…Blames the Collapse of the NNSL on bad management, corruption and Government’s meddlesomeness 

Nigeria’s foremost shipping mogul, Engr. Greg Utomwen Ogbeifun on Thursday, gave detailed reasons on why the country has remained incapable of harnessing its unique geographical and maritime advances but instead, continues to lose $9.2 billion annually.

Ogbeifun, who is also the Chairman, the Benin Port Project Technical Committee, a body saddled with the responsibility of birthing the legacy Benin Port Project in Edo State, said it was worrisome that Nigeria though strategically located along the Atlantic Coast, with an enviable capacity to generate about 70 per cent of total cargo traffic volume of the West and Central African regions, is yet to pull its boots, by the strings.

“Aside from its geographical advantage, it is estimated that the country generates about 70% of the volume of the total cargo traffic within the West and Central African regions”, Engr. Ogbeifun stated while dissecting the theme: Marine Transport and Blue Economy: Route to Sustainable Success, at the 16th Association of Marine Engineers and Surveyors AMES, held at the Radisson Blu Hotel, Ikeja, Lagos yesterday.

“However, despite its geographical advantages and these huge opportunities, Nigeria has failed to participate in the carriage of these abundant cargoes due to the lack of any Nigerian shipping line. This means that the country relies heavily on foreign vessels for the shipment of its inbound and outbound cargoes, leading to significant economic loss and negative security implications. 

“The African Continental Free Trade Area (AfCFTA) also presents a major opportunity, if Nigeria had any shipping lines to participate in the continental shipping which would have led to increased Foreign Direct Investment significantly leading to a 7% increase in Nigerian income from the current path by 2043. 

“At the moment, Nigeria spends about $9.2 billion annually on freight charges paid to foreign shipping companies. 

“These payments constitute a significant outflow of foreign exchange, contributing to the weakening of the Naira. 

“Establishing a shipping fleet would enable Nigeria to retain a substantial portion of this revenue within the country, strengthening its economy and reducing dependence on foreign currency”, the renowned ship magnate indicated, identifying the demise of the Nigerian National Shipping Line NNSL, as a factor that signpost, due to bad management, as a major factor.

“The demise of NNSL means Nigeria has since then lost all of the benefits of owning a global fleet and participating in the carriage of its cargo”, he pointed out and gave reasons, for the NNSL failure as: 

*. Inability to compete with foreign shipping lines due to undue government

involvement in their management.

*. Gaps in government policies as it relates to international shipping.

*. Lack of planning and alignment with global shipping trends.

*. Inability to adapt to changes in technology

“The impact of the failure of these National Shipping Lines include; loss of jobs, loss of freight earnings, loss of national tonnage capacity, distorted balance of trade, and a poor reputation among the comity of maritime nations”, Ogbeifun, who is also the Chairman of the STARZS Investment Group said further.

It would be recalled that the Federal Government in 1959 established the Nigerian National Shipping Line (NNSL). The company was however liquidated in 1995 due to heavy indebtedness and mismanagement and its 21 vessels were sold.

The successor to NNSL, National Unity Line (NUL) commenced operations in July 1996 as Nigeria’s national flag carrier relaunching Nigeria into international shipping with one vessel MV Abuja. NUL. But even this did not fare better than its predecessor and by July 2005, the National Unity Line had collapsed.

However, while it existed, Nigeria participated in the carriage of Nigerian imports and exports, in addition to enabling the country to develop Nigerian seafarers to international standards, and the Nigerian flag to be flown in the global space.

…As Stakeholders pour encomiums following Completion of Seafarers’ training

Nigerian Maritime’s revered company, LTT Coastal and Marine Services, has reaffirmed its commitment to enhanced and enviable service delivery, particularly in quality training, capacity boosting and leadership development. 

The Managing Director and Chief Executive Officer of the company, Hilik Kalusky committed recently, during the Ceremony to mark the completion of training of seafarers, aimed at rapidly boosting the growth of the nation’s shipping industry.

Kalusky who gave a detailed account of what the training entailed, stressed that the vision was, both to adequately toughen beneficiaries of the training as well as emphasize the anonymity of what is expected of them, after the completion.        

Some of the industry operators and stakeholders included the NPA Executive Director, Marine and Operations, Engr. Olalekan Badmus; the NPA General Manager, Mand O; Mrs. Kwamde Zainab Umar, the General Manager, Human Resources; the AGM Vessel Management; and the Harbour Master, Capt. Ola Olatunde., from the Nigerian Maritime Administration and Safety Agency NIMASA.

Also in attendance, was the Western Zone chief Pilot, Mr Mohammed Bidah; the NIMASA Western Zone Coordinator, Mrs Gloria Anyasodo; Western Zone Maritime Labour, Mrs Chioma Azionu; and the NIMASA Western Zone director of Cabotage, Mr Kabir M. Murnai.

The CEO pointed out that a high standard was maintained, throughout the training in line with international global practices, assuring the nation that those who went through the rigours of the program can testify.

Consequently, appreciative remarks poured in from industry stakeholders, which included Mrs Chioma Azionu and several others, each commending the LTT for its overall support and promotion of maritime culture and wellbeing, especially as demonstrated in organising the training. 

“Everything there is useful” declared one elated industry stakeholder, talking about the training package, highlighting that the overall performance would directly and positively impact Nigeria.

“I also want to thank the Nigerian Ports Authority NPA” he further said, pointing out that the people were actually, benefitting from the joint venture, immensely. “So, kudos to NPA!”, he said.

Speaking also on the same issue, a beneficiary said there was no alternative to good training, particularly if the environment is conducive and the equipment is in pristine condition. 

The Ministry of Marine and Blue Economy and the Nigerian Maritime Administration and Safety Agency (NIMASA) are fully committed to promoting partnerships with industry players, driving innovation, and championing sustainability.

Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola, stated this, during his opening address at the Stakeholders Sensitization Workshop on Deep Seabed Activities in Nigeria, held on Wednesday in Abuja.

According to him, “Government-private sector partnerships are vital to unlocking the maritime sector’s full potential,” emphasizing that effectively harnessing the vast potential of the nation’s marine resources is crucial in diversifying Nigeria’s economy.

He stated that the transition from a fossil fuel-based economy to a mineral-based one presents opportunities for Nigeria to leverage its marine resources, particularly wave and tidal energy, to generate clean energy.

He highlighted that such a shift would significantly contribute to the nation’s energy needs.

“Nigeria’s establishment of a full-fledged Ministry of Marine and Blue Economy in 2023 demonstrates our commitment to diversifying our economy and capitalizing on the global surge in deep-sea exploration. As a major oil-producing country with an extensive coastline and inland waterways, we cannot afford to lag in this new frontier,” said Oyetola, who was represented by the Permanent Secretary, Ministry of Marine and Blue Economy, Mr. Oloruntola Olufemi.

He explained that the workshop aimed to raise awareness among key stakeholders in the sector about the significance of deep seabed exploration and exploitation.

On his part, NIMASA’s Director General, Dr. Dayo Mobereola, said the Agency in collaboration with the International Seabed Authority (ISA) and relevant MDAs, will ensure Nigeria’s compliance with global standards.

Speaking on the Nigerian Minerals and Mining Act 2007, Dr Mobereola noted that the need to amend the Act to reflect relevant provisions of the ISA’s model of legislation on exploration and exploitation could not be overemphasized.

He acknowledged the commitment of the Ministry of Marine and Blue Economy and NIMASA to ensuring the full implementation of relevant legislative frameworks for the sustainable use of the marine environment and safety standards.

“We remain committed to ensuring that relevant legislative frameworks on the sustainable use of the Marine Environment and Safety standards are fully implemented,” he said.

In attendance at the Workshop were representatives of the Nigerian Shippers Council (NSC), Nigerian Inland Waterways Authority (NIWA), National Border Commission (NBC), International Seabed Authority, and Ministry of Mines and Steel Development, among others.