Emergence of new government stirs fresh hope for robust maritime sector growth

Emergence of Muhammadu Buhari as president-elect in Nigeria’s fiercely contested election is already stirring fresh hope among operators in the country’s maritime industry, even as businesses gradually gather steam at the nation’s major seaports – Lagos Port Complex and Tin-Can Island Port – after the March 28 election and Easter break.

The retired general, who is prominent for his stern stand against corruption, has been tipped by stakeholders to restructure and rejuvenate the sector, which they say have not only struggled to live up to its potentials but has also been plagued by series of challenges in recent times.

The stakeholders, who spoke with BusinessDay exclusively, are confident that once revived, the maritime sector could become a major alternative to the government’s source of revenue and a catalyst to economic development in the country.

Nigeria’s maritime sector has seen its growth story suffer several blows from the low participation of indigenous ship owners in the nation’s lucrative shipping business, which is currently dominated by foreign shipping operators. This has been partly blamed on lack of adequate funding for vessel acquisition owing to poor access to credit facilities and non-disbursement of the Cabotage Vessel Financing Fund (CVFF) by the Federal Government to enable indigenous shipping companies swell their fleet, to the unfavourable business environment threatening the existence of most local shipping firms.

“I am optimistic the maritime will be rejuvenated once the Buhari-led administration is sworn into government in May 29,” Tony Anakebe, a maritime analyst, told BusinessDay in a telephone chat.

Anakebe, who is also optimistic of a major growth in the sector, said “if the incoming administration takes full advantage of the countless opportunities in the sector, the maritime industry could attain an enviable height in the near future.”

Agreeing with this claim, Olisa Agbakoba, a maritime expert, is also hopeful that the incoming administration would be able to purge the sector of its numerous challenges, such as excessive taxation, which he says has significantly slowed down businesses at the ports.

Agbakoba, who insists that the maritime sector remains a major catalyst to the nation’s economic growth if fully explored, said with the right policies and enabling environment, the sector could become a major driver of the economy.

To him, the current drop in oil price globally further buttresses the need for a holistic maritime action plan that will help diversify the economy and provide the government with an alternative source of revenue.

These efforts, he expects the Buhari-led administration to effect, as the sector can become a major sponsor of the welfare programmes being proposed by the incoming administration if effectively explored.

Shittu Olayiwola, national president, Association of Nigerian Licensed Customs Agents (ANLCA), who expressed his expectation from the new government, said he believed that the new administration would review the implementation of the controversial national automotive policy by putting the policy in the right implementation track that would help Nigeria to become a vehicle producing country.

He advised the new government to look into the reports of all the committees set up by the previous administrations, especially as regards the development of the maritime sector.

Meanwhile, BusinessDay checks have revealed that the ports, which have been characterised by skeletal activities in the past few days owing to the March 28 election and the Easter break, are already seeing business activities return but gradually after the peaceful conduct of the election.

A visit to the ports reveals that business activities have started booming as importers and their agents make efforts to clear their goods.

ODINAKA MBONU