In a recent interview, Capt. Emmanuel Iheanacho, the CEO of Genesis Worldwide Shipping Company and Integrated Oil and Gas, addresses various challenges currently facing the maritime sector in Nigeria. He emphasizes that many of these challenges stem from broader economic issues rather than purely maritime concerns. Highlighting the recent drop in goods importation, he argues that this decline is fundamentally a trade issue tied to the contracting economy, which inevitably affects the transport sector. Capt. Iheanacho asserts that a revival of the economy will lead to an improvement in maritime trade, which is crucial for the country. The interconnectedness of the economy and maritime activities illustrates a systemic issue that requires holistic solutions.
Addressing infrastructure development, Capt. Iheanacho provides updates on the ongoing calls for port rehabilitation, specifically mentioning the awarded contract for rehabilitating Tincan Island Port. While he cannot confirm the commencement of the work, he notes the acknowledgment of the need for investment in the ports, showcasing a positive step towards enhancing Nigeria’s maritime capabilities. Capt. Iheanacho also sheds light on the bureaucratic challenges linked to the disbursement of the Cabotage Vessels Financing Fund, expressing concerns over the political nature of the fund and the cautious disposition of officials regarding its distribution. The fundamental ownership of the fund, which he clarifies belongs to the Federal Government despite its contributions from shipowners, further complicates the matter as stakeholders continuously seek the government’s commitment in utilizing these funds effectively.
Moreover, Capt. Iheanacho highlights the alarming trend of foreign dominance in Nigeria’s maritime sector, attributing the nation’s loss in potential revenue to the exportation of raw products for foreign refining and subsequent re-importation. He believes if Nigeria internalizes the processes of refining and transporting products, it could retain significant financial resources within the country. His call to action encourages the government to critically evaluate and adjust existing policies that allow foreign entities to dominate the market, ultimately stressing the importance of localizing these economic activities to generate revenue for development projects and other national interests.
The conversation delves into the recent completion of the Dangote Petroleum Refinery, but Capt. Iheanacho remains neutral on its impact, emphasizing the need for competition in pricing to drive the market. He highlights that if Dangote’s products are priced competitively, the local market will gravitate toward them. The dialogue also touches on the challenges faced by agro exports which are often rejected for subpar packaging. Capt. Iheanacho proposes that stakeholders must address quality control diligently, which includes proper packaging techniques, necessitating collaboration with packaging experts to enhance product standards that meet international expectations.
When discussing the operational challenges in running an oil firm, Capt. Iheanacho articulates the significant issues faced, particularly regarding cargo allocation and fair distribution. He shares that these obstacles have severely affected their operations financially, revealing that in the last two years, he has not engaged in trading due to these constraints, leading to substantial losses. He urges the government to ensure fairness and equitable practices in the industry, suggesting that a stable and well-regulated environment is paramount for sustainable business operations that can withstand market pressures.
Lastly, Capt. Iheanacho addresses safety concerns regarding Nigerian waterways, noting a significant reduction in incidences of kidnapping, which has improved the perception of security for seafarers in the region. He acknowledges that the presence of drugs and the potential for detention due to legal infractions creates apprehension among international vessel owners. However, he expresses confidence that with ongoing efforts to mitigate such risks, Nigeria is moving toward better service delivery in its maritime domain, ultimately striving to reestablish itself as a favorable hub for international shipping activities.
