2023: Maritime Agenda for the Next President, by Elder Asu Beks
NIGERIA'S COAT OF ARMS
Nigeria’s Maritime Industry is arguably the most resourceful sector of the economy after the Oil and Gas industry. However, despite its immense potentials, successive administrations have failed to articulate an enduring National Maritime Strategy to enable the country harness its areas of comparative advantage and low-hanging opportunities to drive development in the industry.
Over the years, stakeholders, experts and government appointees holding sensitive positions in Nigeria’s Maritime Industry have attempted, and in some cases, succeeded in imposing their (well-and not-so-well-intended) ideas on the Industry. This, however, has resulted in a disjointed and uncoordinated approach to the development of the Industry, much to the detriment of its intended beneficiaries.
These realities seem to indicate that the intellectual capacity to grasp the strategic and socio-economic importance of Nigeria’s Maritime Industry is lacking at the highest levels of government. It is based on this premise that industry stakeholders are seeking to drive the process of advocacy to elevate Nigeria’s Maritime Industry to a matter of ‘National Priority’.
Therefore, as Nigerians prepare to elect another President to steer the affairs of this nation, Industry stakeholders are unanimous in their quest to develop and present an agenda that will form the fulcrum of the incoming President’s engagement with the multi-sectoral interests that constitute Nigeria’s Maritime Industry. This position is borne out of the obvious neglect and dysmal failure witnessed across the industry over the tenure of the outgoing Buhari administration and the resolve to ensure that the incoming administration in 2023 is geared towards moving up the scale in the comity of maritime nations.
After careful consideration, the following highlights, which are not are deemed to be Priority Focus Areas in Nigeria’s Maritime Industry for the attention,and action of the incoming President. They include:
1. ‘National Priority’ Status for the Nigerian Maritime Industry – This will serve as a strategy for consensus in the maritime industry where all Ministerial and Agencies Departments with overlapping interests in the Maritime Industry will congregate at a Presidential level to develop a National Maritime Strategy backed by appropriate policy, legislation and implementation.
2. Ministry of Maritime Affairs – As demonstrated by the success of the independence of the Ministry of Aviation, the incoming President, should as a matter of urgency, consider the establishment of a dedicated Ministry for Maritime Affairs, while merging Transportation with Works as is the cade in most modern democracies. This will encourage specialization, focus and strategic planning to drive and accelerate growth in the industry.
3. Cabotage Act and Vessel Finance Fund (CVFF) – In its current form, the Cabotage Act is more of an inhibition to indigenous ship ownership than the catalyst it was intended . The incoming President must move for a review of the Act to reflect the prevailing realities. Furthermore, the incoming Presidency must, as a matter of urgency, prioritize the disbursement of the CVFF to promote and strengthen the capacity of indigenous ship owners.
4. Incentives & Interventions – No maritime nation can grow without palliatives to incentivize growth and productivity. Interestingly, in Nigeria, all other modes of transportation enjoy several incentives and interventions except the Maritime sector.. As a matter of ‘National Priority’, the incoming President must consider the establishment of ‘Statutory Intervention Funds’ to support core/critical sectors of the maritime industry against unfair competition from established maritime nations. Other interventions include near-zero import duty for vessels and parts, tax holidays and abolition of Temporary Import Permits among others. The incoming President must ensure that these interventions are backed by legislation.
5. Nigeria Customs Service – Henceforth and in view of the commencement of the African Continental Free Trade Agreement (AfCFTA), the role of the Comptroller General of the Customs Service must be occupied by a core/career/professional officer to drive trade facilitation in line with global best practices. Secondly, the buzzword in trade these days is ‘Digitalization ’. Customs must be compelled to embrace automation, simplify documentation and drive the process for the establishment of a National Single Window for seamless trade facilitation.
6. National Transport Policy – The delayed implementation of a National Transport Policy to harmonize the intricacies surrounding various transport modes in Nigeria distorts operational clarity and hinders investments. The incoming President is urged to sanitize the transport and logistics value chain in Nigeria.
7. Port Concessionaires – As a matter of expediency, the incoming President must facilitate a review of the terms of agreement with concessionaires woth a view to audit their performance, determine the level of investments and align the concessionaires to the principles of the proposed ‘National Maritime Strategy’. Eastern Ports – Politics and underperforming concessionaires have led to the decline of productivity in the Eastern Ports – we urge the incoming President to revoke non-performing licenses and encourage asset/infrastructure renewal in the region.
8. National Shipping Fleet ¬- In view of the wave of protectionism flowing around the world, the incoming President must be encouraged to give impetus to the establishment of the National Shipping Fleet based on a PPP model. This will in turn cater to the carriage of Nigerian petroleum and general cargoes, as well as the provision of mandatory sea-time training for Nigerian cadets.
9. IMO Queries – Nigeria must answer all the lingering queries from the International Maritime Organisation (IMO), before proceeding to seek election into ‘Category C’ of the IMO Council.
10. Deep Sea Ports – The new administration must put a stop to the proliferation of proposed deep seaport projects across the country. The Federal Government must also carry out an audit of funds expended on River Ports (which have been considered drainpipes) and Dry Ports across the country to determine their productivity.
11. Maritime Cluster – Most maritime countries have identifiable Maritime Clusters, which essentially is an aggregation of identifiable and credible service providers across the industry value chain, who can be readily called upon. However, this requires deliberately developing an integrated national maritime database and ensuring that representation cuts across multi-sectoral interests of the industry. The incoming President is urged to consider enacting a law to promote the establishment of physical Maritime Clusters in suitable locations across the country to mirror the Oil & Gas Free Zones – as a strategy to congregate all maritime services under one Authority.
• Being a presentation of Asu Beks, Convener Maritime Elders Forum, on the occasion of Maritime Breakfast Meeting held recently at the Federal Palace Hotel, Victoria Island, Lagos.
Over the years, stakeholders, experts and government appointees holding sensitive positions in Nigeria’s Maritime Industry have attempted, and in some cases, succeeded in imposing their (well-and not-so-well-intended) ideas on the Industry. This, however, has resulted in a disjointed and uncoordinated approach to the development of the Industry, much to the detriment of its intended beneficiaries.
These realities seem to indicate that the intellectual capacity to grasp the strategic and socio-economic importance of Nigeria’s Maritime Industry is lacking at the highest levels of government. It is based on this premise that industry stakeholders are seeking to drive the process of advocacy to elevate Nigeria’s Maritime Industry to a matter of ‘National Priority’.
Therefore, as Nigerians prepare to elect another President to steer the affairs of this nation, Industry stakeholders are unanimous in their quest to develop and present an agenda that will form the fulcrum of the incoming President’s engagement with the multi-sectoral interests that constitute Nigeria’s Maritime Industry. This position is borne out of the obvious neglect and dysmal failure witnessed across the industry over the tenure of the outgoing Buhari administration and the resolve to ensure that the incoming administration in 2023 is geared towards moving up the scale in the comity of maritime nations.
After careful consideration, the following highlights, which are not are deemed to be Priority Focus Areas in Nigeria’s Maritime Industry for the attention,and action of the incoming President. They include:
1. ‘National Priority’ Status for the Nigerian Maritime Industry – This will serve as a strategy for consensus in the maritime industry where all Ministerial and Agencies Departments with overlapping interests in the Maritime Industry will congregate at a Presidential level to develop a National Maritime Strategy backed by appropriate policy, legislation and implementation.
2. Ministry of Maritime Affairs – As demonstrated by the success of the independence of the Ministry of Aviation, the incoming President, should as a matter of urgency, consider the establishment of a dedicated Ministry for Maritime Affairs, while merging Transportation with Works as is the cade in most modern democracies. This will encourage specialization, focus and strategic planning to drive and accelerate growth in the industry.
3. Cabotage Act and Vessel Finance Fund (CVFF) – In its current form, the Cabotage Act is more of an inhibition to indigenous ship ownership than the catalyst it was intended . The incoming President must move for a review of the Act to reflect the prevailing realities. Furthermore, the incoming Presidency must, as a matter of urgency, prioritize the disbursement of the CVFF to promote and strengthen the capacity of indigenous ship owners.
4. Incentives & Interventions – No maritime nation can grow without palliatives to incentivize growth and productivity. Interestingly, in Nigeria, all other modes of transportation enjoy several incentives and interventions except the Maritime sector.. As a matter of ‘National Priority’, the incoming President must consider the establishment of ‘Statutory Intervention Funds’ to support core/critical sectors of the maritime industry against unfair competition from established maritime nations. Other interventions include near-zero import duty for vessels and parts, tax holidays and abolition of Temporary Import Permits among others. The incoming President must ensure that these interventions are backed by legislation.
5. Nigeria Customs Service – Henceforth and in view of the commencement of the African Continental Free Trade Agreement (AfCFTA), the role of the Comptroller General of the Customs Service must be occupied by a core/career/professional officer to drive trade facilitation in line with global best practices. Secondly, the buzzword in trade these days is ‘Digitalization ’. Customs must be compelled to embrace automation, simplify documentation and drive the process for the establishment of a National Single Window for seamless trade facilitation.
6. National Transport Policy – The delayed implementation of a National Transport Policy to harmonize the intricacies surrounding various transport modes in Nigeria distorts operational clarity and hinders investments. The incoming President is urged to sanitize the transport and logistics value chain in Nigeria.
7. Port Concessionaires – As a matter of expediency, the incoming President must facilitate a review of the terms of agreement with concessionaires woth a view to audit their performance, determine the level of investments and align the concessionaires to the principles of the proposed ‘National Maritime Strategy’. Eastern Ports – Politics and underperforming concessionaires have led to the decline of productivity in the Eastern Ports – we urge the incoming President to revoke non-performing licenses and encourage asset/infrastructure renewal in the region.
8. National Shipping Fleet ¬- In view of the wave of protectionism flowing around the world, the incoming President must be encouraged to give impetus to the establishment of the National Shipping Fleet based on a PPP model. This will in turn cater to the carriage of Nigerian petroleum and general cargoes, as well as the provision of mandatory sea-time training for Nigerian cadets.
9. IMO Queries – Nigeria must answer all the lingering queries from the International Maritime Organisation (IMO), before proceeding to seek election into ‘Category C’ of the IMO Council.
10. Deep Sea Ports – The new administration must put a stop to the proliferation of proposed deep seaport projects across the country. The Federal Government must also carry out an audit of funds expended on River Ports (which have been considered drainpipes) and Dry Ports across the country to determine their productivity.
11. Maritime Cluster – Most maritime countries have identifiable Maritime Clusters, which essentially is an aggregation of identifiable and credible service providers across the industry value chain, who can be readily called upon. However, this requires deliberately developing an integrated national maritime database and ensuring that representation cuts across multi-sectoral interests of the industry. The incoming President is urged to consider enacting a law to promote the establishment of physical Maritime Clusters in suitable locations across the country to mirror the Oil & Gas Free Zones – as a strategy to congregate all maritime services under one Authority.
• Being a presentation of Asu Beks, Convener Maritime Elders Forum, on the occasion of Maritime Breakfast Meeting held recently at the Federal Palace Hotel, Victoria Island, Lagos.
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