Does Nigeria have the requisite statutory instruments to protect the development of its maritime industry?
The use of statutory instruments is not peculiar to Nigeria. These instruments are essentially maritime technical development regulations that require technical expertise for their effective utilization and implementation. In the United Kingdom it is called the Home Trade and it addresses trade, technical and human capacity development. In the United States, The Jones Act was designed to protect existing maritime industry and prepare it for growth.
Nigeria has the benefit of two excellent instruments in the Local Content Act and the Cabotage Act. The first was adopted based on the internal technical local content gaps identified within the oil and gas industry. Its modest positive impact is largely due to its implementation by technical experts with thorough understanding of the industry.
The Cabotage Act is the most important instrument that is capable of transforming the Nigerian maritime sector; both technically and economically. It makes provision for indigenization of ship building, ship repairs, ship ownership and local capacity development. This law also has a major and very important provision; that is an independent fund for maritime development in the form of Cabotage Vessel Finance Fund. Presently, an initial $200 million is available in the CVFF. This is a great impetus for Nigerian engineers and technicians to build ships locally. Besides, the funds can also be channeled to enhance ship repair, procure new ships that are cabotage-specific and enable new companies to benefit. All these will definitely transform the Nigerian maritime industry over time.
How can Nigeria maximize its potentials in the maritime industry?
Nigeria is blessed with a network of inland waterways that span the length and breadth of the country. Developed countries with such natural endowments have utilized them to accelerate industrialization and economic growth. Specifically, areas of opportunity are in ship repair, oil exploration, oil export and import, cargo import and export, short sea trade, fishing, support services including harbor maintenance. In Nigeria, there are immense opportunities not fully tapped for employment generation in areas like ship repair, ship building, inland water transportation and industries, offshore services and oil exploration.
What is your position on developing local content policy?
It is imperative that any serious-minded country must develop its own local content policy to maximize its potentials in maritime business. One must realize that 90% of the global trade is transported through the seas. The maritime industry is therefore a veritable industry which is an alternative to oil and gas industry in Nigeria. The world energy supply will collapse without sea transportation and the quest to sustain these trades has meant trans-national investment in the maritime industry. Nigeria must take its local content policy with the utmost seriousness. There is no reason why we cannot build and repair ships on our shores. The relevant agencies of government engaged in the maritime sector can make up to ten times the revenue they make now from a fully developed, sustainable maritime industry.
What advise would you give the government on how to reposition the maritime industry?
Our road networks will last longer and lives saved through reduction of accidents when we organize and utilize our inland water transportation channels. This cannot and should not be funded by government alone; the private sector must play a prominent role.
The strategic importance of this sector to national and international energy supply chain also means that external influence in this sector cannot be ignored. However, necessary measures must be taken to protect the overall national interest. The enactment of the Local Content Act is probably one of the most important steps taken so far to ensure that the oil and gas sector promotes national technical development including the maritime sector due to the high number of marine vessels covered by international and national regulations. It is to the credit of the Federal Government that the issue of security, peace and disarmament are taken very seriously and this will continue to enhance confidence in the maritime industry. Government has taken steps to fight the menace of piracy and armed attacks against ships. Greater collaboration with friendly international partners can only but help to establish Nigeria as the destination of choice in the maritime business in Africa.
