Nigeria’s maritime industry spent $3.047bn on marine vessels in 4 years – NCDMB

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The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has called on stakeholders in the maritime industry to take advantage of the opportunities in the sector, saying the amount operators spent on marine vessels was $3.047 billion (N1.096 trillion) over the period 2014-2018.

Speaking at the 4th All Nigerian Ship owners Annual Workshop and Dinner held in Lagos recently, he said of the amount, $2.217 billion (N798.12 billion) was spent on category 1 marine vessels, which accounted for 73 per cent of total spend on Marine Vessels (MVs) compared to $393 million or 13 per cent for Category 2 and $437 million or 14 per cent for category 3 vessels.

Category 1 and 2 vessels, the NCDMB boss stated, accounted for 86 per cent of industry spend, adding that industry spend on category 1 vessels was projected to be $1.645 billion or 51 per cent of total amount, compared to $1.043 billion or 33 per cent for Category 2 vessels and $519 million or 16 per cent for Category 3 vessels.
Wabote said Category 1 and 2 vessels accounted for 84 per cent of spend, “and should be focus for vessel ownership. The total spend is projected to be $3.207 billion or $641 million per annum.”

He said: “Top five vessels utilised were Security Patrol Vessels (SPV), Platform Supply Vessels (PSV), Line Handling Tug (LHT), Anchor Handling Tug (AHT), Crew Boats (CB). The five vessels accounted for 49 per cent of vessels utilised. Top five in projected demand will be Various Barges(VB), Tug Boats (TB), Security Patrol Vessels (SPV), Jack-up barges (JUB) and Crew Boats (CB). The five accounted for 66 per cent of vessels that will be required in the years ahead. Water Bus (WB), Support Vessel (SUV) are among the vessels that will be least demanded.

“Category 1 vessels were more in demand accounting for 53 per cent of vessels utilised, Category 2 vessels accounted for 34 per cent. Vessels in category 3 accounted for 12 per cent of vessels utilised. Vessels in Category 1 and 2 accounted for 87 per cent of vessels utilised in the period 2014-2018. Volume of transaction for Category 1 vessels will be higher (49 per cent), compared to categories 2 (23 per cent) and category 3 (28 per cent). Vessels in Category 1 and 2 account for 72 per cent of vessels that will be in demand over the period 2019-2023.”
He stated that progress to address the infrastructure gap is hampered by a shortage of accessible finance and project development expertise.

“The Nigerian Content Intervention Fund was launched in September, 2017. It addresses five key areas namely: manufacturing, asset acquisition, contract financing, community contractor financing scheme and loan re-financing; single digit interest rate (i.e. eight per cent while Community Contractor Financing Scheme is five per cent). The fund has a single obligor limit of up to $ 10 million up to five years duration,” he stated.

The local content board boss also stated that the Bank of Industry (BOI) is also mandated to grow the fund.
The Nigeria maritime sector, he said, continues to grow especially as it pertains to the oil and gas industry.

“The NOGICD Act has provided the framework for inter-agency collaboration and the enabling environment for vessel owners to thrive. The Board continues to implement various data-driven initiatives aimed at sustainable growth of the maritime sector. It is important that key stakeholders are identified and carried along for an all-inclusive support for successful realisation of target objectives. The Ship Owners Association of Nigeria is encouraged to adopt best-in-class stakeholders’ management practice,” he said.

The President of SOAN, Mr Greg Ogbeifun, stated that the association’s engagement with federal government agencies would facilitate the emergence of a competitive Nigerian maritime industry that is at par with other maritime nations and contribute to the growth of the national gross domestic products (GDP).

He stressed the need to consolidate on the gains made so far in order to reposition the maritime and shipping industry as a strategic driver for the national economic development of Nigeria.

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