The Nigerian maritime industry expects to record a growth of 2.5 – 5 % between 2018 and 2019 with a projected increase in demand for maritime services during the period.
The forecast, which was made known by Dakuku Peterside, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) on Tuesday March 27, 2018 at a well attended function at Eko Hotels in Lagos, states that a total fleet size to grow by 4.08% in 2018 and 4.41% in 2019.
Within the period, oil tanker fleet size will decrease by 2.23% in 2018 and increase by 1.7% in 2019. The non-oil tanker fleet size is projected to increase by 8.15 % in 2018 and 8.72% in 2019 while the oil rig count is projected to increase by 27.67% in 2018 and 0% in 2019.
The forecast noted that the maritime sector plays a major role in the exploitation, distribution and export of Nigeria’s ocean resources. With a total annual freight cost estimated at between $5 and $6 billion dollars annually. The maritime component of the Nigerian oil; & Gas industry is worth an estimated $8 billion dollars further reflecting the prominence of the sector to the Nigerian economy
According to NIMASA, the forecast, the first of its kind in the sector, is intended to serve as a compass for local and international stakeholders willing to do business in the Nigeria maritime domain.
The forecast period 2018-2019 covers a time of continuous recovery from recession, to the 2019 general elections and finally culminates in the post-election era.
Peterside said NIMASA as the regulator was driven by values and commitment; as these are the only ways that investors can be attracted to harness the great potentials in our maritime sector.
According to him, “As a regulator, we are driven by values and commitment; as these are the only ways that investors can be attracted to harness the great potentials in our maritime sector. On our part, we will continue to work out incentives and maritime sector specific interventions to attract investments.”
He expressed delight at the maritime forecast release which coincided with the release of the country’s Gross Domestic Product (GDP) figures by the National Bureau of Statistics (NBS) confirming Nigeria’s exit from recession.
He noted that it is a positive indicator that Nigeria’s economy is rebound for growth in 2018 and beyond.
Peterside said the forecast reviewed developments in the industry in 2017; shows expected International and Local Developments in Policy and Regulatory Environment for the Maritime Sector in 2018 and 2019 and also takes a look at Emerging Opportunities and Challenges for the Maritime Industry; all with the sole aim of realizing a robust and business friendly maritime domain that will also create avenues for economic prosperity.
He identified five bills undergoing legislative processes at the national assembly as key regulatory developments in the Nigerian maritime industry that will affect the maritime industry. These include the Anti-Piracy Bill, the establishment of the Maritime Development Bank, Inland Fisheries Amendment Bill, the Deep Offshore and Inland Basin Production Sharing Contract Amendment Bill and the Cabotage Act Amendment Bill 2017. “All these if passed to Law will help realize the dream of making Nigeria the maritime hub in Africa,”
Peterside maintained that despite the fact that the oil sector remains one of the pillars of the Nigerian economy and a catalyst for measuring the nation’s growth, the success of it is still largely dependent on the maritime sector which continues to play a strategic role in the economy of the country.
He also pointed out that some other factors that have contributed to the gradual growth being recorded in the sector are the receding crime in the Niger Delta Region, the Deep Blue Economy scale up of our maritime security architecture and continuous collaboration, which is addressing the immediate challenge in this areas aimed at suppressing the emerging threats on our waters.
Dr. Peterside noted that the outlook is the key parameters that will drive the maritime industry and highlighted some key drivers of the sector as; geographic factor, availability of skilled labour force, an efficient and effective regulatory environment, manpower and human capacity development, maritime infrastructural development, globalization and new technology amongst others.
It is part of the initiatives of the Dr. Dakuku Peterside led Management aimed at realizing a robust and virile maritime industry in Nigeria.