MaritimeNigeria boasts a vast maritime sector that holds the promise of contributing over N7 trillion annually to the nation’s economy. However, despite this potential, the maritime industry faces significant challenges, primarily stemming from poor investment in information technology (IT) infrastructure and other critical areas.
The failure to make adequate investments in information technology infrastructure has hampered the sector’s growth and efficiency. Without robust IT systems and digital solutions, key maritime activities such as real-time monitoring, surveillance, and security remain inadequate, leaving the industry vulnerable to threats such as sea piracy, illegal arms trafficking, and environmental degradation.
With its extensive coastline spanning approximately 853 kilometers and an exclusive economic zone in the Gulf of Guinea, Nigeria is endowed with abundant marine resources that, if properly harnessed, could fuel economic prosperity.
Recently, at the African Maritime Art Exhibition (AMAE) in Lagos, stakeholders from across the maritime spectrum convened to address these pressing issues. The theme of the event, “The Convergence – Maritime meets ICT,” underscored the urgent need to integrate Information and Communication Technologies (ICT) into Nigeria’s maritime sector.
Led by the country lead and programme adviser of the Global Digital Access Programme with the United Kingdom (UK) Government, Idongesit Udoh, participants emphasised the critical role of ICT in fostering sustainability and economic growth within the industry.
Udoh outlined key areas where ICT disruption could revolutionise Nigeria’s blue economy. These included real-time monitoring of marine activities, satellite imaging, Internet of Things (IoT) sensors, and Artificial Intelligence (AI) applications for enhanced surveillance and security.
He stressed that strategic investment in technology is essential for Nigeria to tap into its share of the global blue economy, which is estimated to be worth $1.5 trillion annually and projected to double by 2030.
While the potential benefits of embracing ICT in the maritime sector are clear, challenges persist. Marine pollution, for instance, poses a significant threat to ecosystems and economic activities.
Udoh underscored the significant economic opportunities presented by the global blue economy, estimated to be worth $1.5 trillion annually and projected to double by 2030. To tap into this lucrative sector, Nigeria must prioritise investments in technology to enhance the efficiency, security, and sustainability of its maritime operations.
In addition to poor IT investment, other factors contribute to stifling Nigeria’s maritime potential. Marine pollution remains a significant challenge, threatening marine ecosystems, food security, and economic gains.
Founder of the African Marine Environment Sustainability Initiative, Dr. Felicia Mogo, emphasised the urgent need to tackle marine pollution and advocate for stronger regulatory measures at the global level.
Furthermore, insecurity in Nigeria’s coastal waters, compounded by maritime insecurity in the Gulf of Guinea, poses significant obstacles to the development of the blue economy.
A prominent indigenous shipowner, Aminu Umar, highlighted the need for enhanced security measures to protect vessels and instill confidence in maritime activities.
According to the director-general, Nigerian Marítime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola, blue economy contributed $6.1billion to Bangladeshi economy; $108billion to Thailand economy; 23 per cent to Malaysia economy among others.
However, the challenges of sea piracy, illegal arms trafficking, terrorism, destruction of maritime ecosystems, pollution, global climate change, and the overreliance on oil and gas, have made the potential a pipe dream for the Nigeria.
Also, lack of sustainable policy framework, regulations have been attributed to the difficulties in harnessing potential of Blue Economy in the sector.
For instance, indigenous shipowners, trawler owners, insurance underwriters, chandlers and bunkerers have complained about harsh operating environment and inconsistent policies that have affected harnessing potential in the sector.
While indigenous shipowners complained about non disbursement of Cabotage Vessel Finance Fund (CVFF).
The secretary-general, NISA, Otunba Rotimi Durowaye, believed that disbursement of the CVFF would rebound and stimulate the sector for growth.
According to him, without ship, there is no maritime sector and he insisted on the disbursement of CVFF by the federal government, believing that both CVFF and maritime bank will provide huge pools of funds for not only shipowners but for other investors in the industry.
Also, indigenous trawler owners identified high operating cost as impediments to harnessing potential in the sector.
Speaking recently, president of Nigerian Shipowners Association (NISA) Otunba Shola Adewunmi, lamented that Nigeria is losing a lot to other neighbouring countries like Lome on the Ship to Ship (STS) Transfer operations.
“We are losing a lot to other neighbouring countries like Lome on the Ship to Ship (STS) Transfer operations. Auxiliary jobs are being taken away from us in millions of dollars, there is need for NIMASA to rebrand Ship bunkering, there is nothing like illegal bunkering,” he said
The president of Nigeria Trawler Owners Association (NITOA), Ben Okonkwo, pointed out that most of their vessels are abandoned at various jetties across the country over harsh operating environment.
“The jettiese everywhere have our vessels tied up there, doing nothing because we can’t afford the cost of diesel for operations. What happens when vessels are tied up doing nothing? The workers become laid off and unemployed. That’s the stark reality of what happens when vessels are doing nothing. For trawler owners to bounce back into operations, we are asking for some kind of logistics arrangement from NNPC or Dangote Refinery in the area of AGO provision,” she said.
However, speaking on how to harness the N7trillion inherent in the nation’s blue economy sector, the chairman, SIFAX Group, Dr. Taiwo Afolabi, identified coastal tourism and renewable energy generation as some of the potential areas of growth that Nigeria needs to take advantage of in developing its blue economy.
Afolabi, noted that the country has many untapped opportunities in the maritime sector.
He said developing the country’s blue economy is now more imperative than ever due to the government’s policy of moving away from the largely one-product economy that Nigeria has been running for decades.
He said, “Serious attention should be devoted to the development of our coastlines by the government as this could spur huge recreational and economic activities around such localities. Coastal tourism development has the potential to provide socio-economic benefits to Nigeria, especially during this period when the Nigerian government is trying to diversify the economy from being a predominantly crude oil-based economy to a multi-product economy, which can withstand the volatility in oil prices in the world market.
“One other lucrative sector within the blue economy concept is the opportunity for harvesting renewable energy. Renewable energies, such as wind, solar, hydro, and tidal energy, are energy alternatives to fossil fuels that can contribute to reducing the carbon footprint of the maritime sector.”
Afolabi further noted that the country can learn from the experience of Phillipines which has deployed more seafarers in the global shipping business than any other country. He said the country needs to develop a robust maritime educational curriculum that takes into cognisance technology, trends, and the dynamic nature of the industry.
Afolabi, however, cautioned that tapping the potential in the blue economy should be done responsibly and sustainably even as he identified some of the sustainable measures of using the country’s ocean resources that include the promotion of sustainable aquaculture practices, modern environmental waste management, monitoring, control, and surveillance of Nigeria’s territorial waters, and improvement of maritime safety and security.
Others are the preservation of marine ecosystems, addressing the challenge of pollution in coastal areas, enactment of laws that promote the blue economy, and proper regulation by relevant government agencies.
Also, the managing director, NLNG Ship Management Limited, Abdul-Kadir Ahmed, had said for government to harness the potential, they must provide and enforced regulations, safety and oversight functions, saying private sector should be the driver of harnessing the Blue Economy potentials.
In a chat with NATIONAL ECONOMY Ahmed, said, “Blue Economy will be driven by the private sector. The benefits of the blue Economy will be driven by the private sector. The government is to provide regulations to allow the private sector thrive and safety is important.
“Government and regulatory authorities are to ensure that safety is assured. Competitiveness should be on the front burner and the expectations is to strengthen regulations, oversight for private sector to take the lead in harnessing the potentials inherent in the sector.”
Meanwhile, the director/CEO of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf stated that, “the Nigerian economy is still going through corrective reforms to remove some fundamental distortions and restore the economy back to the path of recovery and growth. But implementing the reforms is an arduous task.”
He added that, “the tradeoffs are profound and the social impact has been devastating. Given the inevitability of the reforms, the implementation calls for a delicate balancing act and strategic sequencing to ensure an inclusive economic transition.
“Dealing with the issues of insecurity, spending priorities, corruption, productivity and competitiveness, regulatory environment and macroeconomic stability are paramount to rebuilding the momentum of economic growth and development.”
The shipowners also revealed staggering losses, painting a bleak picture of an industry struggling against the tide of inadequate infrastructure.
During the “National Discourse with Distinguished Maritime Personalities” organised by Maritime Nigeria Limited in Lagos, startling revelations emerged regarding the dire state of Nigeria’s maritime sector.
The shipowners disclosed that the sector is grappling with an annual loss of approximately N1 trillion ($1 billion) due to inadequate infrastructure.
Former president of the Shipowners Association of Nigeria and CEO of Starz Marine and Engineering Limited, Greg Ogbeifun, sounded the alarm, detailing the sector’s hemorrhaging finances. With a shortage of vessels, deficient infrastructure, and logistical bottlenecks in cargo transportation, Ogbeifun estimated an annual loss nearing N1 trillion ($1 billion) across the sector. “This country is hemorrhaging close to N1 trillion across the entire shipping sector, encompassing infrastructure, human capacity, and cargo carriage,” he declared gravely.
In response to the crisis, Ogbeifun called upon the private sector within the shipping subsector to take the reins in implementing transformative policies crucial for the industry’s revival.
Echoing Ogbeifun’s concerns, Gbolahan Adu, representing the Nigerian Indigenous Shipowners Association (NISA), stressed the imperative of sweeping reforms. NISA’s public relations officer, Sola Adewunmi, emphasised the urgent need to empower Nigeria’s youth to inject fresh ideas and innovation into the maritime sector.
However, amidst the discourse on revitalisation, Kelvin Kagbare, the event’s convener, expressed reservations about diverting resources to establish maritime and transportation-focused educational institutions. Instead, he urged a laser focus on addressing existing challenges and infrastructure deficits before embarking on such ventures.
