Wednesday 5 August 2020

EXPANDING NIGERIA’S MARITIME INDUSTRY

EXPANDING NIGERIA’S MARITIME INDUSTRY

PICTURE CREDIT: CHRIS PAGAN

Nigeria is yet to achieve its full capacity in the maritime sector. There is no doubt that Nigeria is major globally recognized and reputable maritime Nation with over 8000km of navigable inland and coastal channels, including its fresh water lakes, but is still far from achieving it’s potential in boosting the country GDP.

Research has shown that there are many factors inhibiting this potential. For instance, Nigerian seaports are relatively small for modern vessels to load or discharge bulk cargoes and liquefied products compared to modern seaports in developed countries. Secondly, the Nigerian waterways are not deep enough for the navigation of these modern vessels.

The setbacks need urgent attention and must be corrected immediately if we must compete favourably with our counterparts elsewhere, and this has the ability of reducing Nigeria’s level of involvement in international trade and the global economy.

Nigeria needs to copy the strategic efforts of world renowned maritime nation’s like panama, Nicaragua, Norway, the United States and Denmark and create a significant future for effective and efficient global maritime economy. This is achievable and must be pursued.

Nigeria needs to start thinking ahead of its African peers in building a sustainable maritime economy to boost its GDP. Countries like Nicaragua are positioning itself for the future, for instance, a recent proposal highlighted the potential of connecting the Atlantic Ocean to the Pacific Ocean via the Nicaraguan lake and isthmus of Rivas. This would facilitate the passage of large vessels of over 80,000dwt, speeding transit times and decongesting the Panama Canal, thus bringing much income to the Nicaraguan government. Nigeria strongly needs to be thinking towards that direction.

In so doing, the country’s GDP would benefit enormously if the right things are put in areas for effective maritime competitiveness and significant trade participation larger vessels.

The plans to expand the Nigerian maritime industry should not be limited to deepening the coastal waterways but should be extended to the re-enforcement of human capital within the maritime sector such as management and financial empowerment, digital supply chain proficiency etc.

A recent study by the Nigerian ports Authority (NPA) in 2017 found out that a whooping $7 billion dollars of annual revenue is lost due to inefficiencies and weak infrastructure of Nigerian Seaports, this suggests that more needs to be done in this sector.

In conclusion, in expanding the Nigerian Maritime industry, the government needs to create a more competitive and enabling infrastructure, including digital logistics, inland waterways expansion, foreign direct investment and encouraging more private investors to enter the maritime business.

These definitely would help Nigeria and also boost its economic situation.

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