THE NIGERIAN MARITIME SECTOR: ACTUALISING THE BLUE ECONOMY DREAM
1.0. INTRODUCTION
The land is failing, now we turn to the seas. With the consistent depletion in terrestrial resources and the need for significant economic gains, there has been an upsurge in the quest of littoral states to attain a “blue economy”. Nigeria has not been left out in this quest, being a country that possesses a great amount of littoral component states and water ways of great length, thus making the development of a Nigerian blue economy a necessity for the country’s benefit. However, the quest for the attainment of a blue economy is one that transcends the domestic shores and acquires an international character. This is exemplified by the statement of the Chairman of the Association of African Maritime Administrators, Mr. Dakuku Peterside, who emphasised the importance of the maritime sector to the growth and development of the African economy and restated the need for regional cooperation in achieving the repositioning of the maritime sector in the African clime.[1]
According to projections, by 2030, the ‘Blue Economy’ could outperform the growth of the global economy as a whole, both in terms of value added and employment.[2] Blue Economy initiatives and innovations are emerging around the world and are proving to be diverse, dynamic and wide-ranging. Thus, this discourse arises which particularly seeks to identify the ways by which this dream of a Nigerian blue economy can be made a reality.
2.0. CONCEPTUAL ANALYSIS: THE BLUE ECONOMY
Oceans, seas and coastal areas put together cover more than two-thirds of the earth’s surface and contain ninety-seven per cent of the planet’s water.[3] The ocean is the largest and most critical ecosystem on Earth. Water bodies contribute to poverty eradication by creating sustainable livelihoods and decent work for the populace. Over three billion people depend on marine and coastal resources for their livelihoods, thus making them crucial for global food security and human health.[4]
The blue economy has been defined as use of the sea and its resources for sustainable economic development as a parallel to the “green economy” concept.[5] As a marine and coastal analogue to the Green Economy, the Blue Economy approach is based on a vision of “improved wellbeing and social equity, while significantly reducing environmental risks and ecological scarcities”.[6]
The blue economy has six major sectors which include fisheries and aquaculture, marine biotechnology, seabed mining, oil and gas exploration, renewable energy, shipping.[7]
3.0. IMPORTANCE OF A BLUE ECONOMY
The enormous benefits to be gained from the exploitation of Nigeria’s maritime resources can neither be overemphasised nor overlooked.
The great economic benefits that stand to be enjoyed by a country with an effective blue economy are of almost limitless ramifications. As has been noted by the immediate past Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), “Maritime provides a veritable opportunity for us to grow our economy. NIMASA will ensure to play its role by providing necessary policies for industry players to reap the benefits of participating in the sector in order to develop our blue economy for Nigeria’s benefit.” NIMASA shocked more than a few when it disclosed that within 2017, it contributed N9.975 billion to the Consolidated Revenue Fund (CRF).[8]
A report presented by the African Development Bank (AfDB)[9] revealed that to achieve a significant decline in Africa’s poverty rate, we will require the continent’s gross domestic product (GDP) to grow at an overall average of seven per cent. To achieve this goal, experts believe it is of paramount importance that Africa continues its international trade and strengthens its current development. To do this, analysts contended that Africa must make effective use of its oceans and seas.[10]
4.0 RECOMMENDATIONS FOR ACHIEVING A NIGERIAN BLUE ECONOMY
While it is indeed commendable that Nigerian leaders and institutions have recognised the need for us to harness our blue economy, it must be recognised however that the appropriate strategies must be in place to actualize this dream. This is the focus of the latter part of this essay, which seeks to propose means and methods through which Nigeria may indeed actualise its dream of a blue economy.
4.1 Ecosystem Integrity
It only stands to reason that for a thing to function maximally, it must be in its most viable state. Ecological Integrity is a term used to refer to the ability of an ecosystem to support and sustain ecological processes and a diverse community of living things in the face of changing environmental conditions.[11] The demand here is not for a guarantee of unperturbed systems, as that would be all but impossible in today’s world, but for systems that have not been subjected to serious or irreversible harm.
If Nigeria seeks to exploit its maritime resources to the fullest, it must do its best to protect its environment from these destructive factors. This may be done through the introduction of protective laws and policies and ensuring the implementation of same. The proposed laws and policies must contain provisions that seek to protect our marine resources from unsustainable extraction of marine resources, pollution, physical alteration and destruction of marine habitat, pollution from land-based sources (e.g. plastics), ocean acidification and climate change impacts.
These may be done through enhancing our existing ocean related legislations in order to enable them accommodate the preservation of ocean ecological integrity, or through the introduction of fresh bills as is being done in South Africa with the Marine Spatial Planning Bill and Framework which seeks to provide for the development of marine spatial plans, provide for institutional arrangements for the implementation of marine spatial plans and governance of the use of the ocean by multiple sectors.[12]
Beyond pieces of legislation, the relevant authorities must also engage in consistent ocean system monitoring and research, collect correct and up to date data on our maritime systems, draw up comprehensive marine policies and plans such as the South African Marine Spatial Planning Framework which sets out the goals, objectives, principles and framework for the development of marine area plans.[13]
In essence we must keep our oceans in good health as our dream blue economy is dependent on sustaining a functional blue ecosystem.
4.2 Maritime Security
To effectively exploit Nigeria’s maritime opportunities, we must ensure that the security of participants therein is provided, as insecurity hampers the conduct of business.
When ships are attacked by pirates, crews suffer the strain of being fired upon and can be held hostage for months. Following a piracy attack, those involved can be seriously afflicted with post-traumatic stress. This is merely the personal cost of such attacks. The economic costs are also great as costs are soaring. Operators now face rising insurance premiums for high risk areas with other costs, which include installing preventive measures and protection on board, employing private security personnel, as well as ransom payments.[14] ICC International Maritime Bureau’s (IMB) Piracy Reporting Centre (PRC), report showed that 41 cases of pirate attacks were recorded on Nigerian waters in the last few months of 2018, while 29 crewmembers were kidnapped.[15] This, according to the Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman, leads to high cost of cargo importation.[16]
This instant need for increased maritime security was recognised by the Nigerian Vice President, Yemi Osibajo, where he stated that “African fishing grounds are being pillaged, its waters polluted, and piracy is heightening maritime insecurity and causing increase in the cost of maritime insurance and trade. The regulatory and legal framework to properly manage maritime resources and overcome these challenges are still inadequate, and we are yet to fully develop the human and institutional capacities required to respond appropriately to these challenges.”[17]
The Gulf of Guinea in particular has been ravaged in recent times by constant pirate attacks and other security issues. The former Director-General of NIMASA, Dr Dakuku Peterside, also reckoned that the strategy to get to blue economy on the way is to secure the Gulf of Guinea.[18]
Nigeria must step up to ensure the security of its water bodies, and this must be done by equipping the relevant security outfits, the Navy and NIMASA, to be able to combat the threats at sea and provide rapid and adequate response. We must also combat insecurity through international security cooperation with countries with which Nigeria water borders as joint effort may help to combat piracy more effectively. Nigeria’s status as the first country in the West African region to pass an anti-piracy law is a commendable indication of the government’s will to address the issue of insecurity. It, however, remains to be seen how the law would fare in the practical terms of implementation and prosecution.
4.3 Law and Policy: Formulation and Administration
Every notable development begins with proper and effective legal and policy initiatives. Thus, Nigeria must formulate comprehensive national policies aimed directly at eliminating the challenges to the blue economy in the actualisation of its blue economy dream, a couple of which have been highlighted above.
It is noteworthy that the Minister of Transportation, Rotimi Amaechi, admitted that steps taken by the Federal Government to mainstream the blue economy concept into its Economic Recovery and Growth Plan include the formulation of a draft National Transport Policy. The policy will provide a platform for the protection and sustainable exploitation of Africa’s maritime domain.[19]
However, as has been stated repeatedly, Nigeria’s problem has hardly ever been the lack of laws and policies, but rather the failure to properly implement and administer same effectively. Thus, Nigeria must put in place proper institutions, monitoring mechanisms and framework for the implementation of the new pieces of legislation and policies. Specifically, NIMASA must guarantee zero tolerance for non-compliance with maritime safety and security standards in order to eliminate substandard shipping in Nigeria.
4.4 Collaborative Efforts
a) National and International
A good portion of available marine resources are found in water bodies where different coastal states have interests. Thus, while the development of effective Ocean Economy strategies and the implementation of Sustainable Development Goals and related targets is first and foremost the responsibility of the national authorities, international cooperation is equally important.
Noting that the quest for a blue economy cannot be divested from the SDGs, the implementation of SDG 14- the sustainable use of oceans, seas and marine resources for sustainable development – will fall short of the transformative ambition of the Agenda 2030[20] without effective cooperation and coordination between States, especially at the regional level, with a focus on regional seas.[21] Thus, Nigeria must ensure greater participation in the West African region and with African States at large to make the best out of its marine resources.
b) Private and Public Stakeholders
We must also seek effective collaboration between the private and public stakeholders within the maritime sector. We must create an enabling environment for the private sector to invest in shipping in order to achieve the objective of a Nigerian blue economy. Noting that the maritime business is one that is capital intensive and costly, the government may encourage private indigenous participation in the sector by providing easier access to credit facilities. Pursuant to this, stakeholders have suggested that NIMASA should continue to make the necessary representations to the approving authorities in order to facilitate the disbursement and utilisation of the Cabotage Vessel Financing Fund (CVFF) for its statutory purpose of developing indigenous shipping capacity.[22] We must also seek to encourage greater indigenous participation in the maritime sector. This may be achieved by the effective implementation the Cabotage Act, amongst other things.
We must synergize to reap the maximal maritime benefits.
4.5 Ease of Doing Business
To reap the most from the maritime economy, we must increase the ease of doing business in the Nigerian maritime sector. The crises in Nigerian ports in 2018 led to Nigeria dropping in the 2018 Ease of Doing Business rankings, which has been blamed by maritime and shipping industry stakeholders on the seemingly intractable congestion at the wharves due to the terrible state of roads around the Lagos ports area, as well as unnecessary bureaucratic red tapes.[23]
Thus, there is a need to reform our import-export regulatory and transit procedures if we are to encourage greater maritime trade and by extension move farther in the quest to achieve a blue economy. We must strive to automate all shipping related administrative processes, eliminate port corruption and promote greater transparency. The issue of congestion must also be dealt with by developing other seaports in the country to function effectively, as this would create competitiveness which is lacking in the industry. It would also reduce over-reliance on the Lagos ports. It would increase ease of doing business around the seaports.
5.0 CONCLUSION
Actualising the blue economy dream has gone beyond a mere desire to become a necessity. Inherent in the blue economy is the solution to many of Nigeria’s social and economic problems as it would help us accomplish economic diversification, creation of high value jobs, ensuring food security, and managing and protecting the marine environment in a sustainable and responsible manner, amongst others.
If the recommendations discussed above are duly and effectively implemented, Nigeria would be right on course to partake in the spoils which the blue economy holds within it, at which point the term blue economy would become more than a buzz word and become the Nigerian reality.
About the Author
Temilola Adedapo Adetona is a 500L student of the Faculty of Law, University of Lagos with a keen interest in energy law, taxation, and maritime law, amongst others. He enjoys writing, both for leisure and competitively. He has participated in and won several essay competitions, national and international, and has also had a number of published articles on varying aspects of law. When he’s not writing, he enjoys music and football.
[1] Isaac Anumihe, “Ship owners to support AAMA chairman revive maritime sector” available at https://www.sunnewsonline.com/ship-owners-to-support-aama-chairman-revive-maritime-sector/ (accessed 11 September 2020).
[2] The Ocean economy in 2030, OECD 2016 available at https://www.oecd.org/environment/the-ocean-economy-in-2030-9789264251724-en.htm (accessed 11 September 2020).
[3] Water Science School, “How Much Water is There on Earth?” available at https://www.usgs.gov/special-topic/water-science-school/science/how-much-water-there-earth?qt-science_center_objects=0#qt-science_center_objects (accessed 11 September 2020).
[4] AllAfrica, “Nigeria: Nimasa and Quest for Blue Economy” available at https://allafrica.com/stories/201710130480.html#:~:text=To%20NIMASA%2C%20the%20blue%20economy,Nigeria’s%20major%20sour%20of%20revenue.&text=Dakuku%20Peterside%20stressed%20the%20need,of%20the%20country’s%20blue%20economy. (accessed 11 September 2020).
[5] WWF, “Principles for a sustainable blue economy” available at https://d2ouvy59p0dg6k.cloudfront.net/downloads/wwf_marine_briefing_principles_blue_economy.pdf (accessed 11 September 2020).
[6] United Nations Environmental Programme, “United Nations Environmental Programme 2013 Annual Report” available at http://wedocs.unep.org/handle/20.500.11822/8607 (accessed 11 September 2020).
[7] Hammed Damilare Ibrahim, “Harnessing the potentials of blue economy for sustainable development of Nigeria” World Maritime University Dissertations at page 673, available at https://commons.wmu.se/cgi/viewcontent.cgi?article=1672&context=all_dissertations (accessed 11 September 2020).
[8] Leadership, “How Blue Economy Can Help Nigeria Diversify” available at https://leadership.ng/2018/01/11/blue-economy-can-help-nigeria-diversify/ (accessed 11 September 2020).
[9] African Development Bank, “African Economic Outlook 2018” available at https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/African_Economic_Outlook_2018_-_EN.pdf (accessed 11 September 2020).
[10] AllAfrica, “Nigeria: Nimasa and Quest for Blue Economy” available at https://allafrica.com/stories/201710130480.html#:~:text=To%20NIMASA%2C%20the%20blue%20economy,Nigeria’s%20major%20sour%20of%20revenue.&text=Dakuku%20Peterside%20stressed%20the%20need,of%20the%20country’s%20blue%20economy. (accessed 11 September 2020).
[10] WWF, “Principles for a sustainable blue economy” available at https://d2ouvy59p0dg6k.cloudfront.net/downloads/wwf_marine_briefing_principles_blue_economy.pdf (accessed 11 September 2020).
[11] Jeff Yonover, “Ecological Integrity” available at http://www.oceanhealthindex.org/methodology/components/ecological-integrity (accessed 11 September 2020).
[12] Republic of South Africa Marine Spatial Planning Bill, available at https://www.environment.gov.za/sites/default/files/legislations/marinespartialbill2017_0.pdf (accessed 11 September 2020).
[13] Presentation by Prof Ken Findlay Research Chair: Oceans Economy Cape Peninsula University of ConfirmTechnology South Africa, available at https://www.iora.int/media/23921/presentation-by-prof-ken-findlay-rsa.pdf (accessed 11 September 2020).
[14] Safety 4 Sea, “The impact of piracy: seafarers, shipping industry, economy, environment” available at https://safety4sea.com/the-impact-of-piracy-seafarers-shipping-industryeconomy-environment/ (accessed 11 September 2020).
[15] Sulaimon Salau, “Many travails of maritime sector in 2018” available at https://guardian.ng/business-services/many-travails-of-maritime-sector-in-2018/ (accessed 11 September 2020).
[16] Ibid.
[17] Yusuf Babalola, “Gulf Of Guinea Security Key To Blue Economy – NIMASA DG” available at https://leadership.ng/2018/03/27/gulf-of-guinea-security-key-to-blue-economy-nimasa-dg/ (accessed 11 September 2020).
[18] Ibid.
[19] The Maritime Executive, “Nigeria Commits to Blue Economy, Anti-Piracy Initiatives” available at https://www.maritime-executive.com/article/nigeria-commits-to-blue-economy-anti-piracy-initiatives (accessed 11 September 2020).
[20] United Nations, “Agenda for Sustainable Development” available at https://sustainabledevelopment.un.org/content/documents/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf (accessed 11 September 2020).
[21] G20 Insights, “Sustainable Ocean Economy, Innovation and Growth: A G20 Initiative for the 7th Largest Economy in the World” available at https://www.g20-insights.org/policy_briefs/sustainable-ocean-economy-innovation-growth-g20-initiative-7th-largest-economy-world/ (accessed 11 September 2020).
[22] AllAfrica, “Nigeria: Nimasa and Quest for Blue Economy” available at https://allafrica.com/stories/201710130480.html#:~:text=To%20NIMASA%2C%20the%20blue%20economy,Nigeria’s%20major%20sour%20of%20revenue.&text=Dakuku%20Peterside%20stressed%20the%20need,of%20the%20country’s%20blue%20economy. (accessed 11 September 2020).
[23] Vanguard, “Our ports and Ease-of-Doing-Business” available at https://www.vanguardngr.com/2018/06/ports-ease-business/ (accessed 11 September 2020).
