In spite of all the problems associated with the recent announcement of subsidy removal, it is certain that full deregulation of the downstream sector of the oil and gas is imperative, and if well implemented it will attract foreign direct investments which will significantly boost the Gross Domestic Product (GDP) and other sectors of the economy, including the maritime sector.
In spite of all the problems associated with the recent announcement of subsidy removal, it is certain that full deregulation of the downstream sector of the oil and gas is imperative, and if well implemented it will attract foreign direct investments which will significantly boost the Gross Domestic Product (GDP) and other sectors of the economy, including the maritime sector.
This was the submission of stakeholders who were present at the breakfast meeting that was organised last week in Lagos by the Nigerian Chamber of Shipping (NCS). The meeting was titled: ‘Impact of Shipping to the national Gross Domestic Product (GDP); Post fuel subsidy removal’
The meeting had in attendant, the Senior Special Adviser to President Goodluck Jonathan on maritime affairs, Mr. Leke Oyewole as well as the Group Managing Director of Skye Bank, Mr. Kehinde Durosinmi Etti who was represented by the General Manager, Head, Corporate banking, Mr. Segun Opeke.
Speaking at the event, the Director General of the NCS, Mrs. Ify Anazonwu Akerele described the mayhem caused by the announcement of subsidy removal as a positive leap so that Nigeria can be able to reorganize itself.
Mrs Akerele explained this as one of the reasons for establishing the chamber saying that, “we look at it like a positive leap so that we can reorganize ourselves, this has always been the aim of the chamber of shipping, we want to achieve expertise, we don’t just want this get-rich-quick syndrome where nobody wants to work for it”.
She reiterated the stand of the chamber as creating a level playing field and a bridge for all operators in the maritime and oil and gas industry.
“I want you to understand that our role at the chamber of shipping is a bridge, we give out information and learning, The chamber of shipping is here to open doors for everybody within the content of the law” she stressed.
Akerele surmised that deregulation of the dowbstream oil sector will further open the market to investors and that consumers will become the beneficiaries, while at the same time, smuggling of oil will become unattractive and piracy will also reduce significantly.
She also stated that it will reduce corruption in the oil sector and increase private sector participation and by extension impact directly on business activities in the maritime sector.
In a paper presentation, the Skye Bank GM, Head Corporate banking, Mr. Segun Opeke agreed that the maritime sector has in no doubt impacted on the growth and development witnessed in the country in the recent years.
He said that full deregulation will shift concentration from oil trade from the usual importation to the development of Nigeria’s refineries to function at full capacity.
He however pointed out that currently “Nigerians own only about 10 per cent of the ships involved in the upstream business in the country, Nigerian ship owners and shipping companies are not only unable to compete with the highly subsidized oil vessels in international seaborne trade, but has not been effectively involved in bulk cargoes which constitutes about 80 per cent of cargoes coming into Nigeria”.
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