By; RAYMOND TEDUNJAYE, Lagos
The MD/CEO, NLNG Shipping and Marine Services Limited (NSML), Abdulkadir Ahmed has posited that accessibility to finance is very crucial to acquisition and construction of ships that will propel the Nigerian maritime sector towards emerging as a global player.
Ahmed also pointed out that strict compliance with standards will ensure that ships are not only built and operated to the highest quality and safety standard but are also able to trade both locally and internationally.
The NSML boss made the assertion during his keynote address at the 2024 edition of Association of Maritime Journalist Association of Nigeria (AMJON) Maritime Finance Conference in Lagos at the Sheraton Hotel on Thursday.
He explained that shipowners and prospective players need to ensure a proper understanding of the dynamics that lead to success in the constantly evolving maritime sector.
His words: “Shipping is a hugely capital-intensive activity, and accessing financing is key for acquisition and construction activities.
“Irrespective of the market owners play in, the importance and role of finance cannot be overemphasised.
“The need to have fully compliant vessels trading internationally is of paramount importance and all stakeholders must understand the ever-changing dynamics to ensure compliance right from the point of conceptualising the acquisition or construction of the vessels”
Speaking further, the NSML boss pointed out the importance of financial institutions including insurance institutions in the acquisition, construction and operations of vessels globally.
According to the Petrofin Index for Global Ship Finance, the top 40 banks lending to shipping in 2023 was US$284.27bn, the total global bank lending of all banks, including local banks approached US$375bn in 2023.
Ahmed noted the significance of technical competence and expertise in shipping acquisition and construction, highlighting the complexity of the modern vessels, with the raft of advanced technology features, which demands a high level of skill and knowledge right from the design and acquisition phase up to their operation.
On the area of shipping standards, he explained that the landscape of maritime regulations is becoming more stringent with resultant impact on design and operations of both new and existing assets.
According to him, the NSML is unwavering in its operations of ensuring the vessels of clients are maintained to the highest standards globally, ensuring they are seaworthy, cargo-worthy and globally tradeable.
“By so doing, we ensure that the owners enjoy a good return on investment (ROI) which is important to ensure the repayment of their loans”.
“The shipping and maritime industry is a highly regulated one with great emphasis on safety, reliability and environmental sustainability. Compliance with conventions, regulations and guidelines primarily issued by the International Maritime Organisation (IMO). IMO’s SOLAS (Safety of Life at Sea) convention, MARPOL (Maritime Pollution) convention are core pillars of operation in the global maritime industry.
“With the drive for decarbonization and emphasis on the need to reduce greenhouse gas (GHG) emissions, to combat the threats posed by climate change, there are a plethora of new rules and regulations owners need to be aware of when acquiring vessels.
“For us in NSML, we have been at the vanguard of driving compliance with standards and the regular training and development of our personnel to future-proof them in the ever-dynamic maritime industry”, he added.
In his welcome, the President of AMJON Paul Ogbuokiri emphasised the urgency of bridging the financing gap in the maritime industry, which has hindered the development of Nigeria’s blue economy, as the government seeks to diversify its revenue streams.
Ogbuokiri underscored the association’s commitment to nation-building through informed reporting and advocacy.
He said the theme of this year’s conference was carefully chosen to bring together regulators, investors, financiers, and insurers to find a solution to the challenges retarding the growth of the Nigerian maritime industry.
The AMJON president said this is particularly crucial as the country looks to fully exploit its blue economy resources, especially with the establishment of the Ministry of Marine and Blue Economy.
The AMJON President also extended his gratitude to NSML for their collaboration, emphasising the importance of collective efforts in addressing the challenges facing the maritime sector.
“With the government’s focus on diversifying the economy and boosting revenue, the time for all hands to be on deck in developing the Nigerian maritime industry is now,” he concluded.
He urged stakeholders to engage in deep discussions on fostering greater collaboration between the financial sector, government, and maritime industry players to unlock the full potential of Nigeria’s blue economy.
