Peterside decries huge capital flight in Nigeria’s maritime sector

Business

Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside, has decried the high level of capital flight occasioned by inadequate participation of indigenous firms in the cargo freightment value chain.

Peterside disclosed this on Friday at at the on-going 30th Enugu International Trade Fair, organized by the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA).

Speaking on the theme: “Cargo Support Initiative and Transport Logistics for Non-Oil Export Trade”, the DG said over the years, “Nigeria is known for exporting raw materials with little or no value addition at all.”

He maintained that the situation had robbed the nation of significant economic values and opportunities for growth and development.

While noting that the situation is now different in the maritime industry, Peterside said “there is insignificant indigenous participation in the entire cargo affreightment value chain.

“The result of this trade imbalance are capital flight, the distorted balance of payments position of Nigeria, among other economic ills.

“For instance, conservative estimation puts the total freight earned from all import and export (inbound and outbound) vessels in Nigeria in excess of 8 billion naira but this huge amount was earned by foreign operators who have dominated international shipping activities in Nigeria.

“This is beside other values lost in the cargo affreightment and ancillary services in the value chain.”

Peterside said to stem the tide, NIMASA had identified the sector as a critical component for effective economic diversification, a major policy thrust of the Federal government.

He identified challenges facing indigenous shipping in Nigeria to include lack of cargo, structural weakness, foreign dominance, ship agency, husbanding status, poor funding/undercapitalization, weak competitive disposition, poor equipment, low business activity, among others.

The DG said to grow indigenous capacity in shipping and contribute significantly to national GDP, “a well-administered public sector cargo support initiative is imperative.

“There is a compelling need and urgency to grow the real sector of the economy for value addition to the mineral and agricultural resources to ensure continuous cargo generation for affreightment.”

He further stated that cargo support policy, which the NIMASA is pursuing vigorously “will help indigenous operators and shipowners to participate in the Nigeria shipping trade, hence the building of their capacities in shipping and growing the national economy.”

In a remark, the ECCIMA President, Sir Emeka Udeze said the place of NIMASA in the development of the country’s economy is very important and key, especially in the maritime transport sector.

He said it is fulfilling that “NIMASA is alive to her responsibilities and role in the promotion of business and economic development.”

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