2 days Ago By Guardian Nigeria
The Federal Government has been urged to implement reforms that would enhance the efficiency and competitiveness of Nigerian ports, as this is critical to improving the industry’s global ranking. The Sea Empowerment Research Centre (RGS), in its New Year bulletin signed by its Head of Research, Eugene Nweke, said that despite ongoing efforts, the Nigerian maritime industry faced significant challenges, including corruption, inefficiency, and limited resources during the year. He said to move forward; the government needs to pay more attention to the maritime sector and its affairs to boost the economy.
“This can be achieved by deliberately investing in infrastructure, including ports and terminals, and enhancing safety and security measures. “The government also needs to address the issue of regulatory compliance and ensure that regulations are enforced consistently and efficiently. In this instance, the funding of the newly reinforced industry economic regulator by the government cannot be overemphasized,” it stated.
Although, it noted that the industry recorded significant growth with Nigeria being a major oil-producing and exporting country, the report stated that inadequate investment on infrastructure and operational facilities including ports, harbours, and terminals, is a significant challenge that needs to be addressed. “Like in previous years, the industry also faced environmental challenges in 2024, including marine pollution which has caused degradation to the environment and its ecosystem. “Furthermore, the industry faces challenges related to regulatory compliance, with inconsistent enforcement of regulations and bureaucratic inefficiencies hindering effective maritime operations and investment.
“Stakeholders are in high spirit that with the repeal of the Nigeria Shippers Council Act of 1979, and passage and subsequent enactment of the Act, the metamorphosed body will provide the desired and requisite economic and central regulatory functions and adequately fill in this omitted gap, which was lacking pre and post ports concessions in 2006. “The shortage of skilled workforce, including seafarers, marine engineers, and experts in maritime logistics and management, is also a significant challenge.” “As observed, internal politics, avoidable distractions and lips service was common scenes in this sector, while concern on the dearth in the workforce age, which is not hiding its near consequences, continues to grow.
“Unfortunately, this sector (seafaring marine engineers and marine & logistics experts) is the main industry cooking pots that guarantees industry growth and sustainability. Also, noted here, is the challenge occasioned by poor mentorship (an enduring industry human capacity re-engineering) programme,” it stated. Noting that global port ranking by World Bank’s Trading Across Border indicator placed Nigeria’s ports 183rd out of 185 countries in terms of efficiency, the report stated that: “This ranking was due to various challenges such as delay of import/export processes, unofficial charges, human interface, technical breakdown, and security concerns that are prevalent in Nigerian ports.
“Thus, while port predictability and competitiveness appears a foul cry, the port’s delivery corridors are also bedeviled by human barrier elements, impeding the fluidity of prompt cargo delivery. “Indeed, this global ranking is more or less a testimonial, constituting and pointing at how our maritime industry fared in 2024,” it stated. Lamenting the pains of high foreign exchange rate on shipping business, the report stated that the Nigerian government needs to take urgent steps to address the issue of the unregulated foreign exchange rate and provide a stable and predictable environment for investors to operate in.
“Presently, the port import throughput is on the downward indicators, ship calls to the port also on downward indicator when compared by the previous year’s record,” it stated. It, therefore, enjoined the government to work towards creating a more favourable business environment with a stable and predictable foreign exchange rate to attract investments and stimulate growth in the maritime sector..
