What Blue Economy holds for Nigeria-NIMSA DG
Against the backdrop of the Federal Government policy direction towards economic diversification it has become very imperative for the country to look in the direction of blue economy, now, considered” a low hanging fruit” to fill the gap created by dwindling revenue from the oil sector.
For many decades, oil has dominated Nigeria’s economy with the adverse consequence that the country no longer earns enough to finance her national budget because of the vagaries of the international oil price among others, necessitating the need for diversification.
While oil remains, Nigeria needs to hedge her economy against the tremors from the oil sector through intensive diversification , a step which experts have said if well executed will return the nation’s ailing economy to the path of sustainable growth.
Those were some of the submissions by the Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh , at the 7th Annual Bullion Lecture organised by the Centre for Financial Journalism (CFJ) on Thursday at the Civic Centre , Lagos.
Speaking on theme : Banking on Blue Economy for Nigeria’s Economic Development , the NIMASA DG who was the Guest Lecturer at the event , discussed among others, how the exploitation of the opportunities that abound in the nation’s waters can be used to transform the country into a beacon of pride, adding that “it is now time for Nigeria to pivot the economics of Maritimes Domain Awareness hence the Blue Economy.”
“Nigeria’s sustenance has over the years been hinged on a monolithic economy with the discovery of oil in Oloibiri, Bayelsa State in 1956. It has been largely dependent on oil sector and faced with the need for diversification.
“The country had focused on a hybrid economic structure that blends oil with agriculture but with the former remained consistent as the economic mainstay ahead of the latter over the years. Today, the waters provide low hanging fruits to diversify the economy.
“It is increasingly being accepted that the country’s future lies in the Blue-with a coastline bordering the Atlantic Ocean from Badagry in Lagos to Bakassi in Cross River State,” he said.
Citing the World Bank’s definition, which conceptualises the Blue Economy “as the sustainable use of ocean resources for economic growth, improved livelihood and jobs, while preserving the health of ocean ecosystem” , Dr Jamoh said that blue economy has the elixir that will change the economic narrative of Nigeria.
He added that “the Federal Government direction towards economic diversification from oil dependence to blue economy because studies have proven the oil industry to be subject to limitations in the face of global demand for environmentally sustainable sources of energy.”
According to him,” it is an acceptable fact that the country stands to benefit more from her waters ,if sustainable steps are taken to harness the many untapped marine potentials for investment and job creation while preventing marine pollution.”
Dr Jamoh also pointed out that the resources which abound in the waters that can be used for economic development of any country.
For instance, according to him , oceans cover 72 per cent of the blue planet and constitute more than 95 per cent of the biosphere just as it also provides a substantial portion of the global population with food and livelihoods and are the means of the transport for 90 per cent of global trade.
Additionally, the seabed currently provides 32 per cent of global supply of hydrocarbons with exploration expanding into mining of seabed minerals plus potential for renewable Blue Energy.
Also offshore renewable energy such as offshore wind and solar , emerging ocean energy technologies ,have potential to support long-term development and thriving blue economy.
While giving the five key pillars of the Blue Economy as sustainability; promoting ocean resources; preservation of the ecosystem; economic growth, as well as improved livelihoods and jobs, the NIMASA helmsman stated that the industry is valued at US$2.5 trillion per annum, 350 million jobs is linked to marine fisheries worldwide; while 34 per cent offshore crude production by aquaculture is the fastest growing food sector providing 50 per cent of fish for humanity.
According to him, in 2012, sea tourism increased by four per cent despite the global economic crisis and constituted nine per cent of Global GDP: nine per cent of global jobs; and generated US$1.3 trillion or per cent of the world’s export.
He listed maritime transportation, fisheries, aquaculture, renewable energy, tourism, climate change, waste management, port development and logistics, shipping, dockyards, marine tourism, dredging, offshore oil & gas exploration and production, renewable energy & biotechnology, and maritime fabrication and construction as key segments of the blue economy.
Dr. Jamoh also noted that NIMASA is driving Nigeria’s blue economy agenda through the following: “Disbursement of Cabotage Vessel Financing Fund (CVFF)$360MX2. Deployment of the Modular Floating Dock. Capacity Building (Seafarers Development Programme) – NSDP. Capacity Building (Maritime Skills) – Maritime Training Institutions (MTIs). Midwifing of Strategic Synergy to further enable ship-owners easily acquire vessels to expand the national fleet through financial investment and cargo support by the Nigerian National Petroleum Company Limited (NNPCL).
“The NNPCL has offered to provide 9 per cent of the 15 per cent CVFF ship-owners’ contribution thereby lessening the financial outlay on the ship- owners to just 6 per cent contribution. Additionally, the NNPCL has committed to providing the much-needed cargo for the vessels to engender the business of coastal shipping this creating a win-win partnership that will boost the economy and create employment. The Federal Executive approved nationwide Wreck Removal exercise for the removal of underwater encumbrances to make our water channels safer for vessel navigation.
The establishment of a Foundry through a Private-Public Partnership model and for the recycling of the removed wrecks into spare parts for boats, vessels, rail, cars and other industrial usage. Underwater/ Marine cable regulation and management – A NIMASA-NCC Collaboration Regime to drive digital economy which is a Blue Economy contributor. NIMASA’s New Agency Policy on Staff Commute to Work by Water backed by the acquisition of mass transit boats. Sea Orientation Programme for All Staff.