Maritime security: Why Nigeria must safeguard $8bn shipping-side of oil, gas business
Concerns about the safety and security of the Nigerian maritime domain have been dominating discussions in the sector on account of the importance of safety to the development of the shipping industry.
BusinessDay understands that Gulf of Guinea, which houses Nigerian waters, is rated as a high risk area for vessels calling seaports in West Africa with international cargos.
As a result, vessel owners charge war risk insurance premium on cargos coming to Nigerian ports and other ports in the region. Most vessels also come into the region with armed escort for the protection of the cargos and the cabin crew onboard.
Hadiza Bala Usman, managing director of the Nigerian Ports Authority (NPA) said the war risk insurance premium has translated to high cost of cargo importation into the nation’s seaports, as importers who pay such premium likewise pass on the added cost to the end users.
Statistics shows that Nigeria’s shipping business holds huge potential as the maritime component of the country’s oil and gas industry alone is worth an estimated $8 billion.
Pundits believe that for shipping to effectively contribute to the development of Nigeria’s economy there is urgent need to curb and combat these illegal maritime activities in our waters, as these crimes continue to constitute impediments to economic development.
Rotimi Amaechi, Minister of Transportation, said that as long as these crimes continue in the Nigerian maritime domain, the benefits of better shipping will continue to be elusive.
“The importance of ensuring a safe maritime domain cannot be over emphasised. A safe, secure and efficient shipping industry will surely revitalise and diversify the economy of Nigeria away from crude oil exploration to a maritime hub. Therefore, the promotion of sustainable shipping and sustainable maritime development will stimulate the development of new technologies and innovation, agile maritime security platforms and the development of maritime infrastructure,” Amaechi said.
Amaechi said concerted efforts were being made by the present administration to strengthen the institutional capabilities of agencies responsible for providing maritime security in Nigeria and around the Gulf of Guinea region and that the Federal Executive Council (FEC) recently approved the procurement of new security architecture for the Nigerian Maritime Administration and Safety Agency (NIMASA).
According to him, the approval involves the acquisition of new platforms and other logistics required to enable the agency perform its statutory function of securing Nigerian waters in conjunction with the Nigerian Navy.
Boss Mustapha, secretary to the Government of the Federation (SGF) said that the maritime industry must be protected to attract foreign investors and also preserve Nigeria’s territorial integrity.
“The maritime industry in Nigeria and indeed globally, has come under siege by criminal elements who orchestrate acts of piracy, sea robbery and armed proliferation in the Gulf of Guinea and within Nigeria’s territorial waters,” he said.
He said due to these challenges, the gains recorded through dredging, amnesty and port concession exercises in Nigeria nosedived, compelling some foreign shipping companies to enter Nigeria’s territorial waters with armed security personnel on board.
Uzoamaka Anagor-Ewuzie