‘FG needs $5bn to reposition shipping sector’

The Federal Government needs over $ 5 billion to reposition the shipping sector of the Maritime Industry, acting President of the Nigerian Ship owners Association (NISA), Aminu Umar, said.

Umar, who is also the owner of Sea Transport Services, noted that Nigerian investments in the shipping sector is presently between $300 million and $500 million, which is about 20 per cent less than the capacity needed.

According to him, Nigerians participating in the downstream oil and gas sector, particularly those operating the Clean Petroleum Products (CPP) tankers and Dirty Petroleum Products (DPP) tankers, control about 15 to 20 vessels, if not more.

“Averagely, it can be between $150 million to $200 million. This is in the CPP and DPP markets only. If we look at the upstream market, where you have vessels that provide services like the anchor handling tugs, like the PSVs, if we put it together, we should be talking of $500 million in investments by Nigerians,” he said.

He said although this seems to be a very huge investment, a cursory look at areas to be covered showed that “it is a small amount compared to what is needed.”

He added that for Nigerians to be fully in control of trade in the maritime sector, the federal government needs to equip NISA members to the tune of over $ 1billion in assets.

“Now that we are talking of about $500 million investment, it means that we have just above ten per cent of investment. In the downstream, which is the DPP and CPP, Nigerians investment is not up to 20 percent of the total market capacity of what is needed in DPP and CPP. Clean Petrol vessels is the one that brings in petrol, kerosene and JET A1. We are not up to 20 per cent of the total market that is already existing,” Umar said.