Local content development in the Nigeria maritime industry has been observed to be handicapped by challenges of limited financial capacity and expertised knowledge associated with the Indigenous companies.
This observation was made by a former minister of Interior and Chief Executive Officer of Genesis Worldwide Shipping, Captain Emmanuel Iheanacho at the PortNews Summit themed, "Port Reforms and Local Content: Has Nigeria fared Well? held in Lagos recently.
Capt. Iheanacho, who was the chairman of the summit in his opening remarks noted that the situation was further hindered by high costs, limited access to finance, and difficulties encountered through established foreign companies.
His words: “In terms of local content, Nigeria has made significant progress. The Nigerian Content Development and Monitoring Board (NCDMB) has been specifically established to promote local content development more specifically in the oil and gas sector; this initiative has had a positive impact on the maritime industry; however, despite these efforts challenges still persist".
Continuing, the Shipping magnet said, "For example, the process of getting clearance for vessels and cargo in the international trade are still cumbersome, requiring multiple signatures from government agencies and other officials;
"Overall, while Nigeria could be said to have made progress in its port reforms and local content development, there appears to still be a bit of work to be done to fully realize the potential in the maritime sector as a whole”.
In his opinion, Capt Iheancho opined that the government of the day should implement policies and programs to support port reforms and local content development, anchored to continuous efficiency and performance audit of the port operating processes and which must be regularly carried out, marked by investment in infrastructure and technology, to improve efficiency and reduce congestion at ports.
He harped on the need to prioritise providing training and capacity-building programs to support local companies and increase their participation in the maritime sector.
In his presentation, Dr Muda Yusuf, the Chief Executive Officer, Centre for the Promotion Private Enterprise, stated that Indigenous players in the Maritime sector have been regrettably excluded from major activities in the sector as they are increasingly becoming spectators in the scheme of things as foreigners have dominated the Industry pointing out that the act that was enacted in 2005, gave foreign investors unlimited access to all sectors of the economy.
Dr Muda pointed out that the Nigerian Ports Concession Act needs to be urgently revisited to protect domestic indigenous investors in sectors where we have capacity, especially in the maritime sector noting that capacity grows with opportunity and Indigenous players needs to be given more opportunities to grow in the maritime sector.
Earlier in his welcome address, the convener of PortNews Summit 2024 and Publisher/Editor-In-Chief, PortNews Newspapers, Prince Wale Oni lamented that the glorious past in the Nigerian maritime industry has gone with the ports concession and Nigeria may not know how to do it again.
Oni said ports reforms undertaken by the government of Olusegun Obasanjo ensured that the ports, terminals and infrastructures were handed over to private investors majorly foreign shipping companies, he noted that these foreign shipping companies also operates terminals making it nearly impossible to transfer containers to indigenous bonded terminals and Inland Container Depots (ICD). He lamented on how the Dala ICD in Kano with a world class facility and linked with national railway with an impressive rail track has not received a container eighteen months after it's commissioning.
He opined that, with the Port concession of 2006, Nigerian port operators have become mere onlookers in the scheme of thing in the maritime industry and seeks what can be done to introduce and sustain a mutually beneficial working relationship between Nigerian terminal operators and the concessionaires that are brimming with Hugh cargoes.
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