to six million dollars and hand it over to the Navy completely, without insurance, to defend this country. Nobody was ready. We took the risk, and the 70,000 barrels were restored.

“We stood in the gap between the Navy to carry out its statutory responsibilities, and the oil companies, who were ready to pay for our services. If we were to pay the Navy, then prices would have been crazy. We took that responsibility, sat with the oil companies, and everything was benchmarked in line with industry practices.

“Before OMSL strategy, Navy men were put on vessels; they were put on tug boats and houseboats and when pirates came, they were killed. They killed a lot of Navy men, and I am surprised why the Navy is not talking. Your men were killed in this country until we came on board to find the solution. Many operations were then restored; Shell EA production of 200,000 barrels per day was restored; Addax too ran to us, Bonny too restored. That was how we started borrowing money to buy vessels. And that is how we were able to build this capacity we are talking about today.

“At the advent of amnesty, all the conditions the Navy presented to us, we met in 2007, leaving none out. If you remember, there was a time all shipping activities were relocated to the West African coasts. If you want to clear your goods, you go to Lome, Cotonou and Accra. There was high piracy rate in Lagos.

“We were invited by the Navy in line with our success in the past and because of our capacity, to come and help; that was how we came. They asked us to provide this platform for the Navy. It is just like you buying a bullion van for the police to protect the cash that banks carry. That’s the simple thing we are talking about.

“We provided the platform and maintained it at our own cost; but what happened? We wanted to stop in the first year because we were losing so much money. We went to Norway, London, Singapore, South Africa at our own cost to meet with ship owners to tell them, listen you are bringing mercenaries to our shores costing you $22,500 per day at $7,500 per mercenary, when our company can give an equivalent service at lesser cost, more of a stipend for their vessels.

They agreed that it was a win-win situation. That is how SAA started. And if we were to pay money to NPA or Navy, the cost probably will be higher because we did a proposal to Navy and they gave us the go-ahead with a caveat that as long as we don’t come back to the government for anything, and that was how we embarked on this business.

“At no time, having been operating this service for six years and procuring this equipment, did NPA call us for collaboration or to say you are making so much money here, let us rent your vessels, don’t charge any fees; we would have agreed. There was no discussion whatsoever. The only thing we saw were some stories on the pages of newspapers. And the most painful of everything was derogating my integrity and image. That is what is bothering me, not the business.

   “I am not running this business because of money. I have served this country meritoriously with honesty, with my integrity intact. At the moment, I have 50 vessels with the Navy that could go to war for this country without recourse to OMSL. They don’t need to contact us before they go to war. That is the extent of our commitment to national development. Our records are there in Nigeria National Petroleum Corporation (NNPC); our records are there in IOCs and others.

“My grouse about this whole matter is my integrity that has been tampered with. NPA never called us for a meeting; NPA never contacted us to inform us we are terminated.

“And the Navy, it’s very obvious that you were aware that they wanted to dismantle SAA. Did you call us at any time to tell OMS that this is the plan of NPA? And we have an MoU with you on which we are operating. So, we will stand in the gap for you and this country and you treat us like nobody even with all these investments. The issue is not money, but my integrity. I have over 50 vessels with you and with all my investments with you then you throw me out of the window like that and derogate my character. That is unacceptable.”

The committee also took presentations from nine critical stakeholders, who stated their opinions or positions on the matter. The respondents included Federal Ministry of Transportation, Nigerian Ports Authority, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Navy, Ocean Marine Solutions Limited (OMSL), Nigerian Shippers Council (NSC), National Association of Government Approved Freight Forwarders (NAGAFF), Ship Owners Association of Nigeria (SOAN) and Marine Section of the Nigerian Police.

 The majority of these submitted that the stoppage of the SAA operated by OMSL without provision of an immediate alternative could lead to security lapse and return the Lagos Anchorage approach to security dangers as experienced in 2012 and 2013.

The Managing Director of OMSL, Rear Admiral Aminu Oyone Ikioda (retd), submitted thus: “That the company has provided various forms of security services to international oil companies (IOCs) operating in the country particularly at the height of militant attacks in 2007.

“That the intervention of the company led to the continuous production of oil and aided in combating the effect of the drastic drop in national oil production and revenue accruing to both government and IOCs.

“That on the basis of the publication of the maritime notices, OMSL was encouraged to develop and submit a business plan to support the SAA operations which would guarantee a return on investment at no cost to the government.

“That upon receiving the approval of the Nigerian Navy, OMSL proceeded to undertake significant in the acquisition of assets and logistics backups required by the Nigerian Navy to offer dedicated 24/7/365 security patrol services demanded by some of the vessels that desire extra protection while waiting offshore Lagos for berth allocation of conducting STS transfer operations.

“That the services of the SAA facility was embraced and accepted by foreign vessels owners putting into consideration the safety, security and environmental protection that would be rendered to them, and were ready to pay for such.

In its presentation, the Ship Owners Association of Nigeria (SOAN) strongly recommended that the status quo be maintained in terms of the SAA arrangement.It said: “The SAA facility had helped in increasing the presence of the Nigerian Navy at the sea and serves as a deterrence to pirates and other criminals in the sea

“That the SAA is operated by the Nigerian Navy that is saddled with the responsibility of protecting the Nigerian waterways and as such will not have any negative security implication, and that SAA operation has drastically helped to reduce freight cost and other associated charges while also reducing the waiting time of vessels.”

According to the ship owners, any attempt to stop the SAA facility could render Nigerian ports unattractive to shippers because ships would be prone to attacks. They prayed that the arrangement should not be tampered with.
National Association of Government Approved Freight Forwarders (NAGAFF) lauded the establishment of the SAA, as its operation is at no cost to government but users of the platform.

Consider what the president of NAGAFF, Chief Increase Uche, said: “That the amount paid by ship/vessel owners for the services rendered at the SAA is so insignificant and cannot add any reasonable cost on cargos compared to cost of ransom, damage, destruction or loss of cargo through sea robbery, piracy and kidnapping.”

 The Nigeria Ports Authority (NPA), represented by its Managing Director, Hadiza Bala-Usman, remarked: The Ministry of Transport noted in its presentation by the Minister of State, Sen. Gbemisola Ruqayyat Saraki, that it was written to on October 16, 2019, to intervene in respect of a Marine Notice published by NPA about the stoppage of the SAA without putting into consideration the huge investment made in the SAA and successes recorded so far. It told the committee that based on that letter and the one written by the NPA to the Navy to stop the SAA, it called for a meeting of stakeholders on December 9, 2019 “to deliberate holistically and take appropriate action, the outcome and resolution has not been made public.

It, however, noted: “That the ministry agrees with the fact that the Marine notice issued by NPA for the stoppage of SAA operation by OMSL was hasty as there was the need to interact with all stakeholders to review the situation before issuing such proclamation.”

The Marine Section of the Nigerian Police also pointed out at the hearing that its agency sent notices to mariners informing them of the availability of the SAA. Speaking through the Force Marine Officer, CSP Benjamin Ogungbure, the section noted that “OMSL through the SAA had provided security platform for ships berthing at offshore to the Lagos ports to utilise but the management of NPA are not fully in support of the operation and that the SAA is situated 10 nautical miles away from the Fairway Bouy, which is outside the jurisdiction of the NPA.”

The beneficiary company, HSLI International, is incorporated under the laws of Seychelles with a registered office in Cyprus. Its local subsidiary, HSLI Systems and technologies, is located in Wuse II, Abuja and represented by Mr. Pinhas Moria and Mr Oren Chaluzi, both said to be Israelis. was gathered.
HSLI is to establish an integrated National Coastal Surveillance and Waterways Protection solutions.

According to the Ministry of Transportation, its reason for embarking on a change was “to increase its monitoring and compliance enforcement within Nigeria’s Exclusive Economic Zone (EPZ) due to illegal activities that have increased and intensified in the Gulf of Guinea in recent time.
The contract sum for this project shall be the sum of $195,300million equivalent to N59, 839, 920billion, while 10% of the sum $19,530,000 will be for management training, it was gathered.

The inevitable questions are, what is the essence of bringing in HSLI to do a job that had been efficiently done at no cost to the government by a Nigerian outfit company? And even if there was an area of dispute between the ministry and OMSL, why didn’t the former seek an amicable settlement rather than bringing in a foreign outfit in haste? Why was the capability of OMSL not  considered, having already deployed 50 vessels and invested heavily in building capacity, while HSLI is proposing to purchase two vessels?
There is certainly much more to this transaction than meets the ordinary eye.is certainly much more to this transaction than meets the ordinary eye.