Before delving into specifics in this article, it’s worth explaining the phrase “maritime industrial base.” Maritime industrial base is a group of individuals, firms, and governments working together to achieve a common objective in the maritime sector of the economy. The common objective is to ensure that proper workforce development, an effective supply base, and facilities are in place to support shipbuilding and its sustainment.
This article will focus on workforce development as a key component of the maritime industrial base because of space. Without an effective workforce, the maritime industrial base will be vulnerable. Effective workforce is very crucial to maintaining a sustainable maritime industrial base in a time of global crisis. The global tension we encounter today has shown the vulnerability of maritime supply chains. With the surge in weapons smuggling, our waterways have to be protected from state and non-state actors that could threaten our maritime national security interests.
Read also: Maritime Milestones: Mapping Nigeria’s Marine Market
It’s already twenty-one years since the Coastal and Shipping Act, also known as the Cabotage Law 2003 was passed. The Cabotage Act of 2003, is vital to defending Nigeria’s maritime national security interests and sovereignty amid complex challenges in the maritime domain. The merchant navy as a component of the nation’s Sea Power enables the maritime industrial base and naval power to safeguard our supply chains, preserve naval operational readiness by enhancing sealift capabilities, and protect our internal security.
The USA and China have long understood the importance of a maritime industrial base by injecting billions of US Dollars into their shipyards and shipping companies. The leading association for Europe’s shipbuilders has declared that “without a fundamental shift in shipbuilding policies, Europe will lose the capability to build seagoing merchant ships on any significant scale over the next 10 years,” mainly due to China’s dominance of the sea. But the reality, according to Alfred Thayer Mahan, in his book “The Influence of Seapower Upon History” is, whoever controls the sea, rules the world. How does a maritime nation control the sea and rule the world without a virile merchant navy and an effective workforce?
“With the surge in weapons smuggling, our waterways have to be protected from state and non-state actors that could threaten our maritime national security interests.”
Recall that the Cabotage Law is fundamental to maintaining a fleet of Nigerian-built, crewed, and owned vessels protecting the nation’s economy and equally serving as a bulwark against foreign ships in competition with indigenous ships in our coastal waters.
Additionally, the Cabotage Act is expected to support Nigerian jobs, help secure our domestic transportation from supply chain disruptions and provide buffers against anti-competitive manoeuvres from foreign ships doing business in our coastal waters. The Cabotage Act is a vital asset for protecting our people and infrastructure from non-state actors by limiting foreign vessel’s ability to roam our coastal waters including waterways. The Jones Act which is about coastal shipping in the United States of America supports 650,000 jobs at the national level and it generates more than $154 billion in annual economic output. So, how many jobs has the Cabotage Act supported and what is the value of its impact on the economy since 2003?
Unfortunately, reports in the news are not impressive about the loss in the economy as “265 Nigerian owned ships list in foreign registry in 2020” (Businessday Feb 9, 2021). Up till now, stakeholders are lamenting. Why do most Nigerian shipowners prefer to fly foreign flags? Truth is, “Nigeria registry is not business friendly.” And so what? The business environment should be friendly to Nigerian shipowners and other stakeholders in the maritime industry. Confirmed sources say that ship registration in neighbouring countries like Togo and Ghana are more seamless than in Nigeria.
Technically, when a vessel is registered in a foreign country, it’s the country’s laws that govern the operations of such vessels and the behaviour of their crews. The opportunities are not there for indigenous shipowners to grow their businesses here in the country. Only a few shipyards have the capacity to dock merchant ships. While most Nigerian seafarers are not employed on foreign ships. Why is this so?
The maritime editor at BusinessDay, addressed my concerns succinctly in an article authored and titled “Why Nigerian Seafarers Fail to Secure Jobs on Foreign Ships.” “Nigeria has lost most of its seafarers to leading maritime nations with high capacity in producing seafarers.” These are nations that have prioritised having MOUs with top shipping nations to ensure that their seafarers have the opportunity to secure good jobs. But in Nigeria the narrative is different.
Nigeria and all stakeholders must have clear eyes and affirm their commitment to the maritime industrial base they aspire to provide through the Cabotage Act. It’s time for our maritime industrial base to receive the national attention it deserves in order to ensure the strong defence and economic resilience the country demands. The Cabotage Act in concert with relevant legislations, and the men and women who work in the maritime sector are just the start towards strengthening the nation’s maritime industrial base. Thank you.
MA Johnson, Rear Admiral (Rtd)
