Between 2013 and 2022, Nigeria exported crude oil worth a staggering N123.3 trillion, as reported by the Nigerian Maritime Administration and Safety Agency (NIMASA). This data was summarized during a presentation led by retired Director of Shipping Development, Mr. Anthony Ogadi, at a training session for journalists organized by NIMASA in collaboration with 4E Best Solution Limited in Lagos. The report highlighted a notable peak in crude oil export value in 2022, which reached N21.1 trillion, up from N14.4 trillion in 2021. However, despite these impressive figures, economists and industry experts lamented the negligible impact of these oil revenues on the Nigerian economy at large.
NIMASA’s report covered the trajectory of crude oil exports over the years, giving a detailed account of annual values. For instance, in 2013, the export value was N11.8 trillion and slightly increased the following year to N11.9 trillion. This figure saw a significant dip in 2015 and 2016 to N6.8 trillion and N7.0 trillion, respectively, before recovering to N15.2 trillion in 2018. The report disclosed that between 2010 and 2019, Nigeria achieved a total cargo throughput of approximately 775 million metric tonnes from its seaports. The peak was recorded in 2014, with 84.9 million metric tonnes, while 2016 bore the least at 70.4 million metric tonnes. These statistics underline the crucial role of maritime activities in the international shipping trade.
Despite the consistent growth in export figures, experts pointed out the shortcomings of the Nigerian government in enforcing existing maritime laws, particularly the Cabotage Act of 2003 and the NIMASA Act of 2007. The lack of effective implementation of these regulations has facilitated foreign dominance in the domestic shipping industry, discouraging local shipping companies from participating in crude oil transportation and other commodity trades. Mr. Ogadi emphasized the necessity of stronger legal implementation to nurture the indigenous shipping industry, while also suggesting NIMASA collaborate with different government tiers for efficient budgeting and planning to cater to public sector cargoes.
Dr. Bolaji Akinola, the CEO of Ships and Ports Limited, expressed concern over the underdeveloped state of Nigeria’s shipping industry, revealing that after 64 years, no indigenous company owns a ship among the thousands that dock at Nigerian ports each year. This observation raises questions about the sustainability and future of Nigeria’s maritime sector, urging stakeholders to reflect on strategies that can enhance local participation and overcome existing barriers.
Economists like Dr. Muda Yusuf have criticized the equivalently astronomical crude oil revenues, which amounted to over N120 trillion, noting their limited beneficial impact on the broader economy. He compared Nigeria’s situation unfavorably with oil-rich countries like the UAE and Saudi Arabia, which have leveraged their oil revenues to diversify their economies and improve infrastructure. Yusuf emphasized that Nigeria remains heavily reliant on the oil and gas sector, failing to capitalize on its natural resources effectively for sustainable economic diversification.
Prof. Akpan Ekpo added that roughly 80 percent of Nigerians have not felt the tangible benefits of these revenues, highlighting the stark reality that minimal progress has been made in essential sectors like education, healthcare, and electricity supply. While Nigeria has accrued funds from crude oil exports, the average citizen continues to grapple with basic survival, indicating a disconnect between oil revenues and the general populace’s quality of life. This situation underscores the need for policy reforms that could ensure a more equitable distribution of wealth and improve living standards across the country.
