February 22, 2025 in Blue Economy

7 Landmark Issues that shaped the maritime sector in 2024

The Nigerian maritime industry witnessed several critical points in 2024 that shaped the sector’s performance positively and negatively. Let’s scrutinize seven issues and their effects on the sector.

 

  1. Easy rides on Mile2/ Apapa expressway

The perennial traffic gridlock that had become the norm on the Mile 2/ Apapa expressway was effectively tackled in 2024. The platform for this success was orchestrated via robust and purposive collaboration between the Ministry of Works, Ministry of Marine and Blue Economy and the Lagos State Government.

 

After the federal government completed the fixing of the failed portions of the port access roads in February; Customs, NPA and Police partnered to ensure seamless traffic on the roads with only trucks with genuine business at ports plying the road and tankers operating in an orderly manner.

 

We learnt the importance of political will from the Presidency as well as the crucial role of collaboration between Lagos State Govt, NPA, Customs and Police in achieving this feat. Consequently, Tin Can and Apapa ports witnessed an enhanced ease of doing business, improved efficiency and higher revenue collected from the ports.

 

Lagos State Waste Management Authority (LAWMA) also played a crucial role in ensuring the roads remained clean as the former debris hubs on the road weren’t seen in 2024.

 

Maritime stakeholders, however, are concerned with some early traces of traffic congestion with unruly truckers and tankers.

 

  1. Boat mishaps and NIWA’s Transportation Code

In a bid to curb the reoccurring menace of boat accidents which claimed over 326 lives in 2024, the National Inland Waterways Authority (NIWA) launced a strategic Transportation Code for waterways operations in the country.

 

The Inland Waterways Transportation Regulations 2023, also known as the Waterways Transportation Code, enjoyed more efforts in sentisization, enforcement and implementation in the latter part of 2024. It represents NIWA’s proactive effort to address the rising tragedies on Nigeria’s waterways.

 

By establishing a new benchmark for safety and accountability, the framework seeks to regulate and professionalize the industry, ensuring that both operators and passengers play active roles in preventing accidents.

 

At the heart of this initiative are strict operational guidelines for vessel activities. All boats must now undergo mandatory registration, adhere to maintenance schedules, and comply with passenger capacity limits. Overloading, a leading cause of many tragic incidents that has been categorized as a punishable offense, signals NIWA’s commitment to ensuring safer waterways.

 

To enforce these standards, NIWA has introduced strict penalties for violators. Operators who neglect safety protocols, fail to provide proper documentation, or flout regulations face significant fines and the risk of having their licenses suspended.

 

Niger and Kwara states were the hardest hit, recording 92 and 90 fatalities respectively. These grim numbers, however, represent only a fraction of the actual toll, as many incidents go unreported. The frequency of these mishaps is expected to dwindle with the NIWA Transportation Code addressing preventable causes such as overloading, poor maintenance, and disregard for safety regulations.

 

  1. NIMASA, NPA new bosses: more expectations, less deliveries

Two of the foremost maritime regulatory agencies – Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) recorded a change in leadership with new helmsmen in 2024.

 

At NPA, Dr. Abubakar Danstoho replaced Mr. Mohammed Bello-Koko as the Managing Director while NIMASA got Dr. Dayo Mobereola as the new Director General who replaced Dr. Bashir Jamoh. Expectedly, these changes did come with some tolls on the operations of both agencies.

 

The exit of the former NIMASA Director General of NIMASA, Dr Bashir Jamoh is believed to have created a lull in the some projects especially the deployment of N50million floating dockyard and the disbursement of the Cabotage Vessel Financing Fund (CVFF) that were expected to have been completed in 2024.

 

At NPA, the stint of Bello-Koko as Managing Director had been portrayed as a misnomer since he replaced Ms. Hadiza Bala-Usman who was unceremoniously removed for queries linked to financial misappropriation whereas Bello-Koko’s role as Executive Director, Finance didn’t smear his reputation at the Authority. Meanwhile, industry observers had expected the Authority to conclude the review of seaport concessionaires agreement and also provide solutions to the ever-increasing gullies as well as decaying quay aprons at Tin Can and Apapa ports in 2024. A change in helmsman at NPA truncated these goals.

 

Maritime experts have repeatedly stressed that frequent changes in leadership of agencies underscores the high degree of government interference in the sector with consequent setbacks as the new sherrifs need sometime to learn the robes.

 

  1. Minimum Standards for Workers in Shipping Companies

Maritime workers, precisely those who work with shipping companies, attained a huge win as shipping agencies under the aegis of Shipping, Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA) signed a new minimum wage of N200,000 for employees and other improved standards for workers.

 

With the new agreement between Maritime Workers Union of Nigeria (MWUN) and shipping companies – midwived by Nigerian Shippers’ Council (NSC) employees at shipping companies currently enjoy new conditions of service for workers with a basic salary that is among the highest in any industry across the nation.

 

The President of SACFEA, Mrs. Boma Alabi (SAN), noted that while the workers were asking for N160,000, the employers went above to do N200,000 because they understand the situation in the country and wanted to ensure that everyone is happy.

 

“We don’t just want the workers to live, but to work and save for their future,” Alabi remarked. She equally expressed optimism that the new agreement would assist the nation’s blue economy growth via uniformity with the minimum standards and enhanced productivity and efficiency.

 

It is expected that with the new minimum standards, the nation would no longer have charlatans in the maritime sector, thereby attaining an enhanced ease of doing business, with service-driven costs that will enable the nation compete favorably regionally and internationally.

 

MARAN commends shipping lines who have honoured the new conditions even as we applaud the Ministry of Marine and Blue Economy for facilitating the process.

 

Organisations who haven’t honoured this new agreement are encourage to comply, while maritime workers have repay this good deed by enhancing their output following the better remuneration.

 

  1. Tantita’s operations sparks increase in crude oil production

In 2024, Nigeria’s oil production significantly improved from that abysmal level to 1.1mbpd in January before hitting 1.4 million bpd in November, according to CEIC Data. By the end of 2024, the NNPCL reported 1.8 million bpd as daily average production figure. This saw the country restoring her former glory in the committee of oil producing countries and topping the global chart only next to Iran with 3.3mpbd before the close of the year.

 

Specifically, Tantita’s pipeline surveillance services helped the JV to achieve an increase of over 300,000 bpd in the first quarter of the company’s engagement by the NNPCL. Tantita occupies a top space in the NNPCL Production War Room Team, a special creation of the country’s oil and gas production controller to ensure that oil theft and pipeline vandalisation are checked round the clock.

 

Group Chief Executive Officer of NNPCL, Mele Kyari, while announcing Nigeria’s oil production figures in November 2024, lauded the Production War Room Team, which anchors the production recovery process.

 

“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders based on the mandates that we have from the President, the Honourable Minister, and the Board,” Kyari said.

 

At a time when the nation needs to preserve and optimise its scarce resources, Tantita’s operations have become strategic and worthwhile in preventing economic losses. In 2025, industry observers can be confident that with this same momentum and the active collaboration of all stakeholders, especially on the security front, the nation can see the possibility of getting to 2mbpd.

 

  1. Navy stops burning of vessels

After wide criticisms for its policy of burning vessels involved in crude oil theft and other illicit deals, in 2024 Nigerian Navy stopped this approach which posed environmental hazards and economic losses in the shipping sector.

 

The issue of burning vessels had been a problematic one in the sector with the Nigerian Maritime Administration and Safety Agency (NIMASA) and several stakeholders vehemently kicking against the policy.

 

A former Director General of NIMASA, Barr. Temisan Omatseye, opines that there are several ways to disable such vessels without endangering the marine environment.

 

“When a spill occurs and it enters the waters, it takes a minimum of 20 years to repair the ecosystem. The Nigerian Navy has a diving school and it could have sent divers to remove the propeller. After going through the due process of confiscation, the vessels could have been sold off for scrapping abroad. This would have seen the nation retrieve the petroleum products and prevent the risk of destroying the marine environment,” Omatseye recommends.

 

  1. Pending Maritime Bills

In 2024, the National Assembly was abuzz with frenzied activities to strengthen the legal framework of maritime agencies. Many industry bills, sponsored by both the legislative and executive arms of government, were tabled at the National Assembly for discussions and passage. While some were introduced to the hallowed chambers in 2024, others predated the outgone year.

 

Some of these bills include Maritime Coast Guard bill, the Port economic Regulatory Agency bill, NIMASA amendment bill and Port and Harbour bill.

 

  1. The Coast Guard bill.

The maritime Coast Guard bill, first introduced in the 9th Senate in 2021 and sponsored by Senator Akon Eyakenyi, now the Deputy Governor of Akwa Ibom state, was reintroduced in the 10th Assembly in 2024.

 

The bill, sponsored by Senator Wasiu Eshilokun (APC-Lagos) and who is incidentally the Chairman of Senate committee on Marine and Transport, seeks to establish a military service which is a branch of the Armed Forces of Nigeria, to ensure maritime safety that will domicile under the ministry of Marine and Blue Economy.

 

However, the bill, which is currently on the second reading, was greeted with mixed reactions from stakeholders.

 

While the proponents of the bill said creation of a special entity called Nigeria Maritime Coast guard will compliment the efforts of existing maritime security outfits such as the Nigerian Navy to provide security in the Nigeria’s maritime domain, a preponderance of antagonists of the bill expressed concerns over the overlapping functions of the proposed Nigeria Coast guard with the Nigerian Navy.

 

The opposition to the bill, which was overwhelming, cut across the legislature, maritime operators, civil society and understandably, the Nigerian Navy.

 

At the public hearing organized by the Senate committee on Marine and Transport in December, a strong wave of disapproval from majority of stakeholders who were present at the event resonated across the National Assembly Library where the sitting took place .

 

  1. Nigeria Shipping and Ports Economic Regulatory Agency bill 2023

The Bill seeks to repeal the existing Nigerian Shippers’ Council Act and aims to establish a more robust and effective regulatory framework to support the growth of the shipping and port sectors while safeguarding the interests of Nigerian Shippers.

 

Save for the pocket of opposition, the bill enjoyed an overwhelming support of majority of maritime stakeholders through the stages of its hearing at the House of Representative.

 

The Bill, which has been passed by the House of Representatives and awaiting concurrence at the Senate before presidential assent, proposes the creation of the Nigeria Shipping and Port Economic Regulatory Agency which is tasked with achieving ambitious objectives to create a more efficient and competitive environment for both public and private stakeholders in the shipping and port sectors.

 

One of the key provisions of the Bill is expanding the functions and powers of the Nigerian Shippers’ Council by granting the new Agency broader authority.

 

This includes empowering the Agency to set and enforce service standards, tariffs, and licensing requirements for Public and Private Players in the sector, referred to in the Bill to as ‘Regulated Service Providers’.

 

However, some stakeholders have raised concerns about overlapping regulatory functions and possible conflicts with existing agencies such as the Nigerian Maritime Administration and Safety Agency(NIMASA), Nigerian Ports Authority(NPA).

 

Some of these reservations about the bill is that since it grants the Nigerian Shippers’ Council regulatory authority over all public and private entities operating or providing services in the shipping and port sectors such as stevedoring, cargo handling, freight forwarding, haulage, terminal operations, and other related services.

 

They feared that certain functions of other government agencies operating within the port, such as the Nigerian Ports Authority (‘the NPA’), the Nigerian Maritime Administration and Safety Agency (‘the NIMASA’), and the Nigerian Customs Service (‘the NCS’), will also fall under the purview of the new Agency, which may give rise to some areas of conflict between the Agencies.

 

However, an elated Executive Secretary of Nigeria Shippers’ Council, Barrister Pius Akutah expectedly didn’t share the fears of some of the stakeholders.

 

He believed that, when passed into law, the bill will reposition the maritime industry for economic growth, job creation as well as promotion of efficiency that will streamline processes in the sector.

 

In addition, Akutah was confident that when passed into law, the bill will give the Council a strong legal backing to execute its regulatory functions.

 

  1. Nigerian Ports and Harbour bill 2016

The bill seeks to repeals the Nigerian Ports Authority Act 2004 (Cap N126 LFN) and transfers all assets and liabilities vested in the Nigerian Ports Authority to the Nigerian Ports and Harbours Authority – a new entity created therein.

 

As provided for in Section 9 of the bill, the Nigerian Ports and Harbours Authority’s functions will include developing, maintaining and implementing a national strategic port plan, providing and enforcing technical regulations on operations, construction and installations within ports and harbours, setting the overall policy for port security, health and safety, environmental protection and coastal conservation, encouraging and facilitating private sector participation and investment in the provision of port services and facilities.

 

Others include; approving the establishment and planning of offshore cargo-handling facilities and related services, negotiating, supervising, implementing and ensuring compliance with international maritime obligations under the applicable international conventions and protocols, providing landlord services in ports and harbours in an economically, socially and environmentally sustainable manner, ensuring that ports are effectively integrated with other external infrastructure systems, in cooperation with other relevant bodies, facilitating the sustainable growth of trade through ports.

 

The bill also aims at developing and deploying resources to enhance port security, engaging in any business activity, either alone or in partnership with other parties, as approved by the minister and ensuring that private operators comply with the overall policy on health and safety, environmental protection and coastal conservation.

 

In 2017, the bill passed it’s third and final reading in the Senate but still requires concurrence by the House of Representatives before it goes to the President for his assent.

 

However, the bill is stucked due to the overwhelming opposition of the maritime labour.

 

For 19 years since the bill was initiated, it has been attacked by the Maritime Workers Union of Nigeria(MWUN) which felt certain provisions of the bill are anti- workers.

 

Specifically, the union has criticised Item 6 of Schedule 2, which essentially entitles the Nigerian Ports and Harbours Authority to retain only as many staff as it requires which to the labour union, is tantamount to giving the new body the leverage to sack workers.

 

D .The NIMASA Amendment bill 2021

The bill, the Nigerian Maritime Administration and Safety Agency (NIMASA) amendment bill of 2021 seeks to amend the NIMASA Act. It aims to improve the regulatory instruments in the Nigerian maritime sector. The bill included the Merchant Shipping Act, Repeal and Enactment Bill of 2021.

 

The objectives of the bill include improvement of the efficiency of the NIMASA Agency.

 

To enhance the agency’s capacity to regulate the Nigerian maritime industry ,to support the maritime sector and enhance the potential of the maritime sector.

 

The area of focus of the bill are maritime safety Administration, maritime labour regulation, Marine pollution prevention and control, Search and rescue, Cabotage enforcement,Shipping development and ship registration,Training and certification of seafarers and Maritime capacity development.

 

The bill, which suffered slow acceleration, has passed the first reading on the Floor of the Nigerian Senate.