FG to Re-establish National Shipping Line to Capture $10 Billion Annual Ship Charter Market

Joyce Mmereole Okoli

The Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola CON, has said that the Federal Government is considering the re-establishment of the National Shipping Line to enable the ministry capture a substantial allocation of the estimated $10 billion annual ship charter market.

The minister stated that this will not affect the growth of local players but rather to provide an avenue for them to create and extract more value from the sector, especially through ship construction, maintenance, and repairs.

He however urged stakeholders on the need for full enforcement of the Cabotage Act to encourage efficient utilisation of inland waterways transportation to facilitate trade, encourage Indigenous ship construction, maintenance, and repairs, tating that strengthening Cabotage Enforcement would enable local businesses thrive.

Oyetola stated this while giving his address at a stakeholders roundtable engagement themed: "Advancing Sustainable Development in Nigeria's Marine and Blue Economy" which held in Lagos earlier today, Oyetola shared that the meeting with stakeholders is critical to finding sustainable pathways to grow the Nigerian Marine and Blue Economy.

“The ministry's decision to consider the re-establishment of a National Shipping Line is borne out of our desire to capture a substantial share of the estimated $10 billion annual ship charter market within the country.

"I believe we can transform this sector through the innovative Public-Private Partnership (PPP) models that the ministry has embraced. This model, a collaborative synergy between the private sector's efficiency and the public sector's oversight, is set to bring about transformative impact on the marine and blue economy. Anticipated outcomes include the creation of substantial job opportunities and the facilitation of increased trade and investment in the nation, reinforcing our collaborative and forward-looking approach.

"Let me hasten to say that this initiative will not seek to impede the growth of local players but rather to provide an avenue for them to create and extract more value from the sector, especially through ship construction, maintenance, and repairs. This would enable our local businesses to better leverage the Carbotage Act, which gives Nigerians the exclusive right to control locally generated seaborne trade."

He added that stakeholders should "normalise" these engagements as the ministry seeks the collective contribution of ideas and perspectives, from stakeholders that can propel the sector to the trajectory of success.

The Minister said that this meeting would continue in series to fine tune policies that will come to a finale in the growth and progress of the sector.

"Dear stakeholders, it is worth noting that this engagement forum is crucial to the development of the sector as it necessary to support the development of the economy as well as meet the expectations of Mr. President who took the courage to open up Nigeria to focus on the Blue Economy value chain. This stakeholders' engagement will be the first in its series since it is important that we and work together to ensure that our industry is safe, reliable and sustainable."

Also speaking, the Permanent Secretary, Federal Ministry of Marine and Blue Economy, Dr. Magdalene Ajani, while appreciating stakeholders for a huge turnout for the meeting encouraged them to suggest solutions to aid the ministry in critical policy formulation.

“The Maritime Sector is a major source of revenue earnings for the Country, an enabler of trade and a key engine of economic growth and sustainable development. Nigeria is blessed with so much aqua and so has an extensive Exclusive Economic Zone (EEZ) making it a natural hub for shipping and International Trade for most landlocked neighboring nations in West and Central African region.

"We are all here because of the zeal we have for our nation, Nigeria and it is my utmost belief that this zeal will yield enormous success for the maritime sector in Nigeria and Singapore. I welcome you once more. And please make your contribution and let's take out the right goals that will set the pace for the Federal Ministry of Marine and Clear Economy. Let us therefore lend our voices as we begin this journey of forward growth for the Maritime industry”, she said.