Nigeria's Maritime Sector Crucial to Economic Growth and Diversification

Strategic Insights -

The Nigerian Shippers' Council (NSC) has emphasized the importance of shipping and maritime trade in the country's economic growth and diversification strategy, as the nation seeks to shift from oil dependency and harness its vast maritime potential. Speaking at the 26th Annual General Meeting and Post AGM-Talk of the International Chamber of Commerce (ICC) Nigeria, Dr. Akutah Pius Ukeyima highlighted the significant role maritime trade plays in facilitating global commerce and sustaining economic growth across nations.

Key Takeaways:

  • The NSC has prevented the repatriation of about N52 billion in questionable foreign exchange claims through its Economic Regulatory Portal (ERP) in 2024, strengthening the national economy and promoting cost predictability.
  • Over 11.1 billion metric tonnes of goods were shipped globally in 2023, emphasizing the sector's influence on job creation, industrial zones, and ease of doing business.
  • The NSC has achieved significant milestones, including preventing N52 billion in questionable forex claims, resolving over N2 billion in cargo disputes, and promoting inland dry ports to expand trade access.
  • The Council is championing reforms that reduce delays, eliminate inefficiencies, and simplify processes, focusing on implementing the National Single Window (NSW), monitoring port performance, and driving process harmonization.
  • The NSC evaluates freight rates, terminal charges, and demurrage claims to ensure economic reasonableness and has an Alternative Dispute Resolution (ADR) mechanism to resolve complaints between port users and service providers.
  • Intra-African trade accounts for less than 18% of the continent's total trade, with the African Continental Free Trade Area (AfCFTA) aiming to change that, with maritime transport being the lifeline of AfCFTA's success.

Statistics:

  • Over 80% of global trade by volume moves by sea as per the United Nations Conference on Trade and Development (UNCTAD).
  • The global shipping volume reached 11.1 billion metric tonnes in 2023.
  • Intra-African trade accounts for less than 18% of the continent's total trade.

Sources:

  • United Nations Conference on Trade and Development (UNCTAD)
  • Nigerian Shippers' Council (NSC)
  • International Chamber of Commerce (ICC) Nigeria
  • African Continental Free Trade Area (AfCFTA)