• Friday, April 26, 2024
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BusinessDay

Seaport closure, a catalyst for “wealth blindness?”

Seaport

For many years, maritime experts in Nigeria and indeed Africa used to talk about “sea blindness” because in spite of huge resources, “80 percent of Nigeria’s maritime resources are yet to be tapped.” You may accept it or not. It was clearly stated in this column about five years ago that a nation that has maritime resources out of which only 20 percent has been tapped in about 100 years of its existence is suffering from “sea blindness.”

With “sea blindness”, one would not be totally wrong to say that the maritime sector of the country is invisible to most of its 200 million people. The invisible nature of the maritime industry as reflected in this column a few years ago, is as a result of the mismatch between the citizens’ perception and reality of benefits that could be derived from enormous resources in the maritime sector of the economy.

It may interest you to know that there is a complex interaction among ships, ports and people. In fact, ships, ports and people are what I referred to as, “The Tripod Stand” in a lecture delivered sometime ago. If any nation must derive benefits from natural heritage of mankind which is the sea, policy decision makers must allow these three components to interact unhindered in order to foster economic growth.

Nigeria can boast of ships, their crew and supporting staff belonging to private organizations for cabotage duties and international trade. The country has six ports out of which only two (Tin can and Apapa) are working below capacity by all accounts. These are the ports that have been reported closed because of trucks. Most people – ship-owners, clearing agents, marine engineers and government officials – working in Lagos ports are frustrated because of the infamous Apapa gridlock of almost ten years.

I thought Nigeria is in dire need of foreign exchange. And if it was true that Nigeria needs foreign exchange, why close the functional seaports for two weeks, as reported in BusinessDay headline of March 24, 2021. Closure of seaports for two weeks will cripple one of the legs on which the maritime industry stands.

We can only admonish those who are responsible for the closure of the seaports in Lagos because the decision has grave economic implications. So, how much will the nation gain or lose in terms of foreign exchange when Nigerian exporters cannot meet contractual obligations as a result of 600 trucks trapped within the seaports?

If it was true that Nigeria needs foreign exchange, why close the functional seaports for two weeks

In two weeks, anything can happen as it was reflected in media reports. A two-week closure of the seaports may extend to eight weeks for reasons yet to be determined. The maritime industry is a sector where transactions are bound by contracts and deadlines. Once, Nigerian exporters do not meet up with contractual agreements on a timely basis, and goods have to be rejected by importers abroad, it becomes a challenge to our exporters. This has a negative effect on people and the economy at a time when the nation is barely out of recession.

If those saddled with the responsibility of managing the seaports cannot open these important economic infrastructures within the shortest possible time, I make bold to say that Nigeria is gravitating slowly from “sea blindness” to “wealth blindness.” “Wealth blindness” in the maritime sector is as a result of people’s inability to appreciate the wealth that could be created due the interaction of ships, ports and people. It is the lack of knowledge and awareness on the part of some policy decision makers, port managers and operators about the real and potential economic value of our seaports that is responsible for clogging of our seaports.

We pay little or no attention to our seaports. I may be wrong. But this article is motivated by my passion for the sea where I worked for almost 35 years. We must not be shy to ask ourselves why we are poor as a maritime nation? We have crude oil and other mineral and natural resources within our territorial waters, yet Nigeria is poor. Why? This is the paradox of Nigeria – a nation rich in human intellectuals and mineral resources but poor economically. What a pity! Those who are educated cannot control and direct uneducated truck drivers at the seaports.

How are we going to have balance of trade surplus when other countries are exporting goods to Nigeria but our exporters cannot export goods to other countries for about fourteen days because of systemic failure. I must amplify that maritime experts are concerned about seaports closure in Lagos for two weeks at a time when we need to increase exports.

The inefficiency of our seaports with low productivity and high traffic handling time must have contributed to over 600 trucks trapped in the ports for different reasons. This has negative impact on the nation’s economic growth. For instance, records show that Nigeria is supposed to handle most of the 3 million metric tons of export and import cargoes of Niger Republic, which is a landlocked neighbor. Due to inefficiency and bureaucracy at our seaports, the country loses Niger Republic’s cargoes that are expected to transit our ports. Even cargoes due to Nigeria in the next two weeks will as usual be lost to other neighboring maritime nations.

I can see that ships, seaports and people are under severe pressure in Nigeria’s maritime industry. The mere fact that we are used to closing any infrastructure – schools, roads, bridges and airports- in the country does not mean that our seaports can be closed for two weeks. If our experience with the closure of the Third Mainland Bridge is anything to go by, I urge both importers and exporters to take heart. But come next general elections in 2023, Nigerians should vote for those who understand maritime economics. Thank you.