This presentation is in keeping with the expectations of the members of this very important organization at the wheels of economic progress of the nation. Its intent is to provide a veritable source of information, education, enlightenment and guide in the investment prospects in Nigeria’s Maritime Industry.
The Maritime Industry plays a significant role in the global economy with over 90% of world trade carried by sea.
Nigeria as a potential maritime power, seeking to play a leading role in the comity of nations, is developing the potentials in her maritime industry which is significant contributor to the national economy. This is where the opportunity lies for discerning investors.
At this period in our national development particularly in an economic environment where total dependence on oil revenue has been proved detrimental to our national economic survival, we have identified the role of the maritime as a key alternative to the dependence on oil revenue. The importance of the human element in shipping cannot be over emphasised.
The need for a robust human capital as a necessary growth pillar for the sector is quite appreciable now than ever before.
An Overview Of The Nigerian Maritime Industry
Nigeria by providence is a maritime nation. The development and utilisation of her maritime endowment for the socio-economic advantage of the country and its citizens lies squarely on the shoulders of the Nigerian people.
With a maritime area of 46,500 kilometers and an exclusive economic zone (EEZ) of 210,900 square kilometers, Nigeria is endowed with highly productive open sea enveloping abundance and diverse maritime resources including huge deposit of hydrocarbons (crude oil and natural gas). The maritime industry, therefore, holds a great promise for the socio-economic development of Nigeria, just as in any other maritime nation.
As a developing country, however, most of the key sectors of the economy like the maritime sector are yet to attain the optimal development required to maximally contribute to national economic development and leverage the transformation of the society to the material advantage of people.
Whilst there have been consistency of efforts, particularly by government through various policy strategies and administrative measures to drive the development of the maritime sector, the modest achievements accruing from these efforts, appear insignificant compared to the level of development challenges still facing the sector. This situation has encouraged and sustained skepticism from most analysts of the Nigerian Maritime Sector.
All said and done, the crisis of development confronting the Nigerian maritime sector is not unique to the sector. The underlying factors are indeed, common denominator for other key infrastructural areas of the economy. These include but are not limited to, inadequate funding, poor planning or better still, weak application of appropriate planning technique, limited and poor quality of human capital, weak technology, weak institutional capacity and lack of sustained political will.
It is, however, important to look at the basic structure of the Nigerian maritime sector and then examine their relative development. This is necessary in other to appreciate the enormity of challenges confronting the development of the sector and, by extension, educate and facilitate better general understanding of the depth and scope of responsibility facing the Nigerian Maritime Administration and Safety Agency, which is the lead national institution saddled with promoting the development of the sector as well as the regulation of activities within it.
Scope Of The Nigerian Maritime Sector
In broad terms, the Nigerian Maritime sector comprises the maritime transportation systems, maritime industrial activities and national maritime institutions. Each of this broad categorisation is further segmented into functional areas of activities, especially the maritime transportation system, which represents the most important aspects of the Nigerian Maritime sector and often constitutes the benchmark for evaluating the performance of the sector.
The Nigerian Maritime Transportation System
The Nigerian maritime transportation system comprises sea and inland waterways and associated infrastructure (e.g. dams, aids to navigation etc.) which is linked to a network of international ocean trade routes. The system also includes vessels that carry water borne cargo, ships, ship operators and labour forces. More specifically, the Nigerian maritime transportation system is ship building and ship repair facilities, maritime freights, freight forwarders, ship agency, etc. Each of this is briefly discussed under the following headings:
The Port Industry
The history of the Nigerian maritime sector begins with the record of port services in Nigeria and this predates formal colonial intrusion into the territory known as Nigerian today. This perhaps, explains the relative development of the port industry compared to other sub-sectors of the Nigerian maritime sector.
There are eight major ports in Nigeria (excluding 12 oil terminal) with combined cargo handling capacity of more 35 million tons per annum, some of the key ports include the Lagos Port Complex comprising Apapa Quays, Tin Can Island pot, Roll On Roll off (RoRo) Port, Kirikiri Lighter Terminal. Others are; Port Harcourt Port, Warri Port, Onne Port and Calabar Port.
These ports were operated and managed by the Nigerian Ports Authority (NPA) who also doubled as the landlord before the Nigerian Ports Reform programme that led to the concessioning of key port operations to private operators between 2003 and 2006.
The berthing facilities at the port before their concessioning to the private terminal operators include 93 cargo berths, 5 RoRo berths, 7 bulk solid cargo berths, 11 bulk liquid cargo berth, 63 buoy berth in addition to a large number of privately owned jetties. As mentioned earlier, the port reform was designed to increase private sector in the operation and delivery of port services in Nigeria. Some of the principle objectives of the policy are to mobilize private capital to invest in modernizing port infrastructure and facilities as well as inject private management acumen in the management of ports. These expectations are already materializing, though not revolutionary, but evolving changes that are discernable.
Most of the concessionaires have invested reasonably in the acquisition of modern cargo handling facilities, deepening of ICT enablers, modernisation and upgrading of terminal facilities, expansion of existing cargo stacking areas, development of Greenfield port/terminal facilities. All these are expected to dramatically increase Nigeria’s port handling capacity in the medium to long term run. The reform programme has also altered the fundamental structure of the port industry in Nigeria. The role of the NPA after the reform is increasingly becoming that of a landlord to the private terminal operators. Although the authority still provides most of the port marine services, this is expected to be liberalised as well as we move down the path of private sector control of the operation of the economy.
Sunmola is a member of the Nigerian Ports Consultative Council.
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