From Our Lagos Correspondent

The Nigerian Maritime Administration and Safety Agency NIMASA has projected that the shipping industry could contribute over seven per cent of the country’s Gross Domestic Product GDP annually, saying that the sector’s current one per cent contribution was too low and therefore unacceptable, given the vast untapped potential of the sector.

Speaking in Lagos last week during a joint courtesy visit by the management team of the Nigerian National Corporation NNPC Shipping Limited led by its new Managing Director, Mr. Panos Gliatis and the Nigerian Chamber of Shipping NCS led by its President, Aminu Umar at the agency’s headquarters, the Director General of the agency, Dr. Bashir Jamoh OFR, noted that the shipping industry of nations like South Africa and Singapore account for about seven per cent of the countries’ GDP annually.

He noted that with the creation of the new Ministry of Marine and Blue Economy by the current administration to begin to refocus the industry and harness its vast potential, the shipping industry should account for well over seven per cent of Nigeria’s GDP in the near future.

“According to statistics from the National Bureau of Statistics NBS, the shipping industry only accounts for one per cent of Nigeria’s GDP, which is not good enough while in Singapore and South Africa for instance, it contributes at least seven per cent and I know we can surpass this target through the Ministry of Marine and Blue Economy.

“This is doable by improving shipping, utilisation of the country’s rich ocean resources and creating jobs. But currently there is a decline in vessel traffic into Nigeria not because of the global decline in trade volumes alone but due largely to poor enabling environment in Nigeria.

“This is why the Federal Government created the new Ministry of Marine and Blue Economy, the current situation of mono economy is no longer sustainable. The government is now focusing on the blue economy, which is also the focus of the international community.

“The Federal Government is working towards diversifying the economy by moving from the current mono product to a more diversified economy by harnessing the resources of the blue economy. Part of our approach is to fast track the disbursement of the Cabotage Vessel Financing Fund CVFF within the next six months to indigenous shipping organisations to boost their capacity.

“We want to forestall the pitfalls of the defunct Ship Acquisition and Ship Building Fund SASBF, which some people took and used to marry new wives and buy cars because they saw it as their own share of the national cake. We still have huge sums of money as debts in our books because of the SASBF loan defaulters” Jamoh said.

The Coastal and Inland Shipping Cabotage Act, which created the CVFF also has guidelines for the disbursement of the fund, which include that NIMASA would provide the 50per cent of the value of the vessel to be acquired, while the local bank, which acts as the Primary Lending Institution PLI provides 35per cent even as the indigenous shipping line provides 15per cent of the vessel’s value.

On what the agency plans to do to enable the beneficiary indigenous shipping lines to make good use of the vessels, the DG NIMASA said: “It is one thing to have ships, it is another thing to have cargo, so we will do everything possible for the beneficiaries have cargoes to lift to enable them remain profitable. This will include but not limited to liaising with the NNPC Shipping to ensure that this is done.

“The essence of the CVFF is to promote job creation, cargo safety. So we need a new action plan to enable the utilisation of the fund within the next six months.”