By Adedapo Adesanya
Nigeria is planning to unveil a national policy on marine and blue economy which it envisaged will deliver over $2.7 billion in revenue per annum for the national economy.
This was disclosed by the Director of the Maritime Safety and Security Department at the Ministry of Marine and Blue Economy, Mr Babatunde Hafiz, at a stakeholders forum in Lagos, noting that the policy will play a great role in enhancing the performance of the shipping sub-sector and boost trade facilitation as well as economic growth.
Mr Hafiz said the policy will provide a comprehensive framework/blueprint that will also tackle revenue leakages, through the envisaged streamlined approach to the management of the sector.
He said the ministry is determined to work towards the disbursement of the Cabotage Vessel Financing Fund (CVFF).
CVFF is an intervention fund established by the Cabotage Act to assist indigenous shipping operators in acquiring new vessels to enhance indigenous capacity building. It is also a strategic instrument within the legislative framework to stimulate the expansion of domestic shipping capability.
“To ensure the full implementation of the CVFF, the Ministry has constituted a Committee to develop clear guidelines and mechanisms to facilitate improved access to the Fund by Stakeholders in the Shipping Sub Sector. This initiative is envisaged to ensure that the Fund achieves its goal of providing the required financial support for indigenous shipowners to acquire, construct and repair their vessels,” Mr Hafiz said.
“The CVFF will allow the indigenous shipowners to fund the acquisition of more vessels at a single-digit interest rate. Limiting Cabotage trade to Nigeria-owned, crewed and operated ships, will increase the number of ship fleets/tonnage in the country and attract healthy competition with foreign shipping companies in international shipping.
“The CVFF will also enhance the employment of Nigerians in the maritime sector, increase locally induced Cabotage trade and movement of passengers and cargo by indigenous shippers,” he stated.
Mr Hafiz also said the arrangements to herald the Regional Maritime Development Bank (RMDB ) establishment are at an advanced stage.
“The RMDB establishment is ongoing, with Nigeria set to host the headquarters and having the highest share among MOWCA member states.
“The bank’s objectives include funding port infrastructure, vessel acquisition, and human capacity development, among others. The RMDB’s establishment was conceived by the Maritime Organisation of West and Central Africa (MOWCA), which comprises 25 countries.
“The RMDB’s capital base is expected to be $1 billion, with Nigeria having the highest share of 12 per cent among MOWCA member states. The bank will be a private-public sector-driven bank, with 51% shareholding for MOWCA states and 49 per cent for institutional investors.
“The bank’s establishment process is ongoing and office space has been provided for the bank at the NIMASA, Abuja Office. Its establishment will increase access to funding for the acquisition, construction and repairs of vessels by indigenous shipowners,” he said.
He added the ministry through its agency – the Nigerian Maritime Administration and Safety Agency (NIMASA) is collaborating with the Nigerian Meteorological Agency (NiMet) to provide accurate sea weather forecasts to aid sea navigation and provide information for seafarers to support safe navigation and efficient operations in Nigerian waters.
“As part of the collaboration, NiMet has invested over N2 billion to enhance its marine meteorological services, including the upgrade and expansion of automatic marine stations, installation of tide gauges and buoy systems, and the establishment of a dedicated Central Marine Forecast Office (CMFO),” he stated.
Dipo Olowookere