Why Ship Building Under Cabotage In Nigeria Is A Mere Dream-Maiguwa

President of Maritime Security Providers Association of Nigeria (MASPAN) Emmanuel Maiguwa has said that the cost of building ships in Nigeria is 60 per cent  higher than the cost of Importing same, explaining that this is one of the challenges of Cabotage implementation in the country.

Maiguwa, who is Chief Executive Officer of Bricks Murstern Mattoni Limited, stated this on his official X-handle @EMG_Maiguwa on Monday.

According to the frontline maritime expert, one of the Cabotage Act’s goals was to build Nigeria’s capacity in ship building.
“However, If you try to build a ship in Nigeria today, you will likely spend 60% more than the cost of importing one,” he said.

Maiguwa observed, from his private records, that Nigerian shipowners have acquired not less than 500 units of new vessels since the cabotage’s inception in 2003.

The figure excludes vessels acquired by government agencies.

“This means the demand for new (ship) building is not the issue, and shipyards can have access to guarantee orders. Understanding what a country needs to build a ship will inform one that Nigerian Maritime Administration and Safety Agency (NIMASA) alone cannot develop this.

“It will require deliberate policies that provide steel and a special excise duty framework for machinery used in building a ship. There has to be a national policy backed by deliberate presidential action that brings the Nigeria Customs Service, coastal states and NIMASA to achieve shipbuilding if that is important for the country.

“The engagement has been absent in reviewing our capacity and advantage in building ships since the Nigerian Navy organised the first Africa Offshore Patrol Vessel (OPV) conference, where stakeholders analysed Africa’s potential to build OPVs to meet its demands.

“Nigeria and South Africa were identified with the potential, but stakeholders believe only one would emerge. The main driver of the marine economy is the SHIP. She brings everything with her.

“Acquiring and maintaining her to ensure optimum engagement must be made easy. Let’s keep our eyes on the lady, and we can make progress” Maiguwa stated