RE-POSITIONING THE FISHERIES SECTOR: SPEECH DELIVERED BY THE MINISTER OF ARICULTURE AND RURAL DEVELOPMENT.

RE-POSITIONING THE FISHERIES SECTOR

Tue, Feb 25, 2014
A Speech Delivered By The Honourable Minister of Agriculture and Rural Development, Dr Akinwumi Adeshina.
Good morning. I welcome you all to this crucial meeting with the stakeholders in the fisheries sector. Let me especially welcome the Chairmen and Presidents of the various Fisheries Associations, Nigeria Trawlers Owners Association (NITOA), Association of Fish Suppliers of Nigeria (AFISUN), Fish Farm Estate Developers Association (FFEDA), National Union of Seafoods Dealers (NUFAS), Catfish Farmers Association of Nigeria (CAFAN) and the fisherfolks and fish-farmers of this country. I also welcome notable stakeholders from the Nigerian Customs, Nigeria Ports Authority (NPA), Nigeria Maritime Administration and Safety Agency (NIMASA), the Financial Institutions, Nigeria Export Promotion Council, Nigeria Agricultural Quarantine Service (NAQS) among others.

You have heard me speak a lot about crops and livestock. Today, you will hear me on fish. You all know that Mr. President Dr. Goodluck Jonathan is a marine biologist and comes from a fishing population. Mr. President launched the Agricultural Transformation Agenda in 2011, with a very clear goal: to add 20 million MT of food to our domestic food supply.

We are succeeding on this goal. We cleaned up decades of corruption in the fertilizer sector and launched the electronic wallet scheme to deliver farm inputs to farmers directly via electronic vouchers on their mobile phones. Nigeria is the first country in Africa to develop such a system. Within two years, the e-wallet system reached 6.4 million farmers and helped to improve the food security of 30 million persons. Food production expanded by an additional 15 million MT within two years.

But food is not complete without fish.

The fisheries sector is important, as it contributes 4% of the GDP. The total demand for fish in the country is 2.7 million MT and we are producing locally about 800,000 MT. The deficit of 1.9 million MT is met by imports. Our goal is to be self sufficient in fish production. We will achieve this by promoting greater investments in aquaculture, improving artisanal, inland and marine fisheries. Our four-year target is to increase the production of fish fingerlings by 1.25 billion per year, the production of fish feed by 400,000 metric tons per year; and increase table size fish production by an additional 250,000 metric tons per year.

In addition, we will produce 100,000 metric tons of value added fish and fisheries products, annually. We expect that within four years, we will add an additional 1 million MT of fish to our domestic production and reach 67% self sufficiency.

Nigeria spends an estimated N125.38 billion importing fish every year. This is totally unacceptable. Fish does not grow on sand, it grows in water, and Nigeria has abundant water resources and marine ecosystems to produce high quality fish. This is why, for the first time ever, Federal Government has started a fish production support program for fishermen and fishing communities. Our Growth Enhancement Scheme (GES) now includes subsidies for producers of fish. In 2013, a total of 3.6 million juveniles, 36,000 bags of 15 kg of feed and 200 water testing kits were provided to fishermen in ten states, at a total cost of 1.5 billion Naira. We reached an additional 18,500 fishermen in 14 states, during the flood recovery program, with provision of juveniles, fish feed, fish meal, nets, floats, sinkers and ropes. This is only the beginning, as we will significantly ramp up fish production interventions this year.

But the fisheries sector faces enormous challenges. There is too much fishy business in the fish sector.

The Nigerian marine waters are plagued with almost daily attacks by armed robbers on our shrimp trawling vessels, leading to killings and maiming of crew members, abduction of key officers and demand for huge ransom for their release, seizure of vessels for days leading to loss of fishing days, and the removal of fishing/communication equipment and catches.

These attacks have become an embarrassment to security agencies; and if unchecked, it may lead to the complete collapse of the fishing industry. A total of 271 reported cases of attacks on vessels operating in the Nigerian Territorial Waters occurred between February 2009 and September, 2013. The socio-economic impact is huge, as it has led to a drastic reduction in the number of fishing fleet from about 230 vessels to only 119 vessels, with only ten companies in operation in recent years. We are determined to curb the incidences of piracy and armed robbery through the provision of the necessary platforms. We have ordered for six passenger/patrol boats to improve surveillance.

We are also pursuing greater inter-agency collaboration with security agencies especially the Navy, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigeria Custom Service (NCS), Nigeria Port Authority (NPA) and Inspection Agencies. We have proposed a joint action plan with the Navy under which a joint Secretariat will be established in the Federal Department of Fisheries, to oversee all issues of illegal, unreported and unregulated Fishing in Nigeria's Territorial Waters.

 We are seriously pursuing the revamping of all the Fishing Terminals in the country, with a view to providing common services. The poor state of the fishing terminals in the country is appalling, and was caused by corruption and collusion between private operators and public officials in the Fisheries Department over the years.

The fisheries terminal assets of the country were simply striped off. It is inconceivable that the Ebughu Fishing Terminal was leased out for only N500,000 per annum until 2005, before being abandoned and left to be vandalized. The Igbokoda Fishing Terminal was leased out for only N300,000 per year, until 2005 when the Nigerian Nigeria Navy took it over; and no lease payment has been paid ever since. The Borokiri Terminal was leased out at a meager N300,000.00 per annum up until 2007 when the River State Government took it over, as it had been converted for use for petroleum haulages and other services.

Let me be very clear: the days of the fishy business of stripping away the fishing terminal assets are now over. In pursuant of this, the Federal Ministry of Agriculture and Rural Development will immediately repossess and secure the existing fishing terminals at Igbokoda – Ondo State, Ebughu – Akwa Ibom State and Borokiri in Rivers State.

Fishing terminals are not for oil companies or private jetties. They were set up, under Presidential directive, for fishing. The Federal Ministry of Agriculture and Rural Development intends to build a dedicated Fishing Terminal in Lagos State, on the sites previously approved and earmarked for the project in Kirikiri Lighter Terminal I and II.

The issue of licensing for fish imports is bedeviled with corruption, as importers corrupt public officials to give licenses away above their available cold room warehouse capacities. The figures given by the Nigerian Customs for fish imports to Nigeria is several times above the declared volumes by fish importers. Another fishy business. For example, between 2010-2012, fish importers declared that they imported 1.78 million MT of fish or annual import of 593,000 MT. The records in the Federal Department of Fisheries shows 1.9 million MT of fish imports in the period or annual import of 635,000 MT. However, the Nigerian Customs figures shows that actual total fish import by the importers during the period was 16.8 million MT or annual import of 5.9 million MT.

It is very clear: fish importers are cheating and are not paying the amounts due to government for licenses. Even more worrisome is that there is no cold storage capacity in the country to keep 5.9 million MT of fish. So what is being imported and declared as fish? Allegations are rife of dubiousness among some importers who declare fish for imports, but are actually importing other things, including cars. Fishy business.

Nigerians are daily being misinformed by well orchestrated media by these fishy business perpetrators. Recently, I read an advertorial by the Association of Fish Suppliers of Nigeria alleging that the Federal Ministry of Agriculture and Rural Development is giving licenses via rationing and has reduced import quotas of importers by 80 percent, instead of the 25% as per the new fisheries policy. Let me state loud and clear that this is an egregious misinformation of the public. It is the classic case of the thief accusing the police.

The fact is that fish importers have over the years substantially under reported the volume of fish being imported and avoided paying license fees due to the government. The import allocation made by the Federal Department of Fisheries was based on fish importers' declared and revealed volume of imports, not their subterranean and hidden volume of imports. The discrepancies show deep seated fraudulent malpractices by fish importers, while deceiving Nigerians. The manipulations of fish import figures by the importers is used to avoid  paying penalties for importing fish without fishing licenses.

It is important make it clear that the government has not banned the import of fish, as it being misrepresented by unscrupulous fish importers. There is no reason why the price of fish would increase in the market, except due to speculative purposes by fish importers to make supernormal profits and undermine the policy of government to make Nigeria self-sufficient in fish production. Fish importers are holding Nigerians to ransom to protect their supernormal profits.

The Federal Government had at no time placed a whole-scale ban on the importation of frozen fish into the country. The only fish being strictly regulated, and put under prohibition from being imported without control, is farmed fish. Our policy on this is in line with similar best practices all over the world. No nation can allow the kind of unbridled sharp market practices where importers rip off the economy, rip of consumers and cry wolf. The fish importers are fishing in murky corrupt waters.

My Ministry embarked on a process of reducing the volume of fish imported into the country by 25% annually. Those importing fish have to invest in local fish farming and production. But some of the members of AFISUN continue with illegality of importing fish into the county without import licenses and obtaining fake Letters of Clearance and stamped acknowledgment letters to discharge fish indiscriminately. This is fraudulent.

The Ministry will not allow such illegality to continue, and therefore we have sealed off a few cold rooms. We will continue to close down cold rooms that bring in fish illegally and their operators will be subjected to stiff penalties. Repeat offenders will have their import licenses totally revoked. The new policy on import quota is directed at sanitizing a terribly corrupt fish import licensing and import quota system. It will prevent the current practice where some large corporate importers simply stockpile fish and distort the market at will, driving small Nigerian fish retailers out of business. Stock piling also leads to keeping fish way beyond acceptable sell-by dates, leading to sale of rancid fish to consumers. Rancidity is a major cause of cancers, especially liver and kidney cancers.

Government will strongly protect consumers and the public. Nigeria will not allow any foreign owned company to create poverty in the country. We will ensure a level playing field for all importers. There will be no preferential treatments and there will be no waivers for anyone. The days of waivers in the fish sector are gone. We will end the sleaze and corruption in the fish sector. We will end the practice where large importers overstock and habitually declare losses due to spoilage simply to avoid paying taxes to government, a practice that has been going on for many years. Let me announce it loud and clear: the days of tax evasions in the fish sector are over.

​In line with the powers conferred on me as the Minister by Section 15 of the Sea Fisheries Act, I have issued new regulations to clean up the abuse in using Nigeria as a dumping ground for unwholesome frozen fish, in addition to serious trade malpractices associated with frozen fish importation into the country.  The control of importation of fish into the country will regulate the industry, put in place a transparent process of granting appropriate fishing licenses, ensure judicious utilization of foreign exchange earnings, and reduce the huge fish import bill of Nigeria.

To further effectively regulate the importation of frozen fish into the country, the Ministry will regulate and monitor the quantity and species that each fish importer will be allocated to import. This will ensure that Nigeria is not used as a dumping ground. Government will develop a full inventory of all cold rooms in the country and monitor the movements of consignments and unwholesomeness of the fish products in all cold rooms.

As per the Fisheries Act, I have directed that henceforth, all illegally imported fish will be confiscated and destroyed. Contravening companies will lose their licensees and their cold rooms will be sealed. Government will no longer allow injurious fish into the market. We will protect consumers.

I am aware of the several antics by specific importers against the present policy of import substitution in making Nigeria self sufficient in fish production.  These include cheap blackmail and attempts to incite other nations against Nigeria and the use of media to distort facts. Security reports show that some importers have gone to the extent of inciting their casual laborers to disrupt public peace. I will not be deterred in my resolve to clean up the mess in fisheries sector.

We will also also clean up the incipient corrupt practices by several members of the Fish Farm Estate Association. The objective of the fish farm estate program is to increase domestic fish production by 800,000 metric tons within four years, provide affordable farmed fish at affordable price to consumers and to assist and empower prospective and practicing fish farmers in Nigeria through Public Private Partnership arrangement.

Despite the claims of N 725 million by the participants of the Fish Farm Estates, there is no fish to show for it. The program, with connivance of civil servants in the Federal Department of Fisheries, was simply turned into an ATM cashing machine for receiving grants from government, while not delivering on agreed targets for fish production or abiding by the terms of agreement. This was why when I became Minister, I stopped all further payments.

The Chairman of the Fish Farm Estates Association has been using paid media hackers to misinform the public that the Minister has refused to release more grants to their members. He is correct. The days of stealing government money is gone. I will not approve any fund releases to the program until you all can show Nigerians the fish you produced and wether you met all the conditions precedent on the agreement signed with the Ministry. I have been threatened with a court case on this. I am very happy. I will meet you all in the courts.

The Ministry is taking bold steps at diversifying the fisheries sub sector from a mainly mono-culture of Catfish to include other fish species. Other value chains being developed by the Ministry include the Tilapia Value Chain, Lates Niloticus Value Chain and the Shrimp Value Chain.  We are in advanced stage of negotiation with core investors for the establishment of Large Scale Tilapia Farms in different locations in the country.

We are aggressively pursuing the Fish Seed Development Programme, under a Public Private Partnership, to encourage local production of quality fish seeds, in order to address the shortage of fish fingerlings' supply in the country.  The Ministry of Agriculture and Rural Development has constructed fingerling production centres in 36 States of the country and is collaborating with the West African Agricultural Productivity Programme (WAAPP) in establishing Centers of Excellency for Fish fingerlings and Broodstock production. Identified hatchery operators have been trained under this World Bank Assisted Programme.

We are promoting the commercialization of fish production under the Staple Crop Processing Zone (SCPZ), in which 4 of the 14 SCPZs have fisheries as one of the anchor investments. The SCPZs are to address the constraints of the agro-processing industry and drive social and economic impacts, offer a superior operating environment for downstream players, while creating a new platform for private sector investment in agriculture. They will also take an integrated value chain approach to address sector constraints, including market linkages, coordinated support, and a create a structured mechanism for engaging rural youth.

While foreign trawlers operate in our deep sea waters, Nigeria does not have vessels to do the same. I am very pleased to inform you that we have changed this situation. The Federal Government has acquired a deep sea vessel, RV Bayagbona, for the Nigerian Institute of Marine and Oceanographic Research (NIOMR) - named after the first Director of NIOMR. The vessel was procured for the exploitation of Lantern fish and Drift fish (Ariomma species – Ariomma bondi and Ariomma melanum), which will be used to make fish meal. This will significantly reduce the import of fish feed into the country and drive down the cost of fish feed used in aquaculture.

NIOMR has also completed the installation of a new floating fish feed extruder, with a capacity to produce 1500kg of feed per hour. New advances have been made in the development of fish feed using local raw materials. Today, NIOMR has pioneered the use of cassava chips in the formulation of fish feed, with up to 40% inclusion. The new floating feed fish feed extruder can produce different sizes of floating feeds for juveniles, fingerlings and table size-Catfish and Tilapia.

To improve the marine industrial sector, the Ministry of Agriculture and Rural Development is implementing a new Shrimp Management Plan to ensure sustainability of the shrimp resources and protect investments in the sector. We are conducting, through the Marine Stewardship Council, the registration of Nigeria's shrimp resources and marine and fresh water species. This will improve market opportunities for these products.

The Ministry is also opening up the Deep Sea/Exclusive Economic Zone (EEZ) for exploitation, by issuing Letters of Assurance to companies to bring in Deep Sea Vessels into Nigeria. I am delighted to inform you that Nigeria has just been re-certified to export shrimps caught in the the wild to the United States of America.

As part of a larger effort for the development of a comprehensive Nigerian Fisheries Information System, the Federal Department of Fisheries has embarked on a major effort to revive our artisanal fishing industry, which accounts for 80-85% of the total fish production in the country. For the first time in the history of Nigeria, a national registration of artisanal fishermen is being conducted, including the registration of all fishing canoes. This will give the operators an identity beyond the shores of Nigeria, especially when fishing in Coastal waters shared with neighboring countries. This will also ensure that the fishing canoes of artisanal fishermen in the country are not used for sea robbery or piracy.  To improve the processing of fish, the Ministry has ordered smoking kilns, manufactured by the Nigerian Centre for Agricultural Mechanization, for distribution to fishermen and women fish traders.

Ladies and gentlemen, let me strongly reiterate the resolve of President Jonathan to revamp the fisheries sector and to bring to an end the decades of corruption that have paralyzed the sector. For those ready to work, genuinely and transparently, to help in our efforts to revamp the fish sector, we will work with you. But for those determined to undermine government policy, continue their corrupt and fraudulent fishy business, you can be sure that you will face the full weight of the law. Let me also sound a note of serious warning to staff within the Federal Department of Fisheries. Any civil servant found to be colluding with fish importers to defraud government will be held accountable and face the full weight of the law.

We must work very hard to turn around the fortunes of our fisheries sector. I will need the full cooperation of all the stakeholders. For the poverty and waste we see today in the sector must give way to wealth that touches the lives of millions of our fishing communities. The days of taking Nigeria's territorial waters for granted, through marine piracy, unbridled imports of fish, sleaze and corruption in issuing of import licenses, the dumping of fish and the over exploitation of our marine resources, are now over. We will fully protect the interest of Nigeria, as we strive to revive our fisheries sector.



Therefore, we all must work to ensure that we achieve a blue revolution in our fishery sector. Nigeria must be free from fish imports.

Thank you and God bless you all.


Dr. Akinwumi Ayodeji Adesina, CON
Honourable Minister of Agriculture
& Rural Development