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Vietnam Maritime University

This document is a student assignment on the impact of COVID-19 on Nigeria's seaports. It includes an abstract discussing how COVID-19 has negatively impacted global shipping and the Nigerian shipping industry. It also references an IMO circular calling for cooperation to minimize disruptions to shipping operations during the pandemic. The assignment contains chapters on the introduction of COVID-19 in Nigeria, the impact on port operations in Nigeria, and proposed solutions. It discusses Nigeria's seaports and regulations, and analyzes effects like challenges fulfilling contracts and restrictions affecting docking and berthing.

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0% found this document useful (0 votes)
85 views26 pages

Vietnam Maritime University

This document is a student assignment on the impact of COVID-19 on Nigeria's seaports. It includes an abstract discussing how COVID-19 has negatively impacted global shipping and the Nigerian shipping industry. It also references an IMO circular calling for cooperation to minimize disruptions to shipping operations during the pandemic. The assignment contains chapters on the introduction of COVID-19 in Nigeria, the impact on port operations in Nigeria, and proposed solutions. It discusses Nigeria's seaports and regulations, and analyzes effects like challenges fulfilling contracts and restrictions affecting docking and berthing.

Uploaded by

Ginibo Aghogho
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 26

VIETNAM MARITIME UNIVERSITY

INTERNATIONAL SCHOOL OF EDUCATION


_______________________

ASSIGNMENT
SPECIAL TOPIC ON MARITIME
IMPACT OF COVID-19 ON NIGERIA SEAPORT

Student: Ginibo Aghogho Merit

Student ID: 81729

Class: GMA10

Haiphong, 30/ 2021


Impact of Covid -19 on Nigeria Seaport

VIETNAM MARITIME UNIVERSITY


INTERNATIONAL SCHOOL OF EDUCATION
_______________________

ASSIGNMENT
SPECIAL TOPIC ON MARITIME
IMPACT OF COVID-19 ON NIGERIA SEAPORT

STUDENT: GINIBO AGHOGHO MERIT

STUDENT ID: 81729

CLASS: GMA10

Instructor: Mrs. Hoang Thi Lich

Course: Special Topic on Maritime Business

Semester: II/2021

Haiphong, 30/2021

GINIBO AGHOGHO MERIT – GMA10 2


Impact of Covid -19 on Nigeria Seaport

ABSTRACT

There is no doubt that Coronavirus disease 2019 (COVID-19) pandemic


has impacted negatively on global shipping and the effects are also being felt in
the Nigerian shipping industry. Through review of extant literature, the effects
of COVID-19 on Nigerian shipping industry with specific focus on Port
Operation. The findings revealed that lock down of the economy and restriction
of movements in Nigeria presented a challenging situation for stakeholders in
the shipping industry to fulfill their contractual obligations, import and export
operations.

Following various reports regarding the impact of the coronavirus (“COVID-


19”) pandemic on the shipping industry, the International Maritime
Organization (“IMO”) issued a circular urging flag state authorities, port state
authorities and control regimes, companies and shipmasters to co-operate in
order to ensure that, where appropriate, passengers can embark and disembark,
cargo operations can occur, ships can enter and depart shipyards for repair and
survey, stores and supplies can be loaded, certificates can be issued and crews
can be exchanged, with minimal disruptions.

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Impact of Covid -19 on Nigeria Seaport

Table of Contents
ABSTRACT ………………………………………………………...3

CHAPTER 1. INTRODUCTION OF COVID-19 IN NIGERIA. .8


1.1. General Information of Nigerian Port. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.2. Historical development of Nigeria Seaport . . . . . . . . . . . . . . . . . . . . . . . 11


1.3. Character and Numbers of Seaport in Nigeria . . . . . . . . . . . . . . . . . . . . . 13

1.4. Regulation which directly Impact Port Operations . . . . . . . . . . . . . . . . . .14

1.5. Certain relevant issues for Shipowners, Operators and Charterers . . . . . .14

CHAPTER 2. IMPACT OF COVID 19 ON PORT


OPERATIONS IN
NIGERIA………………………………………………………. . . 17
2.1. Impact of Covid-19 on port operation in Nigeria . . . . . . . . . . . ... . . . . . .17

2.2. Port Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..17

2.3. Solution ……………………..……………………………………………23

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

REFERENCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

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Impact of Covid -19 on Nigeria Seaport

LIST OF ABBREVIATION
Covid-19 Coronavirus

DNA Deoxyribonucleic Acid

FGN Federal Government of Nigeria

IMO International Maritime Organization

MERS Middle East Respiratory Syndrome

NPA Nigeria Port Authority

RNA Ribonucleic Acid

SARS Severe Acute Respiratory Syndrome

GINIBO AGHOGHO MERIT – GMA10 5


Impact of Covid -19 on Nigeria Seaport

LIST OF TABLES
Table 1.1 Character and Numbers of Seaport In Nigeria 13-14

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Impact of Covid -19 on Nigeria Seaport

LIST OF FIGURES

Figure Chart of Freight Cost 16


1.1
Figure Port Health and Safety 18
2.1
Figure Port Health and Safety 20
2.2
Figure Seaworthiness of Vessels 20
2.3

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Impact of Covid -19 on Nigeria Seaport

CHAPTER 1. INTRODUCTION OF COVID-19 IN NIGERIA


The world economy has been plunged into a resounding jeopardy as a
result of coronavirus diseases 2019(COVID-19) pandemic which as badly
affected every sector of the economy at local, national and global level.
COVID-19 pandemic influence seems to have no boundary and cut across all
the continents and countries of the world with the attendant ability to arrive at
unpredictable destination. On 11 march 2020 World Health Organization
(WHO) declared the coronavirus disease 2019 a pandemic (WHO, 2020). By
way of introduction, Corona viruses are a large family of viruses that are known
to cause illness ranging from the common cold to more severe diseases such as
Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory
Syndrome (SARS). A novel coronavirus (COV) is a new strain of coronavirus
that has not been previously identified in humans, but now discovered as an
infectious agent found in virtually all life forms, including humans, animals,
plants, fungi, and bacteria. Viruses consist of genetic material—either
deoxyribonucleic acid (DNA) or ribonucleic acid (RNA)—surrounded by a
protective coating of protein, called a capsid, with or without an outer lipid
envelope.

They often damage or kill the cells that they infect, causing disease in
infected organisms. The novel SARS-CoV-2 coronavirus that emerged in the
city of Wuhan, China, 2019 and has since caused a large scale COVID-19
epidemic and spread to virtually over one hundred and eighty-eight countries.
On December 31, 2019 Chinese authorities alerted the WHO of an outbreak of a
novel strain of coronavirus causing severe illness, which was subsequently

GINIBO AGHOGHO MERIT – GMA10 8


Impact of Covid -19 on Nigeria Seaport

named SARS-CoV-2. As of February 20, 2020, nearly 167,500 COVID-19


cases have been documented, although many more mild cases have likely gone
undiagnosed. Today not fewer than five million cases and over three hundred
deaths has been reported. According to Nigeria Centre for Disease Control
(2020), the first coronavirus case was confirmed on 27 February, 2020 in Lagos
state by the Virology Laboratory of the Lagos University Teaching Hospital.
The infected individual who arrived in the country on 25 February from Milan,
Italy who showed symptoms of the virus was quarantined at the Lagos State
Biosecurity Facilities in which samples were taken for testing and was treated at
the Infectious Disease Hospital in Yaba, Lagos. COVID – 19 pandemic has
brought about unseemly predictable standstill to the world economy, sea, air
and land borders have been shutdown to wait for the medical intervention.
Beyond the tragic health hazards of COVID-19 pandemic, the economic
uncertainties, strangulations and disruptions that have by effect come at a
significant cost to the global economy calls for serious concern.

Following various reports regarding the impact of the coronavirus


(“COVID-19”) pandemic on the shipping industry, the International Maritime
Organization (“IMO”) issued a circular urging flag state authorities, port state
authorities and control regimes, companies and shipmasters to co-operate in
order to ensure that, where appropriate, passengers can embark and disembark,
cargo operations can occur, ships can enter and depart shipyards for repair and
survey, stores and supplies can be loaded, certificates can be issued and crews
can be exchanged, with minimal disruptions. However, the implementation of
various restrictions imposed by national and sub-sovereign authorities affecting
docking and berthing of ships, as well as other regulatory measures around the
world, are making it challenging for stakeholders in the shipping industry to
fulfill their contractual obligations.

1.1. GENERAL INFORMATION OF SEAPORT IN NIGERIA

GINIBO AGHOGHO MERIT – GMA10 9


Impact of Covid -19 on Nigeria Seaport

The Nigerian Ports Authority (NPA) is a Federal Government Agency


that governs and operates the Ports in Nigeria. The Head Office of the
Nigerian Ports Authority is located at 26/28 Marina, Lagos, Nigeria. Port
in Nigeria serves as an essential spot with facilities where ships can dock
and transfer people or cargo to or from land. Nigerian seaports are mainly
located in Southern Nigeria due to the presence of the Altantic Ocean
which serves as the medium where goods are mainly transported to and
fro Nigeria.
The major Ports in Nigeria are been operated and regulated by the Nigeria
Port Authority which include; Lagos Port Complex and Tin Can Island
Port Complex both in Lagos State. The Calabar Port Complex in Cross
River State. The Delta Ports in Warri, Delta State and the Rivers Port
Complex and Onne Port Complex both in Rivers State. Northern Nigeria
has no seaports because of its lack of closeness to any large water body
that is very important to world trade.

1.2. HISTORICAL DEVELOPMENT OF SEAPORT IN NIGERIA

Port operations and development in Nigeria began in the middle of the


19th century. The effort towards the provision of facilities for ocean
going vessels started with the opening of Lagos Lagoon in the early 1909.
The Apapa Port in the South West was earmarked for development in
1913 and construction of the first four deep water berths of 548.64m at
the port began in 1921. The Port of Port Harcourt was conceptualised on
discovery of coal at Enugu and was subsequently opened for the business
in 1913. The completion of the railway line in Enugu in 1916 resulted in
the development of four 1920 feet long berths at Port Harcourt to
expedite the exploitation and eventual exportation of coal on one hand
and the support of importation of goods on the other hand. The Nigerian
Port Authority was established as a continuous Public Corporation by the

GINIBO AGHOGHO MERIT – GMA10 10


Impact of Covid -19 on Nigeria Seaport

Ports Act of 1954 to address the institutional weakness that bordered on


lack of coherent policy framework as ports development were done on
adhoc basis driven by changes on the level and demand of sea-borne
trade. In 2003, the Federal Government of Nigeria initiated the drive
towards improving efficiency at out Ports, and the landlord model was
adopted for all the Nigerian Ports. This gave rise to the concession of 25
Terminals to private Terminal Operators with lease agreement ranging
from 10-25 years. One of the concessions was a Build, Operate and
Transfer (BOT) arrangement. Also in the process of reorganising the
ports, the former eight (8) ports were reduced to six (6) major ports, with
two (2) ports in Lagos and four (4)in the east namely; Lagos Port
Complex, Tin Can-Island Port Complex, Calabar Port, Rivers Ports, Onne
Ports Complex and Delta Ports Complex respectively. In line with the
reform programme, the transaction commenced with the advertisement
for Expression of Interest on the 3rd of December, 2003, by the National
Council on Privatization with the Bureau of Public Enterprise acting as
the transaction agent. A total of 110 EOIs were harvested out of which
only 94 were pre-qualified.
Pre-bid conferences, Data room and physical due diligence were also
done and request for proposals sent out to bidders. Technical bids were
submitted and evaluated; the financial offers were also opened to
determine the successful bidders. All the successful bidders negotiated
their concession agreements with a Public Sector Team made up of
Nigerian Ports Authority and the Bureau of Public Enterprise.
Successfully negotiated agreements were signed. Transition programme
initiated preparatory to handing over. Under this new arrangement the
Authority ceded some of her functions and responsibilities to the Private
Sector.

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Impact of Covid -19 on Nigeria Seaport

Port operations and development in Nigeria began in the middle of the


19th century. The effort towards the provision of facilities for ocean
going vessels started with the opening of Lagos Lagoon in the early 1909.
The Apapa Port in the South West was earmarked for development in
1913 and construction of the first four deep water berths of 548.64m at
the port began in 1921. The Port of Port Harcourt was conceptualised on
discovery of coal at Enugu and was subsequently opened for the business
in 1913. The completion of the railway line in Enugu in 1916 resulted in
the development of four 1920 feet long berths at Port Harcourt to
expedite the exploitation and eventual exportation of coal on one hand
and the support of importation of goods on the other hand. The Nigerian
Port Authority was established as a continuous Public Corporation by the
Ports Act of 1954 to address the institutional weakness that bordered on
lack of coherent policy framework as ports development were done on
adhoc basis driven by changes on the level and demand of sea-borne
trade. In 2003, the Federal Government of Nigeria initiated the drive
towards improving efficiency at out Ports, and the landlord model was
adopted for all the Nigerian Ports. This gave rise to the concession of 25
Terminals to private Terminal Operators with lease agreement ranging
from 10-25 years. One of the concessions was a Build, Operate and
Transfer (BOT) arrangement. Also in the process of reorganising the
ports, the former eight (8) ports were reduced to six (6) major ports, with
two (2) ports in Lagos and four (4)in the east namely; Lagos Port
Complex, Tin Can-Island Port Complex, Calabar Port, Rivers Ports, Onne
Ports Complex and Delta Ports Complex respectively.

All the successful bidders negotiated their concession agreements with a


Public Sector Team made up of Nigerian Ports Authority and the Bureau
of Public Enterprise.

GINIBO AGHOGHO MERIT – GMA10 12


Impact of Covid -19 on Nigeria Seaport

1.3. CHARACTER AND NUMBERS OF SEAPORT IN NIGERIA

S/N NAMES OF NO.OF CARGOES


O WESTERN TERMINALS
PORT

1 Apapa Port 5 Bulk, General


Complex and Container
to ro-ro cargo.

2 Tin Can 5 Bulk, General


Island and Container
to ro-ro cargo

S/N NAMES OF NO. OF CARGOES


O EASTERN TERMINALS
PORT

1 River Port 2 Liquid, dry


and bulk
cargo

2 Onne Port 4 Container, oil


and gas, dry
or wet bulk,

GINIBO AGHOGHO MERIT – GMA10 13


Impact of Covid -19 on Nigeria Seaport

general cargo
and other
logistic
services

3 Calabar Port 3 Bulk cargo


(Oil and gas
cargoes)

4 Delta Port 8 Multipurpose


cargoes

Table 1.1: Character and Numbers of Seaport In Nigeria

1.4. Regulations which directly impact Port Operations

President Muhammadu Buhari issued a directive to the port authorities


in Nigeria stipulating that only cargo vessels which have been at sea for more
than fourteen (14) days should be allowed to dock in Nigerian ports, after their
crew have been tested and confirmed disease-free by Port Health Authorities.
However, vessels transporting oil and gas were exempted from this ban in view
of minimal human contact involved in their operations. Further, in issuing the
COVID-19 Regulations 2020 (which restricted movement in Lagos, Ogun and
the Federal Capital Territory, Abuja), the President confirmed that seaports in
Lagos will remain operational, subject to the  earlier directive regarding cargo
vessels  Also, in order to cushion the effects of the COVID-19 pandemic on
businesses and as part of general measures in furtherance of the Ease of Doing
Business initiative of the Federal Government of Nigeria (“FGN”), the Nigerian
Ports Authority (“NPA”) directed all terminal operators to suspend all
demurrage charges for storage of consignment.

GINIBO AGHOGHO MERIT – GMA10 14


Impact of Covid -19 on Nigeria Seaport

It is therefore clear, from the foregoing, that the efforts of the FGN
have been geared towards keeping port operations running while observing the
necessary safety precautions to mitigate the effects of the COVID-19 pandemic.

1.5. Certain relevant issues for Shipowners, Operations and Charters

Due to Covid various legal issues rose from the outbreak of the
COVID-19 pandemic and its impact on the operations of international marine
vessels which call at Nigerian ports, as well as marine vessels which operate
within and offshore Nigerian waters. We shall examine some of these issues and
possible measures to address them.

In 2019, Nigeria's imports from China alone was N4.3trillion, 25 percent


of total imports around the world, while imported manufactured goods took up
about 70 percent of total imports. On a serious note the possibility of repeating
same financial record this year is automatically not feasible as China and the
rest of the world have resorted to shut down factories, imposing sanctions and
restrictions on vessels as the world struggle to limit the spread ofCOVID-19
pandemic. The effect of COVID-19 as postulated by the experts could put more
pressure on inflation as the cost of local production goes up. Nigeria, like all
other nations of the world, is sailing in era or season of economic uncertainty,
and its weaknesses or defenselessness to the impact of COVID-19 pandemic
distress and numbness can be attributed to heavy dependency on global
economies for fiscal revenues.

In Nigeria, for example, several seaports were closed with few exceptions
(notably those in Lagos State) which remained operational due to their
being designated as providers of “essential services.” The maritime
regulator, the Nigerian Maritime Administration and Safety Agency
(NIMASA 2020), announced on March 29 that only international vessels
that had planned and informed Nigerian port authorities about port calls
(not later than 1February 2020) may be allowed to proceed with such a call.

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Impact of Covid -19 on Nigeria Seaport

Furthermore, vessels and crews with a history of visiting COVID-19 affected


countries since 1 February 2020 were not allowed into Nigerian ports
between 30 March and 12 April 2020.

Figure 1.1. Chart of Freight Cost

(Source: Internet)

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Impact of Covid -19 on Nigeria Seaport

CHAPTER 2. IMPACT OF COVID 19 ON PORT OPERATIONS


IN NIGERIA
2.1. Impact of Covid-19 on Port Operations in Nigeria

The impact of covid-19 on Port Operation in Nigeria made the


International Maritime Organization (IMO) issued a circular recommending flag
state authorities, port state authorities and control administration, companies
and shipmasters to co-operate in order to ensure that, where appropriate,
passengers can embark and disembark, cargo operations can occur, ships can
enter and depart shipyards for repair and survey, stores and supplies can be
loaded, certificates can be issued and crews can be exchanged, with minimal
disruptions. Succinctly, the application and or putting into action of various
restrictions imposed by national and sub-sovereign authorities affecting
shipping and port operation activities, as well as other regulatory measures
around the globe, are making it challenging for stakeholders in the shipping
industry to fulfill their contractual obligations. Also, there was shortages of
dock workers at Nigeria ports because the worker were scared of contacting the
disease. Although, the ports weren’t closed but shortages of dockworkers
hindered effective and efficient of port operations.

2.2 Port Health and Safety

Notwithstanding that the World Health Organization (“WHO”)


upgraded the outbreak of COVID-19 to the status of a pandemic, it was
expected that relevant provisions in charterparties regarding “Epidemics” will
address some contractual rights and obligations in relation to the COVID-19

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Impact of Covid -19 on Nigeria Seaport

pandemic. For port safety the Nigerian Maritime Administration and Safety
Agency (“NIMASA”) which, by its COVID-19 Marine Notice (“NIMASA
Healthcare Marine Notice”),  prohibited international marine vessels or any
member of its crew and/or passenger who had a travel history of visiting any of
the COVID-19 affected countries from entering any Nigerian port.

Also, Charter parties impose an obligation on the charterer of an international


marine vessel to use due diligence to ensure that the vessel is only employed in
safe ports. In the context of COVID-19, the above “due diligence” obligation
merely requires the charterers to display “reasonable care”. Thus this duty will
be discharged if “a reasonably careful charterer” would, on the facts known,
have concluded that a port was prospectively safe. Vessels which are designated
to call at Nigerian ports, and are not prohibited from berthing further to the
aforementioned regulatory restrictions, will generally be required to comply
with and adhere to all applicable  health and safety regulations as required by
most charter parties.

Figure 2. 1. Port Health and Safety


Source: Https://www.mondaq.com/nigeria/operational-impacts
A. Crew Health

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Impact of Covid -19 on Nigeria Seaport

Due to covid-19 Shipowners had a responsibility to ensure that crew


members are (and remain) in good health while on board a vessel. The
Merchant Shipping Act 2007 (“MSA”)10 provides that: “where a master,
seaman or cadet belonging to a Nigerian ship…suffers from any illness, not
being an illness due to his own willful act or default or to his own misbehavior,
the expenses of: (a) providing the necessary surgical and medical advice and
attendance and medicine; and (b) the maintenance of the master, seaman or
cadet until he is cured, or he dies or is returned to his proper return port and of
his conveyance to the port; and (c) in the case of death, his burial, shall be
defrayed by the owner of the ship without any deduction on that account from
the wages of the master, seaman or cadet.” Some safety measures specifically
put in place for crew men in relation to the COVID-19 pandemic, as stipulated
in the NIMASA Healthcare Marine Notice, include:

I.  Ship masters should prevent sick crew men from boarding their vessel;

II. Port Health Officers (“PHO”) shall carry out thermal screening of all crew
members on board the vessel and until clearance is given by the PHO, no
crew shall be allowed ashore;

III. Where any crew member shows symptoms of COVID-19, disembarking of


such crew shall not be permitted. Rather the crew shall be quarantined and
samples shall be collected for testing; and

IV. Health and hygiene measures should be circulated and the mental health of
crew members must be well monitored.

Shipowners are therefore enjoined to ensure the health, safety and welfare of
their crew men in order to prevent liabilities in this regard.

GINIBO AGHOGHO MERIT – GMA10 19


Impact of Covid -19 on Nigeria Seaport

Figure 2.2. Port Health and Safety


Source: Https://www.mondaq.com/nigeria/operational-impacts

B. Seaworthiness of Vessels

Figure 2.3. Seaworthiness of Vessels


Source: Https://www.mondaq.com/nigeria/operational-impacts

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Impact of Covid -19 on Nigeria Seaport

The covid 19 led to fundamental requirement for all sea-going vessels


in Nigeria and also there is was an implied obligation on Shipowners and
Agents to ensure the seaworthiness of vessels. In the Nigerian case of Narumal
& Sons vs Niger Benue Transport, it was held that the appropriate time to
determine the seaworthiness of a vessel is at the time of departure. It must be
highlighted that seaworthiness does not only apply to the hull, machinery and
proper workings of the vessel. Failure to comply with safety requirements
which endangers the cargo laden on board a vessel has been held to make the
vessel unseaworthy. Following the outbreak of COVID-19, Shipowners and
operators were mindful of relevant health and safety requirements, which can
render vessels unseaworthy, where such requirements are not complied with.
Indeed, it is likely that the position that seaworthiness should be determined
only at the time of departure will be tested due to various daily safety measures
which Shipowners and operators are now required to comply with during this
period.
C. Delivery & Redelivery
A time charter party commences with the “delivery” of the vessel to the
control of the Charterer and comes to an end with the “redelivery” of the vessel
to the Owner’s control. Thus, the “Delivery and Redelivery” clause is important
in determining when the obligation to pay hire will arise and end. With regard
to covid there was alot of delay goods at the Nigeria seaport and this led to rise
in prices of goods and services because the port didn’t get some cargo on time.
D. Suspension of Hire (Off-Hire Clauses)
An off-hire clause relieves the Charterer from paying hire in
circumstances where use of the ship is compromised and without any need to
prove breach of charter by the owner. As an example, under the Supplytime
200518, the vessel is placed off-hire, if the vessel is prevented from working as
a result of “deficiency of crew”, albeit with a few exceptions. However, the
vessel remains on-hire where the vessel is prevented from working due to

GINIBO AGHOGHO MERIT – GMA10 21


Impact of Covid -19 on Nigeria Seaport

quarantine, except where caused by the crew having had communication with
the shore at any infected area without the written consent or instructions of the
Charterers. Thus, marine vessel owners who are required to quarantine crew
men on board due to any COVID-19 related matters may still be able to claim
hire for the period of the quarantine.
E. Crewing Arrangements
Shipowners / Manning Agents who employ foreign crew men on board
Nigerian-flagged vessels were effected by the COVID-19 pandemic because of
the shut down of airport. Thus, foreign crew men who were due to arrive in
Nigeria through any commercial flights will most likely be unable to do so,
while those who are designated to travel out of Nigeria based on rotation cycles
had to stay back.
Thus, Shipowners / Manning Agents who have no contingency plans for
replacement of foreign crew men may have a severe disruption in their
operations.
However, considering the recent stance of NIMASA restricting the grant of
waivers for foreign crew men and the insistence on Nigerian ship-owners
engaging local seafarers as much as possible, although only few Nigeria port
was affected by the lock down.
F. Insurance Compensation
The attendant risks in the maritime industry have been reshaped by the
COVID-19, which has in turn raised questions about shipowners’ insurance
coverage and how it may be triggered. Some pertinent questions in this regard
include: Are pandemics typically covered by insurance policies taken out by
marine vessel operators? Can a Shipowner seek compensation for losses
resulting directly or indirectly from COVID-19? While the answers to these
questions may vary for each operator, the usual insurance policies for vessels
often cover hull, machinery and war risks. Additional cover by Protection and
Indemnity Clubs are mostly in respect of third party contractual liabilities,

GINIBO AGHOGHO MERIT – GMA10 22


Impact of Covid -19 on Nigeria Seaport

collision, environmental and pollution risks.20  These policies will rarely cover
losses incurred by marine vessel operators as a result of the COVID-19
pandemic, except an operator specifically procured an insurance policy covering
business interruption and/or loss of earnings.
2.3. Solutions
The impact of the COVID-19 pandemic on the shipping industry
continues to evolve on an almost daily basis. It is therefore important for
various parties in the shipping industry to continue to obtain sound legal advice
as they navigate this seemingly uncharted territory and the various challenges
arising from the pandemic.
When covid started some measures were taken to combat the spread of
the diseases especially from foreign going vessels one of those measure taken
by the Nigeria port authority NPA and NlMASSA was a degree to all shipping
companies and their shatterers this degree states that all seafarers must be
quarantined for at least 14 days for day one the antigen test for covid-19 would
be carried out then every seafarer irrespective of numbers would be isolated
separately and their vitals tested (temperature readings) and everyone would be
under strict observation for any of the covid symptoms at the end of the 14 days
quarantine everyone would be tested again but this time it would be the PCR
test after everyone is certified okay only then can they be allowed to board the
vessel.
During boarding the old crew are brought out without them getting any contact
with the new incoming crew at the Port Whenever any vessel is at the Port no
outside is allowed to come onboard the vessel no outside personal or port
official is allowed within the gangway to the vessel all offices are strictly
prohibited to outsiders now
Measures taken to reduce effects of COVID- 19. The Nigerian Maritime
Administration and Safety Agency (NIMASA) has extended the validity of
Statutory and Trading certificates for all Nigerian Registered vessels. These

GINIBO AGHOGHO MERIT – GMA10 23


Impact of Covid -19 on Nigeria Seaport

include Standards of Training, Certification and Watch keeping (STCW)


certificates for seafarers issued by the Agency, safety certificates, certificates of
medical fitness and other statutory and trading certificates related to SOLAS 鈥
74 as amended MARPOL 73/78 as amended, National Requirements for Power
Driven Small ISSN 2520-2979 Journal of Sustainable Development of
Transport and Logistics, 5(2), 2020 鈥 141 鈥 Crafts(PDSC), Certificates of
ship registry and Maritime Labour Convention, 2006 as amended and will be
applicable to all Nigerian flagged vessels and seafarers sailing onboard Nigerian
flagged vessels as well as onboard foreign flagged vessels (Esenyel Partners,
2020).These measures are taken to ameliorate the difficulties seafarers are
confronted with and the need to keep them in job beyond the pandemic and to
ensure uninterrupted shipping. Eromosele (2020) stated that Nigeria Port
Authority (NPA) suspends fees, as one of the measures employed in reducing
the effect of COVID-19. Apart from the diversion of vessels from Asia, the
NPA in line with global best practice directed all terminal operators to suspend
all applicable terminal storage fees on consignments, such as demurrage for an
initial period of 21 days. This gesture by NPA was in recognition of the
pressure that COVID-19 pandemic imposes on businesses and the responsibility
imposed on the authority to relieve this burden on its customers. The financial
implications of these policies on the terminal operators will breed a downward
shift in their operational charges to amend the situation of stakeholders.

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Impact of Covid -19 on Nigeria Seaport

CONCLUSION
This study examines in detail the effect of COVID-19 pandemic on
the shipping industry, focusing on problems concerning the port operations and
working and living conditions of seafarers on board merchant ships. From the
foregoing it could be seen that Covid-19 has greatly impacted on Nigerian
shipping industry and the global shipping at large. There is no doubt that there
will be global recession as a result of this pandemic that has affected every
sector of the economy, however, early eradication of this virus and full opening
of the economy by countries will help in recovering from this catastrophic event
on time. Exploring the available materials on maritime policy making on a
global and of the national (NIMASA and NPA) level, the authors focus on
seafarers 鈥 rights in view of international enforcement mechanisms and
particularly taking into account of the recent ILO Maritime Labor Convention.
Although, Nigeria has put some measures in place to reduce the effect of the
lockdown on ports and port users but much has not been done in respect to the
welfare of seafarers. It must be noted that the COVID-19 situation is leaving
seafarers feeling trapped and this appears to be exacerbating existing social
frictions associated with mixed nationality crews (Seafarers Happiness index,
2020). The current situation has shown that there are serious challenges when it
comes to keeping people happy,
entertained, and stimulated.
Therefore, there is a great need for effective enforcement mechanisms
in this area and at this particular time to ensure safe crew changes and facilitate
crew changes throughout this pandemic era where the seafarers are being over
used onboard, refusing to allow those on board proceed on leave and allowing
those ashore return. Lastly, IMO (2020) recommendation on the health and

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Impact of Covid -19 on Nigeria Seaport

welfare of the seafarers in respect to the application of practical and pragmatic


approach on issues bordering on crew changeovers, resupply, repairs, survey
and certification and licensing of seafarers should be given urgent attention.
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[1] Berti, A. (2020). The impact of Covid -19 0n global shipping: Part 1,
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technology.com/features/impact-of-covid-19-on-shipping
[2] Eromosele, A.(2020). Nigeria: How NPA is minimizing impact of
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minimizing-impact-of-covid- 19-on-nigerian-economy/
[3] Hellenic shipping news worldwide (2020). Nigeria: coronavirus
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coronavirusthreatens-n2trn-revenue-target-from-maritime-sector/amp/
[4] Https://www.mondaq.com/nigeria/operational-impacts-and
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[5] Https://nigeriaport.govg.ng.
[6] Https://nigerianinfopedia.com.ng.
[7] Okeleke, U. J., & Aponjolosun, M. O. (2020). A study on the effects of
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