- Maritime trade not properly captured in national GDP
Despite the creation of a Ministry of Marine and Blue Economy by President Bola Tinubu, maritime stakeholders have decried the inadequate capturing of the sector’s contribution to nation’s Gross Domestic Product (GDP).
Stakeholders made this observation while speaking at a breakfast meeting organized by Maritime Reporters’ Association of Nigeria (MARAN) themed: “Trade Facilitation and President Tinubu’s Economic Agenda: Matters Arising”
The Founder, Center for Promotion of Public Enterprises (CPPE), Dr. Muda Yusuf, emphasized this in his keynote address at the event, stating that it is insufficient to categorize the sector under marine transportation.
Noting that the trade sector accounted for 16% of Nigeria’s GDP in 2023, amounting to over N27 trillion, driven largely by domestic trade, he pointed out that the contribution of international trade and the broader maritime sector is not adequately reflected in the GDP data.
“The maritime sector, or the blue economy, represents far more than water transportation. The maritime sector handles over 95% of our international merchandise trade, with the total trade value reaching N71.9 trillion in 2023,” Dr. Yusuf argued.
He equally posited that Customs processes in Nigeria need to be simplified, trade policies harmonized, with transparency in all stages of the importation process, even as he called for a more predictable foreign exchange for shipping.
“Liner shipping connectivity index needs to improve. Ship turnaround time also needs to improve. Ours is higher than Togo, Benin, South Africa, Ghana and Kenya. Agencies in the port needs to be further reduced. Our logistics performance index is still very low; connectivity to the port needs improvement,” he stated.
Identifying some hindrances to trade facilitation, the President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, noted a need for capacity building for licenced Customs agents, especially in understanding the new Nigeria Customs Act 2023 and the trade procedures in it.
According to him, while trade facilitation is to be driven by the Nigeria Customs Service, it must work in deep synergy with the Nigerian Shippers’ Council (NSC) and other port stakeholders.
His words: “The Trade Facilitation concept of the World Trade Organisation (WTO) came into effect in 2013 and Nigeria became a signatory in 2017. It has 12 articles that touch on simplification, transparency, consistency and predictability. Some of the articles in the new Customs Act need to be reworked.”
Meanwhile, the Port Manager, Apapa Port, Nigerian Ports Authority (NPA), Mr. Charles Okaga, listed some progress in trade facilitation at the port to include; multimodal port operations with over 10,000 train moves in 2023, more barge operations, free port access in-bound and out-bound Apapa and Tin Can ports.
Okaga also noted that NPA’s designation of Export Processing Terminals (EPT) has enhanced export trade while the former menace of trucks littering the port corridors have been eradicated by ETO truck call-up system.
He, however, stressed that more collaborations across various stakeholders will be required to attain seamless port operations for better trade facilitation.
Earlier, the Chairman of the event and former National Coordinator of the Ports Standing Task Team (PSTT), Mr. Moses Fadipe, outlined some achievements of PSTT in simplifying trade processes in the maritime sector via joint-boarding of vessels for inspection, joint-examination of cargoes at seaports, removal of shanties at port corridors, among others.
The event also featured a panel session with the Public Relations Officer, Nigeria Shipowners Association (NISA), Mr. Adu Gbolahan; Port Manager, Apapa Port, Mr. Charles Okaga; a Customs representative, DC Yahaya Idrissu (Rtd); and a MARAN Board of Trustee (BoT) member, Mr. Funso Olojo; as members while it was moderated by a veteran journalist and CEO, Kings Communications Limited, Mr. Kingsley Anaroke.
