Economists decry minimal impact as crude exports hit N123tn

Nigeria exported N123.3tn worth of crude oil between 2013 and 2022, a report on international shipping trade by the Nigerian Maritime Administration and Safety Agency showed.

The report titled, ‘The Role of the Maritime Administration and Safety Agency in International Shipping Trade,’ was presented by a retired Director of Shipping Development at NIMASA, Mr Anthony Ogadi, during a one-day training for journalists organised by NIMASA in collaboration with 4E Best Solution Limited in Lagos.

However, economists and other stakeholders decried the minimal impact of the huge earnings from crude oil sales on the Nigerian economy.

According to the report, Nigeria recorded the highest crude oil export in 2022 as the value rose to N21.1tn compared to N14.4tn recorded in the previous year of 2021.

 “In 2013, the value was N11.8tn; in 2014 it was N11.9tn; in 2015, the value dropped to N6.8tn; and in 2016, the value was N7.0tn. 2017 and 2018 had N11.0tn and N15.2tn respectively while 2019 and 2020 had N14.7tn and N9.4tn respectively. 2021 had N14.4tn while 2022 had N21.1tn,” it stated.

It further stated that between 2010 to 2019, the country had a total cargo throughput of 775, 711, 929.00 metric tonnes from the Nigerian seaports.

The report mentioned that 2014 had the highest volume of cargo throughput with 84,900,588 metric tonnes, while 2016 had the least with 70,365,036MT.

Meanwhile, maritime experts have said that the Federal Government’s inability to effectively enforce the Cabotage Act of 2003 and the NIMASA Act of 2007 to support national carriers has led to foreign dominance in the domestic market.

They said it has deterred indigenous shipping companies from transporting crude oil and non-oil imports and exports.

Ogadi emphasized the need for better implementation of those laws to support the growth of the indigenous shipping industry.

Ogadi advised NIMASA to liaise with the various tiers of government on budget and planning to articulate budgeted public sector cargo.

Also, the Chief Executive Officer of Ships and Ports Limited, Dr Bolaji Akinola, criticised the state of the country’s indigenous shipping industry for 64 years, lamenting that not one Nigerian company owned a single vessel among the over 5,000 ships that call at the nation’s seaports yearly.

Economists lament

The Chief Executive Officer of the Centre for the Promotion of Private Enterprises, Dr Muda Yusuf, said the over N120tn from crude oil exports had not impacted significantly on the economy.

He said, “If you look at other oil-producing countries like the UAE and Saudi Arabia, you will see the kind of impact that the proceeds from oil has brought to their economy, particularly to the diversification of their economy.

“Most of them are less dependent on oil. They have been able to use the proceeds of oil for quality infrastructure. They have been able to use the proceeds of oil to diversify their economy to create an environment that would attract a lot more investment to other sectors of the economy.

“This is not what happened in our economy, we are still stuck in a situation where we are heavily dependent on the oil and gas sector. It is unfortunate because we have not really used the oil and gas resources as a good leverage to ensure sustainable diversification of the economy.”

Another economist, Prof Akpan Ekpo, said about 80 per cent of Nigerians have not felt the impact of the huge revenues from crude oil export.

“At least 80 per cent of Nigerians have not felt the impact, but about 10 per cent or so have felt the impact because they have made a lot of money from the oil export. As we speak many Nigerians have not felt the impact because the basic needs of life are still out of reach for these Nigerians.

“We don’t have quality education, quality healthcare, even power. Where we need basic infrastructure, we don’t have constant power supply. The export of crude has brought money and foreign exchange to Nigeria but millions of Nigerians have not felt the impact.”