Nigerian Maritime Administration and Safety Agency (NIMASA) NIMASA is the apex regulatory and promotional maritime agency of Nigeria. The Agency was created from the merger of National Maritime Authority (NMA) and Joint Maritime Labour Industrial Council (JOMALIC) – all former Parastatals of the Federal Ministry of Transport, on 1st August 2006. The Agency was established primarily for the administration of Maritime Safety, Seafarers Standards and the obligation of regulating the Maritime industry in Nigeria. Following the below stated relevant instruments:- i. Nigerian Maritime Administration and Safety Agency Act. 2007 ii. Merchant Shipping Act. 2007 iii. Coastal and Inland Shipping (Cabotage) Act 2003 Other function of the Agency are Security, Maritime Labour, Shipping, Promotion of Commercial Shipping and Cabotage activities, Pollution Prevention and Control of the marine environment. Agency also implements domesticated International Maritime Organization (IMO) and International Labour Organization (ILO) Conventions.
OVERVIEW OF THE NIGERIAN MARITIME INDUSTRY (1) Nigeria is a coastal state with about 853 kilometers of coastline . Its Exclusive Economic Zone (EEZ) covers a total area of approximately 315,950 square kilometers. With a vast marine environment subtending enormous resources largely untapped, has a variety of investment potentials cutting across mining, manufacturing, and service industries. Current functional structure of the Nigerian maritime sector comprises mainly of the port industry, shipping and ancillary services, offshore services, shipbuilding and ship repair, marine services, bunkering services etc. The country has a vibrant oil and gas sector, which contributes 90% of national earnings.
OVERVIEW OF THE NIGERIAN MARITIME INDUSTRY (2) Upstream offshore exploration and production is predominant among the oil majors, with corresponding need for regular movement of men and materials. Downstream, market for refined petroleum products has been on the rise with high imports in recent years and intense tanker operations. There is a vast network of navigable and potentially navigable rivers, lakes and creeks, traversing more than 30,000 kilometers of inland waterways. Nigeria remains the economic hub of West Africa (with 60% of its GDP) Arguably Africa’s biggest importer – with GDP growing at about 7% annually over the last couple of years, and therefore a key destination for the world’s major lines and conferences .
OVERVIEW OF THE NIGERIAN MARITIME INDUSTRY (3) All activities within the sector fall under the control The of four statutory bodies (parastatals) namely; Headed by maritime a sector is Nigerian Maritime Administration Permanent under the and Safety Agency (NIMASA) Secretary direct under a supervision Nigerian Ports Authority (NPA), which Cabinet of the is currently the port industry regulator Minister Federal (there is an ongoing port reform which Ministry of would culminate in liberalization, Transport deregulation and privatization of the (FMOT) port industry and services) Nigerian Shippers Council (NSC), in- charge of protecting shippers’ interests; and the Nigerian Inland Waterways Authority (NIWA), a statutory body responsible for all activities within the inland waters in the country.
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (1) • Port Concessioning and T erminals Operation As part of its economic reform program, the Nigerian Government has adopted the strategy of Nigeria is concession to bring to an end, close to ‘a century of the monopoly of the NPA. At the moment a newly built largest port by private interest is already operating, with market in others also in the pipeline e.g. the Lekki Deep Sea the Port. While several more port facilities are still African slated for take-over by private interest. continent and soon • Inland Container Depots And Multimodal to be the Transport System As a result of the vastness largest and diversity of the country’s landscape and the economy resulting distance between some major commercial centers and the coastline, there is need to bridge the service gap occasioned by the lack of access to seaport services .
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (2) • Cargo Operations And Stevedoring Services Further to the economic reform program, the Nigeria is government has liberalized dock labor services. This the has created opportunity for those willing to invest largest in the provision of modern stevedoring services. market in the • Warehousing And Secured Storage Facilities African For years, the Nigerian ports have struggled against continent the problems of congestion and a viable solution to and soon this is the creation of bonded warehousing facilities. to be the With the concession of the ports, new/private largest operators require more efficient warehousing economy facilities with premium on modern security gadgets.
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (3) • Haulage; Development of Rail Infrastructure and Trucking There is urgent need for a modern and effective rail system to ease the burden on the Nigeria is road network for effective delivery of cargo leaving the the ports. And since only a few of the large ports largest have railway facilities, it means there is enough market in room for trucking to strive modern trucks and with the effective operations system African • Packaging The Nigerian economy is hugely import continent dependent and done through bulk importation of and soon to be the raw materials, which are later repackaged to various largest sizes as required. There is therefore a viable economy investment opportunity , especially with the Government policy on certain packaged consumer goods
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (4) • Logistics For practical and operational reasons major industrial organizations and multinationals in Nigeria have adopted the practice of outsourcing logistics and Nigeria is transportation to specialist services providers. This is the especially true for the oil and gas sector where largest demand for air and marine logistics support is at a market in the premium. African • Free Trade Zones (FTZ) and Export Processing continent Zones (EPZ) Firms that invest in these zones enjoy and soon the benefit of removal of most bureaucratic to be the bottlenecks that affect business. Presently, Nigeria has largest one FTZ in Onne and an EPZ in Calabar. There are economy plans to establish two additional FTZs in Lagos and Kano. There is also opportunity to invest in cluster and linkage industries to support these maritime industrial development areas such as banking, insurance, telecommunication, law, ship brokerage etc.
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (5) • Tanker Shipping (Liquid Bulk) The booming oil industry in Nigeria creates an assured market for investors in the tanker trade in the form of long-term charter-party contracts; this also dovetails into the Nigeria is product tanker market. Nigeria is also steadily the positioning to assume a pre-eminent position in the largest global gas trade as capacity expansion projects are market in daily being undertaken. the African • Bulk Shipping (Dry Bulk) Overwhelming national continent dependence on imported grains, fertilizer, sugar and and soon other goods requiring shipping in bulk carriers to be the largest translates to a very viable investment opportunity in economy bulk shipping. The Ajaokuta Steel Complex is also gradually inching towards completion and should provide strong market for the steel and iron ore trade, which would also require bulk shipping.
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (6) • The Reefer Trade There is an existing and largely unfulfilled market for the importation of fish, Nigeria is associated sea foods, dairy products, fruits, the vegetables and frozen foods that does not decline largest throughout the year. market in • Passenger/Cruise Service Coastal passenger the shipping and passenger cruise services are relatively African unexplored areas that may provide viable continent investment opportunities as the economy expands and soon and the per capita income of Nigerians increases. to be the • Liner/Container Shipping largest economy
INVESTMENT OPPORTUNITIES IN NIGERIAN MARITIME SECTOR (7) • Shipbuilding and Ship repairs At present, Nigeria has virtually negligible shipbuilding capacity, as the little shipbuilding undertaken by Nigeria is Nigerian companies is restricted to barges, the houseboats and some few small sized crafts. At largest the moment, Nigeria through NIMASA is in a market in PPP arrangement to set up a shipbuilding yard the and there is still room for further investment. African continent • Manning The Cabotage regime and the and soon offshore activities require qualified seafarers to to be the man the vessels. Apart from Ship officers and largest ratings, there are a lot of potentials for manning economy Agencies to take advantage of, including providing personnel for the offshore industry.
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