ALL YOU NEED TO KNOW ABOUT DOING MARITIME TRANSPORTATION BUSINESS IN NIGERIA.

ALL YOU NEED TO KNOW ABOUT DOING MARITIME TRANSPORTATION BUSINESS IN NIGERIA.

                                                PHOTO CREDIT: FRANK MCKENNA

The Nigerian maritime industry is estimated to worth over 10 billion dollars annually and pose a huge potential and robustness if properly harnessed.

From a glance it could look challenging but its potential should attract any experienced entrepreneur. The various segments potential entrepreneurs can tap into include ship operations, cargo importation and various support services which span the supply chain.

There are two identifiable operations that any entrepreneur can key into and these include;

v There’s an active coastal shipping environment in which imported petroleum products must be trans-shipped daily from mother ships to daughter ships and transported from offshore locations to terminals and jetties in the hinterlands.

 

v There’s a robust fleet of offshore support vessels that operate offshore operations in oil exploration and production.

As the years go by, the Nigerian maritime industry is expending more and more and should attract any seasoned investors. For instance, international oil companies must regularly update their work plans to reflect the vessel employment needs for their operations with date suggesting that there is an annual spend of approximately 3 billion dollars on offshore supply Vessels in Nigeria.

Any potential investor in Nigerian maritime space must conform to a range of regulation often updated by NIMASA.

They must understand the Nigerian cabotage laws and must navigate important compliance issues, which includes the nature of registration and the flag state of operation.

In early 2019 Nigerian Maritime Administration & safety Agency (NIMASA) issued new guidelines on the granting of waiver but this has been abolished by the current administration.

A potential investor must also understand & review fiscal obligations and options available for a smooth vessel importation and best approach to participation.

The would-be investor must consider the appropriate structures of operation, safety and safety issues and a great knowledge of marine environmental management.

Currently, there are no financing option from either the public or the private sector, but the management of NIMASA, headed by Dr. Braimoh Jamoh is putting things in place to make that feasible.

Given the high levels of foreign participation, the reality on ground is not as bad as it seems. However, it is important to seek professional guideline in navigating this environment which NIMASA can gladly provide.