As Ogbeifun Bemoan Capital Flight/FDI

Amid the huge economic crisis plaguing the nation, Nigerian Marine Engineer and other shipping experts as well as veteran ship owners  have estimated that Nigeria could attract over $1billion foreign direct investment (FDI) and recoup $9.1billion annual freight earnings with the availability of Nigerian ships participating in global trade.

The Chairman of Starz Marine and Engineering Limited, Engr. Greg Ogbeifun, disclosed this while presenting a paper at the 16th Marine Technical Summit organized by the Association of Marine Engineers and Surveyors (AMES) in Lagos on Thursday.

“Figuratively, Nigeria will be poised to witness an upturn of $9.1billion freight revenue annually, $5.42billion added to our gross domestic product (GDP) and $1.62billion contribution to corporate income tax if it returns back to global trading,” Ogbeifun said.

He, however, stressed the need for a change in the nation’s trade terms from Cost, Insurance and Freight (CIF) to Free On Board (FOB), especially for crude affreightment.

While observing that the African Continental Free Trade Agreement (AfCFTA) opens a new vista for shipping development, he remarked that availability of Nigerian ships for the regional trade would have led to increased Foreign Direct Investment significantly leading to a 7% increase in Nigerian income from the current path by 2043.

“China is angling to introduce ships that will dominate the carriage of goods under the AfCFTA, while Nigeria is wrongly celebrating the export of goods without participating in the freight carriage.

“At the moment, Nigeria spends about $9.2 billion annually on freight charges paid to foreign shipping companies. These payments constitute a significant outflow of foreign exchange, contributing to the weakening of the naira.

“Establishing a shipping fleet would enable Nigeria to retain a substantial portion of this revenue within the country, strengthening its economy and reducing dependence on foreign currency,” the shipping veteran argued.

The event themed: “Maritime Transport and Blue Economy: Route to Sustainable Success” also featured three other paper presentations by Engr. Emmanuel Ilori, Engr. Sandra Okoli-Ubong and Engr. Akintayo Akinbode.

In his welcome remarks, the President of AMES, Engr. Israel Obadan, expressed dissatisfaction at the current state of shipping the country, especially the lack of single digit interest loans for operators and the dearth of qualified engineers and master mariners.

Obadan, however, disclosed that the association has initiated plans to have training arrangements with the Nigerian Maritime Administration and Safety Agency (NIMASA) and Dangote Refinery for the training of marine engineers, with emphasis on seatime.

The event was graced by several maritime bigwigs including; the Chairman, Board of Trustees (BOT), Nigeria Shipowners Association (NISA), Chief Isaac Jolapomo; former Minister of Interior and Chairman, Integrated Oil, Capt. Emmanuel Iheanacho; Secretary General, African Shipowners Association, Funmi Folorunso; Convener, Oil Trading Logistics (OTL) Africa Downstream Week, Dr. Emeka Akabogu; among others.

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