Comments by former President Olusegun Obasanjo at the Maritime
Stkakeholders Conference organized by the Federal Ministry
ofTransportation in Lagos
Disappointment with the sector
When I was given a letter of invitation to be chairman of this
occasion by the Honourable Minister of Transportation, I wasn’t sure
what to do but because of my interest in the maritime life of Nigeria,
I
decided to accept.
I have personally had disappointments with maritime services in
Nigeria. Despite all my reforms, which Bolaji (Mater of Ceremony of the
conference) talked about, where are we today? There was no result and
that is my pain. Why have we not made progress? The reason why I was so
concerned to have brought the reforms included that most of the
countries in the early history that were great countries were so because
of their maritime prowess.
We are lucky we are not landlocked. We have 3,000 kilometres coastal
stretch. That was an added advantage and how we can harness this was my
concern. Again, 90 per cent of our trade and indeed trade all over the
world are carried over water, so we have two advantages. We also have
inland waterways, which could make inland transportation cheaper,
particularly for bulk goods.
I want participants at this conference to think out of the box. Why
have we underperformed? Why have we not achieved as much as we could
have? And that could apply for most of the government institutions we
have in Nigeria. We are talking of maritime today; we can also talk of
air, which is also an aspect of transportation.
How corruption Nigerian National Shipping Line
Bolaji reminded us that 19 ships were specially built for Nigeria. We
did not take delivery of some until I left office in 1979 but when we
came back 20 years later in 1999; the National Shipping Line has been
liquidated with all the 19 ships gone including the five that were in
existence before the 19 ships were added. What happened? In your
thinking today and tomorrow, if you want to build a sustainable maritime
industry in Nigeria, we need to look back because reforms means we want
to improve. What did we do wrong in the past? Why did we build 19 ships
and we had five before that and within 20 years, 24 ships were all gone
and disappeared? Part of our aim was to be able to train our own people
and be a key player and become a hub in the region.
One of the 19 new ships was sold for USD1 million, but when the
Maritime Academy of Nigeria Oron needed a ship for training, they bought
back the same ship for USD2 million. The week I took over as President
in 1999, it went to sea and was arrested for not being seaworthy. They
came to me and said we should pay USD1 million to retrieve it and I said
no. The next day they released it.
When I left office, I called someone who was a young officer in the
system to tell me some of the things that happened. Why did we have 24
ships and within a space of less than 20 years, they had all gone. He
said, one, there was no commitment, no professionalism and there was
high level of corruption. And he gave me example. He said people who
were managing and repairing the vessels colluded with government
officials to bring the ships for repair even when there was nothing
wrong with the vessels so that they can siphon government money.
There were two ships missing for almost two years. One military man
was using it somewhere and two years later, he brought them back. Can
you imagine that, doing such to your own country?” Why are Nigerians
doing these to themselves?
On the change agenda of the government, if we take too much time,
change will become a bad name. We should not take too much time.
Proposed new national shipping line
In any system, the institutions are very important and these
institutions that we have not made to work, we have to make them work
now.
One of them is the Nigeria Liquefied Natural Gas Limited (NLNG). But
before I say more on NLNG let me talk on the NNPC [Nigerian National
Petroleum Corporation]. One thing I wish I should have done during my
tenure as President was to privatise NNPC. If I were to be there again, I
would have privatised the NNPC so that it would not have been
flagrantly mismanaged the way it was in the last six years. Maybe I
would have done that if I’m there today. For NLNG, it did not go the way
of NNPC because of the way it was organised. We have 51 per cent owned
by the private sector both Nigerians and non-Nigerians and 49 per cent
owned by government and from three trains that we started with, we are
now going to seven and we have not put in more money than we did since
the formation. If we had run it the way of NNPC, it would have gone the
way of NNPC. Another one we reasonably did well was telecommunications.
When I was military Head of State, I struggled so hard to get telephone
lines to half a million and I spent so much money but in less than 10
years when we privatised telecoms, we got over 120 million lines and
government didn’t spend any money. Rather we auctioned and made good
money from it. So maybe we have to look at that as a model for the
maritime sector.
Now we have boys who go to maritime academy but we have no shipping
line where we can train them. Whatever you want to do, don’t build
another national shipping line where government should put money. Our
experiences with NNSL, Nigerian Airways are heartbreaking, but we have
seen the experience with NLNG and telecommunication. So, let us adopt
and adapt. That is why I said we have to think out of box.
I hope at the end of this conference, you will come up with something
that will make the maritime industry in Nigeria an example for the rest
of Africa and an example of what other institutions can copy.
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