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‘Revenue from maritime sector critical to economic development’

By Moses Ebosele
29 July 2015   |   12:51 am
FOR the past eight months, Global oil prices have fallen drastically, leading to revenue shortfalls in some energy exporting countries including Nigeria. The Federal Government seems to understand the implication of this development on Nigeria’s economy and has repeatedly canvassed need to diversify and create other sources of income. Besides, demand for Nigeria’s oil in…

NIMASA's-29-7-15--CopyFOR the past eight months, Global oil prices have fallen drastically, leading to revenue shortfalls in some energy exporting countries including Nigeria.

The Federal Government seems to understand the implication of this development on Nigeria’s economy and has repeatedly canvassed need to diversify and create other sources of income.

Besides, demand for Nigeria’s oil in the international market is reportedly on the downward side, fueling speculations that except urgent steps are taken to diversify the nation’s revenue base, the economy may literary grind to a halt in the near future.
Indeed, knowledgeable observers are of the opinion that the unfolding scenario may turn out to be a ‘golden opportunity’ for the nation to explore huge revenue potential in the maritime sector coupled with prospects for numerous job opportunities.

According to experts, the Nigeria maritime sector if adequately harnessed has the potential to generate more revenue into the federation accounts.

For example, between 2009 and June this year, the Federal Government through the Nigerian Maritime Administration and Safety Agency (NIMASA) generated $1.99billion (N4.9trillion) from the three per cent levy on freight.

Breakdown of the figure revealed that the highest collection of $335.7 million and $287.3million was recorded in 2014 and 2013 respectively.

Indeed, seasoned maritime lawyer and Senior Advocate of Nigeria (SAN), Olisa Agbakoba is of the opinion that Nigeria’s maritime sector has huge untapped revenue estimated at N7 trillion per annum.

Agbakoba, a pioneer President of the Nigerian Chamber of Shipping (NCS), explained recently that in order to tap revenue from the maritime sector, there is
need to overhaul existing policies, institutions, regulatory and legal framework in the sector.

An economist, Matthew R. Otoide, in a chat with The Guardian on Monday, described the maritime sector as the “solution to the revenue challenges” facing the country.

He said Nigerian Ports Authority (NPA), NIMASA, and other agencies in the sector should be encouraged to block leakages and contribute more to the federation account.

He also emphasized need to sustain capacity building in the sector, adding that the development is capable of providing jobs for Nigerians within and outside the country.

The former Director-General of NIMASA, Dr Patrick Akpobolokemi had on assumption of office, articulated a four-point agenda, which he described as blue- print and strategy for the implementation of NIMASA policy objective, derived from the agency’s statutory mandate.

The four point agenda, according to Akpobolokemi was conceived to guide management in prioritizing programme areas and efforts towards the implementation of the NIMASA policy objectives.

Some of the programmes highlighted by the agency are National Seafarers Development Programme (NSDP), NIMASA Science and Technical College, Okoloba, Delta State, Nigerian Maritime University (NMU), Okrerenkoko, NIMASA Maritime Institute and NIMASA Shipyard and Dockyard, Okerenkoko, among others.

The former NIMASA boss predicted that NMU would produce high-level manpower for the maritime/shipping sector on a sustainable basis.

According to Akpobolokemi, the University located in Okerenkoko, Warri South West Local Government area, Delta State will provide training for seafarers, master mariners, marine engineers, naval architects, nautical scientists and other specialised maritime/shipping trade skills.

He said the University is envisaged to become a centre for excellence in innovative research for the maritime sector in the West and Central Africa sub-region.

He said: “Over 2,500 young Nigerians have benefitted or are currently enjoying various levels of scholarship in reputable institutions in the United Kingdom, Egypt, Romania, India and Philippines”.

He said the agency has no doubt that in the next five years, Nigeria would have produced a sizeable number of qualified seafarers, “satisfying local demands and also earning scarce foreign exchange from working on board foreign ships”.

He said the improved International Ships and Port Facility Security (ISPS ) code compliance level in Nigerian ports and terminals has pitched those benefiting from the status quo against the agency.

Akpobolokemi said: “The NIMASA Satellite Surveillance Centre has also assisted in our quest to combat all illicit activities in the Nigerian maritime domain and beyond.

“The Agency is now able to respond to any distress call on Nigerian waters and even beyond. The new 24-hour Satellite Surveillance equipment has the capability to detect boats, ships and objects of predefined cross-section floating on water and has helped to reduce incidence of piracy and oil theft to the barest minimum.

“This achievement of ours has pitched the sponsors of oil theft and piracy attacks against the Agency and hence the numerous mudslinging on NIMASA and its leadership most of which are sponsored by unscrupulous elements.

“Our vision is to transform the maritime sector into an industry that will generate capable local manpower, which will contribute significantly to the nation’s Gross Domestic Product (GDP)”.

Also speaking the huge economic potential in the maritime sector, Managing Director of NPA, Alhaji Sanusi Lamido Ado Bayero and Chief Executive Officer, Sifax Group, Dr Taiwo Afolabi recently urged stakeholders to reposition the sector in the interest of Nigeria’s economy.
According to Bayero, there is need for the maritime sector to provide what he identified as formidable alternative to oil and gas in term of revenue generation.

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