The African Continental Free Trade Area (AfCFTA) presents a major
opportunity for growth in shipping, but Nigeria needs shipping lines to
participate.
According to seasoned experts who spoke at the 16th Association of Marine Engineers and Surveyors (AMES) technical summit in Lagos, a Nigerian fleet would strengthen the country’s position in global trade,
potentially allowing it to negotiate better trade deals.
National fleet is also projected to position Nigeria for eligibility into the International Maritime
Organization (IMO) Category C council membership.
Developing an indigenous fleet, the experts argued would lead to increased investment in
shipbuilding and ship repair yards, and subsequently stimulate the
Nigerian steel industry and engineering sectors.
Speaking at the event,
Chairman of Starz Marine and Engineering Limited, Engr. Greg Ogbeifun, estimated that Nigeria could attract over $1billion foreign direct investment (FDI) and recoup $9.1billion annual freight earnings with the availability of Nigerian ships participating in global trade.
Ogbeifun said:”Figuratively, Nigeria will be poised to witness an upturn of $9.1billion freight revenue annually, $5.42billion added to our gross domestic product (GDP) and $1.62billion contribution to corporate income tax if it returns back to global trading,”.
While observing that the African Continental Free Trade Agreement (AfCFTA) opens a new vista for shipping development, he remarked that availability of Nigerian ships for the regional trade would have led to increased Foreign Direct Investment significantly leading to a 7% increase in Nigerian income from the current path by 2043.
“China is angling to introduce ships that will dominate the carriage of goods under the AfCFTA, while Nigeria is wrongly celebrating the export of goods without participating in the freight carriage.
“At the moment, Nigeria spends about $9.2 billion annually on freight charges paid to foreign shipping companies.
“These payments constitute a significant outflow of foreign exchange, contributing to the weakening of the naira.
“Establishing a shipping fleet would enable Nigeria to retain a substantial portion of this revenue within the country, strengthening its economy and reducing dependence on foreign ships.
Making reference to training in submission,
the President of AMES, Engr. Israel Obadan, disclosed that the association has initiated plans for training arrangements with the Nigerian Maritime Administration and Safety Agency (NIMASA) and Dangote Refinery for the capacity building of marine engineers, with emphasis on sea time.
Emphasizing on experts inputs to ensure rapid
maritime growth, the President stated that the association will continue to speak to the government until the needed changes are effected through capacity building , tax holiday and a conducive playing field for operators.
Obadan also expressed concerns about the decline of marine experts in the industry, adding that the shipping sub sector needs new crops of players to succeed the veterans.
He explained that the Government has a major role to play in the shipping development, adding that provision of the enabling environment is needed to encourage indigenous operators.
The event with the theme “Maritime Transport and Blue Economy: Route to Sustainable Success” also had in attendance seasoned experts in the sector including; the Chairman, Board of Trustees (BoT), Nigeria Shipowners Association (NISA), Chief Isaac Jolapomo; former Minister of Interior and Chairman, Integrated Oil, Capt. Emmanuel Iheanacho; Secretary General, African Shipowners Association, Funmi Folorunso; Convener, Oil Trading Logistics (OTL) Africa Downstream Week, Dr. Emeka Akabogu; among others
Also speaking at the event, the Director General, Nigerian Maritime Administration and Safety Agency (NIMASA) Dr Dayo Mobereola, was represented by Eng Patrick Eigbe, Head of Maritime Safety and Seafarers Standards,
said that for Nigeria to achieve its full maritime potential, it must continually promote the participation of Nigerians in both domestic and international commercial shipping.
