As Nigeria is transitioning to a non-oil-dependent economy, attention needs to be shifted towards other critical sectors, especially the maritime industry, so they could contribute substantially to the country’s Gross Domestic Product (GDP).
Speaking at the 5th edition of the Taiwo Afolabi Annual Maritime (TAAM) Conference held at the University of Lagos (UNILAG), Dr. Taiwo Afolabi, Chairman, SIFAX Group, said the dwindling oil revenue in recent years and the huge potentials locked in the maritime sector make it imperative for the Federal Government to show better commitment to the industry.
He said: “The country’s national budget, in the last few years, has been majorly funded without revenue from oil but from other sectors. The days of overreliance on oil is behind us now and it’s time we focused on transitioning from an oil-dependent economy to non-oil reliance. The maritime sector, I can say without any fear of contradiction, will play a crucial role in this economic transitioning if more attention is committed to the industry.”
Despite the growth that the industry has witnessed in the recent years including development and approval of various deep-sea ports, springing up of inland container depots across the country, linking seaports with rail lines, among others,
Afolabi further noted that the sector is still facing with major problems which are slowing down its growth and impact.
He said: “It is without doubt that the maritime industry in Nigeria is grappling with various issues including infrastructural deficit, foreign exchange bottleneck, insecurity on our waterways, low level of technology adoption and deployment as well as inconsistent policies, among others. These issues have largely limited the ability of the sector to contribute significantly to the country’s Gross Domestic Product (GDP). If well harnessed, the maritime industry has the potential to become a major revenue earner for the country, particularly with the declining oil revenue.”
The TAAM Conference is a maritime summit organised by the Maritime Forum of UNILAG’s Law Faculty in partnership with the SIFAX Group and serves as a platform where key maritime issues that border on the sector’s sustainable growth are discussed, while also stimulating the interests of university students in the industry.
The theme of this year’s conference is “The Maritime Roadmap Project: Making Nigeria A Leading Maritime Nation In The World.”
In his keynote address, former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Temisan Omatseye, described the dominance of foreign vessels in the maritime sector as a national risk.
Omatseye said“The failure to take control of the supply chain of our goods most especially as it relates to shipping must be considered as a national risk.
“This is so because we cannot totally depend on foreign shipowners who basically determine the freight rates to charge and vessels to bring in or take out goods out of Nigeria. Can you imagine handing over our destiny to foreigner?
This is what is happening now in the shipping industry. I can categorically tell you that of the 100 per cent of goods that leave and come into Nigeria, Nigeria carry only two per cent , 98 per cent is carried by foreigners,” he said.
Omatseye noted that the reliance on foreign vessels to carry Nigerian minerals and exports at their determined rates higher than market rates had made Nigeria goods uncompetitive in the international market.
He added that the high rates of import had an inflationary effect on the nation’s economy.
According to Omatseye, previously, a tanker that used to bring petroleum products at $20,000 per day for charter, now charges Warri $55,000 Warri and Calabar $89,000 per day.
Omatseye who wondered where the money was going to said that the industry would be the worst hit when government removes subsidy, stressing that freight rates would be outrageous.
“Citing an example with the piracy issue in the Gulf of Guinea around Somalia. During that period, international shipping lines increased their rates, Ethiopia which is a landlocked country maintained its own freight rate while the likes of Mersk increased.
“People started moving goods through Ethiopia because the international shipping lines were losing money, they were forced to drop their freight rates. But in Nigeria, we do not have that kind of opportunity because we do not have any ship,” he said.
On the way forward, he called on the Federal Government to approve and develop additional seaports as well as a national shipping line to reduce foreign dominance.
He noted that Nigerian shipowners should be given the criteria to register as a national carrier in line with Section 35 of NIMASA Act.
He said that this would allow them to take advantage of the federal law to carry state, local government cargo, both liquid and bulk.
“Government have done its best when it comes to laws about shipping, they are good, excellent, what we need to do is to operationalise laws that we have as Nigerians and not allow foreigners to intimidate us.
“Section 35 of NIMASA Act says clearly that national carriers shall have exclusive rights to the export and import of cargo belonging to the federal, state, local government including federal and state owned companies and agencies.
“Government should ensure the disbursement of the Cabotage Vessel Financing Fund by putting in place implementable regulations,” he said.
Dr Bashir Jamoh, the Director-General of NIMASA, said that the conference provided a unique opportunity to discuss the strategies and policies which cumulatively represent the roadmap that would convey Nigeria to the status of a leading maritime nation.
Jamoh represented by Mrs Olamide Ogunsonya, Director Audit, added that there were universal acceptable criteria for evaluating the status of individual country in a commity of nations.
He listed them to include capacity in terms of ship building and repairs, banking system, available of institutions for the training of certification of seafarers, and others.
“Nigeria remains a work in progress when compared to some of the global maritime powers who have mastered sea-going trade for several centuries.
“But we make bold to say that Nigeria has earned the right to be taken seriously and respected in the international level.
“Our acquisition as a regional leader remains unassailable whether in terms of volume of trade or ascertion to key maritime inventions and the development of in-country capacity . The future is indeed for Nigeria shipping/”
