The maritime sub-sector is experiencing capital flight because of foreign control. For the sector to impact on the economy, there must be effective implementation of the Cabotage Law, which gives local operators a leverage. TAIWO DISU reports.

•Cabotage Act fails to save local operators 

The maritime sector is very strategic to the development of any economy, especially Nigeria, which derives over 90 per cent of its revenue from crude oil.

Besides, maritime, which is the second largest revenue earner for Nigeria, has the capacity to provide over five million indirect and direct jobs.

At a Presidential retreat on “Harnessing the potential of Nigeria’s maritime sector for sustainable economic development”, at the Presidential Villa, Abuja, Minister of Finance/Coordinating Minister for the Economy Dr Ngozi Okonjo-Iweala said Nigeria loses more than N2 trillion yearly to capital flight because of Nigerians’ inability to fully participate in the industry.

The poor participation of indigenous operators in the maritime, oil and gas industries led to the enactment of the Cabotage Act under the auspices of the Nigerian Maritime Administration and Safety Agency (NIMASA) for the maritime sector; the Nigerian Content Act for the oil and gas industry and supervised by Nigerian Content Development and Monitoring Board (NCDMB ).

Stakeholders in the industry are wondering why the Jones Act has been used successfully in the United States to develop and empower American marine business and technology, while the Nigeria Cabotage Act remains largely under-utilised seven years into its existence? Why has the Local Content Policy been used successfully in Brazil and Malaysia, while the Nigerian Content Policy is yet to meet set targets?

Experts say there may be several answers to these questions, but the undeniable fact is that in the countries where successes have been achieved, the common thread that runs through them is the insistence on the implementation of the laws and policies by their governments.

Nigeria has a coastline stretching about 870 kilometres, 3,000 kilometres of inland waterways, and 913, 075 square kilometres in land mass. Despite these enormous coastline resources, foreigners dominate the Nigerian coastal and inland shipping marine sector from reports and available data.

N100 billion lost in freight forwarding yearly

It is estimated that Nigeria loses about N100 billion annually to foreign operators in the freight forwarding business.

Nigerian freight forwarders are consigned merely to clearing and forwarding businesses at the ports; foreigners are in absolute control of the oil and gas component of the business where the potentials lie.

National President, Association of Nigerian Custom Licensed Agents (ANLCA), Prince Olayiwola Shittu, said most Nigerian operators limit themselves to the clearing and forwarding and are, therefore, edged out on the bigger picture. He said Nigerian operators lack the technical knowledge of the business, that is why foreigners dominate freight forwarding.

According to the Central Bank of Nigeria (CBN) Statistical bulletin, about 80 per cent of goods consumed in the country are imported, thus confirming the size of the freight forwarding business in Nigeria.

An international freight forwarder, who does not want his name in print, said freight forwarding is done over the Internet and phones. “A typical freight forwarder will spend most of the day at a desk in front of a computer, but I really have to bewail the slow pace at which indigenous practitioners are catching up with the modern technology in the freight forwarding industry”, he explained.

He said there is need for the government to control foreigners’ involvement in the freight forwarding business in line with its local content policy.

Seafarers not in the mainstream of Cabotage law

Nigeria is losing over N284.5billion to the non-employment of indigenous seafarers following the dominance of the local shipping industry by foreign shipping firms and their crewmen. Recent study indicates that there are about 120,000 seafaring jobs in the shipping industry in Nigeria, while fewer than 800 seafarers are Nigerians.

Stakeholders in the industry pointed out that if after 52 years of independence, foreigners still dominate more than 85 per cent of maritime work force in Nigeria in spite of an Act of Parliament enacted to restrict the trade and employment 100 per cent to Nigerians, it means there is a failure on the part of government.

Recently, the spokesman of the maritime workers, Mr Adeola Lawal, said all areas of our maritime life are dominated by foreigners at the expense of Nigerian seamen, which is actually killing the Nigerian economy. “Nigerian seamen roam the streets while other nationals occupy our positions,” he explained.

However, it is said the indigenous seafarers lack the required expertise and experience to work on specialised vessels, and the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom state, which graduates a fairly large number of cadets who are supposed to be employed in the maritime industry, is perceived as providing substandard training. Also, Nigeria does not have a national carrier for the cadets to get sea experience.

The implication of all these is that Nigeria’s seafarers who are trained locally, will find it difficult to secure jobs on board international vessels. Unfortunately, these men and women with paramilitary training roaming the streets, become easy recruits for piracy.

It is on record that Singapore and Philippines that are not blessed with oil and gas depend on their maritime industry and are the highest suppliers of seafarers worldwide. In the process, they rake in millions of dollars as remittances into their economies.

Maritime Academy

The neglect and misplaced priority in maritime education have also caused capital flight in the industry. This is as a result of those who leave Nigeria to Ghana, Malaysia, Egypt, South Africa, Norway, and the United Kingdom and for training and certification so that they could avail themselves of the opportunity of doing their practicals in an ocean going vessel, and in turn, obtain certificates that will enable them to get jobs locally and internationally.

At present, the only maritime institution recognised by the International Maritime Organisation (IMO) in Nigeria is MAN. After 33 years of its existence, the institution does not have a training vessel for its cadets.

However, poor funding has helped to retard the capacity of the institution to produce the required manpower with the requisite skills to take over the sector dominated by foreigners.

Dr Olaniyi Oyenekan, a master mariner, said it is surprising that NIMASA, which has a duty to give the academy at least five per cent of their statutory annual collection as support, some years ago, evolved a programme, the Nigeria Seafarers Development Programme (NSDP), under which 25 seafarers from each state of the federation are to be trained overseas.

The state governments are to bear 60 per cent of the cost of the training, while the maritime agency will take up the balance.

However, some of the state governments had said the programme is expensive, and that the $25,000 per annum required for one seafarer, as a nautical scientist, ship master or marine engineer, is too high for them.

NIMASA is partnering some universities in Nigeria on maritime education.

Stakeholders in the industry said the questions that should be addressed are: how much does a training ship cost that the Federal Government has not been able to acquire it over the years? Why is NIMASA not placing priority on MAN by evolving competing programmes and partnering other institutions?

Oyenekan said corruption, neglect and misplaced priorities are the immediate causes associated with maritime education in Nigeria.

A recent international study by the Baltic International Maritime Council (BIMCO) and International Shipping Federation (ISF) highlighted a forecast shortage of about 27,000 officers worldwide in the maritime sector by 2015, and projected a shortfall of up to 83,000 officers in less than three years.

Experts in the industry believe that now is the time for the government not only to address the problem of capital flight in the sector, but to also take advantage of employment opportunities for the seamen locally and internationally.

Shipping in Nigeria

There is serious mismatch between domestic and foreign input in the maritime sector. These problems created the incentives for capital to flee whether or not stringent measures are put in place to control capital flight.

According to the indigenous Ship Owners Association of Nigeria (ISAN), Nigeria loses over N2 trillion annually in capital flight to foreign countries that owns vessels used for lifting about 150 million tons of cargoes, including oil products from this country as no Nigerian ship plys international routes

Data from the Organisation of Petroleum Exporting Countries (OPEC) made on tonnage shows that among the 13 member-countries of OPEC, which have a total of 134 tankers, Nigeria has only two tankers, which are merely used for storage rather than lifting crude oil. The records further show that out of a total of 24 million deadweight of crude per day, Nigeria lifts less than 500 deadweight.

Executive Vice-Chairman/ Chief Executive Officer, Sifax Group, Dr. Taiwo Afolabi, said during a seminar in Ogbomoso, Oyo state that over 90 per cent of income in the shipping sector is earned by foreign shipping companies alone.

general secretary, ISAN, Capt. Niyi Labinjo, said Nigeria is also losing revenue through shipping ancillary services, especially the financial sector, because if the indigenous ships are working, they will be insured. Since this is not the case, Nigeria is losing about N 16.5 billion.

Chairman of ISAN Chief Isaac Jolapamo said: “It is disheartening to note that Nigeria has failed to take advantage of the vast potential in the industry to get our youths employed. Nobody can solve our problems better than ourselves”, noting that the implementation is what is missing in NIMASA and NCDMB.

Afolabi noted that Nigeria’s experience with Cabotage law regime has exposed and underlined one basic fact. It is not just in making the law, enforcing the law is also critical, he stated.

Fishing business

The incursion of foreign trawlers in the fishery segment of the maritime industry is also making Nigeria to lose about N300billion as a result of inadequate protection of our waters. Instead, we now depend on importation. Right now, Nigeria imports between 700,000 and 900, 000 metric tons of fish yearly to partially meet a shortfall of about 1,800,000 metric tons.

Stakeholders say the fishing industry is at the brink of collapse, owing to the dangers of pirates and foreign trawlers. With huge maritime potential of a coastline measuring about 853 kilometres, Nigeria should be self-sufficient in fish production and able to export aquatic foods.

Mrs Okonjo-Iweala said the security threats in the Gulf of Guinea of which Nigeria is a major stakeholder had steadily risen from 45 per cent in 2010 to 64 per cent in 2012 threatening Nigeria’s more than 600 million potential in fishing business. He added that the development has created major economic problems for the country and should be urgently addressed.

Recently, because of the incessant attacks on fishing crews, the Nigerian Trawler Owners Association (NTOA) called its fleet of over 200 trawlers and 20, 000 workers back to the shore, leading to a shortfall in fish supply.

According to NTOA, foreign trawlers from European and Asian countries come to the nation’s coastal areas to raid tonnes of fish, they come with better industrial trawlers that can stay at sea for weeks and even months, equipped with ice boxes.

The International Maritime Bureau (IMB) said piracy figures and attacks worldwide continue to rise, and cases of death are always recorded, stating that this is a major challenge to the world.

Expert advice

Adenekan said the developed countries make the best use of the sea because 90 per cent of world trade is done on sea. Today, over 75 per cent of shipping business he whole of West Africa is, done in Nigeria alone.

He, however, advised that for the industry to become the maritime hub of west and central Africa and further check the incidence of capital flight, the government through its agencies and departments must start to implement its policies/laws, assess progress, review challenges, chart a realistic way forward and where necessary, reward/punish operators and set timelines for the attainment of goals.

The maritime sub-sector is experiencing capital flight because of foreign control. For the sector to impact on the economy, there must be effective implementation of the Cabotage Law, which gives local operators a leverage. TAIWO DISU reports.

•Cabotage Act fails to save local operators 

The maritime sector is very strategic to the development of any economy, especially Nigeria, which derives over 90 per cent of its revenue from crude oil.

Besides, maritime, which is the second largest revenue earner for Nigeria, has the capacity to provide over five million indirect and direct jobs.

At a Presidential retreat on “Harnessing the potential of Nigeria’s maritime sector for sustainable economic development”, at the Presidential Villa, Abuja, Minister of Finance/Coordinating Minister for the Economy Dr Ngozi Okonjo-Iweala said Nigeria loses more than N2 trillion yearly to capital flight because of Nigerians’ inability to fully participate in the industry.

The poor participation of indigenous operators in the maritime, oil and gas industries led to the enactment of the Cabotage Act under the auspices of the Nigerian Maritime Administration and Safety Agency (NIMASA) for the maritime sector; the Nigerian Content Act for the oil and gas industry and supervised by Nigerian Content Development and Monitoring Board (NCDMB ).

Stakeholders in the industry are wondering why the Jones Act has been used successfully in the United States to develop and empower American marine business and technology, while the Nigeria Cabotage Act remains largely under-utilised seven years into its existence? Why has the Local Content Policy been used successfully in Brazil and Malaysia, while the Nigerian Content Policy is yet to meet set targets?

Experts say there may be several answers to these questions, but the undeniable fact is that in the countries where successes have been achieved, the common thread that runs through them is the insistence on the implementation of the laws and policies by their governments.

Nigeria has a coastline stretching about 870 kilometres, 3,000 kilometres of inland waterways, and 913, 075 square kilometres in land mass. Despite these enormous coastline resources, foreigners dominate the Nigerian coastal and inland shipping marine sector from reports and available data.

N100 billion lost in freight forwarding yearly

It is estimated that Nigeria loses about N100 billion annually to foreign operators in the freight forwarding business.

Nigerian freight forwarders are consigned merely to clearing and forwarding businesses at the ports; foreigners are in absolute control of the oil and gas component of the business where the potentials lie.

National President, Association of Nigerian Custom Licensed Agents (ANLCA), Prince Olayiwola Shittu, said most Nigerian operators limit themselves to the clearing and forwarding and are, therefore, edged out on the bigger picture. He said Nigerian operators lack the technical knowledge of the business, that is why foreigners dominate freight forwarding.

According to the Central Bank of Nigeria (CBN) Statistical bulletin, about 80 per cent of goods consumed in the country are imported, thus confirming the size of the freight forwarding business in Nigeria.

An international freight forwarder, who does not want his name in print, said freight forwarding is done over the Internet and phones. “A typical freight forwarder will spend most of the day at a desk in front of a computer, but I really have to bewail the slow pace at which indigenous practitioners are catching up with the modern technology in the freight forwarding industry”, he explained.

He said there is need for the government to control foreigners’ involvement in the freight forwarding business in line with its local content policy.

Seafarers not in the mainstream of Cabotage law

Nigeria is losing over N284.5billion to the non-employment of indigenous seafarers following the dominance of the local shipping industry by foreign shipping firms and their crewmen. Recent study indicates that there are about 120,000 seafaring jobs in the shipping industry in Nigeria, while fewer than 800 seafarers are Nigerians.

Stakeholders in the industry pointed out that if after 52 years of independence, foreigners still dominate more than 85 per cent of maritime work force in Nigeria in spite of an Act of Parliament enacted to restrict the trade and employment 100 per cent to Nigerians, it means there is a failure on the part of government.

Recently, the spokesman of the maritime workers, Mr Adeola Lawal, said all areas of our maritime life are dominated by foreigners at the expense of Nigerian seamen, which is actually killing the Nigerian economy. “Nigerian seamen roam the streets while other nationals occupy our positions,” he explained.

However, it is said the indigenous seafarers lack the required expertise and experience to work on specialised vessels, and the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom state, which graduates a fairly large number of cadets who are supposed to be employed in the maritime industry, is perceived as providing substandard training. Also, Nigeria does not have a national carrier for the cadets to get sea experience.

The implication of all these is that Nigeria’s seafarers who are trained locally, will find it difficult to secure jobs on board international vessels. Unfortunately, these men and women with paramilitary training roaming the streets, become easy recruits for piracy.

It is on record that Singapore and Philippines that are not blessed with oil and gas depend on their maritime industry and are the highest suppliers of seafarers worldwide. In the process, they rake in millions of dollars as remittances into their economies.

Maritime Academy

The neglect and misplaced priority in maritime education have also caused capital flight in the industry. This is as a result of those who leave Nigeria to Ghana, Malaysia, Egypt, South Africa, Norway, and the United Kingdom and for training and certification so that they could avail themselves of the opportunity of doing their practicals in an ocean going vessel, and in turn, obtain certificates that will enable them to get jobs locally and internationally.

At present, the only maritime institution recognised by the International Maritime Organisation (IMO) in Nigeria is MAN. After 33 years of its existence, the institution does not have a training vessel for its cadets.

However, poor funding has helped to retard the capacity of the institution to produce the required manpower with the requisite skills to take over the sector dominated by foreigners.

Dr Olaniyi Oyenekan, a master mariner, said it is surprising that NIMASA, which has a duty to give the academy at least five per cent of their statutory annual collection as support, some years ago, evolved a programme, the Nigeria Seafarers Development Programme (NSDP), under which 25 seafarers from each state of the federation are to be trained overseas.

The state governments are to bear 60 per cent of the cost of the training, while the maritime agency will take up the balance.

However, some of the state governments had said the programme is expensive, and that the $25,000 per annum required for one seafarer, as a nautical scientist, ship master or marine engineer, is too high for them.

NIMASA is partnering some universities in Nigeria on maritime education.

Stakeholders in the industry said the questions that should be addressed are: how much does a training ship cost that the Federal Government has not been able to acquire it over the years? Why is NIMASA not placing priority on MAN by evolving competing programmes and partnering other institutions?

Oyenekan said corruption, neglect and misplaced priorities are the immediate causes associated with maritime education in Nigeria.

A recent international study by the Baltic International Maritime Council (BIMCO) and International Shipping Federation (ISF) highlighted a forecast shortage of about 27,000 officers worldwide in the maritime sector by 2015, and projected a shortfall of up to 83,000 officers in less than three years.

Experts in the industry believe that now is the time for the government not only to address the problem of capital flight in the sector, but to also take advantage of employment opportunities for the seamen locally and internationally.

Shipping in Nigeria

There is serious mismatch between domestic and foreign input in the maritime sector. These problems created the incentives for capital to flee whether or not stringent measures are put in place to control capital flight.

According to the indigenous Ship Owners Association of Nigeria (ISAN), Nigeria loses over N2 trillion annually in capital flight to foreign countries that owns vessels used for lifting about 150 million tons of cargoes, including oil products from this country as no Nigerian ship plys international routes

Data from the Organisation of Petroleum Exporting Countries (OPEC) made on tonnage shows that among the 13 member-countries of OPEC, which have a total of 134 tankers, Nigeria has only two tankers, which are merely used for storage rather than lifting crude oil. The records further show that out of a total of 24 million deadweight of crude per day, Nigeria lifts less than 500 deadweight.

Executive Vice-Chairman/ Chief Executive Officer, Sifax Group, Dr. Taiwo Afolabi, said during a seminar in Ogbomoso, Oyo state that over 90 per cent of income in the shipping sector is earned by foreign shipping companies alone.

general secretary, ISAN, Capt. Niyi Labinjo, said Nigeria is also losing revenue through shipping ancillary services, especially the financial sector, because if the indigenous ships are working, they will be insured. Since this is not the case, Nigeria is losing about N 16.5 billion.

Chairman of ISAN Chief Isaac Jolapamo said: “It is disheartening to note that Nigeria has failed to take advantage of the vast potential in the industry to get our youths employed. Nobody can solve our problems better than ourselves”, noting that the implementation is what is missing in NIMASA and NCDMB.

Afolabi noted that Nigeria’s experience with Cabotage law regime has exposed and underlined one basic fact. It is not just in making the law, enforcing the law is also critical, he stated.

Fishing business

The incursion of foreign trawlers in the fishery segment of the maritime industry is also making Nigeria to lose about N300billion as a result of inadequate protection of our waters. Instead, we now depend on importation. Right now, Nigeria imports between 700,000 and 900, 000 metric tons of fish yearly to partially meet a shortfall of about 1,800,000 metric tons.

Stakeholders say the fishing industry is at the brink of collapse, owing to the dangers of pirates and foreign trawlers. With huge maritime potential of a coastline measuring about 853 kilometres, Nigeria should be self-sufficient in fish production and able to export aquatic foods.

Mrs Okonjo-Iweala said the security threats in the Gulf of Guinea of which Nigeria is a major stakeholder had steadily risen from 45 per cent in 2010 to 64 per cent in 2012 threatening Nigeria’s more than 600 million potential in fishing business. He added that the development has created major economic problems for the country and should be urgently addressed.

Recently, because of the incessant attacks on fishing crews, the Nigerian Trawler Owners Association (NTOA) called its fleet of over 200 trawlers and 20, 000 workers back to the shore, leading to a shortfall in fish supply.

According to NTOA, foreign trawlers from European and Asian countries come to the nation’s coastal areas to raid tonnes of fish, they come with better industrial trawlers that can stay at sea for weeks and even months, equipped with ice boxes.

The International Maritime Bureau (IMB) said piracy figures and attacks worldwide continue to rise, and cases of death are always recorded, stating that this is a major challenge to the world.

Expert advice

Adenekan said the developed countries make the best use of the sea because 90 per cent of world trade is done on sea. Today, over 75 per cent of shipping business he whole of West Africa is, done in Nigeria alone.

He, however, advised that for the industry to become the maritime hub of west and central Africa and further check the incidence of capital flight, the government through its agencies and departments must start to implement its policies/laws, assess progress, review challenges, chart a realistic way forward and where necessary, reward/punish operators and set timelines for the attainment of goals.

The maritime sub-sector is experiencing capital flight because of foreign control. For the sector to impact on the economy, there must be effective implementation of the Cabotage Law, which gives local operators a leverage. TAIWO DISU reports.

•Cabotage Act fails to save local operators 

The maritime sector is very strategic to the development of any economy, especially Nigeria, which derives over 90 per cent of its revenue from crude oil.

Besides, maritime, which is the second largest revenue earner for Nigeria, has the capacity to provide over five million indirect and direct jobs.

At a Presidential retreat on “Harnessing the potential of Nigeria’s maritime sector for sustainable economic development”, at the Presidential Villa, Abuja, Minister of Finance/Coordinating Minister for the Economy Dr Ngozi Okonjo-Iweala said Nigeria loses more than N2 trillion yearly to capital flight because of Nigerians’ inability to fully participate in the industry.

The poor participation of indigenous operators in the maritime, oil and gas industries led to the enactment of the Cabotage Act under the auspices of the Nigerian Maritime Administration and Safety Agency (NIMASA) for the maritime sector; the Nigerian Content Act for the oil and gas industry and supervised by Nigerian Content Development and Monitoring Board (NCDMB ).

Stakeholders in the industry are wondering why the Jones Act has been used successfully in the United States to develop and empower American marine business and technology, while the Nigeria Cabotage Act remains largely under-utilised seven years into its existence? Why has the Local Content Policy been used successfully in Brazil and Malaysia, while the Nigerian Content Policy is yet to meet set targets?

Experts say there may be several answers to these questions, but the undeniable fact is that in the countries where successes have been achieved, the common thread that runs through them is the insistence on the implementation of the laws and policies by their governments.

Nigeria has a coastline stretching about 870 kilometres, 3,000 kilometres of inland waterways, and 913, 075 square kilometres in land mass. Despite these enormous coastline resources, foreigners dominate the Nigerian coastal and inland shipping marine sector from reports and available data.

N100 billion lost in freight forwarding yearly

It is estimated that Nigeria loses about N100 billion annually to foreign operators in the freight forwarding business.

Nigerian freight forwarders are consigned merely to clearing and forwarding businesses at the ports; foreigners are in absolute control of the oil and gas component of the business where the potentials lie.

National President, Association of Nigerian Custom Licensed Agents (ANLCA), Prince Olayiwola Shittu, said most Nigerian operators limit themselves to the clearing and forwarding and are, therefore, edged out on the bigger picture. He said Nigerian operators lack the technical knowledge of the business, that is why foreigners dominate freight forwarding.

According to the Central Bank of Nigeria (CBN) Statistical bulletin, about 80 per cent of goods consumed in the country are imported, thus confirming the size of the freight forwarding business in Nigeria.

An international freight forwarder, who does not want his name in print, said freight forwarding is done over the Internet and phones. “A typical freight forwarder will spend most of the day at a desk in front of a computer, but I really have to bewail the slow pace at which indigenous practitioners are catching up with the modern technology in the freight forwarding industry”, he explained.

He said there is need for the government to control foreigners’ involvement in the freight forwarding business in line with its local content policy.

Seafarers not in the mainstream of Cabotage law

Nigeria is losing over N284.5billion to the non-employment of indigenous seafarers following the dominance of the local shipping industry by foreign shipping firms and their crewmen. Recent study indicates that there are about 120,000 seafaring jobs in the shipping industry in Nigeria, while fewer than 800 seafarers are Nigerians.

Stakeholders in the industry pointed out that if after 52 years of independence, foreigners still dominate more than 85 per cent of maritime work force in Nigeria in spite of an Act of Parliament enacted to restrict the trade and employment 100 per cent to Nigerians, it means there is a failure on the part of government.

Recently, the spokesman of the maritime workers, Mr Adeola Lawal, said all areas of our maritime life are dominated by foreigners at the expense of Nigerian seamen, which is actually killing the Nigerian economy. “Nigerian seamen roam the streets while other nationals occupy our positions,” he explained.

However, it is said the indigenous seafarers lack the required expertise and experience to work on specialised vessels, and the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom state, which graduates a fairly large number of cadets who are supposed to be employed in the maritime industry, is perceived as providing substandard training. Also, Nigeria does not have a national carrier for the cadets to get sea experience.

The implication of all these is that Nigeria’s seafarers who are trained locally, will find it difficult to secure jobs on board international vessels. Unfortunately, these men and women with paramilitary training roaming the streets, become easy recruits for piracy.

It is on record that Singapore and Philippines that are not blessed with oil and gas depend on their maritime industry and are the highest suppliers of seafarers worldwide. In the process, they rake in millions of dollars as remittances into their economies.

Maritime Academy

The neglect and misplaced priority in maritime education have also caused capital flight in the industry. This is as a result of those who leave Nigeria to Ghana, Malaysia, Egypt, South Africa, Norway, and the United Kingdom and for training and certification so that they could avail themselves of the opportunity of doing their practicals in an ocean going vessel, and in turn, obtain certificates that will enable them to get jobs locally and internationally.

At present, the only maritime institution recognised by the International Maritime Organisation (IMO) in Nigeria is MAN. After 33 years of its existence, the institution does not have a training vessel for its cadets.

However, poor funding has helped to retard the capacity of the institution to produce the required manpower with the requisite skills to take over the sector dominated by foreigners.

Dr Olaniyi Oyenekan, a master mariner, said it is surprising that NIMASA, which has a duty to give the academy at least five per cent of their statutory annual collection as support, some years ago, evolved a programme, the Nigeria Seafarers Development Programme (NSDP), under which 25 seafarers from each state of the federation are to be trained overseas.

The state governments are to bear 60 per cent of the cost of the training, while the maritime agency will take up the balance.

However, some of the state governments had said the programme is expensive, and that the $25,000 per annum required for one seafarer, as a nautical scientist, ship master or marine engineer, is too high for them.

NIMASA is partnering some universities in Nigeria on maritime education.

Stakeholders in the industry said the questions that should be addressed are: how much does a training ship cost that the Federal Government has not been able to acquire it over the years? Why is NIMASA not placing priority on MAN by evolving competing programmes and partnering other institutions?

Oyenekan said corruption, neglect and misplaced priorities are the immediate causes associated with maritime education in Nigeria.

A recent international study by the Baltic International Maritime Council (BIMCO) and International Shipping Federation (ISF) highlighted a forecast shortage of about 27,000 officers worldwide in the maritime sector by 2015, and projected a shortfall of up to 83,000 officers in less than three years.

Experts in the industry believe that now is the time for the government not only to address the problem of capital flight in the sector, but to also take advantage of employment opportunities for the seamen locally and internationally.

Shipping in Nigeria

There is serious mismatch between domestic and foreign input in the maritime sector. These problems created the incentives for capital to flee whether or not stringent measures are put in place to control capital flight.

According to the indigenous Ship Owners Association of Nigeria (ISAN), Nigeria loses over N2 trillion annually in capital flight to foreign countries that owns vessels used for lifting about 150 million tons of cargoes, including oil products from this country as no Nigerian ship plys international routes

Data from the Organisation of Petroleum Exporting Countries (OPEC) made on tonnage shows that among the 13 member-countries of OPEC, which have a total of 134 tankers, Nigeria has only two tankers, which are merely used for storage rather than lifting crude oil. The records further show that out of a total of 24 million deadweight of crude per day, Nigeria lifts less than 500 deadweight.

Executive Vice-Chairman/ Chief Executive Officer, Sifax Group, Dr. Taiwo Afolabi, said during a seminar in Ogbomoso, Oyo state that over 90 per cent of income in the shipping sector is earned by foreign shipping companies alone.

general secretary, ISAN, Capt. Niyi Labinjo, said Nigeria is also losing revenue through shipping ancillary services, especially the financial sector, because if the indigenous ships are working, they will be insured. Since this is not the case, Nigeria is losing about N 16.5 billion.

Chairman of ISAN Chief Isaac Jolapamo said: “It is disheartening to note that Nigeria has failed to take advantage of the vast potential in the industry to get our youths employed. Nobody can solve our problems better than ourselves”, noting that the implementation is what is missing in NIMASA and NCDMB.

Afolabi noted that Nigeria’s experience with Cabotage law regime has exposed and underlined one basic fact. It is not just in making the law, enforcing the law is also critical, he stated.

Fishing business

The incursion of foreign trawlers in the fishery segment of the maritime industry is also making Nigeria to lose about N300billion as a result of inadequate protection of our waters. Instead, we now depend on importation. Right now, Nigeria imports between 700,000 and 900, 000 metric tons of fish yearly to partially meet a shortfall of about 1,800,000 metric tons.

Stakeholders say the fishing industry is at the brink of collapse, owing to the dangers of pirates and foreign trawlers. With huge maritime potential of a coastline measuring about 853 kilometres, Nigeria should be self-sufficient in fish production and able to export aquatic foods.

Mrs Okonjo-Iweala said the security threats in the Gulf of Guinea of which Nigeria is a major stakeholder had steadily risen from 45 per cent in 2010 to 64 per cent in 2012 threatening Nigeria’s more than 600 million potential in fishing business. He added that the development has created major economic problems for the country and should be urgently addressed.

Recently, because of the incessant attacks on fishing crews, the Nigerian Trawler Owners Association (NTOA) called its fleet of over 200 trawlers and 20, 000 workers back to the shore, leading to a shortfall in fish supply.

According to NTOA, foreign trawlers from European and Asian countries come to the nation’s coastal areas to raid tonnes of fish, they come with better industrial trawlers that can stay at sea for weeks and even months, equipped with ice boxes.

The International Maritime Bureau (IMB) said piracy figures and attacks worldwide continue to rise, and cases of death are always recorded, stating that this is a major challenge to the world.

Expert advice

Adenekan said the developed countries make the best use of the sea because 90 per cent of world trade is done on sea. Today, over 75 per cent of shipping business he whole of West Africa is, done in Nigeria alone.

He, however, advised that for the industry to become the maritime hub of west and central Africa and further check the incidence of capital flight, the government through its agencies and departments must start to implement its policies/laws, assess progress, review challenges, chart a realistic way forward and where necessary, reward/punish operators and set timelines for the attainment of goals.