Digging into Nigeria’s Maritime Potentials

Yinka Olatunbosun

Nigeria’s maritime goldmine-if properly harnessed- has enormous potentials. The very nature of the Nigerian economy, which is import-dependent, as well as oil economy, boosts her export cargo. Even to bystanders in Nigeria’s state of affairs, this is an indication that the maritime industry will remain critical to the growth of the nation’s economy. The industry provides the government with the right platform to diversify the economy furnished with the capable of overtaking oil and gas’ contribution to the GDP of the country. To achieve that, a practical and holistic plan is required to address the issues challenging the industry…”

That is how Greg Ogbeifun concludes the third chapter of his seminal book on Nigeria’s maritime life, ‘Potentials of Nigeria’s Maritime Economy’. Ogbeifun is a trained and seasoned practising maritime operator armed with the weight of knowledge and experience. Ogbeifun’s book strikes a familiar chord to many Nigerians. The maritime sector, like other sectors of Nigeria’s economic life, suffer similar if not worst neglect, poor regulatory and support mandate required to drive them to success for the country’s economic wellbeing.
The upside of diversifying the economy that a properly managed maritime life could achieve both for government and the citizenry is job creation and robust GDP that the government also lament about. But with the abysmal neglect of that sector, both its potential to create jobs and contribute to the country’s GDP are lost, just as foreign operators smile home with billions of dollars yearly that could have accrued to local operators and government’s coffers.

Being a capital intensive business coupled with the difficulty of securing funding in Nigeria’s double digit lending rates, Ogbeifun argues that government has a large role to play to assist local investors in the maritime business, so they can compete with foreign operators. And he canvasses increased stakeholder engagement during government’s policy formulation, so government is properly advised what path to follow, backed up with appropriate legal framework that drives the business, developing the nation’s steel industry as key to shipbuilding and repairs and provide electric power as well as guarantee fiscal incentives like tax holidays, avoid multiple taxation and extortionist policies.
Ogbeifun, who has successfully operated Starz Shipyard argues that there’s a dearth of skilled manpower in the maritime sector, because the training institutions in the country are poorly equipped.

Ogbeifun also states that while there are some shipyards or dockyards in the country operating, they are limited in scope and so ships go to neighbouring West African countries or Europe or Asia for repairs and shipbuilding. He estimates losses to Nigeria at US$500 million annually and laments that this is also another huge economy opportunity being lost to foreigners, because of the inability of Nigeria’s to tap into ship repairs alone. He blames some of these inadequacies on the lack of funding that operators in the sector face, urging the government to make the Cabotage Vessel Financing Fund as established by the Cabotage Act of 2003 operational for local ship-owners. This, he argues, will draw funds that can help to expand their maritime business, since they have also contributed to the funds domiciled in the fund.

With this book, Ogbeifun has served Nigerians and their government a necessary meal but hard to digest. If ever a book is timely, it’s ‘Potentials of Nigerian Maritime Economy’. Ogbeifun has painstakingly outlined best strategy to bridge the gaps both in the short and long term. As in all big businesses requiring huge investment, Ogbeifun lays the guilt charges at the doorstep of government, because while the Nigerian government leaves its citizens to fend for themselves the best way they can, the foreign operators that they are in competition with have the strong backing of their home governments in the juicy incentives they enjoy back home to out-compete their Nigerian counterparts who have nowhere to fall back on for anything. Ogbeifun desires that this sad narrative for the maritime sector will change for the better in no distant time.