Maritime Industry Operators Call for Disbursement of Cabotage Fund to Boost Growth

In his first year as the Minister of Marine and Blue Economy, Gboyega Oyetola’s performance has been evaluated by maritime professionals, urging him to enhance dedication in the upcoming years to unleash the full potential of the maritime sector, as reported by ANOZIE EGOLE.

The appointment of Adegboyega Oyetola, the former Governor of Osun State, as the Minister of Marine and Blue Economy by President Bola Tinubu on August 21, 2023, marked a new dawn in the maritime sector.

Stakeholders hailed the creation of the new ministry as a long-awaited development, as licensed customs agents and master mariners had long advocated for a distinct ministry to oversee maritime affairs.

These stakeholders argued that the maritime industry, being a significant contributor to the country’s gross domestic product, deserved a dedicated ministry similar to the aviation sector.

In 2018, during an interactive session organized by the Senate Committee on Marine Transport in Lagos, Vicky Hasstrup, the Chairman of the Seaport Terminal Operators of Association of Nigeria, criticized the government’s inconsistent policies for the challenges faced by the sector. At the same event, Olisa Agbokogba, a Senior Advocate of Nigeria and former President of the Nigerian Bar Association, advocated for the establishment of a maritime ministry to address industry issues.

Agbakoba emphasized the necessity of a policy framework for the maritime sector, stating, “The maritime sector is larger than aviation but lacks a dedicated ministry. Without a well-thought-out policy plan, progress will be hindered.”

Isaac Jolapamo, the founding Chairman of the Nigeria Shipowners Association, criticized the Federal Government for its lack of commitment to the development of the shipping industry, citing policy inconsistencies and flip-flops as evident signs of neglect.

Five years later, Tinubu announced the establishment of the ministry to address the sector’s challenges.

After a year of existence, industry operators acknowledged the ministry’s achievements in the past year, while also noting areas for improvement.

In July, Jumoke Oduwole, Special Adviser to the President of PEBEC, praised the ministry’s performance compared to its counterparts. Oduwole lauded the Nigerian Maritime Administration and Safety Agency (NIMASA) as the top-performing government agency in terms of teamwork, service quality, and consistency.

Oduwole commended NIMASA for its exemplary performance and acknowledged Minister Adegboyega Oyetola’s dedication to enhancing service delivery within all agencies under the Ministry.

Celebrating his administration’s one-year anniversary, Oyetola revealed a 92% increase in marine revenue, attributing this growth to the significant contributions of two key agencies under the ministry, the Nigerian Ports Authority and NIMASA.

The former Osun State Governor disclosed that the earnings of NPA and NIMASA surged from N126bn in the first quarter of 2023 to N242bn in the first quarter of 2024.

Oyetola credited this revenue growth to the ministry’s initiated reforms and adoption of modern technology. He highlighted various projects undertaken during his tenure, including the deployment of monitoring boats by NPA.

Stakeholders’ Reactions

While commending the ministry’s establishment, maritime stakeholders urged the minister to prioritize integrating more agencies and institutions into the ministry for enhanced efficiency.

Speaking to NewsNow, Southwest Director of the Merchant Seafarers Association of Nigeria, Ogunsakin Rotimi-Williams, emphasized that the ministry had exposed Nigerians to new perspectives within the past year.

Rotimi-Williams praised the minister for shedding light on the often-overlooked blue economy, stating, “He has introduced a new dimension that was previously overlooked. He appears to have a clear vision and mission and has engaged with relevant stakeholders effectively,” he remarked.

While acknowledging that notable progress takes time, Rotimi-Williams expressed confidence in the minister’s capabilities and emphasized the importance of appointing competent individuals to key positions.

He stressed the need for the minister to ensure the right personnel are placed appropriately to drive optimal performance.

Evaluating the minister at 70%, seafarers advised him to ensure a comprehensive integration of all relevant parastatals within the ministry.

“He should focus on uniting all marine and blue economy-related agencies under the ministry. This alignment is crucial for ensuring that our educational institutions adequately prepare students for the maritime industry,” he urged.

He recommended relocating other agencies under the ministry’s umbrella to enhance sector coordination.

Oluwasegun Akanbi, President of the Maritime Professional Forum, called for extensive reforms in the maritime industry, noting the minister’s efforts in establishing a strong legislative framework.

Akanbi emphasized the potential for the ministry to significantly enhance capacities and employment opportunities within the maritime sector.

While recognizing the ministry’s positive impact, Akanbi cautioned against setting unrealistic expectations, emphasizing the need for gradual, sustainable progress.

Expectations that are unrealistic can often lead to disappointment. The establishment of the Ministry of Marine and Blue Economy was a realization of a long-cherished dream for the entire maritime community, although the immediate impact within the first year was not what some anticipated. Akanbi mentioned that during Oyetola’s initial year in office at the ministry, the focus was primarily on untangling its functions from various parent ministries and establishing the necessary administrative framework.

This process involved significant restructuring such as legislative amendments, management reorganization, and the development of a new operational model. Akanbi acknowledged that while it would have been preferred to have a seasoned maritime professional at the helm of the new ministry, the groundwork laid by the Minister despite the perceived slow progress should not be overlooked, as it sets the stage for substantial advancements in the future.

He highlighted the minister’s proactive approach through extensive consultations and emphasized that the ministry holds immense potential to enhance existing capacities and create more employment opportunities. However, Akanbi expressed concerns about the challenges still faced by the maritime sector and raised pertinent questions regarding the implementation of cabotage, utilization of the fishing sector, distribution of Cabotage Vessel Financing Funds, improvement of maritime education, and plans for enhancing sea transportation.

Additionally, he suggested the urgent development of other ports in the country to alleviate congestion at Lagos Ports. Akanbi stressed the need for accelerated progress, stating that while some achievements like a 92% increase in revenue across agencies are promising, there is a pressing requirement for the ministry to intensify efforts.

Mr. Chimezie Kingsley, a clearing agent, noted the acquisition of new equipment like tugboats by the NPA in the minister’s first year, predicting enhanced port operations. He commended the minister’s performance in light of the ministry’s newness. Similarly, Mr. Abayomi Duyile, the Tincan Island Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, praised the minister for resolving the traffic gridlock along the Apapa-Oshodi Expressway, which had previously hindered activities.

Moreover, Adewale Ishola, a member of the National Association of Master Mariners, applauded the minister for initially engaging stakeholders upon assuming office. He highlighted the positive addition of the Nigerian Institute for Oceanography and Marine Research to the ministry, emphasizing the importance of further engagement with key stakeholders for continued progress and success in transforming Nigeria’s blue economy.