As Nigeria sets its sights on a staggering N36.35 trillion revenue target to fund the 2025 budget, the maritime sector emerges as a linchpin in this ambitious financial strategy. With an extensive coastline, a prime position on international trade routes, and a treasure trove of natural resources, Nigeria’s maritime domain is a goldmine waiting to be tapped. Stakeholders estimate that by fully harnessing maritime activities, including shipping and port operations, the sector could contribute over N7 trillion annually and create around 40 million jobs, significantly boosting national development. Yet, inefficiencies have stifled growth, leaving the sector on the sidelines and not a major player in the country’s GDP.
Despite the undeniable potential of the blue economy, which has been pegged at an eye-watering $296 billion, the maritime industry has not yet made the leap to become a cornerstone of Nigeria’s economic landscape. President Bola Ahmed Tinubu’s establishment of the Ministry of Marine and Blue Economy in 2023 was a step in the right direction, but one year later, stakeholders are still waiting for tangible results. The call for action is loud and clear: modernise port infrastructure, prioritise local content, streamline regulatory frameworks, enforce safety codes, leverage digital technologies, build local capacity, and improve security.
Nigeria’s ports are in dire straits. Outdated infrastructure and chronic congestion have rendered them less competitive in West and Central Africa. The Executive Secretary of the Nigerian Shippers’ Council, Pius Akutah, paints a grim picture of insufficient cargo handling equipment and poor road networks. The Nigerian Ports Authority estimates that a hefty $1.1 billion is needed to rehabilitate key ports like Apapa and Tin Can Island. Stakeholders are adamant that automation and dredging must be prioritised to breathe new life into port operations.
Local content is another critical area that needs attention. The Coastal and Inland Shipping (Cabotage) Act has not led to the expected growth in indigenous shipping. Instead, Nigeria hemorrhages around $9.2 billion each year to foreign vessels. Greg Ogbeifun, Chairman of Starzs Investments Company, urges financial backing for local operators to secure vessels and revive a national shipping line. With over N3 trillion in investments in indigenous bonded terminals lying dormant, there’s a clear opportunity to shift gears. The government could look to Ghana’s successful maritime policies and consider a 60:40 operational ratio favouring local operators, as suggested by Haruna Omolajomo of the Association of Bonded Terminal Operators of Nigeria.
Furthermore, the regulatory landscape is a tangled web that hampers efficiency. Despite efforts to streamline operations through Executive Order 001, compliance remains a challenge. Stakeholders advocate for a National Single Window system that would harmonise the myriad of regulatory bodies, reducing delays and attracting foreign direct investment.
Safety on Nigeria’s waterways is another pressing concern. The National Inland Waterways Authority’s transport code is a step in the right direction, establishing a legal framework for safety and environmental protection. However, enforcement remains weak. Stakeholders are calling for stricter measures to ensure compliance and safeguard lives, particularly in light of frequent boat mishaps.
Digitalisation is pivotal for the maritime sector’s future. While other nations have embraced electronic payment systems and blockchain technology, Nigeria lags behind. Akutah argues that investing in digital technologies is essential for modernising operations and curbing corruption. The global shift towards e-commerce presents a ripe opportunity for Nigeria to enhance its digital capabilities and automate port operations.
Finally, the maritime sector holds the potential to create a staggering 40 million jobs. However, the current reliance on foreign expertise leaves many Nigerian youths on the sidelines. By prioritising local capacity building and ensuring that Nigerians take the helm in maritime operations, the sector can not only reduce unemployment but also foster a sense of national pride and ownership.
In this pivotal moment, the maritime sector stands at a crossroads. With the right investments, policies, and enforcement, Nigeria can unlock the immense potential of its maritime domain, transforming it into a powerhouse of economic growth and revenue generation. The question is, will the government and stakeholders rise to the occasion? The clock is ticking.
