By Abbas Nazil
The Sea Empowerment Research Centre has called for more strategic investments in Nigeria’s maritime sector yo enable it drive economic growth and integrate the nation into the global market.
In its New Year bulletin, titled Critical Review of the Nigeria Maritime Industry (Performances and Issues) in 2024, the Centre also highlighted the urgent need to address systemic challenges in the sector.
Signed by the Head of Research, Forwarder Eugene Nweke, the report outlined solutions to enhance efficiency and competitiveness within Nigerian ports, thereby improving the industry’s global ranking.
Despite being a significant oil-exporting nation with vast maritime potential, Nigeria’s ports remain among the least efficient globally. According to the World Bank’s Trading Across Borders indicator, the country’s ports rank 183rd out of 185 in efficiency.
Challenges such as import/export delays, unofficial charges, excessive human interface, and technical failures contribute to this poor performance.
The bulletin pointed out that these issues, compounded by security concerns like piracy, sea robbery, and illegal bunkering, have impeded the sector’s development.
While acknowledging the efforts of agencies such as NIMASA and Tantita Security in tackling these security threats, the report emphasized that more needs to be done to create a stable and secure environment for maritime activities.
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The review provided a mixed assessment of the maritime industry’s performance in 2024. On one hand, the sector demonstrated significant growth potential, buoyed by Nigeria’s position as a major oil producer and exporter.
On the other hand, according to the report, systemic inefficiencies and policy gaps hindered its progress.
The report highlighted that Nigeria’s merchant shipping fleet contributed only 1.6 million tons to the global shipping fleet in 2019, ranking 48th worldwide, maintaining that such a minimal contribution underscores the need for strategic reforms to unlock the sector’s full potential.
The report identified foreign exchange rate volatility as another critical issue impacting the maritime sector, especially in international trade.
The centre called for a stable and predictable exchange rate policy to attract foreign investments and stimulate growth.
It further advocated for the removal of human barriers in port operations, which would enhance the predictability and competitiveness of cargo delivery processes.
While challenges abound, the report noted opportunities for growth and investment within the sector.
By implementing targeted reforms and fostering a more favorable business environment, Nigeria can leverage its maritime industry to become a key player in the global economy.
The centre urged the government and stakeholders to prioritize efficiency, security, and policy consistency to position the sector as a catalyst for national development. END
