Mr Nnamdi Eronini, Consultant to the Chamber of Shipping, says the ship chandling sector can generate up to 500 million dollars (N180 billion) annually for the country if well harnessed.
Eronini made the assertion on an Instagram live programme organised by Mrs Ezinne Azunna of the MaritimeTv with the topic, ‘ The Business of Ship Chandling in Nigeria’.
According to him, ship chandling industry is more or less like ship supply for consumables – food items and spares for vessels when they call at the seaports.
“It is an international business that is dollar-denominated and can generate at least about $500 million dollars annually for the country.
“We have about 4,000 vessels that call at our ports yearly and the implication is that they will take ship victuals – ship supply; and this will require between $10,000 to $25,000 worth of ship supply.
“The industry has been thriving but in this business there are cabals, interest and this led to the creation of Nigerian Licensed Ship Chandling Association to protect the interest of Nigerians plying the trade.
“The sector is faced with so many challenges raging from funding, regulation implementation to foreign monopoly of the sector and these challenges when curbed can lead to the sector generating more revenue for the country,” he said.
Eronini noted that as regards funding, there was an urgent need for a maritime bank to help facilitate funds for local chandlers so that they could meet the demands of the vessels when they call at the ports.
“For local chandlers to get these funds is very difficult coupled with the fact of an existing payment system that involves payment after 30 days,’’ he said.
He pointed out that the funds would improve local industry like poultry, animal production, agriculture and processing, saying that if we get the processing and packaging right, it would help develop into export.
The consultant said that insurance was another area that should be utilised in the sector as the multiplier effect was enormous and would lead to revenue generation for the country.
“We should move to the Cost, Insurance and Freight structure so that we can internally benefit and our insurance companies can grow bigger and help retain money for the country,” Eronini said.
On regulation, he said that there was no issue with policies on ground but the issue was in implementation, saying that most maritime agencies had professionals at the helm of affairs.
He called for encouragement of indigenous participation in the sector, stating that lack of political will had led to foreign monopoly of the business.
Also in his contribution, Mr Julius Ugwuala, Diving Inspector Elect, said that gathering of statistics would help evaluate situations in case of any incidence with the chandling business.
He noted that challenges that existed in the chandling business had to do with hygiene, cleanliness, urging chandlers and shipowners to take these into consideration with the present COVID-19 situation.
According to him, there are challenges before the present COVID-19 situation and unfortunately, no one took statistics and this was one of the major reasons why they did not get 100 per cent productivity in activities offshore.
“People are vital elements when it comes to any operation. Food is also a critical stock and so whoever that is handling it needs to be hygienically save.
“Feedback system is a gap that exists in the chandling business and government has a role to play to ensure that people do not cut corners as this has to do with safety which will affect lives,” Ugwuala said.
