The maritime industry is a major contributor to Nigeria’s economy given that it is a key component in generating employment and revenue while improving on the country’s Gross Domestic Product (GDP).The maritime industry facilitates international trade accounting for over 80 percent of Nigeria’s imports and exports. Maritime industry plays crucial role in supporting the global trade ecosystem, serving as the primary mode of transportation for goods Internationally. It is projected that the maritime industry if fully harnessed will contribute 20 percent to the country’s GDP. This is because the maritime component of Nigeria’s oil and gas industry is estimated to worth $8 billion annually.
Furthermore, Nigeria’s GDP is projected to reach $372.97 billion by the end of 2024 and will continue to increase to $384.53 billion in 2025 and $396.07 billion in 2026. It is also envisaged that Nigeria’s GDP will grow by 3.19 percent in the second quarter of 2024 with the non-oil sector contributing 94.30 percent to GDP growth while oil sector will contribute 5.20 percent. With all these statistics shows that the maritime industry has enormous potentials.
The creation of Ministry of Marine and Blue Economy by President Bola Ahmed Tinubu in 2023 was primarily to develop and harness the vast potentials yet untapped in the industry. The enormity of the potentialities of this key sector to national economy is underscored by the superlative accrual profile of above $1.5 trillion globally envisaged from marine and blue economy yearly which Nigeria should be well positioned to access massively without domestic drawbacks.
A new era of economic growth is therefore unfolding in the maritime industry. The emerging growth is as a result of a new vision and robust ideas been propounded by the helmsman at Nigerian Shippers Council….the Port Economic Regulator, Barrister Akutah Pius Ukeyima, Executive Secretary/CEO.
To understand the phenomenon in proper perspective,the economic dynamism that is shaping the new maritime order with enormous fortunes accruing from the recent Foreign Direct Investment (FDI) into the country portrays him as a leader with a vision.
Akutah’s aspiration ab initio was to develop Nigeria’s maritime industry as a hub of excellence and creativity, providing the necessary infrastructure and conducive environment that will attract both domestic and foreign entrepreneurs to the sector. And to reach that goal, Akutah believes that we must nurture our potentials to innovation, creativity while creating enabling environment for businesses to thrive and equally for the agencies in the industry and stakeholders to synergize and interface with an undivided focus to grow the national and sub national economy .
Reeling out his achievements to the press last week to herald his one year in office, Akutah stated that from the first day he came into the industry, he identified 5 key areas that must stimulate growth. The key areas to focus on are infrastructure development as there are a lot of asset deficit in our port environment due to old age. Another area is information technology. Technology is changing every aspect of International trade and like Professor Theodore Leavith once noted: “The world is navigating toward a single, converging commonality….homogenising markets everywhere.”
Akutah equally identified information economy as a key component to stimulate trade,productivity and shared responsibilities amongst all the stakeholders.
Read also: Assessing the future of the maritime industry with the impact of artificial intelligence
Chronicling his achievements within the one year as Chief Ports Economic Regulator, Akutah believes that his philosophy drives his vision. His tough reform-oriented economic policies has started attracting foreign investment into the sector. Recently, a $150 million foreign investment was commissioned at the Onne Port, Rivers State. In Lagos, two shipping and terminal operators are investing a whopping $300 million in their expansion programs. The encumbrances hitherto witnessed at the port access roads has been drastically or totally eliminated thereby reducing corruption in the Port environment which has further reignited Trust and confidence from international investors.
It is a truism that money is attracted to where the growth is. Capital goes to where it can get the best returns and this is why the Minister of Marine and Blue Economy, Alhaji Adegboyega Oyetola is laying more emphasis on rehabilitating the aging apron quays,reconstructing dilapidated road networks, encouraging domestic investors, shipping companies and terminal operators to reinvest and build ultra modern bays and facilities that can match global standards. “In fact, the minister is pursuing aggressive, sound and sustainable growth oriented policies that will surely bring back our ports to reckoning.”
On the long awaited Nigeria Port Economic Regulatory Agency Bill (NIPERA) undergoing scrutiny at the National Assembly, Akutah is of the view that the totality of the Bill will transform the entire maritime industry. Competing in the new global maritime economy,the quality of our services has to improve as this attracts competition. The efficiency of the government sector does not only affect the performance of the public sector,it equally affects the totality of the nations,including the private sector hence we must secure our future by expanding Nigeria’s frontiers in the market place, Akutah added.
As superintendents in the industry,we have to be above board and infuse a high level of professionalism in our dealings with the larger public.
On the International Cargo Tracking Note (ICTN) project that has witnessed several drawbacks, Akutah believes that the right time to implement the project is now given the insecurity and attendant global issues pervading in several ports of the world.
“We must adapt and que into the global belief that today’s norms and considerations are no longer those that prevailed in the past hence we have to attenuate because the new political economy only opens its doors to those who are ready to compete and succeed,” Akutah advised.
Nwamadi is maritime journalist based in Apapa, Lagos.
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