The Nation Newspaper

Tag: infrastructure

  • Fed Govt: we’ll invest N1.3tr yearly on infrastructure

    In order to attract investors to the country, the Federal Government has said it will continue to invest about N1.3trillion yearly on capital projects to bridge the infrastructure gap.

    Minister of Finance, Kemi Adeosun, who spoke in Abuja when  a consortium of 20 international investors led by a former Minister of Finance, Shamsudeen Usman, visited her, said government invested about N1.3 trillion on capital projects last year to develop roads, rail, power, housing and all the infrastructure government thinks would be needed to unlock this huge economy. “Hopefully, the figure would be around the same for 2017 and 2018,” she said.

    She said government’s commitment to solving the infrastructure challenges in the country was firm given that one of the cardinal focus of the administration of President Muhammadu Buhari is to address the infrastructure deficit in the country through targeted spendings at projects that would unlock the economic potential of the country.

    The visiting consortium was made up of representatives of investment, capital and equities firms from London, New York, Miami, Johannesburg and others some of which buy Nigerian bonds and equities as well as those providing advisory services to clients on foreign direct investments (FDIs).

    Adeosun described the level of interest from foreign investors in the economy as huge, adding that very soon, these interest would translate into massive investments that would create jobs and reduce the level poverty in the country.

    She said a lot of the projects currently being handled by government were abandoned for over 10 years, pointing out that Nigerians were beginning to feel the impact of government efforts in terms of infrastructural development.

    She said this is “a great time for investors to be in Nigeria. For us this are better times now than last year because finally we think that we are beginning to address through deliberate policies some of the most stubborn problems that have held back Nigeria’s growth.”

    Apart from undertaking difficult adjustments in fiscal policies, she said the Finance Ministry was focusing on revenue, particularly on how to move the country’s tax to GDP ratio from six per cent to an initial target of 10 per cent and in the medium to long term to between 15 and 20 per cent.

    With the seriousness demonstrated by government to develop infrastructure in order to unlock the potentials of the economy, Mrs Adeosun said several companies have been coming to inquire about the prospects of opening factories and land for agriculture.

    economy and what the outlook and investment climate is going forward.”

    He said there is a lot of optimism in the global market about Nigeria and investors have for long been waiting for positive changes in the country’s economy, it appears that the right moment has come, with investment flows rising and reserves looking up.

     

  • We’ll invest N1.3tr annually on infrastructure  – FG

    We’ll invest N1.3tr annually on infrastructure  – FG

    In order to attract investors to the country, the federal government has said that it will continue to invest about N1.3trillion annually on capital projects to bridge the infrastructure gap.

    Minister of Finance, Kemi Adeosun, who disclosed this in Abuja when  a consortium of 20 international investors led by a former Minister of Finance, Shamsudeen Usman, visited her.

    According to her, “government invested about N1.3 trillion on capital projects last year (2016) to develop roads, rail, power, housing and all the infrastructure government thinks would be needed to unlock this huge economy,” the Minister said. “Hopefully, the figure would be around the same for 2017 and 2018.”

    She said government’s commitment to solving the infrastructure challenges in the country was firm giving that one of the cardinal focus of the administration of President Muhammadu Buhari is to address the infrastructure deficit in the country through targeted spendings at projects that would unlock the economic potential of the country.

    The visiting consortium was made up of representatives of investment, capital and equities firms from London, New York, Miami, Johannesburg and others some of which buy Nigerian bonds and equities as well as those providing advisory services to clients on the foreign direct investments (FDIs).

    Adeosun described the level of interest from foreign investors in the Nigerian economy as huge, adding that very soon, these interests would translate into massive investments that would create jobs and reduce the level poverty in the country.

    She said a lot of the projects currently being handled by government were abandoned for over 10 years, pointing out that Nigerians were beginning to feel the impact of government efforts in terms of infrastructural development.

    She noted that this is “a great time for investors to be in Nigeria. For us these are better times now than last year because finally we think that we are beginning to address through deliberate policies some of the most stubborn problems that have held back Nigeria’s growth.

    Apart from undertaking difficult adjustments in fiscal policies, she said the Finance Ministry was focusing on revenue, particularly how to move the country’s tax to GDP ratio from six percent to an initial target of 10 per cent and in the medium to long term to about 15 to 20 per cent.

    With the seriousness demonstrated by government to develop infrastructure in order to unlock the potentials of the economy, the finance minister said several companies have been coming to inquire about the prospects of opening factories and land for agriculture.

    Although she did not give specific details, the Minister said the visitors included major cassava processing firms from Brazil and Thailand who have asked for between 10, 000 and, 20,000 hectares of land for cultivation and processing of cassava.

    The leader of the delegation and Managing Director, Global Chief Economist, Renaissance Capital, Charles Robertson, told the Finance Minister that the collective worth of investments by the various firms in the consortium was about $1billion.

    Robertson said the objective of their visit was to have first-hand interaction with policy makers regarding their “positive sentiments about the country’s economy and what the outlook and investment climate is going forward.”

    He said there is a lot of optimism in the global market about Nigeria and investors have for long been waiting for positive changes in the country’s economy, it appears that the right moment has come, with investment flows rising and reserves looking up.

     

  • Don harps on infrastructure for economic growth

    If Nigeria is to achieve the desired economic growth it must effectively deal with deteriorating infrastructure seriously eroding the economic gains across the country.

    This is the view of a Senior Lecturer, Centre for Strategic and Development Studies, Ambrose Alli University, Ekpoma, Dr Tony Osawe.

    Speaking with The Nation, Osawe stressed the need to renew the growth model and enhance growth quality to improve economic productivity and competitiveness.

    He particularly stressed the need for training in building roads and rail system to address the infrastructure deficit, boost trade, increase growth and create jobs.

    According to him, the projects have the potential to promote interconnection across the country and facilitate market access.

    He said there is need to increase farmers’ participation in the market, stressing the need for multi-modal development corridors.

    Osawe said enhancing infrastructure can promote industrialisation and boost agricultural growth. According to him, the top priorities should include rationalising agriculture in concert with building new-style rural areas, and restructuring public investments.

     

     

     

     

  • Lifting infrastructure with bonds issuance

    Lifting infrastructure with bonds issuance

    The drop in the Federal Government’s revenue caused by the decline in oil prices has made it difficult for the government to meet up with its spending. However, the Debt Management Office (DMO) has risen to the challenge, issuing bonds to fund key projects to stimulate the economy and sustain growth. The successful raising of N10.791 billion through the Sovereign Green Bond aligned with the Federal Government’s new domestic borrowing plan meant to fund critical infrastructure, writes COLLINS NWEZE.

    For Nigeria, the worst era seems over. That was January 2016 when crude oil price crashed to nearly $25 per barrel, with little hope that it would rebound. But the black gold has risen significantly, touching $64 per barrel last December 30, translating into a significant rise in government revenue.

    For the government to meet its developmental goals, especially in funding key projects, which are capital intensive, it must borrow from both local and international markets. Hence, the Debt Management Office (DMO), last month, successfully raised N10.791 billion through the debut Sovereign Green Bond, which was offered to the public. The offer, which was oversubscribed, attracted banks, pension funds managers, asset managers and retail investors. The DMO had offered N10.69 billion Sovereign Green Bond for a tenor of five years and coupon of 13.48 per cent.

    The DMO collaborated with the Federal Ministry of Environment and Chapel Hill Denham as  Financial Advisers to make the offer a success. The Green Bond, which was rated ‘Excellent’ by Moody’s, was issued as part of the government’s New Domestic Borrowing in the 2017 Appropriation Act to finance the energising education programme, renewable energy micro utilities and afforestation programme.

    “The DMO is pleased with the strong interest shown by investors,” and added that “it shows investors interest in new products and support for the objective behind the issuance of Bond, which is to invest in projects that will contribute to preserving the environment”. “It also shows support for the Paris Agreement on the Climate, which Nigeria has endorsed,” the debt agency said.

    Its Director-General, Ms. Patience Oniha, said the agency will continue to roll out products that meet the needs of investors for their portfolio preferences even as it continues to take investment opportunities to the grassroots.

    Oniha noted that the government will use the Green Bond proceeds to finance projects in the 2017 Appropriation Act that have been certified as Green because of their positive effects on the environment.

    Oniha, assured Nigerians that the government’s borrowings are pre-approved by the executive and legislative arms of government and are used to finance various activities of the government as appropriated. These layers of approvals, she said, ensured that the borrowings are both necessary and scrutinised before hand.

    Ms. Oniha said:“The increasing focus by the current administration of using borrowed funds for infrastructural development is a step in the right direction. As borrowing is deployed to infrastructure to promote economic growth, the benefits of job creation and increased production among benefits are good for all Nigerians.”

    She assumed the leadership of the DMO at a time the country was in dire need of economic stimulus and huge investment in infrastructure to boost the confidence of global investors in the economy.

    The DMO boss was part of the success story the debt office achieved in the past 10 years. She retired as a director in the agency, served in the Efficiency Unit of the Ministry of Finance.

    She was also part of the team that established 37 sub-national Debt Management Departments for the 36 states and the Federal Capital Territory (FCT), culminating in the construction of the first-ever comprehensive and reliable Domestic Debt Database for all the states and the FCT in 2012. Analysts said her track record of success has also translated to the huge subscriptions in the issuance of several government bonds under her watch.

    A representative of the Department of Climate Change, Federal Ministry of Finance, Hajiya Halima Abubakar,  explained that Nigeria is prone to coastal environmental hazards, which were part of the reasons President Muhammadu Buhari signed the Paris Agreement for a global response to environmental challenges facing the nation.

    Abubakar said the Green Bond project have five priority areas that require funding. She listed the areas as agriculture forestry and land use, industry, oil and gas, power and transportation.

    Responding to a question asked by one Bankole Ganiyu from Trust Fund Pensions on the servicing of the Green Bonds, the DMO boss said the bond will be serviced from the 2017 budget.

    Funds from the Sovereign Green Bond will enable the government funds its deficits in a non-inflationary manner while providing benchmark yield-curve for pricing other securities/bonds. It also engenders rational management of government’s fiscal and monetary operations.

    The Green Bond was issued following Nigeria’s endorsement of the Paris Agreement on Climate Change on September 21, 2016. The Paris Agreement was to strengthen the global response to the threat of climate change. Since the signing of the agreement, various countries that are parties to the agreement have initiated several steps aimed at making the environment better.

    With the Green Bond Issuance, Nigeria is now one of the few countries in the world and indeed, the first African country to issue a Green Bond.

    The infrastructure gap

    The Africa Infrastructure Country Diagnostic (AICD) report for 2011 estimated that Nigeria required sustained spending of $14.2 billion per annum over the next decade in order to address the infrastructure challenge.

    That pinpoints the huge funding requirement for present and future infrastructural development and its attendant impact on survival and growth of businesses in the country. Besides, traditional funding methods can no longer suffice as the traditional fund providers and various levels of government, do not have such resources at their disposal. Therefore, debts may simply be the solution to bridging the infrastructure funding gap.

    Other bond offers

    Aside the Green Bond, the DMO under Oniha, has also listed the $300 million Diaspora Bond and $3 billion Eurobonds on the Nigerian Stock Exchange (NSE) and Financial Market Dealers Quotation Over-the-Counter (FMDQ OTC) Securities Exchange respectively. Both offers were subscribed to the tune of $3.3 billion.

    The $300 million Diaspora Bond, issued in June last year and the $3 billion Eurobonds also issued in November last year at the International Capital Market (ICM), were listed at the respective exchanges.

    Both offers were issued with significant features with the $300 million Diaspora Bond unveiled with five- year tenor and 5.625 per cent coupon. The Eurobonds issuances came in two tranches of $1.5 billion 10-year offer with 6.50 per cent coupon and another $1.5 billion 30-year offer, priced at 7.625 per cent coupon.

    According to the DMO, listing the $300 million Diaspora Bond and $3 billion Eurobonds on the NSE and FMDQ OTC will help increase the number and range of securities available in the domestic capital market. Such exercise, it added, would deepen the market and promote financial inclusion.

    The exercise, the DMO added, will give more visibility to the domestic debt capital market, which will be beneficial for attracting capital from local and foreign investors.

    Also, for the Eurobonds, which remains a sovereign security, the information it will provide, such as coupon, yield and tenor, will serve as benchmarks for corporates that may issue Eurobonds in the ICM.

    The DMO also successfully raised N100 billion through non-interest bonds (Sukuk bonds). The positive outlook for crude oil prices in 2018 and attractive yield curve  for emerging market papers have made the offers attractive to investors.

    The floating of the Eurobond was part of the government’s Medium Term Note (FGMTN) programme (2016 to 2018) expected to help bridge budget deficits.

    The DMO said the FGMTN programme gives government flexibility to take advantage of favourable market conditions in the ICM to raise funds, if and only when the need arises.

    The DMO expressed its commitment towards meeting the needs of its diverse group of investors as well as supporting the development of the domestic capital market. It said the listing of the Diaspora Bond and the Eurobonds are examples of the various ways it exercises its borrowing powers on behalf of the Federal Government to support the development of the domestic capital market in particular.

    The exercise, it added, would also create opportunities for the private sector to access long term funds in the domestic and international capital markets.

    Financial pundits speak

    Analysts and economists have continued to speak on the impact of buying FGN Bonds on the economy.  Currencies Analyst, Ecobank Nigeria, Olakunle Ezun, said there is need for Nigerians to key into the government bond for infrastructure project by investing heavily in local bonds. He explained that the DMO works closely with the government to manage the national debts, adding that the government is regarded as the issuers of the bonds, while the buyers are seen as investors.

    To him, although funds from the domestic bond market are more expensive than the international bond market, investing in the local bond market is in the best interest of the economy.

    West African Institute for Financial and Economic Management (WAIFEM) Director-General, Prof. Akpan Ekpo, explained that with the declining revenue from oil, budgetary allocations alone may not be enough to finance the infrastructure deficit in the country.

    For instance, the country’s current available power generation capacity is about 4,000 megawatts, which  a far cry to the estimated demand of 10,000 to 12,000 megawatts.

    This has resulted in frequent and unpredictable load shedding and a heavy reliance on generators by consumers. Ekpo said: “With the current political will to tackle corruption and the desire to find a solution to the infrastructure problem, there is need to channel fresh investments into power supply, roads, the railway and other social amenities.”

     

  • Boosting Lagos infrastructure with tax revenues

    Nigerians usually get into the fray each time popular footballers are charged by the Spanish authorities for alleged tax offences. Lionel Messi, Cristiano Ronaldo and Neymar have at various times, been linked to tax fraud, triggering outbursts in Nigeria about the propriety of such actions. The emotional attachment to these footballers or their clubs often beclouds the underlying issues: tax evasion, manipulation or underpayments, which are unlawful.

    Messi and his Argentina teammate, Javier Mascherano, were found guilty of tax offences last year and sentenced to prison. But the convictions were suspended and replaced with fines. As a people not given to paying taxes, more so without corresponding social benefits to citizens, arresting anyone over tax issues, to an average Nigerian, represents an overreach by government. The finer details of how taxation is linked to development are lost in the heat of argument.

    In the modern world, the overarching purpose of taxation is to fund government expenditure. Taxation itself is a major tool with which to generate income for government, and employed in dealing with some non-revenue objectives such as curtailing objectionable conduct, reducing inequality, allocating resources and incomes in society as well as shielding local industries from unfavourable competition.

    Since taxation has become an acceptable practice in more advanced societies, which itself is anchored on the belief that sustaining government is a shared responsibility, everyone understands and respects the imperative of tax payment. It is a duty. Tax avoidance is seen and treated as criminal and despicable disservice.

    Regardless of how we feel about taxation, whether as individuals or corporate entities, there is no denying the fact that it is one of the tools that empower the people to hold their leaders and governments accountable. By paying your tax, you are handed an instrument to query the government and demand accountability and transparency. In doing so, the government will have no choice but to perform and strive to meet the people’s expectations in terms of social projects and developmental objectives.

    Using the instance of Lagos, Nigeria’s commercial capital, despite unwavering efforts of the state government, huge gaps still exist in the provision of pivotal infrastructure to drive economic development. Ranging from roads, power, housing, transportation, water, schools and hospitals, to even recreation centers and courts, there are so many things requiring attention. Everyone feels the need and effect.

    The government, according to available records, depends on three major sources of revenue, namely Internally Generated Revenue (IGR), Federal transfers and capital receipts. A closer look shows that IGR is the main income earner for the state, contributing an average of 66 per cent between 2012 and 2016. In 2016, this revenue source yielded N291 billion, translating to about N25 billion per month.

    However, owing to the huge infrastructure deficit and the vision to build a  Mega City that is safe, secure, functional and productive for all of its projected 24 million people, it is clear that the current revenue position is grossly inadequate to achieve the desired outcome. On the flip side, the state has the potential to improve on its IGR to the projected N50 billion per month from next year.

    This is what makes tax efficiency imperative. What is tax efficiency? There are several ways of looking at tax efficiency. Given a natural aversion to taxation, people consistently seek ways to get around paying taxes.  But in countries where payment of taxes is inevitable, the common resort is to seek ways to reduce the amount paid as tax. Amongst issues commonly cited for tax avoidance are high tax rates, lack of transparency, uncertainty and arbitrary exemptions; complexity and corruption as well as massive tax evasion by the rich and powerful. In a nutshell, people dodge taxes when the system is not efficient.

    Experts say that an efficient tax system is one that is fair, simple, well-organised and enforceable. Underlining this conclusion is the understanding that the wellbeing of society demands the contribution and cooperation of everyone. Therefore, people must be convinced that paying taxes is in their interest since the system has taken into account their interest and capacity and that the proceeds will be utilized for the common good. This is why a closer look at measures taken by the Lagos State Governor, Akinwunmi Ambode and his team to implement an efficient tax regime that is beneficial to all stakeholders.

    According to Ambode, “Even with the kind of resources we have in Lagos, it is very clear that there is a huge infrastructural deficit in the state. In addition, the resources are not so huge as to make Lagos globally competitive and deliver the social infrastructure we all crave. So, where will the money to drive the Lagos of our dreams come from? The economy is not doing as well as we want it to. We cannot tax the people any more than we are doing presently, but we have to become more efficient in tax collection because that is the major source of revenue with which we can protect the future, as well as improve the welfare and well-being of all Lagosians.”

    To the extent that tax policy in Lagos has two key objectives, efficiency and equity, which I expect would benefit me and the economy, I proclaim myself a tax ambassador and encourage everyone to key into this goal and support the government. Everyone suffers when taxes are not paid. Nonetheless, making every Lagosian understand the imperative of paying taxes is a task requiring extensive enlightenment, underpinned by transparency in the utilisation of taxes to address collective needs, more so in infrastructure development.

    Recent news reports indicating that the Lagos House of Assembly is looking at ways of enhancing Land Use Charge collection in the state are also encouraging. It is unfortunate that so far, only a relatively small fraction of houses pay Land Use Charge in Lagos. It is hoped that the House of Assembly will deploy the instrumentality of the law towards helping to ensure that many more houses are brought into the tax net to contribute towards developing the infrastructure that is so urgently needed in Lagos State, Nigeria’s economic nerve centre.

    • Alabi is a Lagos-based social/economic analyst.
  • ‘Osun has exceeded global standard for GDP to infrastructure ratio’

    ‘Osun has exceeded global standard for GDP to infrastructure ratio’

    Civil engineers have lauded the performance of Governor Rauf Aregbesola especially in the realm of ground breaking infrastructural facilities across the state.

    This is coming as the engineers declared that the administration of Aregbesola has exceeded global standard for GDP-to-infrastructure ratio with the several completed and ongoing infrastructural projects that dot the state.

    At a dinner of the association in Osogbo, a former Deputy Vice Chancellor of Ekiti State University, Prof Olugbenga Aribisala, who spoke on the theme “Infrastructural Development: An Index For National Development”  encouraged government to spend 6% of its GDP on infrastructure.

    At the event, the engineers acknowledged the uncommon record of the governor in giving Osun the needed infrastructural facelift for economic growth.

    Aribisala said: “The Osun State government has shown a very great example of government funding for infrastructural projects. I want to state here unequivocally that Osun State has exceeded the figure recommended for infrastructure development.”

    According to him, diversification of the economy will remain impossible without infrastructure.

    Also, the National Chairman, Nigerian Institution of Civil Engineers, Andem Ekpo-Bassey, commended the level of infrastructure development in the state.

    “From what I saw today, it is very impressive to me. There are some projects that are recreational projects, there are some projects which are political projects but there are some projects that are human driven projects. These are the kinds of projects that your governor has really done.

    “As an institution revolving in policy and recommendations, we can rightly confirm that seven years of his government in the state have seen numerous  big civil engineering projects across the state.”

    Governor Rauf Aregbesola was at the event presented with an Award of Grand Achiever of Infrastructural Development.

  • Ogun State mulls bonds to finance infrastructure

    Ogun State mulls bonds to finance infrastructure

    Ogun State Government has indicated that it would be approaching the capital market to raise funds to support the infrastructural development of the state.

    Ogun State Governor, Senator Ibikunle Amosun, who led a delegation from the state to the Nigerian Stock Exchange (NSE) yesterday, said the improved financial position of the state and key policies implemented by his government has put the state in a better position to access funds from the capital market.

    He said the planned capital raising would enable the government to extend its infrastructure development to many other areas of the state.

    Amosun, who was given the privilege of beating the closing gong for the market, said the initial reluctance of the state to raise bonds was due to the low internally generated revenue at the inception of his administration adding that the internally generally revenue has increased significantly to between N6 billion and N7 billion.

    “It is now I know the state can fulfill the obligation of raising bond. We need long term funds to develop infrastructure and we know you are the one to help us, I know when we come, you will help us,” Amosun said.

    He said the state government has requested the Federal Government to cede some Federal Government’s roads in Ogun State to the state government to rehabilitate such roads and further enhance the economic activities in the state.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the Exchange is looking forward to collaborating with the state on many fronts.

  • Africa Infrastructure Fund secures $100m loan from AfDB

    Africa Infrastructure Fund secures $100m loan from AfDB

    In a bid to reduce the huge infrastructure financing gap in Sub-Sahara Africa, the African Development Bank (AfDB) has approved US $100 million to the Emerging Africa Infrastructure Fund (EAIF), a Public Private Partnership (PPP) company, a statement has said .

    It will be recalled that EAIF granted credit facility to   Indorama Eleme Fertilizer and Chemicals Ltd (IEFCL) for  construction of its  new US$1.2 billion fertilizer plant in Port Harcourt, River State.

    Through a US$325-365 million debt raise, EAIF intends to develop the fund’s strategy of growing its loan portfolio over the next 3-5 years and to become a sustainable and concrete alternative to development finance institutions and commercial banks.

    Since its inception, the Fund has played a key role in the infrastructure landscape in Africa, investing in structuring and long-term infrastructure projects to the tune of over US$1.2 billion in about 70 transactions.

  • Importers, agents urge govt to invest in infrastructure

    Importers, agents urge govt to invest in infrastructure

    How can Nigeria become a hub of maritime operations in West and Central Africa? It is by getting the Nigerian Ports Authority (NPA) to develop new port facilities comparable to none in the sub-region.

    Importers’ and clearing agents made this suggestion at a forum in Lagos.

    According to their spokesperson, Sesan Abolarinwa, it is imperative for the government to promote the maritime industry to benefit from the increasing cargo traffic across the globe.

    New facilities, Abolarinwa, Bolas Motors Managing Director, said should be designed by the Ministry of Transport to meet the logistics needs of the industry in anticipation of future development.

    He called on the government to fund maritime researches, saying the sector lacked in-depth investigation due to poor funding.

    ‘‘The maritime industry has experienced an appreciable development in recent years. That development is set to stay. World trade continues to shift global markets and production lines make new demands on transport systems and on ports in particular.

    ‘‘Ports serve the national interest, supporting the competitiveness of national and regional economies. It is in the nation’s interest that our ports remain able to handle cargo trade and its potential development efficiently and sustainably,” he said.

    The maritime industry, according to Abolarinwa, was in dire need of a number of reforms. “New port facilities would help to bring the industry to international  standards. The importers lamented that previous administrations, like most practitioners in the maritime industry, did not live by the rules guiding the profession, which they said has resulted in a number of problems in the sector.

    “The maritime industry requires reforms; reform by way of standardising, educating, informing, sanitising the practice and making it global because the mere mention of the words import and export trade means we are not doing it locally, but across borders. Therefore, there are set rules, information and knowledge that  operators must possess,” he said.

    Association of Nigerian Licensed Customs Agents (ANLCA) President, Prince Olayiwola Shittu said the maritime industry has project for rapid and sustainable growth.

    “Based on this development and the strategic position Nigeria occupy in the industry and the sub-region for the development of human capital for an enhanced economy, it is expected of the government to train our youth to develop interest in maritime education,” Shittu said.

    To meet the manpower requirement for the nation’s fleet, Shittu also canvassed for robust, consistent, versatile and dynamic maritime policies, which are in tandem with global issues to ensures efficiency.

    He lamented that the country, despite its huge population, has no standard maritime institute compared to countries such as the Philippines, which he said, has over 40 maritime academies with half of the population.

    The Philippines, Shittu said supplies over 30 per cent of the world’s seafarers’ requirement.

    He noted that the Philippines earn over $1.6 billion from reparation from seafarers.

    Shittu emphasised the need for a training school to develop competent manpower for the sector, adding that the industry would grow if the government co-opted the private sector into its manpower development strategy.

    A stakeholder, Mr Benson Adegboyega, called on the Federal Government to formulate a new policy that would promote business at the ports.

    This, according to him, requires strengthening regional commitment to eradicating sub-standard shipping and ensure the rapid development of the industry.

     

  • Importers, agents urge govt to invest in infrastructure

    How can Nigeria become a hub of maritime operations in West and Central Africa? It is by getting the Nigerian Ports Authority (NPA) to develop new port facilities comparable to none in the sub-region.

    Importers’ and clearing agents made this suggestion at a forum in Lagos.

    According to their spokesperson, Sesan Abolarinwa, it is imperative for the government to promote the maritime industry to benefit from the increasing cargo traffic across the globe.

    New facilities, Abolarinwa, Bolas Motors Managing Director, said should be designed by the Ministry of Transport to meet the logistics needs of the industry in anticipation of future development.

    He called on the government to fund maritime researches, saying the sector lacked in-depth investigation due to poor funding.

    ‘‘The maritime industry has experienced an appreciable development in recent years. That development is set to stay. World trade continues to shift global markets and production lines make new demands on transport systems and on ports in particular.

    ‘‘Ports serve the national interest, supporting the competitiveness of national and regional economies. It is in the nation’s interest that our ports remain able to handle cargo trade and its potential development efficiently and sustainably,” he said.

    The maritime industry, according to Abolarinwa, was in dire need of a number of reforms. “New port facilities would help to bring the industry to international  standards. The importers lamented that previous administrations, like most practitioners in the maritime industry, did not live by the rules guiding the profession, which they said has resulted in a number of problems in the sector.

    “The maritime industry requires reforms; reform by way of standardising, educating, informing, sanitising the practice and making it global because the mere mention of the words import and export trade means we are not doing it locally, but across borders. Therefore, there are set rules, information and knowledge that  operators must possess,” he said.

    Association of Nigerian Licensed Customs Agents (ANLCA) President, Prince Olayiwola Shittu said the maritime industry has project for rapid and sustainable growth.

    “Based on this development and the strategic position Nigeria occupy in the industry and the sub-region for the development of human capital for an enhanced economy, it is expected of the government to train our youth to develop interest in maritime education,” Shittu said.

    To meet the manpower requirement for the nation’s fleet, Shittu also canvassed for robust, consistent, versatile and dynamic maritime policies, which are in tandem with global issues to ensures efficiency.

    He lamented that the country, despite its huge population, has no standard maritime institute compared to countries such as the Philippines, which he said, has over 40 maritime academies with half of the population.

    The Philippines, Shittu said supplies over 30 per cent of the world’s seafarers’ requirement.

    He noted that the Philippines earn over $1.6 billion from reparation from seafarers.

    Shittu emphasised the need for a training school to develop competent manpower for the sector, adding that the industry would grow if the government co-opted the private sector into its manpower development strategy.

    A stakeholder, Mr Benson Adegboyega, called on the Federal Government to formulate a new policy that would promote business at the ports.

    This, according to him, requires strengthening regional commitment to eradicating sub-standard shipping and ensure the rapid development of the industry.