PortNews Summit 2024: Stakeholders Urges FG To Support Indigenous Participation On Port Reforms, Local Content

PortNews Summit 2024:  Stakeholders

Urges FG To Support Indigenous Participation On Port Reforms, Local Content

By: Bisi Akingbade 

Stakeholders in the Maritime industry have gathered to discuss challenges of port reforms and local content whilst providing solutions to these challenges.

This discussions took place during the PortNews Summit 2024 with the theme: Port Reforms and Local Content "Has Nigeria Fared Well? at Rockwiew Hotel, Apapa, Lagos.

In the course this discussion, the former Minister of Interior and Managing Director, Genesis  Worldwide Shipping Limited,  Captain Emmanuel Iheacho goes down the memory lane by saying port reforms was envisaged as creating choices for superior services. "The availability of choice of port service providers has engendered greater competition between the operating terminals from which port charges were ultimately depressed downwards due to the overriding effects of commercial jockeying which took place between the various port service providers.

Captain Iheacho also said that the creation of Nigerian Content Development and Monitoring Board,  NCDMB, has had a positive impact on the maritime industry,  however, despite these efforts, challenges persist. 

"In terms of local content, Nigeria has made significant progress. The Nigerian Content Development and Monitoring Board (NCDMB) has been specifically established to promote local content development more specifically in the oil and gas sector; this initiative has had a positive impact on the maritime industry However, despite these efforts, challenges persist. For example, the process of getting clearance for vessels and cargo in the international trade and container sector can still be cumbersome, requiring multiple signatures from government agencies and other officials

"Overall, while Nigeria could be said to have made progress in its port reforms and local content development, there appears to be, still a bit of work to be done to fully realize the potential in the maritime sector as a whole.

He said that local content development in the maritime sector has been slower to take off with challenges of  Limited capacity and expertise among local companies , high costs and limited access to finance, difficulty in competing with established foreign companies 

Iheacho, who advised the government of the day to implement policies and  programs to support port reforms and local content development, continuous efficiency and performance audit of the port operating processes must be regularly carried out, investing in infrastructure and technology to improve efficiency and reduce congestion at ports, providing training and capacity-building programs to support local companies and increase their participation in the maritime sector, and Providing an opportunity for access to business finance at competitive rates by indigenous port terminal operators.

In his Keynote address, the Economist and Managing Director, Centre for the Promotion Private Enterprise, Dr. Muda Yusuf said regrettably, indigenous players in the sector have been progressively excluded from the major activities in the sector.  they increasingly becoming spectators in the scheme of things as foreigners are a field day.  

Dr. Muda said "This is a major maritime policy shortcoming which needs to be urgently corrected.  Maritime policy and indeed our economic policy must promote indigenous participation in the sector, the way it was done in the oil and gas sector.  what is good for oil and gas sector is good for maritime sector. 

There should be a deliberate policy action to elevate the level of indigenous participation in the maritime sector ecosystem. 

Speaking earlier, the convener, PortNews Summit 2024 and Editor-In- Chief, PortNews, Wale Oni,  said that the glorious past is gone Nigeria did not know how to do it again. 

Oni said ports reforms undertaken by the government of Olusegun Obasanjo ensured that the ports, terminals and infrastructures were handed over to private investors majorly foreign shipping companies.

He said the concessionaires stopped the transfer of containers to the  Nigerian owned bonded terminals and ICDs.

Oni asked if the concession has not impoverished Nigerian freight Forwarders and terminal operators? What can we do to correct this anomalies?