Encouraging investment in Nigeria’s blue economy

The Nigerian Maritime Administration and Safety Administration recently presented the 2018 Maritime Industry Forecast, shedding light on the potential for investment in Nigeria's blue economy. In a bid to encourage investments and policy interventions in the sector, the Director General of the agency, Dakuku Peterside, shared insights on the strategies in place to support the industry. Peterside highlighted the significance of providing stakeholders with a document that outlines the landscape, possible scenarios, areas for investment, and challenges within the industry. By equipping investors and policy makers with this knowledge, Peterside expressed optimism in witnessing remarkable improvements and increased investments in the sector. One of the key strategies discussed was the engagement with the Nigerian National Petroleum Corporation to revise the terms of trade concerning the lifting of crude oil in Nigeria. The shift to indigenous players handling the cargo generated by local and federal governments is intended to stimulate growth in the industry. Additionally, there is a renewed focus on the capital investor financing fund to reduce the cost of vessel acquisition, thus facilitating investment in maritime assets. Regarding the implementation of the capital investor financing fund, Peterside clarified that the approval lies with the Minister of Transportation. While acknowledging the reservations expressed by the minister due to previous mismanagement of similar funds, efforts are being made to develop a robust framework to ensure the fund's effectiveness and benefit to stakeholders. The conversation also touched upon the AGINA FPSO project, hailed as a model initiative with the potential to significantly impact the industry. Peterside emphasized the importance of maritime security interventions, stable oil prices, and the passage of the petroleum industry governance bill in bolstering confidence for similar projects. Anticipating the proliferation of AGINA FPSOs, he foresees job creation, capacity building, and wealth generation in the sector. Addressing Nigeria's progress towards achieving a blue economy, Peterside emphasized the need to map ocean resources, establish a policy framework for resource extraction, and foster partnerships for sustainable growth. By making the right investments and strategic alliances, Nigeria aims to harness the full potential of its blue economy. Despite looming political risks ahead of the 2019 elections, Peterside remains optimistic about the industry's resilience. While acknowledging the inherent management of risks, he foresees free and fair elections, post-election stability, and sustained growth in the sector. Peterside's outlook suggests a moderate growth rate of 1-3% post-election, paving the way for a flourishing industry. As Nigeria navigates the waves of political transitions and economic growth, the focus on nurturing the blue economy and facilitating investments underscores the country's commitment to harnessing its maritime potential for sustainable development.