In the year 2003 the Fund organized a Workshop on ARBITRATION: MAKING LAGOS A CENTRE FOR INTERNATIONAL COMMERCIAL ARBITRATION. The Workshop discussed arbitration clauses for various trades and commodities and the Director for The Centre for International Commercial Arbitration was invited to make a presentation.

The Workshop identified the risks militating against Nigeria becoming a center and agreed on how to overcome these problems.

We have in the year 2004, in February held a Joint Seminar with Nigerian Insurers Association to examine risks faced by Nigerian Importers and Exporters or risks that are peculiar to the Nigerian Market and to further agree on how to cover these risks. It was agreed at this seminar to urge some Marine Insurance Underwriters to re-insure the Fund's TOKEN INSURANCE SCHEME.

The outcome of this Seminar has assisted us tremendously in the Implementation of the TOKEN INSURANCE COVER SCHEME. We have met with various Agencies Governmental and non-Governmental to discuss areas of mutual interest and to work together for mutual benefit and for the benefit of Nigerian operators. An example is the effort of the Fund to work with NEXIM BANK to ensure the successful implementation of their facilities for export Trade.

So far, the Secretariat of the Fund has examined about three hundred complaints. Broadly these complaints cover problems relating to:-

• Short handling of cargoes
• Non delivery of cargoes
• Non shipment of cargoes
• Fraud
• Delay
• Theft or pilferage
• Government Action
• Time Bar
• Illegal Charges/Unsubstantiated charges
• Prolonged court cases or processes
• Lack of understanding of processes of Foreign Arbitration
• Excessive Bank Charges
• Unfair and Unreasonable treatment by Government Officials and Shipping Companies
• Non payment of export proceeds
• Others

MEDIATION AND LITIGATION

We have played a mediatory Role in a majority of the cases, locally we offer mediation services, in some cases where we have been unable to resolve the dispute we have advised the parties to opt for litigation.

In case D, the Nigerian Shipper, Imported a consignment of Soda Ash from Ukraine, it was shipped in a Time Chartered vessel. Discharge operations were slow in Lagos Port and due to the inability of the vessel to secure berthing space, the vessel was sent out and part of the consignment which was not discharged in Lagos Port was discharged in Warri Port. The Importer accused the Shipping Company of fraud etc.

The Fund played a mediatory Role and helped the parties trace the cargo to Warri Port, where the consignment had been discharged due to a court injunction on the vessel attaching all the cargoes.

We were able to secure a release of the cargo through the courts.

In case E, the Exporter sold a consignment of cashew nuts to a buyer in Republic of Benin. The buyer took delivery of the nuts and has since refused to pay. Through the Nigerian Mission in Cotonou and the Benin Chamber of Commerce, we have promise of MEDIATION and possible prosecution. Meanwhile, the CDF has made an Ex-gratia payment.

In case F, we were able to arrange a mediation in Spain through the Nigerian Mission and the Barcelona Chamber of Commerce. This helped the Nigerian Shipper trace his business partner, whom he had lost contact with.

In addition to the mediatory role, we have helped many shippers file the cases in court and the CDF pays for the litigation where the shipper has subscribed to the CDF.

ASSISTANCE TO OTHER INTEREST GROUPS

The CDF collaborates effectively with other interest groups e.g. Underwriters of cargo interests. To this end we have set up a joint committee of the CDF and NIA ( Nigerian Insurers Association ) and CDF played a mediatory role in the matter of the SAHCOL fire incident which happened in the year 2004. We have also intervened in other cases e.g. salvage matters on behalf of shippers.

The committee meets regularly to structure policies for new projects and particular markets relating to International Trade

SYNERGY WITH USAID AGOA RESOURCE CENTRE TO COMBAT THE REJECTION OF NIGERIA’S COMMODITIES EXPORTED TO THE US MARKET

In reaction to the rejection of some Nigeria’s export commodities in the US market and the need to combat this development, the Cargo Defence Fund has established a working relationship with the Bank of Industry/USAID AGOA Resource Centre, Lagos.  The interaction centered on Exportation of Leather and  leather Products, Gum Arabic and Solid Minerals to the US market under the AGOA initiative and training programmes on AGOA for  Secretariat Staff of the Cargo Defence Fund.

GUM ARABIC

Based on the complaints received, we held a meeting with the producers and Exporters of Gum Arabic in Gombe and Maiduguri.  The meeting looked into their problems, determined areas of assistance that can help them trade successfully in the international market.  The benefits are, to effectively mobilize them, enlighten them and help them achieve the following:

• Proper documentation
• Packaging
• Grading
• Quality certification in partnership with other agencies both private and public
• Others

LEATHER AND ALLIED PRODUCTS

Based on the request of the Aba leather products exporters in the aftermath of Aba seminar on “Repatriation of Exports proceeds”, the Cargo Defence Funds held a meeting with Leather Processors in Kano and Sokoto.
The meeting considered the need for the leather processors to supply the Aba producer’s quality leather to enhance their production for the export trade.  It also deliberated for the need of a one stop shop in Aba  as requested by leather and allied products manufactures and exporters.

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