With the Nigerian economy in economic downturn, the actual increasing negative effects have already started to effect on the procedures of key sectors of the economy. Among the sub-sectors that's at the receiving end of the current economic depression will be the shipping business.
Moaning under intensive hardship due to government policies as well as global economic problems, the news from the Maritime sub-sector just isn't heartening, as over 20 shipping organizations were reported to have exited the nation’s shores. Consequently, no less than 3,000 dockworkers have already been laid off by various shipping firms, terminal operators and also logistics firms. This is mainly due to lack of poor import policies recently introduced by the government. In line with the Dockworkers Union of Nigeria (DUN), the massive retrenchment in the sub-sector was due to the Federal Government inability to meet its joint venture obligation with the worldwide oil companies which are major partners with the marine logistic companies.
The shipping traces exited our shores because of growing loss resulting from declining traffic volumes and recent federal government import policy.
It will be recalled that the Govt last year placed restriction on the importation of about Forty one items due to Foreign Exchange scarcity. But, authorities defended its activity and promised to inspire domestic production of some of the goods that could be produced locally. However, the shipping firms are complaining that the ban has adversely affected their operations. As a result, they are asking how the restriction be removed or else it will motivate smuggling, diversion of vessels to neighbouring international locations, leaving our slots virtually empty as well as general loss of income to government.
We urge the government and the relevant agencies in the maritime sub-sector to take reveal analysis of the complaints that have resulted in the exit of the shipping companies with a view to bring back the smooth operations with the maritime industry.
Even though it is necessary to restrict your importation of goods that can be produced locally and help save scarce forex, the significance of the maritime field of which shipping providers play a vital role mustn't be ignored. Statistics show since this year, the quantity of goods imported in to the country has shrunk simply by over 30 percent. The reason being the shipping lines are reportedly shifting base to other West Africa countries in response to govt new policy.
Authorities should review many of the policies as it influences the shipping operations in our shores.
There's need to meet the partnership obligations with the global oil companies, that are major partners from the sector.
Government shouldn't allow the shipping sub-sector to lag behind from the global sector.
Our own country is significantly endowed with coastlines and also navigable inland waterways, and also strategically placed on the particular Atlantic Coast of Western side Africa. And 76 percent of shipping and delivery business that takes put in place the whole of Western Africa is apparently done in Nigeria. That means that Nigeria should continue being a key player throughout West Africa.
Consequently, government should do everything to contain the exit involving shipping firms within our shores and save the jobs of millions of workers. According to Monetary Intelligence that screens the maritime sub-sector, regardless of Nigeria’s large export regarding crude and significance of over 100 thousand tons of general cargo, no Nigerian flagship happens to be plying international routes.
Also, statistics from the Nigerian Plug-ins Authority (NPA) on ship calls to the country reveal that between 2009 and 2012, Nigeria’s tonnage is growing from 82m tons to over 150m with an estimated freight payment of soaring from $4.1bn to earlier mentioned $7.5bn annually. But the participation of Nigerians remains nearly zero.
Although the get out of of foreign shipping and delivery firms may be the prospect our local shipping firms may be awaiting, we doubt when they have the capacity and proficiency now to fill the void with out harming an already bleeding economy with its various other adverse consequences. Federal government should swiftly get involved and arrest a similar experience that saw the exit regarding some airlines in order to neighbouring countries.
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