The Federal Government of Nigeria has made significant strides in developing a national policy on the marine and blue economy, aiming to generate $2.7 billion for the country’s economy. This initiative was announced by Babatunde Bombata, Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, during a stakeholders meeting in Lagos.
Policy Development and Economic Impact
Bombata emphasized that the ministry is actively working on a national policy that will significantly enhance the performance of the shipping sub-sector, boost trade facilitation, and promote economic growth. “The policy will provide a comprehensive framework to deliver the expected contributions of over $2.7 billion from the marine and blue economy sector to the national economy,” he stated. Additionally, the policy aims to tackle revenue leakages through a streamlined management approach.
Cabotage Vessel Financing Fund (CVFF)
The ministry is also focused on the disbursement of the Cabotage Vessel Financing Fund (CVFF), an intervention fund created by the Cabotage Act to help indigenous shipping operators acquire new vessels. Bombata highlighted the strategic importance of the fund in expanding domestic shipping capacity.
To ensure the CVFF’s full implementation, a committee has been established to develop guidelines and mechanisms to improve access to the fund for stakeholders in the shipping sub-sector. “This initiative is designed to provide the necessary financial support for indigenous shipowners to acquire, construct, and repair their vessels,” Bombata noted.
The CVFF will enable indigenous shipowners to obtain financing at single-digit interest rates, thus increasing the number of Nigeria-owned, crewed, and operated ships. This, in turn, will foster healthy competition with foreign shipping companies and enhance the country’s shipping fleet and tonnage.
Employment and Local Trade
The CVFF is expected to boost employment opportunities in the maritime sector, increase locally induced cabotage trade, and enhance the movement of passengers and cargo by indigenous shippers. Bombata also mentioned that plans to establish the Regional Maritime Development Bank (RMDB) are progressing well.
Regional Maritime Development Bank
Nigeria is set to host the RMDB headquarters, with the highest share among member states of the Maritime Organisation of West and Central Africa (MOWCA). The bank aims to support port infrastructure development, vessel acquisition, and human capacity building, with a projected capital base of $1 billion. The RMDB will be a private-public sector-driven bank, with MOWCA states holding 51% of the shares and institutional investors holding the remaining 49%.
Collaboration with NIMASA and Nigerian Meteorological Agency
The ministry, through the Nigerian Maritime Administration and Safety Agency (NIMASA), is collaborating with the Nigerian Meteorological Agency to provide accurate sea weather forecasts. This collaboration is intended to aid sea navigation and provide essential information for seafarers, ensuring safe navigation and efficient operations in Nigerian waters.
**Deep Blue Project**
Dr. Dayo Mobereola, Director General of NIMASA, announced ongoing discussions with the Chief of Naval Staff about drafting a new Memorandum of Understanding for the Deep Blue Project. “We aim to make the project more impactful, visible, and aligned with our agenda,” Mobereola stated.
Bottom Line
These initiatives demonstrate the Federal Government’s commitment to leveraging the marine and blue economy to bolster Nigeria’s economic growth. With the development of comprehensive policies and strategic funding mechanisms, the government aims to enhance the country’s shipping capacity, create jobs, and ensure sustainable economic benefits from the maritime sector.
