The Federal Government is currently tinkering with the possibilities of harnessing the potentials of the maritime industry sub-sector in funding substantial part of the nation’s current fiscal budget of N4.965 trillion.
The projection is hinged on the fact that as a sector that earns its revenues in dollar, the strategic earnings acrueable from the sector could be matched with proper implementation of reforms in the industry to give a leap to the national coffers.
Special Assistant to the President on Maritime, Mr. Oyewole Olugbenga Leke, in an appraisal of the economic benefits of the seaports said the projection was achievable, considering government’s current efforts at curtailing crude oil theft as well as fight against piracy and allied seaborne crimes.
From the projection, the thinking is that, with the quantum of the nation’s daily losses of crude oil which is put at between 150,000-400,000 barrels per-day, at an average of $100 per barrel, an effective monitoring and security of the waterways would guarantee a daily savings of $15,000,000 to $40,000,000.
According to Oyewole Leke, the situation could be exploited even further to improve revenue by leveraging on the current war against piracy. “Consider a situation where today, if you are importing your car through Cotonou (Benin Republic), you pay $300 less than if you are coming into Nigeria, all because of piracy”.
He said, “One ship can carry 5,000 cars multiply by $300, which is $1.5 million. How many ships head for Nigeria on a daily basis? They are not less than 20”.
He further drew attention to the security platforms of the oil majors which he said, are being contracted out by the companies who thereafter pass the bulk to the nation, either directly or indirectly, by way of increase in overall cost of services.
Such companies, he said, “hire boats for the security and that contract is determined by the company. We don’t know the value of such boats that are in the water and I tell you they deduct this as cost of operation before they declare profit to Nigeria.
“Add that to the two (scenarios) that we just said, then look at the disparities in tonnages declared to can add to it…look at where you can stem the oil theft, that is, smuggling of the petroleum products, look at where you reduce the subsidy payment. Then tell me if that can’t that fund 50 per cent of our annual budget “.
The Presidential Adviser also noted that huge revenue is similarly accruable from ships charges, considering the high rate of turn-around that a workable policy could bring to bear on the maritime industry, not to mention the capital flight occasioned by the dearth of seafarers in the country.
Oyewole Leke believes that a combination of these factors have accounted for huge revenue leakages in the maritime sector of which when properly managed, would see the sector rising to take its pride of place as an industry that could conveniently fund the nation’s budget.
