Maritime
‘Blue Economy Potentials Enough To Pay Nigeria’s Debt’
Director General of Nigeria Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has said the potentials of the blue economy are enough to pay off the country’s debt and improve its finances if properly harnessed .
This was the highlight of a lecture delivered by Dr. Jamoh at the 7th Annual Bullion Lecture held in Lagos on Thursday.
In his lecture, titled; “Banking on Blue Economy for Nigeria’s Economic Development,” he noted that the greatest obstacle to Nigeria’s Blue Economy is “sea blindness”, a situation whereby people are unaware of the impact of shipping in their daily lives.
He disclosed that people now see shipping as an old-fashioned industry, which is not the case, as it is still depended on and brings in almost 90 per cent of what Nigerians consume, adding that the country is faced with the need for diversification and a move away from the dwindling revenue hitherto generated from the oil sector.
According to him,”There are many aspects to maritime domain awareness, ranging from security to safety, to the health of the marine environment.
“But when it comes to the Blue Economy, all eyes must be on the money. We need to know what we as Nigerians have domiciled in our Economic Maritime Domain.
“Most discussions about Maritime Domain Awareness have centred largely on security. Little wonder that when I assumed office three years ago as the Director-General of NIMASA, we introduced our strategy around the tripod of Maritime Security, Maritime Safety and Shipping Development, known popularly as the TRIPLE ‘S’, but with the recent gains in calming our waters, it is now time for Nigeria to pivot to the Economics of Maritime Domain Awareness, hence the Blue Economy.
“We need to take stock of what is out there in our waters, we need to know what we have in terms of what will create jobs, build coastal communities, grow careers, enhance transportation of humans and cargo, renew and sustain the environment, reduce littoral areas poverty and make our nation competitive by maximizing our comparative oceanic advantages.
“The country had focused on a hybrid economic structure that blends oil with agriculture, but the former remained consistent as growing economic mainstay ahead of the latter over the years.
“Today, the waters provide low hanging fruits to diversify the economy. It is increasingly being accepted that the country’s future lies in the Blue Economy’’.
“Dr. Agbakoba made mention of the debt that the incoming government will inherit. If you look at the blue economy, you will think that it’s child’s play, but it is not. Once we are serious, we can use the blue economy to knock out the debts”.
Jamoh noted that the Federal Government’s policy direction towards economic diversification from oil dependence to blue economy is deliberate because studies have proven the oil industry to be subject to limitations in the face of global demand for environmentally sustainable sources of energy.
He said the country stands to benefit more from her waters, if sustainable steps are taken to harness the many untapped marine potentials for investment and job creation while preventing marine pollution.
The NIMASA boss explained that while many confine their thinking to a blue economy concept that revolves around littoral states where large bodies of waters are found with ports and jetties, the benefits are cascading to none littoral areas like Kaduna and Kano which now have Dry Ports; and Northern based businesses and importers can depend on trans-shipment of cargoes from the seaports to these dry ports.
While listing the five key pillars of the blue economy as sustainability; promoting ocean resources; preservation of the ecosystem; economic growth, as well as improved livelihoods and jobs, he stated that the industry is valued at USD2.5 trillion per annum while 350 million jobs is linked to marine fisheries worldwide.
Similarly, while 34 per cent world’s crude oil production is offshore, aquaculture is the fastest growing food sector providing 50 per cent of fish for humanity.
According to him, in 2012, sea tourism increased by four per cent despite the global economic crisis and constituted nine per cent of Global GDP: nine per cent of global jobs; and generated USD1.3 trillion of the world’s export.
He further listed maritime transportation, fisheries, aquaculture, renewable energy, tourism, climate change, waste management, port development and logistics, shipping, dockyards, marine tourism, dredging, offshore oil & gas exploration and production, renewable energy & biotechnology, and maritime fabrication and construction as key segments of the blue economy.
Speaking further on the inherent opportunities of the blue economy, he urged investors to look in the area of tourism, cargo operations, stevedoring services, warehousing/bonded terminal, haulage, ship building & repairs, ship/cargo surveying, ship management, and tank farms.
Other areas include; packaging, logistics, bunkering services, ship/cargo surveying, ship chandelling, short-sea services, ship brokerage, ship agency, ship finance services, training for shore and ship board personnel, marine insurance services, legal/admiralty services and IT services.
Jamoh stated that NIMASA is driving Nigeria’s blue economy agenda through the following: “Disbursement of Cabotage Vessel Financing Fund (CVFF) USD360 million. Deployment of the Modular Floating Dock. Capacity Building (Seafarers Development Programme) – NSDP. Capacity Building (Maritime Skills) – Maritime Training Institutions (MTIs). Midwifing of Strategic Synergy to further enable ship-owners easily acquire vessels to expand the national fleet through financial investment and cargo support by the Nigerian National Petroleum Company Limited (NNPCL).
“The NNPCL has offered to provide 9 per cent of the 15 per cent CVFF ship-owners’ contribution, thereby lessening the financial outlay on the ship- owners to just 6 per cent contribution.
“Additionally, the NNPCL has committed to providing the much-needed cargo for the vessels to engender the business of coastal shipping, thus creating a win-win partnership that will boost the economy and create employment”.
The Federal Executive approved nationwide wreck removal exercise to clear all underwater encumbrances to make the nation’s water channels safer for vessel navigation.
By: Nkpemenyie Mcdominic, Lagos
The Managing Director of National Inland Waterways Authority (NIWA), Mr. Bola Oyebamiji, has called for increased collaboration between the federal agency and state governments to enhance the safety and security of inland waterways transportation.
Speaking at a one-day consultative forum on safety and insecurities on inland waterways, organized by the Nigeria Transportation Commissioners’ Forum in Ilorin, Oyebamiji emphasized the critical role that safety and security play in fostering a thriving water transportation system.
The forum, themed “Prevalent Safety, Security Hazards and Practices in Inland Waterways: Passenger Transport Safety in Ilorin, Kwara State”, sought to address the pressing issues facing the inland waterways sector.
Oyebamiji acknowledged the ongoing efforts by NIWA to improve safety, such as the recent unveiling of the transportation code for public use, the inauguration of several operational assets including survey boats, gunboats, water ambulances, and a passenger ferry.
He also noted that safety campaigns have been launched across all operational bases, targeting local communities in their native languages.
The NIWA boss stated the support from the National Assembly, including the ongoing discussions on establishing coastal guards and the attention safety and security on inland waterways have received from the House Committee on Inland Waterways.
In his closing remarks, Oyebamiji appealed to the Commissioners for Transportation across relevant states to collaborate with NIWA in areas such as training, safety campaigns, infrastructure development, and financial empowerment.
He stressed that while the challenges are significant, they are surmountable through collective action.
The Federal Government has conveyed its support for the establishment of the National Coast Guard.
The Government also commended the proponents of the bill for having the hindsight to initiate a course of action that, when passed, will be the catalyst needed in unlocking the nation’s maritime potential.
In a statement by the Head of Press, and Public Relations for the ministry, Muhammad Tahir Zakari, Minister of Marine and Blue Economy, Adegboyega Oyetola, was reported to have made this known at the National Assembly complex at the 1-Day Public Hearing on National Coast Guard Bill (NCG).
The statement stated that the bill when passed, will guarantee maritime safety, sustainable marine resource development and enhance economic growth.
Highlighting the major need for the National Coast Guard, the Minister identified: Maritime safety; Environmental protection through enforcing environmental regulations and conservation of marine ecosystems; and Enforcement of civil maritime laws to uphold laws governing civil maritime activities and enforce fishing regulations while preventing illegal exploitation.
It also include search and rescue to maritime emergencies and also conduct timely search and rescue operations.
He cited a 2009 publication by the African Centre for Strategic Studies, which noted that 15 of the 21 independent maritime nations in sub-Saharan Africa have dedicated coast guards and identify themselves as such.
Despite this, none of these nations have Nigeria’s population or the extent of its inland waterways and coastline.
While acknowledging the significant role of the Nigerian Navy in safeguarding the Nigerian maritime space following the collaborative effort with the Ministry of Marine and Blue Economy in the Deep Blue Project, which has shown great results with zero piracy in Nigeria’s territorial water in the last three years.
He, however, stressed the need for the National Coast Guard to complement the efforts of the Nigerian Navy in playing a critical role in preventing accidents, crime, and other threats to maritime activities
“A vast coastline of 850 km, the equivalent of 10,000 km in two ways. It is also a place of rich and diverse economic sources.
“While these opportunities are promising, they also present challenges such as pollution, overfishing, and unsustainable use of marine resources. The proposed National Coast Guard is equipped to tackle these issues”, he stated.
He urged the Senate and the National Assembly to lend their full support to the bill, noting that, “Nigeria Coast Guard will act as a vital complement to the Navy, of fostering a safe and sustainable maritime environment”.
He appealed for the establishment of a flexible, adaptive implementation strategy that would evolve into a midwife for the bill to succeed, while urging those with reservations to see the pressing need of the institution.
Earlier during the hearing, the President of the Nigerian Senate, Godswill Akpabio, commended members of the Committee on Marine and Transport for their unwavering dedication in piloting the initiative and advocating for the establishment of the National Coast Guard Bill.
Akpabio, represented by Sen. Akintunde Yunus, said the essence of the bill was to make critical decisions that will guarantee the safety of the nation’s waterways and protect the marine resources.
He stated that “the establishment of the National Coast Guard is not merely a legislative formality, but a dire necessity”.
Speaking also, the Chairman, Senate Committee on Marine and Transport, Sen. Sanni Eshinlokun, said the Bill was first read in the Senate on the 3rd of October while the Senate at its plenary deliberated on the General Principles of the Bill.
Senator Eshinlokun said, “The Bill was read for the second time and referred to the Senate Committee on Marine Transport for further legislative action.
Former Executive Secretary of the Nigerian Shippers’ Council (NSC), Barr. Hassan Bello, has charged the Federal Government not to designate any of its agencies as the lead agency to drive the blue economy if it actually wants Nigeria to make progress in the sector.
Bello, who made this call in his remarks at the 10th anniversary, lecture and awards of the Primetime Reporters in Lagos, midweek, advised the Federal Government to avoid the mistake made during the Cabotage era when it designated an agency as lead agency and the rest was now history.
He said for the sector to succeed, it required everyone’s contribution, urging the Minister to allow the private sector to drive the blue economy.
According to him, “Two things which we must be very careful about is to make.mistake, like we did with cabotage. If we remember carefully, Cabotage was coastal and Inland shipping, but that inland shipping was not emphasized.
“It was just for supply of oil and gas to the mother vessel, we couldn’t trade as we were doing from Asaba to Baro in Niger State, or carry cement or even petroleum products. So, we cannot restrict that to customs.
“Secondly, don’t give the Blue Economy to an agency to say it is the lead agency because everybody must have contributions to the Blue Economy. As we want to do, we have seen agencies struggling to have seminars on Blue Economy, it’s not even a government thing.
“Allow the private sector to take over this blue economy, don’t create fantastic departments and overload into the private sector. This is what is our problem.
“When we had the Cabotage, it was a NIMASA thing and when you talk about Cabotage, no! don’t go there, what is your own with Cabotage? So, Cabotage was colonized, the Blue Economy should not be colonized. We should have the ramification of that Blue Economy to make sure that everything trickles down”.
He however, noted that there had been a lot of progress by the various organs of government even before the designation of the Blue Economy Ministry saying, “Blue Economy has always been there just as we had the red economy, which is characterized by China’s quest for export for state directed economy.
“We even have the grey economy, which is that which is informal. We have the green economy and all shades of economy. So, it’s not new that we have the Blue Economy, what has been the call by stakeholders is for us to have a ministry that will cater for transportation and transportation is a cardinal or even the paramount part of the Blue Economy.
“I know we have sustainable use of ocean resources and many other things, but when you talk about the Blue Economy, the central point is the use of ocean and the inland waterways and other resources for diversification of our economy as the Convener has said”.
“We have to be conscious, concerted and even calculated to make sure that it works for us. It’s not just fancy thing that there’s a ministry for blue economy. There must be active participation of stakeholders and the involvement of the private sector to harness the resources and not anything fancy or pretentious. The government must involve the private sector.
By: Stories by Nkpemenyie Mcdominic, Lagos