By Godwin Oritse
MANAGING Director of Luxem Energy and Logistics, Mr. Jonathan Irafor, has said that Nigeria currently loses over N300 billion annually to foreign shipping firms operating in the nation’s coastal trade.

Irafor warned that if urgent steps are not taken to increase indigenous participation in the Cabotage trade in Nigeria, foreigners will continue to dominate the trade despite the passage of the Local Content Act.

He called for more funding by government in the sector, adding that it is through this that local players can match their foreign counterparts.

He noted that despite the passage of both the Cabotage and Local Content Acts, the issue of waivers has continue to put indigenous players at a disadvantage while foreigners rake in all the monies through capital flight.

The logistics expert noted that most of the vessels that move petroleum products within the coastal waters are foreign, reiterating that the involvement of Nigerians will to a large extent curb the rate of capital flight.

He faulted the implementation of the Cabotage Act which he described as a failed project, noting that until the government put its acts together by way of ensuring that the Cabotage Act is fully implemented, the benefits of the law will continue to elude Nigeria and Nigerians.

His words: “When the foreigners come in with their vessels, they want to employ their foreign experts. They believe in their foreign technicalities. These are some of the issues we are talking about: capital flight and inability to employ Nigerians.

“If the government will only encourage us, the indigenous players in this sector, we will employ more Nigerians thereby reducing the issue of unemployment, contributing to the growth of the national economy.

“When we give waivers to foreigners, we are only empowering the foreign players and losing so much money in the process.“

Irafor commended the government for passing the Local Content Act which he says will further enhance the participation of Nigerians in the down stream sector of the oil and gas.

He said: “With the passage of the Local Content Act, it is only a matter of time before we experience a boom in both the maritime and oil and gas industries.”