NIMASA laments drop in revenue as recession, Foreign Exchange scarcity bite

Economic recession alongside the scarcity of foreign exchange for importation has indeed continued to take its toll in the port industry as the reduced volume imports has resulted to the reduced number of vessels calling Nigerian seaports.

As a result, the number of ships paying the 3 percent statutory benchmark to the Nigerian Maritime Administration and Safety Agency (NIMASA) has reduced drastically, thereby affecting the volume of revenue realised by the agency. 

Lami Tumaka, head, Public Relations Unit of NIMASA, who disclosed this at a one-day seminar titled ‘How to Improve Maritime and Allied Industries Revenue in a Depressed Economy,’ organised by the League of Maritime Editors, added that the business of the agency depends solely on the activities in the large society, and Nigeria as a whole.

“We are not getting our 3 percent benchmark from ships calling the port because the business environment is very harsh and many importers are affected by the forex scarcity and the economic downturn,” Tumaka lamented.

According to her, this is affecting the revenue generated by NIMASA as the number of vessels calling the nation’s seaport continued to drop.

Ovie Edomi, President of the League, who said the nation’s maritime industry has the potential to generate more revenue for the government even in recession, said that the Federal Government needs to pay more attention to the sector.

Edomi stated that the government needs to consider as fast as possible infrastructure rehabilitation at the nation’s ports for ease of doing business at the ports. He pointed the need efficient port system, adding that improved facilities will reduce cost of doing business and discourage those who have chosen to divert cargoes meant for Nigeria through the neighbouring ports.

He said that all the agencies of government in the ports should awake to their statutory responsibilities, as this will promote efficiency. He further noted the need to check the excesses and arbitrary charges by service providers, which is among the reasons why Nigerians prefer using the neighbouring ports.

According to him, once facilities were working efficiently at affordable costs, the trend will in turn lead to improved revenue generation from the ports as more and more people will use the nation’s ports.

Dakuku Peterside, director general of NIMASA, said while delivering the keynote address that the importance having a secured maritime domain was responsible for the agency’s partnership with the Nigerian Navy and others to achieve the best.

Peterside, who was represented by Sunday Umoren, deputy director, Cabotage Service, described security as key to revenue generation in the maritime sector. Without a secured maritime environment, he added, vessels will shun Nigerian waters and it will affect businesses and revenue from the sector.

He said that once ship owners notice that a country’s maritime domain was not secure, many of them will use the neighbouring ports, and this, according to him, will promote transhipment at very high cost to the shippers and final consumers.

Uzoamaka Anagor-Ewuzie