FG Targets $2.7bn Revenue From Marine Sector

The Federal Government has announced that it had advanced the process of developing a national policy on marine and blue economy, which is expected to contribute $2.7bn to the country’s economy.

The Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, Babatunde Bombata, disclosed this on Tuesday at a stakeholders’ meeting in Lagos organised by the ministry.

Bombata stated that the ministry had begun the process of developing a national policy on the marine and blue economy, which would play a great role in enhancing the performance of the shipping sub-sector and boosting trade facilitation as well as economic growth.

According to him, “The development of the policy would provide a comprehensive framework/blueprint to deliver the expected over $2.7bn contributions of the marine and blue economic sector to the national economy and tackle revenue leakages, through the envisaged streamlined approach to the management of the sector.”

He revealed that the ministry was determined to work towards the disbursement of the Cabotage Vessel Financing Fund (CVFF).

The CVFF is an intervention fund established by the Cabotage Act to assist indigenous shipping operators in acquiring new vessels to enhance indigenous capacity building.

The Director highlighted that the fund is a strategic instrument within the legislative framework to stimulate the expansion of domestic shipping capability.

In his words; “To ensure the full implementation of the CVFF, the ministry has constituted a committee to develop clear guidelines and mechanisms to facilitate improved access to the fund by stakeholders in the shipping sub-sector.

“This initiative was envisaged to ensure that the fund achieves its goal of providing the required financial support for indigenous shipowners to acquire, construct and repair their vessels.”

He opined that the fund would allow the indigenous shipowners to fund the acquisition of more vessels at a single-digit interest rate,  adding “limiting cabotage trade to Nigeria-owned, crewed and operated ships, would increase the number of ship fleets/tonnage in the country and attract healthy competition with foreign shipping companies in international shipping”.

The CVFF, he stressed, would also enhance the employment of Nigerians in the maritime sector, and increase locally induced cabotage trade and the movement of passengers and cargo by indigenous shippers.

Bombata also disclosed that plans for the establishment of the Regional Maritime Development Bank, (RMDB) were at an advanced stage.

“The RMDB establishment is ongoing, with Nigeria set to host the headquarters and having the highest share among Maritime Organisation of West and Central Africa member states.

“The bank’s objectives include funding port infrastructure, vessel acquisition, and human capacity development, among others. The RMDB’s establishment was conceived by the MOWCA, which comprises 25 countries,” Bombata emphasized.