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    Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

    Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

    Apapa Customs Command collaborate with stakeholders to strengthen rail cargo movement

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    Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

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        Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

        Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

        Apapa Customs Command collaborate with stakeholders to strengthen rail cargo movement

        Apapa Customs Command collaborate with stakeholders to strengthen rail cargo movement

        In line with Oyetola’s directive, NIMASA pledges CVFF disbursement by August

        Nigeria seeks prompt ratification of agreement to protect oceans, increase funding to developing countries

        NPA meets with APM Terminals, shipping lines over container movement to seaport

        NPA meets with APM Terminals, shipping lines over container movement to seaport

        Oyetola joins Macron, Prince William, other world leaders at Blue Economy Forum in Monaco

        Oyetola joins Macron, Prince William, other world leaders at Blue Economy Forum in Monaco

        NDLEA destroys 2 cannabis farms in Edo State, arrests 39, seizes tonnes of drugs

        NDLEA destroys 2 cannabis farms in Edo State, arrests 39, seizes tonnes of drugs

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        Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

        Northern Youth Association presents The Ahmadu Bello Platinum Leadership Award to NDLEA Edo State Command

        Apapa Customs Command collaborate with stakeholders to strengthen rail cargo movement

        Apapa Customs Command collaborate with stakeholders to strengthen rail cargo movement

        BPSR applauds NIMASA for championing public service reforms

        BPSR applauds NIMASA for championing public service reforms

        MWUN supports Nigeria’s bid for IMO’s Council position

        MWUN supports Nigeria’s bid for IMO’s Council position

        In line with Oyetola’s directive, NIMASA pledges CVFF disbursement by August

        Nigeria seeks prompt ratification of agreement to protect oceans, increase funding to developing countries

        NPA meets with APM Terminals, shipping lines over container movement to seaport

        NPA meets with APM Terminals, shipping lines over container movement to seaport

        Oyetola joins Macron, Prince William, other world leaders at Blue Economy Forum in Monaco

        Oyetola joins Macron, Prince William, other world leaders at Blue Economy Forum in Monaco

        NDLEA destroys 2 cannabis farms in Edo State, arrests 39, seizes tonnes of drugs

        NDLEA destroys 2 cannabis farms in Edo State, arrests 39, seizes tonnes of drugs

        NDLEA takes campaign to Ministry of Public Service and Security

        NDLEA takes campaign to Ministry of Public Service and Security

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          BPSR applauds NIMASA for championing public service reforms

          BPSR applauds NIMASA for championing public service reforms

          MWUN supports Nigeria’s bid for IMO’s Council position

          MWUN supports Nigeria’s bid for IMO’s Council position

          In line with Oyetola’s directive, NIMASA pledges CVFF disbursement by August

          Nigeria seeks prompt ratification of agreement to protect oceans, increase funding to developing countries

          NPA meets with APM Terminals, shipping lines over container movement to seaport

          NPA meets with APM Terminals, shipping lines over container movement to seaport

          Oyetola joins Macron, Prince William, other world leaders at Blue Economy Forum in Monaco

          Oyetola joins Macron, Prince William, other world leaders at Blue Economy Forum in Monaco

          NDLEA destroys 2 cannabis farms in Edo State, arrests 39, seizes tonnes of drugs

          NDLEA destroys 2 cannabis farms in Edo State, arrests 39, seizes tonnes of drugs

          Isoko-speaking riverine communities demand new local government area out of Ndokwa East in Delta State

          Isoko-speaking riverine communities demand new local government area out of Ndokwa East in Delta State

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          Watch: At 16th Technical Summit, AMES to unveil new technical support for Nigeria’s maritime industry

          Watch: At 16th Technical Summit, AMES to unveil new technical support for Nigeria’s maritime industry

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          Maritime History #5:  Abuja MoU’s strategic approach to improving port state control in West and Central Africa

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          Maritime History #3: MWUN promoting the decent work agenda in maritime labour

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          Maritime History #2 : How Shipping Eras Shaped Global Shipping – Carrodano

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          Maritime History #1: Voyages, Storms, and Survivals: Captain Emmanuel Iheanacho’s Historic Experiences

          “I am fulfilled and leaving the Nigerian navy in capable hands”- Vice Adm. Gambo

          “I am fulfilled and leaving the Nigerian navy in capable hands”- Vice Adm. Gambo

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          • All
          • Arts & Life
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          Isoko-speaking riverine communities demand new local government area out of Ndokwa East in Delta State

          Isoko-speaking riverine communities demand new local government area out of Ndokwa East in Delta State

          World Environment Day 2025: #BeatPlasticPollution

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          SIFAX Group honoured with Distinguished Gender Inclusion Award

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          Eastern Fleet hosts public ship tour celebrating Nigerian Navy @ 69

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          Eastern Naval Command conducts free medical outreach to mark 2025 Navy Week celebration

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          Photo News: Eastern Naval Command holds Church service marking Navy’s 69th Anniversary

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          • All
          • CEOs Talk
          • Interviews
          • Maritime History
          • Opinions
          • Reality Check
          • Trade Matters
          CEOs Talk Business: Why we are building a new Container terminal – Capt. Iheanacho

          Opinion: Economic optimization in the petroleum industry

          Watch: At 16th Technical Summit, AMES to unveil new technical support for Nigeria’s maritime industry

          Watch: At 16th Technical Summit, AMES to unveil new technical support for Nigeria’s maritime industry

          CEOs Talk Business: Why we are building a new Container terminal – Capt. Iheanacho

          Marine &Blue Economy: Nigeria needs urgent ‘catch-up’ with port types, shipping business financing model – Capt. Emmanuel Iheanacho

          Maritime History #5:  Abuja MoU’s strategic approach to improving port state control in West and Central Africa

          Maritime History #5:  Abuja MoU’s strategic approach to improving port state control in West and Central Africa

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          Maritime History #3: MWUN promoting the decent work agenda in maritime labour

          Maritime History #2 : How Shipping Eras Shaped Global Shipping – Carrodano

          Maritime History #2 : How Shipping Eras Shaped Global Shipping – Carrodano

          Maritime History #1: Voyages, Storms, and Survivals: Captain Emmanuel Iheanacho’s Historic Experiences

          Maritime History #1: Voyages, Storms, and Survivals: Captain Emmanuel Iheanacho’s Historic Experiences

          Iheanacho seeks funding support for local refineries

          Ship-owner Capt. Iheanacho extols seafarers for sacrifices to sustain global trade despite Covid19 pandemic

          Watch:  Restraints from lack of Nigerian maritime technical development initiative

          Watch: Restraints from lack of Nigerian maritime technical development initiative

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          NIMASA C4i grants access to shipping surveillance unit

          NIMASA’s crusade to end War Risk Insurance premiums to save Nigeria over $400bn annually

          CGC Adeniyi reactivates over decade-old CMAA with US Customs & Border Protection

          CGC Adeniyi reactivates over decade-old CMAA with US Customs & Border Protection

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          Essien thanks Jamoh as he bows out of NIMASA

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          Photos: MD NPA meets, commends IMO consultants in Lagos

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          Industry Report: Hard times in port operations as cargo volumes drop, naira depreciates

          onepageafrica by onepageafrica
          June 4, 2020
          in Uncategorized
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          Industry Report: Hard times in port operations as cargo volumes drop, naira depreciates
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           If port operations are determined and sustained by the volume of cargo coming through the ports, then the economics have to be done well and quickly too, to save Nigerian ports as the volume of cargo have kept reducing following unfriendly business environment.

          Industry analysts say the preference by importers for ports of neighbouring countries can only be checked if the indices of conducive business environment (strong currency, high turn-over rate of cargo) favour the maritime business in Nigeria.


            Hit by a
          wake-up call to develop the non-oil sector of the nation’s economy following
          the steady decline in international oil prices, Nigeria’s loud clamour for
          reforms in the maritime sector was welcomed with high expectations.

            
          Ironically, concessionaires who invested in the sector to revive port operations and services in Nigeria are now bearing the brunt of decline in cargo volumes and depreciation of the naira, considering the falling oil prices and payment of operational charges in dollars to regulatory agencies.  

          The falling
          oil prices, to below $50 however, led to a significant reduction in
          government’s expenditure and fixed investments in 2015, with a saddening lean
          foreign reserves.

          Available
          statistics showed that the foreign reserves of Nigeria dipped from a value of
          $40.6bn in Jan 2014 to $28.3bn in June 2015. Shortly after then, the level of
          external reserves was equivalent to 7.1 months of import commitment, and could
          also finance 6.8 months of foreign exchange disbursements or 5.2 months of
          imports of goods and services.

          It must also
          be noted that Nigeria cannot completely stop importation of goods as about 50
          per cent of imports are done for materials required for further production.
          Analysts’
          speculation that a continued downward trend in oil revenues and foreign
          exchange receipts could lead to a situation of liquidity squeeze that would
          adversely affect the economy in the medium term, has no doubt started staring
          Nigeria in the face.

          The greatest
          concern for the maritime industry is that it needs the ‘elusive’ exchange rate stability
          to function competitively in the port operation and shipping sub-sector which
          is global in nature and would strive where cost is relatively encouraging.

          The situation
          has not experienced any improvement considering that the gap between the
          parallel and official exchange rate markets has continued to widen while
          several parallel market rates are now in existence. This has further increased
          the uncertainty of doing business in Nigeria for foreign investors.

          No
          doubt, there may be more pressure on the value of the Naira in the short-medium
          term until the economy is able to diversify and reduce reliance on oil sector
          earnings. But there isn’t a realistic encouragement for such non-oil sector
          investment when existing businesses now face serious challenges repatriating
          foreign currency meant for various bills.

          Looking at
          the performance of the maritime sector over time, it has had significant impact
          on the economy in terms of government revenue, improved trading affiliations
          with other nations and other indirect impacts which include job creation. Available
          records show that the Nigerian maritime sector accounts for over 50% and 80% of
          the value of West Africa’s imports and exports respectively (NBS).

          The
          2006 port concession resulted in significant improvements in the Nigerian port
          operations; there has been the emergence of larger vessels with improved cost
          effectiveness, improved cargo-handling technology and delivery speed, as well
          as reduced unit freight cost. In addition, the concession increased Nigeria’s
          port competitiveness, reduced waiting time for ships, and enhanced movement of
          goods across international borders and offshore manufacturing.
          However,
          it is very important that the maintenance of port infrastructure is sustained
          for the ports to remain competitive. It is not enough to just count what the
          concession did 10 years ago, as the sector is now faced with challenges of
          traffic gridlock at the ports, uncertainty of policy direction, with
          non-passage of industry legislative bills like the ports and Harbour bill.
          Other
          challenges include blurred assignment of regulatory functions, amongst others.
          As a result of these challenges, the business environment has not enabled the
          industry to reach its full potential as the hub of maritime in the West African
          region.
          It
          noteworthy that as Nigeria is beginning to put in place several strategies to
          reform the non-oil sector of the economy in order to diversify its revenue base
          and promote local production of goods which could be exported, many of the
          goods will rely on an efficient ports system for it to be efficient and
          globally competitive.

          Tags: cargo volumesindustry reportmaritimeNewsport operationsworld market oil prices
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