... $1bn needed to upgrade maritime facilities – NIMENA communique
Again, the dormancy of the Cabotage Vessel Finance Fund (CVFF) has reechoed in Port Harcourt, Rivers State, where stakeholders poured lamentation over lack of funds to acquire vessels and compete with foreign vessel owners.
The worry also touched the waiver system which allows the Minister of Transportation to issue waiver to foreign vessels to do what Nigerian vessels ought to do, just because Nigerian maritime operators do not have the vessel.
The stakeholders pinned the problems of the industry and blue economy to how limited access to capital has hampered indigenous operators; and that minimal disbursement of the Cabotage Vessel Financial Fund (CVFF) persists despite its potential.
The communicate thus called for thorough supervision of any waiver before renewal. This may be to ensure that waiver seekers do not just sit on waivers every year without doing anything to help indigenous capacity to such vessels.
The Cabotage vessel financing fund which is over 20 years old is said to have remained idle, often triggering rumours of diversion. In 2022, the former president angrily ordered for its disbursement but not much was heard after about how much was given out.
Later, as late as May 2024, the Nigerian Maritime Administration and Safety Agency (NIMASA) which warehouses the fund issued a statement denial diversion, saying the fund was intact. Stakeholders have thus raise suspicion that the fund was not being disbursed. Various stakeholders in the marine and maritime sector have harped on the CVFF as the major hope and disappointment in the takeoff of the blue economy and pillar of hope of success of Cabotage Act.
These were highlights in the communiqué issued by the Nigerian Institution of Marine Engineers and Naval Architects (NIMENA) at their 13th annual conference held in the Garden City at Heliconia Park Hotel, Eastern Bypass, Port Harcourt, Rivers State.
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The theme was: ‘Advancing National Maritime Regulations for Shared Prosperity.” This brought together stakeholders, policymakers, industry experts, and students to deliberate on critical maritime issues.
The major recommendation was a call to expedite the equitable allocation or disbursement of the CVFF to support indigenous operators. It also called for the introduction of innovative financing models, including public-private partnerships, maritime bonds, and government-backed loan schemes tailored to the sector’s needs, all to boost funding to vessel acquisition to allow Nigerians compete in shipping within the coastal areas and beyond.
The call was also to promote financial regulations that enhance transparency, reduce risks, and foster investor confidence.
The experts also called for gradually phaseout of waivers while investing in indigenous shipbuilding and capacity-building programs. The authorities are also asked to ensure that waivers align with long-term goals, such as domestic shipbuilding and crew training, through transparent policies and stakeholder consultations.
There was also the call to prioritize investments in maritime infrastructure, including shipyards and raw material production facilities, to strengthen local industry capacity.
On safety and compliance, the call went for the development and implementation of regional maritime codes and standards tailored to Africa. “Foster collaborations between naval architects, policymakers, and regulators to advance technological innovation and governance.”
The communique touched capacity building, cross-agency collaboration, and observed that the four mandate pillars of the Cabotage Act of 2003 hinged on vessel registration, ownership, manning, and construction by Nigerians.
The communique said over $1 billion is required to bridge maritime infrastructure deficits. It also said inadequate power supply, steel production, and financial support have hindered the maritime industry.
The experts also said banks’ refusal to accept vessels as collateral due to their classification as movable assets has further compounded the problem.
On maritime safety compliance, NIMENA said with over 90% of global trade reliant on maritime transport, safety standards are paramount for safeguarding lives and the environment.
The body of marine engineers called for stengthening certifications and standards to drive professionalism, enhance safety, and stimulate economic development.
A keynote address was delivered by a marine engineer, Andrew Aligbe, Managing Director of Gelose Marine Services Limited, to set the tone for robust discussions which dwelt on the Cabotage Act and the Role of Waivers in Advancing the Maritime Industry; Technological Innovations in Naval Architecture; Maritime Safety Compliance; Establishing Marine Classification Standards for Shipbuilding; and Welding Standards and Regulations in Maritime Engineering. Outstanding students were also recognized with awards for academic excellence.
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