Maritime Sector Holds Potentials for National Growth – Group.

Maritime Sector Holds Potentials for National Growth – Group.

By Fabian Anawo

Despite daunting challenges, the Nigeria Maritime sector has the potential for sustainable national growth.

So says a group, Sea Empowerment Research Centre in its New Year Bulletin featuring ‘Critical Review of The Nigeria Maritime Industry (Performances And Issues) In 2024.’

The group said that the
Maritime industry in 2024 boasts of necessary fundamentals that could engineer growth and development if properly harnessed.

The challenges it observed are the issues of safety and security with piracy, sea robbery and illegal bunkering, which it notes that NIMASA and Tantita Security Services are tackling head on.

The research shows that the shipping sector is still experiencing some challenges, but quickly pointed out that some high-value deals in the sector, such as the Maritime Reporters Association of Nigeria, MARAN’s order for shuttle tankers which suggests that investors are still interested in the industry,” gives much hope.

These challenges, the report observes are responsible for why Nigeria is still ranked low globally. At present, the Nigeria maritime industry is ranked 48th in terms of merchant shipping fleet, with the country’s shipping sector contributing an insignificant 1.6 million tonnage to the world’s merchant shipping fleet in 2019. The country’s ports are ranked 183 out of 185 countries in terms of efficiency (World Bank’s Trading Across Border indicator.)

“This ranking, it notes is due to various challenges such as delay of import/export processes, unofficial charges, human interface, technical breakdown, and security concerns that are prevalent in Nigerian ports.

“Thus, while port predictability and competitiveness appears a foul cry, the port’s delivery corridors are also bedeviled by human barrier elements, impeding the fluidity of prompt cargo delivery,” the review said.

Continuing, it says that the global ranking is more or less a testimonial, constituting and pointing at how the maritime industry fared in 2024.

The research report states that with the right investments, policies and regulations, the industry can play a crucial role in driving the country’s economy and connecting Nigeria to the global market.

It also notes that to improve the industry’s global ranking, it is essential to address the myriad of challenges plaguing it and implement reforms that will enhance the efficiency and competitiveness of the ports.

The report also affirmed that the government must work towards creating a more favourable business environment with a stable and predictable foreign exchange rate to attract investments and stimulate growth in the maritime sector.

The Centre advised the government to take urgent steps to address the issue of the unregulated foreign exchange rate and provide a stable and predictable environment for investors to operate in.

It notes that the port import throughput is on the downward indicators as well as ship calls to the port when compared to the previous year’s and called for urgent attention to reverse the trend.

It agrees that the regulatory frameworks in place such as the NIMASA Act, the Coastal and Inland Shipping (Cabotage) Act and the Merchant Shipping Act have helped to shape the maritime sector, saying that more needs to be done to address the myraid of challenges facing the industry.