The Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, said that the disbursement of the Cabotage Vessel Financing Fund (CVFF) would support the growth and development of the shipping business in the country.

Oyetola said this during the stakeholders’ engagement with the shipowners and port operators held in Lagos on Tuesday.

He said that the Ministry of Marine and Blue Economy was committed to delivering the disbursement of the CVFF to enhance efficiency, transparency, and competitiveness in the sector.

“The government has identified this sector as a pivotal area of focus…”

 Oyetola was later represented at the event by the Permanent Secretary, Ministry of Marine and Blue Economy, Mr Oloruntola Olufemi, after taking his leave to attend the FEC meeting in Abuja.

“Our attention to the shipping industry must be holistic, encompassing investments in fleet, improvement of regulatory frameworks, upscaling of local manpower and capacities, fine-tuning of operational efficiencies, and increasing turnover and revenue.

“We must work together to reverse unfavourable terms of trade in the sector for the benefit of our economy. Moving forward, our collective resolve must be to foster collaboration among regulators and stakeholders to streamline processes and enhance efficiency.

“As we navigate the complex waters of global trade and economic uncertainty, we must recognize the significance of the marine and blue economy sector in stimulating national economic growth and development.

“The government has identified this sector as a pivotal area of focus, and we are committed to creating an enabling environment that supports your businesses and promotes the growth of the sector as a whole,” Oyetola said.

He acknowledged the commitment of the ship owners and operators for being the backbone of the maritime sector, adding that they contributed to trade, transportation, and job creation.

Oyetola noted the challenges facing the sector; from safety and security concerns to regulatory hurdles and market fluctuations, adding that the government was working hard to address these challenges and foster a conducive environment for their operations.

In his presentation, the Director of Services, Ministry of Marine and Blue Economy, Mr Babatunde Bombata, said that the establishment of the Federal Ministry of Marine and Blue Economy was to open up the Nigerian maritime sector to provide opportunities in the shipping sub-sector.

Bombata said that these opportunities include job creation, maritime damage mitigation, tourism growth, investment attraction, and general development, adding that the industry faced challenges of sustainability.

He said that the Federal Ministry of Marine Economy required adequate funding to prioritize sustainability operations and activities of the stakeholders in the maritime sector to avoid degrading marine ecosystems and ensure long-term economic growth.

“The effective dominance of the marine sector is critical to harnessing the potential of the blue economy.

“It is therefore important that stakeholders in the sector should continue to provide the necessary support and cooperation to enable the ministry to move up on its mandates.

“Investment in the blue economy requires a stable and supportive private sector. Investments are stuck when the private sector opposes policies of the government aimed at strengthening activities in the national maritime environment.

“The blue economy faces security challenges including piracy and illegal fishing. The equation remains true of the marine and blue economy in Nigeria. It offers opportunities for economic growth, job creation, and environmental sustainability in the shipping sub-sector.

However, challenges such as sustainability, governance investment, climate change and security must be addressed to harness the full potential of the blue economy,” Bombata said.

In his closing remark, the Director General, Nigerian Administration and Safety Agency(NIMASA), Dr Dayo Mobereola, said that the agency had listened to the issues raised by stakeholders, adding that objectives would be formed for going forward.

Mobereola said that all the stakeholders would be included in government policies to enable them to sustain and make more profit.

He stressed the agency’s commitment to improving port safety and security to attract more vessels to call at Nigerian ports.

“National Carrier will be implemented and will be run under Public Private Partnership (PPP) so that NNPC will stop lifting oil on Free On Board but on Cost Insurance and Freight (CIF).

“NIMASA has been having meetings with the Nigerian Navy to achieve visibility of the Deep Blue project of the Federal Government.

In his contribution, the Former President, Nigeria Ship Owners Association (NISA), Alhaji Aminu Umar, urged the government to invest more in water navigation.

Umar asked the government to intensify efforts in constant dredging to enable bigger vessel calls at Nigerian ports.

“The government should look into the area of shipping security because no vessel is leaving Lagos to the Eastern port without being escorted by security.

The President, of Nigeria Ship Owners, Otunba Shola Adewunmi, said the Cabotage Act, 2003 was a good policy, adding that it lacked good implementation.
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“There is a need for the government to stop collecting duties on vessels calling Nigeria port to reduce the cost of goods in the market.

“Bunkering is an international and a legal business: Government should look into it because Nigeria is losing a lot in the area of bunkering,” Adewunmi said.

In a contribution, the Secretary of National Boat Operators in Nigeria, Mrs Dorcas Aderemi, urged the government to localise the cabotage to give inland waterways more attention.

The Vice President, Barges Operators, Mrs Ifeoma Bernadine, urged the government to help them look into reducing the 30 per cent interest loan to enable them to sustain the business.

The Managing Director, Blueflag Ltd., Dr Stefanos Vourakis, a Naval Architect, advised the government to encourage shipowners to use the Nigerian Flag to earn more for the country.

Vourakis asked the government to encourage private ownership of the establishment of maritime schools to enable the ship operators to have prerequisite knowledge of the industry globally.

Representing the Managing Director, Nigerian Ports Authority (NPA), Mr Muhammed Bello-Koko, Executive Director, Engineering and Technical Service, NPA, Mr Ibrahim Umar, said the government had dredged Lagos ports from 13.5 metres to 15.5 metres channel.

Umar said that regarding the Eastern ports, the technical committee were still working to report on the depth, adding that they had issues with NNPC pipelines in thesea’sa’s eastern area.

He said that the government had inaugurated two tug boats on May 6, 2024, adding that they were expecting two pilot boats from China.

The Executive Secretary Nigerian Shoppers’ Council, (NSC), Mr Pious Akutah, said that the government acknowledged the stakeholders’ investment, adding government was making efforts to ensure their investment yielded profit.

The National Association of Government Approved Freight Forwarders (NAGAFF) is set to convene a Special Prayer session to foster peace within the New Nigeria Peoples Party (NNPP), currently experiencing internal turmoil.

Additionally, the prayer gathering may allegedly include the petitions of Senator Rabiu Kwankwaso, the 2023 presidential candidate of NNPP whose alleged recent expulsion from the party due to alleged anti-party activities, ignited an intractable crisis.

NNPP, conceptualized by NAGAFF and established by the association’s founder, Dr Boniface Aniebonam, has been at the centre of recent factional disputes.

According to a statement issued by Dr Clement Iwegbuna, the National Publicity Secretary of NAGAFF, the prayer session is scheduled for Thursday, May 16, in Lagos. The association hopes that this initiative will contribute to restoring harmony within NNPP and promote unity moving forward.

“NAGAFF  and its members as  the parent body of the NNPP under the leadership of  Aniebonam shall continue to appreciate and remember the role played by Senator Rabiu Musa KWANKWASO in the last general election 2023

“We hope that God shall intervene in the internal wranglings of the NNPP and also give Sen. Rabiu Kwankwaso the wisdom to retrace his steps in the issues concerning NNPP and his role therein. 

Recall that when the odds were against us in the Kano State governorship election at the tribunal and appeal court, we ran to God for intervention at the Supreme Court and He answered us.

“It is our hope and belief that God will answer us again at this trial period of internal crisis.

“Accordingly all members of NAGAFF nationwide are to join us in prayers and together,  we shall forge ahead to elect a great leader in Nigeria at God’s time.”

…Mobereola says NIMASA will adopt strategies that will entrench sustainability of  the maritime industry vision

Nigeria may be annually losing, as much as $1tn to her non-disbursement of the Cabotage Vessels Financing Fund (CVFF), Stakeholders told the new Director General, Nigeria Maritime Administration and Safety Agency NIMASA, on Thursday.

The stakeholders, comprising highly informed industry operators in the Marine and Blue Economy highlighted this in Lagos at the Maritime Stakeholders Group Meeting with the new Director General, Dr Dayo Mobereola.

Taking the bull by the horns, a Maritime Lawyer, Emeka Akabogu, in his presentation titled “Navigating to the Promise Land”, said that the country was losing not fewer than $9 billion, due to a lack of local marine transportation.

“The fishing sub-sector of the maritime industry contributes N282 billion annually to the economy…”

“There are three legs to shipping, fleet expansion, ship repairs, and dry docking and shipbuilding and the country is losing $9 billion annually to the non-participation in International freight services.

“The fishing sub-sector of the maritime industry contributes N282 billion annually to the economy.

“Nigeria’s coastal resources have an estimated capacity of $504trillion. The current realised capacity is $106trillion in export and import on frozen fish is $876million.

“The former Director General, NIMASA, Dr Bashir Jamoh, have said that Nigeria loses approximately, $25.5bilion  annually to illegal maritime activities and the Nigerian National Petroleum Corporation Limited loses, $1.35billion on oil bunkering,” Akabogu said.

The revered lawyer noted, that in 2024 alone, the number of registered ships in Nigeria was 4,419 with a total tonnage of, 5.8 billion.

“Summary of the valid registered vessel, 2,136 with a 4.2billion  gross tonnage, invalid registered ship, 61, cabotage registered vessel, 1033, with a gross tonnage of 1.9million. The foreign-owned vessel, 18 with a gross tonnage of 125 million” Akabogu said.

He pointed out that the seafarers’ groups had reported (Capt. Alfred Oniye, Secretary General of the Merchant Seafarers Association of Nigeria (MSAN) said that over 80% of our seafarers were unemployed.

He said that the discrepancy was of concern and speaks to the credibility of available data.

He lamented the poor gender representation, adding that out of 6,039 seafarers on the Nigerian seafarers’ register in 2019, only 9.3 per cent which was 567 were women; adding that the former DG NIMASA, Dr Dakuku Peterside had reported this.

Akabogu said that only 26 out of 250 which was  10.4 per cent of the students at the Maritime Academy of Nigeria were females despite the shocking ratio, in June 2023.

 He further revealed that Nigeria has around 30 female seafarers with a Certificate of Competency (CoC) who were unemployed, and over 50 were looking for sea time.

Akabogu said that Nigerian seafarers are poorly remunerated. For example, a Nigerian OOW earns an average of ₦150,000 (US\$600) per month, while their foreign counterpart can earn up to 3,000.

“The Nigerian Marine and Blue Economy; The maritime sector is potentially the largest economic sector outside of oil and gas. It is estimated that Nigeria’s untapped blue economy potential is valued at $296 billion (NIMASA, The Africa Blue Economy Alliance (ABEA)).

“Experts also estimate that our maritime sector can generate N7 trillion annually and 2 million jobs over 5 years. This is largely because of our vast marine assets of the longest coastline in West Africa, stretching over 892 Km from Badagry to Bakassi, with a total shelf area of about 42,000 km2 (UNEP, 2014).

“Our territorial sea extends from the coastline to a breadth of 12 nautical miles, the continental shelf extends about 50 miles making us one of the eight countries with a continental shelf that allows for the extension of our EEZ (Exclusive Economic Zone) from 200 miles to a further 150 miles.

“These are in addition to our nearly 4,000 Km of inland waterways,” Akabogu further, said.

Earlier, the Flag Officer Commanding Western Naval Command, Nigerian Navy, Rear Admiral Mustapha Hassan, had posited that more was required from the NIMASA management, especially for the successful implementation of the Cabotage Act.

Hasaan specifically pointed out that the Cabotage Act had not been effective, since its enactment.

He stressed the need for greater inter-agency collaboration in the cabotage regime, to address issues of boarding and inspection of vessels, particularly with the automatic identification system AIS.

Hassan explained that there was a lot of money for Government to make in the implementation of the Cabotage Act.

He acknowledged the readiness of the Nigerian Navy to support NIMASA to treat these cases expeditiously in the next months.

Speaking in the same vein, former Director General of NIMASA, Mr  Temisan Omatseye, noted that the agency was established with the core mandate of promoting, protecting, and providing an enabling environment for indigenous ship owners to grow their vessels.

Unfortunately however, according to him, the current NIMASA leadership would not be able to disburse the Cabotage Vessel Financing Fund (CVFF) as timely needed.

Omatseye observed the grey area between the dictates of financial regulations guiding the funds disbursement not being in tandem with other banking and finance institutions’ regulations.

He equally noted that for the CVFF, NIMASA was doing the risk assessment even though the disbursing does not allow an outsider to do the risk assessment, as it negates the law that binds the funding.

Thus, according to him, the law says there should be a CVFF and the fund is to be disbursed in line with the guidelines as issued by the Minister of Transportation and approved by the National Assembly.

Omatseye said that CVFF was established by the Coastal and Inland Shipping (Cabotage) Act 2003 adding that the fund was established to develop indigenous ship acquisition capacity, and to provide financial assistance to indigenous domestic coastal shipping operators; and asked how far these noble objectives had been met.

The Chairman, Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, urged NIMASA to utilise the 0.5 per cent Stevedore fee to train the stevedore workers.

Haastrup said that although the terminal operators engage the stevedores with skeletal training, the Government was in the best position to engage them in industrial training to avoid fatalities and other accidents while discharging their duties.

A Maritime Lawyer, Mr Adedoyin Afun, urged NIMASA to reduce duties on vessel acquisition to enable more vessels to get registered.

“You can be rest assured that all this points will be considered…”

In his response, the Director General, NIMASA, Dr Adedayo Mobereola, commended the efforts of the stakeholders and all the past Director Generals of the administration, including those who were absent.

Mobereola said that he would work towards achieving the goals of both the President and the Minister of Marine and Blue Economy via a four-year Master Plan.

He gave assurances of carrying along, all the stakeholders, adding that his administration would prioritise the issues of ship registering and gender-inclusive

“You can be assured that all these points will be considered and NIMASA will put in strategies that will be a sustainable plan for the maritime industry.

“Our today’s knowledge sharing will not be wasted and we will call on you where we need clarification to implement all the points raised.