MoU on Minimum Conditions of Service for Labor in Nigeria’s Shipping Industry: Watershed in history of Nigeria’s Maritime Industry

Author Eriye posits the Minister for Marine and Blue Economy, Mr. Adegboyega Oyetola has exceeded expectations with that the signing of the historic agreement on Minimum Conditions of Service for Labor in Nigeria’s Shipping Industry, the Best Ministry in the Ease of Doing Business award and 92 per cent increase in revenue generation as testament

Last week marked exactly one year President Bola Ahmed Tinubu appointed the former governor of Osun State, Mr. Adegboyega Oyetola, as the Minister for Marine and Blue Economy. It was learnt that the president took his time to select a capable hand to drive the new ministry. There is no doubt that Nigeria has a huge advantage in maritime, blue economy, which has been untapped, hence the challenge of appointing the right hand by the president. But for the antecedents and expertise of Oyetola as the pioneer Minister, there seemed to be uncertainty over the novelty of the newly created ministry, a brainchild of the ingenuity of President Bola Tinubu. Indeed, the Marine and Blue Economy is one of the sectors with humongous potential, which had remained unutilised in the last several years. Stemming this unwholesome tide must be reason President Tinubu, in his sound wisdom, carved out the ministry from the transportation ministry with its own vantage for potential maximisation and revenue generation for national economic growth. Stakeholders in the maritime industry have applauded the President’s judgment of Oyetola as fitting for the Blue Economy Ministerial maiden appointment. This is basically because the system needed someone with prerequisite experience, capacity and expertise to navigate the novelty of the new ministry, and turn its uncertainty to assurance, surety and productivity. Experts believe President Tinubu must have been convinced by the Minister’s ability as immediate-past Governor of Osun State, whose antecedents prevented fiscal accidents that would have run the then hugely indebted (as inherited) state aground and stagnated.

It is worthy to not that Oyetola has not disappointed in the last one year. As a matter of fact, the minister has actually been sailing through the Blue Sea with ease. Stakeholders have also applauded the minister for not making hasty decisions that can result in mistakes. The Minister continues working at his own pace to avoid socioeconomic malaise. Stakeholders have also described the minister is a modest and highly-reserved leader, who always walks his talks, but hardly talks (about) his works or counts his laurels, as he believes in working and not noise-making. Nonetheless, his ‘walks’ talks, and his steps are giant in terms of his achievements in one year as Minister of Marine and Blue Economy. As evident in his proactive disposition, commitment and clear vision, the Minister knows the nature and demands of the new ministry in terms of innovation-driven management, coherent policy framework and implementation.

Within a year, the Marine, Blue Economy Ministry has received many accolades. For instance, the ministry recently emerged, “Best Ministry in the Ease of Doing Business,” as adjuged by the Presidential Enabling Business Environment Council (PEBEC). With his pace, in the first quarter of this year, 2024, in just about seven months in office, Oyetola has been able to increase the revenue from maritime services by 92 per cent with a whooping sum of N242 billion generated by the ministry, in comparison with the previous year. With his pace of work, the minister, through his ministry, was able to attract more businesses and generate higher revenues by improving efficiency and capacity in ports, shipyards, and other maritime services.

Minimum Conditions of Service

Just last week, stakeholders and industry leaders in the nation’s maritime sector commended the Oyetola for his exemplary leadership that led to the signing of the historic agreement on Minimum Conditions of Service for Labor in Nigeria’s Shipping Industry.

The landmark agreement, which was signed on Friday, August 23, is a significant move towards improving Nigeria’s maritime industry, while supporting the growth of the nation’s marine and blue economy.

Interestingly, it comes after 20 years of struggle, wait and failed negotiations for the minimum standards for the conditions of service for workers in the shipping industry.

The maritime sector is a cornerstone of the country’s economy and key to the global economy, and the workers play a critical role in sustaining this industry, and the historic agreement demonstrates a firm commitment to a fair, sustainable and dignified Marine and Blue Economy, which recognises the importance of workers’ rights, safety, and welfare.

The Minister of Marine and Blue Economy, who witnessed the singing, underscored this important role played by the nation’s maritime sector The important role played by the maritime sector, noting that the agreement was a culmination of extensive dialogue among stakeholders.

He further stated that the Agreement showed what could be achieved through collaboration and mutual respect, paving the way for a more united and resilient maritime sector.

Oyetola emphasized that the signing was a reflection of the trajectory of the President Bola Tinubu administration and a testament to the federal government’s collective commitment to uphold the rights and welfare of workers in the industry.

The Memoranda of Understanding (MoU) was signed among the federal government represented by the Nigerian Shippers’ Council (NSC), Shipping Companies and Agencies, Clearing and Freight Forwarding Employers Association of Nigeria (SCAFEA), and Maritime Workers Union of Nigeria (MWUN).

Key Performance Indicators

In his remarks, the Minister said that this was in line with the four–year Key Performance Indicators (KPIs) Implementation Plan for both the Ministry and the agencies under the Renewed Hope Agenda of President Bola Tinubu administration, which included increasing the operational efficiency in handling imports and exports of cargoes.

He added that by establishing this minimum condition of service, the Federal Government was achieving four critical things: Enhancing Worker Welfare, Promoting Safety Standards, Encouraging Fair Competition, and Fostering Trust and Cooperation.

On enhancing worker’s welfare and promoting safety standards, Oyetola said, “We guarantee that every worker in the shipping sector enjoys decent working conditions, fair remuneration, job security, and access to necessary welfare benefits.

“Through this agreement, we commit to prioritizing safety and health standards, ensuring that workers are provided with the necessary training and resources to operate in secure environments.”

Similarly, in encouraging fair competition, the Minister noted that, “A uniform standards will guarantee level playing field among employers in the maritime sector thereby discouraging exploitation and promoting ethical practices in the industry.”

Oyetola, who thanked stakeholders and industry leaders, including the Executive Secretary /CEO and Management of Nigerian Shippers’ Council, the leaderships of both Maritime Workers Union of Nigeria (MWUN), the Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA), workers for their contribution to the development of this agreement.

“I enjoin the labour unions to remain steadfast and vibrant in advocating for the rights of workers by ensuring compliance with the agreed standards. Government will on its own part continue to provide oversight by providing the enabling environment for compliance and continuous improvement,” he added.

Stakeholders in the maritime industry were full of praises for the Oyetola for providing forthright leadership as Minister of Marine and Blue Economy.

Exemplary leadership

In his welcome remarks, the Executive Secretary/Chief Executive Officer of NSC, Pius Akutah, attributed the signing of the MoU to the exemplary leadership of the Minister, while commending him for his love for the welfare of workers, and for providing the leadership that led to the signing of the historic agreement.

“The minister has pushed us to get to this level and I want to take this opportunity to commend your Chief of Staff for pushing us to achieve excellence via teamwork and collaboration,” Akutah said.

Similarly, the President-General of Maritime Workers Union of Nigeria (MWUN), Adewale Adeyanju, thanked the minister for gracing the occasion, noting that his “support and commitment to the welfare of maritime workers are invaluable and contributed in no small measure to the success story of today.”

Also, the President of SACFEA, Boma Alabi, SAN, in her remarks thanked the minister for his resolve in bringing together all stakeholders and groups to reach a successful conclusion.

She pointed out that with the new agreement, “the minimum standard of conditions of service for workers in the shipping industry is the highest in any industry in Nigeria,” while stating that the agreement will spur progress in the nation’s maritime sector.

“I truly believe that this is a social partnership for progress. The most valuable asset we have is our human assets which are our workers. We can’t operate without our workers and we are so glad that we have set a minimum standard that every player in the industry must adhere to. I am happy to announce that the 200,000 standard is the highest in any industry in the country,” Alabi added.

With the establishment of the minimum conditions of service, the FG is enhancing workers’ welfare to enjoy improved working conditions, fair renumeration, job security and access to important welfare benefits

Akutah encouraged stakeholders to key into the standard to enhance workers efficiency and productivity.