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.