Nigeria’s losses will compound without a shipping line after AfCFTA
Since 1995 when the Nigerian National Shipping Line (NNSL) went defunct, the shipping sector in Nigeria has depended on other nations to transport cargoes on its behalf.
Stakeholders of the maritime industry in Nigeria had a one-day virtual symposium with the theme, “Establishment of a Nigerian Global Trading Fleet” to discuss the issue.
Without vessels of its own or a national carrier, Nigeria’s economy has taken a lot of disadvantageous implications. It is losing trillions of Naira to foreign vessels on import and exports.
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The Executive Secretary/Ceo of the Nigerian Shippers Council (NSC), Hassan Bello was present at the event. He said in 2015, “Nigeria paid $9.1 billion as freight”.
The Africa Continental Free Trade Agreement (AfCFTA) took off in January 2021 and Nigeria’s maritime sector is expecting a positive turn out for the country through the deal.
However, there is a chance that the transportation of cargoes using foreign vessels will half the earnings further.
National shipping line in Nigeria
The group further discussed re-establishment of a national shipping line and the creation of a national carrier for Nigeria.
According to Bello, the National Fleet Implementation Committee which he is also chairing is under pressure to produce a national fleet.
However, it needs to be sustainable and therefore the project must be private sector-driven to ensure its suitability.
Nigeria must also take care of the fiscal and legal issues to ensure a long term shipping system.
The Chairman, Shipowners Forum, Mrs Margret Orakwusi, said foreign vessels servicing Nigeria’s import and export needs are adding no value.
“No value addition to the huge annual tonnage generated by way of earnings in freight, she said.
If Nigeria fails to re-establish a national shipping line and push for global trade access, it will only compound its losses from the shipping sector especially with the AfCFTA, Engr. Greg Ogbeifun noted.
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The one-day virtual symposium was held as a commemoration of the 70th birthday of Engr. Greg Ogbeifun. He is the Chairman, Starzs Investment Company and Starzs Marine and Engineering Company.