Experts advocate PPP, innovative funding to develop waterways facilities

Experts have called for innovative financing mechanisms, private sector involvement and international partnerships to drive the effective management and development of the National Inland Waterways Authority (NIWA) without burdening the Federal Government.

The Dean of the Faculty at City University, Cambodia, Prof. Alfred Oniye, emphasised the critical need for sustainable approaches, such as public-private partnerships (PPPs), concession agreements, Build-operate-transfer (BOT) models and alternative financing strategies, to enhance the development and management of the nation’s waterways.

According to him, these strategies align with global best practices, wherein governments collaborate with private sector investments and attract international funding to develop critical infrastructure, ensuring long-term economic benefits.

These recommendations were outlined in his paper titled: “Managing and Developing the National Inland Waterways Authority at No Cost to the Federal Government.” His suggestions come at a time when Nigeria is seeking to diversify its economy, eliminate water-related accidents, and reduce pressure on road transport infrastructure.

He explained that NIWA is responsible for regulating inland water navigation, issuing licenses, conducting surveys and maintaining navigational aids. Despite its potential, Oniye stated that NIWA faces several challenges, including inadequate funding, poor infrastructure, and limited private sector involvement, which hinder its ability to fully exploit the economic benefits of inland waterways.

He believes that encouraging private sector investment through PPPs can help bridge the funding gap in waterway infrastructure development. Oniye proposed that by attracting private entities to invest in infrastructure while allowing them to share in the revenue generated from waterway operations, the government can maintain regulatory oversight while alleviating the financial burden through private capital and expertise.

He also advocated for long-term concession agreements, where private companies are entrusted with the development, maintenance and operation of specific waterway segments.

Oniye said under such agreements, companies could be responsible for generating revenue through user fees and other charges, ensuring sustainability and cost-effectiveness.

Additionally, under the BOT model, private investors would finance, construct and operate waterway infrastructure for a set period before transferring ownership back to the government. He said this will ensure the infrastructure is developed without an immediate financial outlay from the government.

To further enhance the revenue-generating capacity of Nigeria’s inland waterways, Oniye proposed implementing revenue-sharing agreements with private operators. He said this would allow NIWA to benefit from a portion of the income generated by cargo handling, passenger transport and other commercial activities.

Oniye also emphasised the importance of seeking grants and international funding from organisations such as development banks and foreign governments. These funds, he said, could support the development of essential infrastructure, environmental management, and capacity-building projects within the waterways sector.

Oniye further stated that partnerships with corporations, particularly those involved in infrastructure and environmental conservation, could also contribute to waterway projects as part of their corporate social responsibility (CSR) commitments.

Oniye further suggested exploring innovative financing mechanisms, such as green bonds, impact investing and crowd-funding, to provide alternative sources of funding for NIWA’s waterways projects.

He said these alternatives could attract investors with a focus on sustainability and social impact, further expanding the financial base for waterway development.

Oniye concluded that these mechanisms could attract investors interested in sustainable and socially responsible projects, adding that the development of Nigeria’s inland waterways represents an opportunity to stimulate the economy through more efficient transportation, job creation, regional development, and environmental sustainability.

In an open memorandum addressed to the Chairman of the Committee on the Review of Incessant Boat Mishaps on Nigerian waterways, the Founder of the Sea Empowerment and Research Centre (SEREC), Dr Eugene Nweke, called for the development of a comprehensive dredging plan and a sustainable water hyacinth management strategy.

Nweke emphasised that the committee plays a strategic role in addressing the increasing boat accidents on the inland waterways, particularly in the northern and central regions. He further stated that an effective water hyacinth management strategy must balance the needs of commercial boat operations with environmental concerns.

Also, Nweke highlighted the importance of conducting a thorough assessment of the topographic challenges affecting inland waterways and developing strategies to mitigate these issues.