HOW CAN THE MARITIME INDUSTRY CONTRIBUTE TO THE REALIZATION OF THE

OBJECTIVES OF VISION 20: 2020?

By Ejike-Ume, Felix Ifeanyi1

Introduction.

The Maritime industry plays a major role in the growth and development of every coastal state.

Landlocked and geographically disadvantaged states have recorded tremendous success in their

economy through the utilization of the seaports of neighbouring coastal states owing to the privilege

accorded to them under the United Nations Law of the Sea Convention 1982. The importance of the

Maritime industry cannot be overemphasized considering its immense contribution to international

commercial trade and the accelerated development of the economy.

Definition.

It is imperative to define the following terms: maritime, industry, maritime industry and vision. The

Black’s Law Dictionary 8th edition, defines “maritime” as “connected with or situated near the sea or

relating to sea navigation or commerce.” It defines industry as “a particular form or branch of

productive labour.” Therefore, maritime industry can be said to be that branch of productive labour

that facilities sea navigation, carrying or affreightment of goods and persons.

The Cambridge International Dictionary of English defines “vision” as “the ability to imagine how a

country, society, industry, etc. will develop in the future and to plan in a suitable way.”

Nigerian Maritime Industry.

It is common knowledge that over ninety (90) percent of the world commercial trade is transported by

sea. People, cargoes, oil and gas are transported in merchant ships and massive oil fleets. This

generates revenue for the appreciation of the economy and in turn facilitates the growth and

development of the nation.

Nigeria is sometimes referred to as a “cargo economy” because it is a cargo-driven economy. Many

critics have maintained that “Nigeria imports and consumes what she does not produce and exports

1
EJIKE-UME FELIX IFEANYI- LL. B Hons. (Nigeria), BL. (Nigerian Law School, Victoria Island, Lagos, Nigeria), LL. M (University of Lagos, Akoka
Lagos, Nigeria). He is a Litigation Counsel with Dr. Chief Fidelis Ejike O. Ume S.A.N & Co. This is the Overall Winner Essay of the “3rd Ships
and Ports Annual National Essay Competition 2009” where he won the “Dangote Ports Operation Prize for the Best Overall Essay”.
what she produces.” Nigeria accounts for over sixty (60) percent of the total seaborne traffic in volume

and value in the West African region with a Gross Domestic Product (GDP) accounting for over sixty

(60) percent of the total Gross Domestic Product (GDP) of all the countries that constitutes the

Economic Community of West African States (ECOWAS).

However, the Nigerian Maritime industry still face a myriad of problems, ranging from poor security

equipments, inefficient security operatives, obsolete port security plans, unnecessary port congestion,

corruption and other illicit practices.

Vision 20: 2020.

The import of Vision 20: 2020 is that by the year 2020, Nigeria will be one of the twenty (20) largest

economies in the world, able to consolidate its leadership role in Africa and establish itself as a

significant player in the global economy and political arena. Nigeria needs adequate infrastructural

services that supports the full mobilization of all economic sectors, fosters sustainable development

and guarantees the well-being and productivity of her people.

Nigerian Maritime Industry and the Vision 20: 2020.

The Nigerian Maritime industry can generate great revenue for the nation, if the right policies are

formulated and meticulously implemented. It requires an interventionist approach as opposed to the

protectionist policy that obtains in the United States because Nigeria is a developing country whose

local companies are forced to compete against formidable foreign opposition.

It is unfortunate that the Maritime industry is missing from the Seven (7) Point Agenda which the

President Umaru Musa Yar’Adua’s administration adopted as development initiatives towards the

achievement of Nigeria’s Vision 20: 2020. This is a flaw which might hamper the success of the

vision.

At this juncture, it is pertinent to answer the question posed in the topic by recommending concise

suggestions that will aid the fundamental transformation of the Maritime industry and the realization

of the objectives of Vision 20: 2020.

1. Implementation of the International Ship and Port Facility Security (ISPS) Code. This will provide a

standardized, consistent framework for evaluating and managing risk and security challenges. In the

long run, it will provide considerable cost benefit for the Maritime industry as a whole and for

individual ports. By putting in place an effective and compliant security regime, our ports will fully

participate in global trade and also avert the potential consequence of a major security breach by

terrorists and belligerent groups, which might result in port closure with its attendant economic loss.

2. Establishment of the Coast Guard system and acquisition of Naval ships and Patrol boats. The coast

guards will be responsible for evaluating, boarding and inspecting commercial ships as they approach

Nigerian waters, relying upon intelligence from variety of sources and also track vessels to monitor

traffic in harbours using Automatic Identification Systems. They will police our territorial waters,

continental shelf and the contiguous zone while the Navy will patrol our exclusive economic zone

(EEZ). More Naval ships and patrol boats should be acquired to check piracy, smuggling and oil theft.

3. Training of Seafarers and implementation of the Nigerian Seafarers Development Programme. A

programme must be introduced for the training and supply of seafarers, meeting international

standards of competency. Nigeria can become a major supplier of seafarers to the international

shipping labour market. This will result in repatriation of huge revenue to Nigeria. Therefore, the

Nigerian Seafarers Development Programme (NSDP) must be implemented to achieve this objective.

4. Rejuvenation of our National Shipping Line. The Federal Government can determine the direction of

her international maritime trade by creating a viable Shipping line. She can do this through direct

participation, going into joint ventures or bilateral and multilateral agreements. The National Shipping

line will transport our oil and gas without being subjected to the whims and caprices of foreigners.

This is a prerequisite for economic development, national prestige, national defence and security,

employment generation and balance of payment purposes.

5. Injection of more local participation in carriage of our oil and gas. Our trade policy in relation to

exportation of our crude oil and importation of finished products is on Free on Board (FOB) terms.
 The carriage of these products is dominated by foreigners and based on this FOB terms, Nigeria will

be loosing big revenue which will never be ploughed back into our economy unlike where the products

are carried by Nigerian owned and crewed fleets. This has a major negative impact on our economy

and has to be reviewed to reflect a more beneficial term.

6. Implementation of the Coastal and Inland Shipping (Cabotage) Act, 2003. A proper implementation of

this Act will address strategic goals of National security, development of adequate merchant tonnage

through shipbuilding and ship repairing, development of intermodal connections and deepening of

trade. It will also encourage acquisition of shipping technology by creating and diversifying

employment opportunities in the industry, improve environmental safety, enhance domestic water

borne transportation and conserve foreign exchange. There is need to implement Part VIII of the Act,

on Cabotage Vessel Financing Fund (CVFF) also known as “The Fund”. This will promote the

development of indigenous ship acquisition capacity by providing financial assistance to Nigerian

operators in the domestic coastal shipping business.

7. Establishment of Small Scale Industries. These industries will be into shipbuilding and ship repairing.

They can acquire funds from the banks administering “The Fund” (CVFF) for building, acquiring and

reconstructing ships. This is similar to the United States Federal Ship Financing Guarantee Programme

(FSFGP) under the Merchant Marine Act of 1936, the United States Capital Construction Fund (CCF)

Programme and the Operating-Differential Subsidy (ODS). This will create jobs for our people,

tremendously increase our tonnage and generate revenue.

8. Establishment of a Maritime Micro Finance Bank. This bank will provide loans to take care of some

exigencies and minor projects in the sector. The bank can also provide loans to shipbuilders and ship

repairers, in order to encourage the rate of ship construction, increase our tonnage, provide jobs and

will become a great source of revenue for the development of the Nigerian economy.

9. Acquisition of Ships for Promotion of Tourism. Nigerians can cruise on ships and it can also be used

to attract foreigners to Nigeria and a lot of revenue can be generated from this. The enormous
 economic effects of this can be observed from the United States and South Africa. Maritime transport

enhances and facilitates tourism. The Federal Government and State Governments can realize revenue

which can be channeled to developmental projects. The Lagos State Government has procured a “hotel

yatch” and is currently generating revenue from it and promoting tourism in the state.

10. Rehabilitation of our Ports to meet International Standards. The ports can be rehabilitated while new

ones should be constructed at strategic points around the country. Already, dredging of the River Niger

and rehabilitation of some ports is on-going. This is a good step by the Federal Government but

modern secure global information and communications infrastructure should be installed at the ports

too. There is a proliferation of security agencies which should be pruned to avoid unnecessary delays

at the ports. The Federal Government can concession some parts of the ports to private companies for

a better service delivery and efficiency. If our ports are counted as among the best then it will instill

confidence in Nigerians and foreigners, thereby enhancing commercial trade, investment and

development of our economy.

11. Acquisition of Scientific Research Ships. These ships will enable Nigeria to commence proper

examination of her deep seabed minerals, conduct lots of research and seek possible means of

exploiting them and generating revenue for development of the nation.

Conclusion.

A country’s economy cannot thrive in an atmosphere of corruption. Therefore, corrupt practices at the

ports must be prevented and discouraged at all cost. The Federal Government of Nigeria must invest

heavily into the Maritime industry if it must experience accelerated growth and development of her

economy. If the above stated points in the foregoing analysis are meticulously implemented in the

Maritime industry, then this will result in an overwhelming economic boost for Nigeria and the

realization of the objectives of Vision 20: 2020.