For the past few years, the Federal Government has tasked itself hard with efforts to revive the country’s economy and to make all the sectors of the economy contribute to a greater Gross Domestic Product for Nigeria. One area that seems to have received less attention in the government’s effort is the maritime sector. Most of the goods that come into the country and a preponderance of goods that are imported into the country come by the sea. In fact, a good chunk of the nation’s crude oil exploration and production are now in the deep Atlantic ocean.
Also, in the last few years, two major deep sea ports were mooted by private sector operators. First, is the Lekki deep sea port, which is already being built and may be nearing completion. The other is the proposed Badagry deep sea port, which, when constructed, if the Federal Government gives AP Moller the much needed concession, would be the hub of shipping operations in West Africa.
Thus, the maritime sector is important to the country’s economy and capable of contributing significantly to improving the revenue accruing to the government. Unfortunately, it would appear that not much is known about government’s efforts to wake up the maritime sector and enable Nigerians to play major role in the sector.
Only recently, Hassan Bello, the Executive Secretary of the Nigerian Shippers Council, revealed that the nation was losing a whopping $9.1 billion yearly on freight revenue that would have accrued to its treasury. He said the amount was being lost to foreign ships.
Bello said, in the absence of a shipping National Carrier to replace the liquidated Nigerian National Shipping Company (NNSL), foreign shipping lines were milking the country dry. Whichever way it is looked at, there is no doubting that $9.1 billion is a huge amount of money, which Nigeria should not allow other nations’ shipping companies to come here and take away while our government looks the other way.
Nigeria must now wake up and put its house in order. A situation where we sleep away while other countries fleece our economy up to the tune of $9.1 billion yearly should no longer be allowed. For so long, Nigeria and its maritime entrepreneurs have lost so much of earnings to foreign shipping companies because Nigerians don’t operate any dry cargo ship. This is sad and worrisome. Worse still is that Nigerians don’t lift crude oil for any of the oil companies operating in this country. Where is the country’s local content policy? Who is in charge to ensure that Nigerians get some chunk of the crude oil lifting?
Transport Minister, Rotimi Amaechi, was said to have been shocked and dazed on discovering that Nigerians don’t lift the crude oil in spite of the importance of crude oil to the nation’s economy. He saw the imbalance as dangerous to the nation’s economy and ordered that the situation be redressed. He was said to have set up a committee with the Nigerian Shippers Council as chairman to work out how to redress the imbalance.
Bello said between 2004 and 2017, Nigeria recorded total vessel traffic of 25,256 vessels with the total gross freight of $39 billion and earned a paltry sum of $1 billion as levy for NIMASA. But, if the sector is improved, there would be greater revenue for the government and more employment for Nigerians. But improving the sector requires the setting up of associated industries, shipbuilding facilities, ship repairs and the involvement of some of the country’s financial institutions such as banks and insurance companies.
There is no doubting that a lot of reforms must be put in place to ensure that the maritime sector contributes more significantly to the nation’s economy. Among such reforms are flag administrations and ship registry, both of which must be reformed in line with international standard, so that the country can attract people to come and register ships in Nigeria.
Also, the country needs facilities for vessel repairs and vessel building so that Nigerian ships would no longer have to be towed to Singapore or Ghana for repairs.
Bello insisted that if the country is able to have its own fleet of vessels, NIMASA will accord it the status of national carrier. This means that the national carrier will have first priority in cargo; project cargos, Nigerian cargo, cargo belonging to federal, state and the local governments.
Viewed from the above perspectives, there are billions of dollars to be made by businesses in the maritime sector if the government wakes up to its responsibilities and do what it should do to transform the sector. In particular, there is need for a maritime national carrier. Also, the provisions of local content must be respected by the oil companies operating in the deep sea and especially, in the lifting of the nation’s crude oil.
