A Shipper’s Dilemma
A shipper and investor, Chris Eboseremen urges the federal government to expedite action on its promise to assist indigenous ship owners who lost their vessels to storm on the nation’s waterways to refloat their businesses
By Bayo Bernard
Investing in Nigeria, as Chris Eboseremen, a shipper and Chief Executive Officer, Chosen Oil and Gas Company Limited has now realised is not a palatable experience and if possible must be avoided at all cost. Imagine an entrepreneur losing close to N80 million in one fell swoop. The amount includes his life savings and loan syndicated to him by his banks to purchase a vessel that is now being ped at the Lekki Beach.
It all started two years ago when the Edo state born businessman decided to heed the call of the federal government to invest in the nation's shipping industry and he took on the burden of creating employment for jobless Nigerians, a decision he’s now regretting.
In response to government’s call for Nigerians to invest in their country, Eboseremen decided to purchase an ocean going vessel which has the capacity to employ 18 persons. To him, all that mattered was to provide avenue for 18 families to make a living. “Actually, at the time the ship was on the water, I had about 18 crew, meaning that I was taking care of 18 families,” he said.
The vessel was purchased in Liberia but brought to Nigeria. That simply must have been the costly mistake that he’s now paying a very high price. By the time the vessel arrived on the nation’s waterways, the rigour of the journey was already telling on it which necessitated immediate overhaul so that it can go back to work full throttle. It was during this period that a strange storm broke the vessel's anchor, thus putting an end to his dream.
After the incident, the Lagos state government served him a warning to the effect that he arranged for the vessel to be removed from the point of beaching as the authority said “it was constituting obstruction on the waterways,” he said.
The embattled shipper had to appeal to the state government for understanding as he was given seven days to remove the vessel from the sea.
In a letter titled “Re:Beached Vessel Named Techo in Lagos, he addressed to the state Commissioner of Waterfront and Infrastructure Development, the Ministry in charge of such issues, Eboserem said: “sir, in your letter, you are asking us to remove the vessel within seven days. But we meant to let you know Sir that we are not sleeping or resting to ensure that the salvage is done in the shortest possible time and at the same time asking for more days (21 days) to get the job done. The letter was dated March 14, 2011.
Earlier, on the day the vessel was beached, the Nigerian Shipper had reached out to the Nigerian Maritime Administration and Safety Agency (NIMASA), the government agency with statutory powers for Search and Rescue operation for intervention, but was turned down. Entreaties made to the state government was also rebuffed.
Shipping experts informed the magazine that this is rather strange as there had been instances in the past where government took up responsibilities for salvaging or clearing vessels that were beached by natural occurrences. Examples were vessels washed ashore on last year’s St. Valentine day on April 14.
On the fateful day, about 16 vessels were washed ashore by a tidal wave that swept through the Atlantic Ocean and affected the whole of Takwa Bay. Last May, NIMASA awarded a princely contract of $1.7 million to salvage four of the vessels. The salvaged vessels are MT Arcturus, MT Penile, MT Oddyseey and MT Kentasten. Plans are in the pipeline to award new contracts to clear the remaining vessels from the waterways.
Instructively, it remains unclear why Eboseremen was made to source for funds on his own, to remove his vessel from the beach, when there are statutory allocations for such incidents.
Following pressure and threat from the Lagos state government, the investor had to source for money from banks and friends to clear the vessel, which has now been wrecked due to long stay on the beach. He told The Source that he did this on the expectation that he will be reimbursed later when the federal government makes money available.
While awaiting the Federal government’s intervention, the businessman took on the Lagos state government, in his belief that it has responsibility towards local shippers and since the beached vessel was on the state’s waterway. But to avoid furore from any litigations with the state government, he resorted to settle the issue amicably.
In a letter sent to Eboseremen by Lagos state Government's Citizens’ Mediation Centre and dated June 21, 2011 the Lagos state government said it wanted the issue resolved amicably. A portion of the letter reads:
“As a Centre established by the Lagos state Government to ensure that the people of Lagos state have quick access to justice through Alternative Dispute Resolution Mechanism (i.e Mediation), this centre is interested in resolving this dispute amicably and free of charge.” The letter was signed by one Atinuke Oluyemi, a Director at the Centre. The letter came two months after the businessman has signed the contract for the removal of the wrecks.
As his ordeal lasted, one prayer was paramount to the businessman-help from government to mitigate his loss.
His prayer was somehow answered recently when President Goodluck Jonathan visited the Lagos state government and assured that the federal government would provide funds for the removal of all the vessel wreckages currently on the state waterways.
With the President's promise, Eboseremen believes that some of them that have spent their money to remove wreckages would be reimbursed. According to him, this would be fair in the sense that government would be seen to be interested in its citizens who heed the call for investment and also sending the right messages to prospective investors.
“I want to believe that the promise he - the president made to assist the state government and vessel owners will be fulfilled, when he made that promise to the Lagos state government, to assist in clearing the waterways, it was a relief to us and I believe he will live up to that promise, he said. Several months after the president’s promise, the shippers are still waiting. The situation is however generating anxiety in the sector as no one is sure on the true state of the issue-whether the money has been disbursed to the state or otherwise. Some stakeholders insinuated during the week that President Jonathan's gesture may be suffering bureauratic hitches, thus further aggravating the pains of the affected local shippers.
The banks are currently on Eboseremen's neck to recover the loan he took while his family are now getting used to the strange idea of going to bed with empty stomach. Ebosoremen laments: “The loan I took from the bank has been increasing, I mean the interest. Apart from the loan, I added my savings to buy the ship, and as of today I’m leaving on people, right now, I’m begging to eat, I don’t have money to continue my business, no money to take care of myself and family, because that is my only investment." He therefore appeals to “President Jonathan to expedite action on the issue” to save his family and dependants from hunger.
The Source paid several visits to the Lagos state Ministry of waterfront and infrastructure Development to ascertain the state of affairs but a source maintained on each occasion that the Commissioner was not available. Phone calls and text messages to his mobile phone did not also receive any responses as officials of the ministry insisted that it is only the commissioner that can speak on the matter.
Attempts by the magazine to confirm what the Federal government is doing on the matter at the Federal Ministry of Transports did not yield any result either and presidential spokesman, Reuben Abati also did not respond to calls made to him.