Tony Denia is a legal expert with expertise in the maritime as well as oil and gas sectors. In this interview with KINGSLEY JEREMIAH, he discusses the lapses and the implications of the overlapping roles of the ministries of Petroleum Resources, Power and Marine/Blue Economy recently created by President Bola Tinubu and why an inter-ministerial committee is needed to achieve harmony among the ministries.

What is your take on the Ministry of Marine and Blue Economy and its overlapping roles with the Oil and Gas as well as Power ministries?
I would like to commend the President for creating the Ministry of Marine and Blue Economy. Previously, we had the Ministry of Transportation, which included aviation and marine, creating a cumbersome structure. However, under the new Ministry of Transportation, we now have clear divisions, including railways, road transportation, aviation (with sub-agencies and maritime with agencies like the Nigerian Maritime Administration and Safety Agency (NIMASA), Shippers’ Council and the Nigerian Ports Authority, along with the oil and gas sector’s Nigeria Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited and others).

To ensure a smooth transition, it is essential to establish clear jurisdictions, amend enabling laws and initiate training programmes. For instance, determining which ministry the Nigerian Ports Authority (NPA) falls under is crucial; whether it remains under the Ministry of Transportation or now aligns with the Marine and Blue Economy Ministry. This requires a swift legal framework update and the Attorney General should guide this process given the prior structure of the Ministry of Transportation.

I had previously proposed the creation of an inter-ministerial joint committee to address the interconnectedness of the various ministries. Blue economy, for example, overlaps with areas like oil and gas and power generation, all relying on water resources. Collaborative arrangements among ministries can streamline efforts and enhance coordination.

As for the concept of the blue economy itself, it is not entirely new. Discussions about leveraging Nigeria’s maritime industry for economic growth have existed for years. The essence of the blue economy is to generate wealth from the sea while safeguarding it for sustainable prosperity. This idea has been promoted globally, with notable figures like Barack Obama endorsing it. Notably, past promises to establish a maritime bank with a $1 billion capital went unfulfilled, highlighting the need for practical steps rather than rushed profit-seeking.

Creating a solid regulatory framework and addressing issues such as illegal fishing, marine operations, and mining are paramount. Also, focusing on the development of coastal communities is vital, ensuring their inclusion in the benefits of the blue economy while preserving the environment.

The potential of Nigeria’s blue economy is vast, but a well-thought-out strategy, collaboration among ministries and responsible governance are essential for its successful realisation. We should aim to set an example for other nations while addressing the needs of our coastal communities.

The cost of freight on petroleum products into the country is significantly high amidst the challenges with local refineries. What could be changed?
Recent promises of the imminent revival of Nigeria’s local refineries have left many skeptical.

Governance should not rely on empty boasts but rather on informed decisions and concrete actions. It is essential to assess the actual status of these refineries before making such claims. Privatisation could be the answer, injecting a sense of ownership and accountability. Handing capable local entities the necessary funds, along with a commitment to repay the government over time, could jumpstart the refineries’ revival.

Exploring the idea of using African currencies instead of the dollar is a noteworthy initiative. Kenya’s President has set an example by embracing this shift. To maximize its benefits, African nations should collectively agree on a common currency. Nigeria, with its robust economy, could play a pivotal role in this transition, potentially making the Naira one of the currencies of choice.

The process of clearing foreign vessels entering Nigerian waters is marred by excessive fees and a convoluted bureaucratic process. This inefficiency ultimately burdens consumers with higher costs. A comprehensive review of these fees is urgently needed. Establishing a unified online platform where all relevant agencies collaborate in real time could significantly reduce clearance time and costs. Physical inspections could be minimized to only those situations where they are truly necessary.

Nigeria’s over-reliance on imported petroleum products is a long-standing issue. Dangote’s private refinery project should not render other refineries redundant. To enhance self-sufficiency, all refineries should work in synergy. Dangote’s refinery promises to be a game-changer, reducing the need for foreign vessels. This shift will require strict adherence to international standards, ensuring only top-quality vessels dock at the facility.

The sanitization of the maritime sector is vital for reducing costs associated with foreign vessels and corrupt practices. The private nature of Dangote’s refinery is likely to impose stringent regulations on maritime operations. This move, combined with a commitment to eliminate corruption within the sector, could substantially reduce costs and inefficiencies.

Reviving Nigeria’s maritime sector requires a holistic approach that addresses bureaucratic hurdles, encourages local refinery efficiency, and promotes transparency. The promise of currency diversification and the emergence of Dangote’s refinery signal a promising future.

What is your take on the issue of oil theft and surveillance contract to Tompolo?
In the complex world of maritime operations, securing valuable assets and curbing illegal activities like oil theft requires a multifaceted approach. Tompolo has demonstrated the importance of understanding the game and maintaining ethical standards to succeed in this challenging environment. His story sheds light on the broader issues surrounding maritime security.

One of the major challenges in combating oil theft and illegal maritime activities is the involvement of various departments and agencies. Often, those undertaking illegal operations have inside information and connections that allow them to evade detection. This issue poses a significant risk to the region’s stability and security.

Local intelligence plays a crucial role in addressing this challenge. Agencies like NIMASA and the Navy, alongside private sector actors like Tompolo, have the potential to monitor and address illegal activities effectively.

The introduction of advanced technology, akin to the Vehicle Inspection Officers (VIOs) system in Lagos State, could greatly aid maritime security efforts. Such a system would allow for real-time monitoring of vessels, helping authorities quickly respond to any suspicious activities. This technology could also provide valuable data for law enforcement and regulatory bodies.

To combat oil theft and improve overall maritime security, collaboration between government agencies, private sector actors, and international partners is paramount. Additionally, transparency and accountability within the industry must be promoted. This includes addressing corruption within regulatory bodies, such as the Navy, to ensure that their actions align with their intended purpose. By embracing technology, fostering collaboration, and promoting transparency, a more secure and prosperous maritime industry can be achieved.

Ministers have come and gone across these sectors and nothing meaningful happened. From gas to petroleum and blue economy. Do you see the capacity to turn things around? 
Well, with the kind of excitement the marine and blue economy is causing among Nigerians. A lot of Nigerians are now interested. Everybody is interested in the activities of marine and blue sea. The private sector is watching because the government has ignored that industry for so long. The other ministers will sit up because the activity of the marine and blue economy will expose their weaknesses. If they are corrupt it will expose them. For you to drill oil, you will have to get a permit from the Ministry of Marine and Blue Economy though you are under the oil and Gas Ministry. This gives the ministry power to monitor you. It won’t be business as usual.
I am excited, I am confident that there will be some improvement in what used to be.

How can the government address the declining investments in the petroleum industry?
The decline in investments within Nigeria’s petroleum industry, exacerbated by issues such as multiple taxation, raises concerns for private investors. One potential solution involves establishing a collaborative joint committee aimed at reducing the overall cost of maritime business in the country. In contrast to international practices, where organisations like London’s Cargo Society assist vessel buyers in securing job opportunities, Nigeria lacks such support.

Typically, investors here purchase vessels independently and must actively seek job opportunities, sometimes losing bids to foreign vessels or being forced into illegal operations. To address this, the government can foster an enabling environment for local collaboration, encourage banks to invest more in maritime and oil and gas sectors, and ensure investors conduct proper due diligence. Additionally, transparency in environmental impact analysis, especially for projects like the one in the Lekki-Ajah axis in Lagos, is crucial to safeguarding the environment.

Collaboration and environmental protection are key factors for sustainable growth in the maritime and oil and gas industries, preventing the exploitation of sea resources and promoting economic activities such as fisheries.

Oil activities in Nigeria, especially near the sea, are significant but come with environmental challenges. Companies often abandon old assets along the waterline. The NUPRC has regulations for safe environmental restoration after oil operations, but these issues persist; one is the recent oil spills in the Niger Delta. How can we address these? 
Addressing this requires collaboration between ministries. While local expertise and funding are limited, it’s crucial to engage with companies like Shell and Chevron. Environmental analysis should align with project planning.

The Minister for Blue Economy, along with counterparts, should meet with affected communities and involve local expertise. Environmental activists have long highlighted issues in the Niger Delta.

Regulation and enforcement should be seamless. Collaboration among ministries is essential to reduce governance costs and landing costs in the maritime sector. Unauthorized stops by local government task forces should be addressed.

Regarding constitutional amendments, the new ministers appear proactive. Statutory changes can be enforced with regulations while awaiting amendments.

Efforts to bring sanity to maritime relations should involve cooperation among ministries. The admiralty law, covering both maritime and aviation, needs to be amended to better address maritime concerns.