Stakeholders decry foreign dominance of domestic shipping

Stakeholders in the maritime industry have strongly bemoaned the current state of the nation where foreign interests still control 98 per cent of shipment of export and import, especially oil and gas cargo, leaving a paltry two per cent for indigenous operators.

They stated this at the Taiwo Afolabi Annual Maritime (TAAM) Conference organised by the SIFAX Group in collaboration with the Maritime Forum of the University of Lagos, with the theme, “The Maritime Roadmap Project: Making Nigeria a Leading Maritime Nation in the World.”

Former President of the African Shipowners Association, Temisan Omatseye, who spoke on the topic, ‘Measurable Standards In the Nigerian Maritime Industry: Forging A Path Towards Sustainable Shipping,’ said this anomaly has been allowed to persist despite the abundant maritime potentials and human capabilities Nigerians possess.

Omatseye, also a former Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), lamented that following the monopoly of operations, where the Federal Government allows foreign liners lift and import cargo, has caused indigenous shipping firms to become depressed and incapacitated.

He also said foreign liners now enjoy all kinds of benefits and impose all manner of arbitrary freight and sundry charges on Nigeria-bound cargo to the disadvantage of the country and her economy.

He said the only way to address this problem is for the Federal Government to commence a Fleet Replacement Programme to enable indigenous shipping lines to acquire modern vessels that meet current technology and global acceptance in shipping.

He said government should, as a matter of urgency, begin to grant national carrier status to indigenous shipping companies as provided for in section 36 of the NIMASA Act, 2007, which statutorily empowers such national carriers to lift all project cargoes belonging to the Federal, State and Local Governments in the country.

Omatseye also added that the government must begin to operationalise Nigerian laws to discourage foreigners from intimidating indigenous operators.

He further suggested a deliberate policy for manpower training and tax-free remittances of seamen, even as welders with international certification should be trained in Nigeria while marine architects and nautical engineers must be locally trained to design local vessels that meet global standards in terms of quality and specifications.

Omatseye strongly recommended that the Lagos anchorage be made an international shipping hub by providing dedicated areas for bunker operations.

He also charged the Federal Government to work with her training institutions to design international LNG bunker operations, while a fleet development programme will enhance the construction of new-build vessels to run on both diesel and natural gas.

Chairman of the SIFAX Group, Dr. Taiwo Afolabi noted that the days of over-reliance on oil for Nigeria’s economic sustenance were over; given the uncertainties in the global oil and gas market, as well as the rising need for cleaner sources of energy.

Afolabi who was represented by the Managing Director, Sky Capital (a subsidiary of the SIFAX Group), Bode Ojeniyi, said the potentials of the country’s maritime sector must be urgently exploited.

He said judging by the industry’s potential, Nigeria can rank among the best in the world, as it will only take careful planning, progressive policies, generous funding, enabling environment, friendly economic policies, manpower development and massive infrastructural development.

On his part, the Director General, the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, said there are universally accepted criteria for evaluating the status of an individual country in the comity of maritime nations.

He said these include, capacity in terms of shipbuilding and repairs, depth of its financial markets and banking system, existence of fiscal and monetary incentives, availability of institutions for the training/certification of seafarers as well as general sea consciousness/cultural affinity amongst others.

Jamoh, who was represented by the Director of Internal Audit, Olamide Odusanya, said over the years, Nigeria has acquired and maintained a rudimentary shipbuilding capacity, albeit for mostly barges, houseboats and other flat-bottomed vessels.

He said recently, the agency has taken note of the steady development of capacity for building keeled ships such as patrol and ocean support boats, noting that the Nigerian Navy has done appreciably well in this regard.

Jamoh emphasised the need for fiscal and monetary incentives to promote and sustain investment in shipping, adding that the industry requires constant government intervention via subsidy and shipyard loan schemes for its continued development and ultimate promotion of indigenous maritime capacity.

He also noted that capacity for the training and certification of seafarers is another critical yardstick for evaluating national shipping status, saying Nigeria remains largely a work in progress when compared to some of the global maritime powers who have mastered seaborne trade for several centuries and have earned the right to be taken seriously and respected at the international level.

He added that Nigeria’s position, as a regional leader remains unassailable in terms of volume of trade, accession to key maritime conventions and the development of the in-country capacity of unparalleled significance in Africa.