Boost Scope of Operations, Indigenous Shipping Firms Told
The Nigerian Shipping Industry has been challenged to boost its capital and capacity base to enable it maximize available opportunities in the Cabotage trade regime.
This challenge came from the General Manager, Crude Oil Marketing Division of the Nigerian National Petroleum Corporation (NNPC), Alhaji Aminu Baba-Kusa, at the Members' Evening of the Nigerian Chamber of Shipping in Lagos last week.
In a paper titled "Cabotage as it Affects the Oil and Gas Industry in Nigeria", Baba-Kusa said low capital base is linked with low capacity base involving both vessels fleet and human resources, and called on the private sector to invest money and time to develop and grow these two areas.
In addition, he said, lack of expertise on the part of local shipping companies must be tackled and the situation effectively redressed.
Noting that the oil and gas sector bestrides the Nigerian Coastal trade sector to the tune of 95%, Baba-Kusa remarked that this dominance is unfortunately by foreign vessels suppliers, the same as obtains in the wet cargo market.
Indigenous participation, he added, has been reduced to joint ventures with foreign outfits or Agency arrangements, largely due to the low level of expertise of the majority of local players.
He said the country's over-dependence on oil means that in the immediate future, the development of offshore oil and gas capacity will increase and the dominance of the oil sector will continue.
As such, he opined, the oil and gas (Cabotage) sub-sector is potentially rewarding for investments.
In her address, the Director-General of the Chamber, Mrs. Ify P. Akerele, drew attention to the issue of local content and how the banks could finance the industry to fulfill its role as regards the Cabotage Act.
She pointed out that apart from banks, financial institutions and corporate organizations also needed to come together to work out how to make the Cabotage Act a success.
In addition, she revealed, the Chamber would soon organize a seminar to educate banks on their role as regards Cabotage business.
Important personalities at the event include Rear Admiral (rtd) Okhai Mike Akhigbe, Ms. Laraba Machunga and other members of the Governing Council as well as sponsors of the event spanning the shipping industry, the corporate world, the banking sector and the communications sector.
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