SAN Agbakoba criticized FG for failing to tap from maritime sector
The federal government of Nigeria has been severely criticized for not tapping into the huge potential of the maritime sector, by a Senior Advocate of Nigeria (SAN), Mr. Olisa Agbakoba, who stressed that if the Cabotage law alone is well applied, the federal government would earn over N4 trillion annually in revenue.
The former President of Nigerian Bar Association (NBA) and Senior Advocate of Nigeria (SAN), Mr. Olisa Agbakoba, on Wednesday in Lagos, stated this in an interview with journalists on the sideline of focus group meeting themed: āShipping Policy: A Catalyst for Maritime Growth,ā put together by the Nigerian Chambers of Shipping.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaAgbakoba, who also described Nigeria as technically insolvent because it has a huge liability compared to its assets, said the country is technically challenged because the federal government has failed to tap into the enormous potential in the maritime sector to turn its fortunes around, THISDAY reports confirmed.
According to him, āNigeria is technically challenged. Nigeria is what econometrists call a technically insolvent country because if you line up our assets and our liabilities, the government cannot pay. If consultants are called to look around, they will say, āthese guys are not insolvent they are just stupid.ā So, we need to have people in government that will understand that this is a sector that is bleeding. Once they understand it, you will see what will happen.
āIf Cabotage law is well applied, it will give Nigeria over N4 trillion in revenue. Transportation is a huge business. Why do you think the President of the United States of America, Donald Trump is changing American trade policy? Actually, it is with the maritime sector that you wrap around policy. If ever I am opportune to be Nigeriaās president, I am going to hike up the entire tariff because Nigeria is a dumping ground in anything.ā
Agbakoba also urged the government to ensure that all government procurements are bound to be carried on Nigerian vessels.
He added: āWhen I was reading all the various laws relating to cargo movement, let us just take Bonga; when a Nigerian government signs a Production Sharing Contract (PSC) with an International Oil Company (IOC), all they see is a barrel of oil. They donāt see the 34 by-products. I can name four: shipping, insurance, banking and law. That is why we are fighting for Free on Board (FOB) to be scrapped for PIF.
āIOCs like Shell are so happy with what is currently obtainable. For them, the government only sees the price of crude oil. Who carries our crude? No Nigerian company currently carries Nigeriaās crude, which is the problem. We have a procurement policy that disfavour Nigerians. If you just talk about procurement and cargo movement you are looking at about 100 vessels and work. We need to have a trade policy that takes into account economic nationalism. A technically insolvent can only survive like this.ā
While speaking on what the government can do to harness the sectorās potential, he said the government must first have a high policy level player, adding: āThe policy level player in government that oversee shipping today is the director of maritime services. It is way too low and he is in a small department, which is why I call for a minister for shipping because you have a minister for aviation.
āBut I also see the point that it might also be too disparate, in that case, we need an integrated Ministry of Transportation, which will include roads, rail, shipping, and aviation. It should be just like the UK where the Secretary of Transportation has four Under Secretaries with each of them running a sector. If maritime is not even mentioned in the governmentās Economic Recovery and Growth Plan (ERGP) then you can imagine.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaāThe problem with shipping is that it is invincible; it is not like a bank that you will see its building, which is the problem I have discovered in the last 40 years I have been in the maritime sector. People donāt remember it but it is a huge industry,ā he said.
On the lack of policy direction and what is needed to be done, he said Nigeria has to build the building blocks first.
He said: āWithout the government realising that this is a big sector we are going nowhere. They simply have to realise that the shipping sector is huge. When they realise it then they start asking, āhow do we get it done?ā That is when the experts will come in. Right now you can see that we are even struggling to be noticed in an economy that is bleeding.
āThe Nigerian maritime industry can generate N7 trillion annually because of its huge potential and as you know Nigeria is challenged in terms of its fiscal responsibilities and unemployment.
āFrom the discussion here you can see that the potential is so huge. Ghana is now taking over from Nigeria as the shipping hub, even in the aviation sector, because I work in both sectors. Togo is now the hub for airlines like Emirates. How is it that a country of 180 million people lead by a so-called government canāt see the potential and yet we talk about poverty? The maritime sector can turn the Nigerian economy around but is the government showing enough interest? The government has to create the enabling environment.ā