GODFREY BIVBERE & AGNES OBIABO

Operators in the maritime industry have called on the federal government to commence strict implementation of maritime law to reduce the effect of depreciating naira in the sector.

The operators are of the opinion that the depreciating naira would result in increase in the cost of shipping business as well as reduce the expected increase in capital flight from the nation’s economy.

Speaking on the issue, newly elected Chairman of the Nigerian Ship-owners Association, NISA, Capt. Niyi Labinjo, explained that the depreciating naira will result to increase in the cost of ship acquisition for those intending to do so.

Labinjo also said that the depreciating currency will likewise increase the volume of capital flight from the country.

According to him, “Today a dollar costs N181 in the official market. If I want to buy a ship of $5 million today, instead of $5 million multiplied by N161 or N165, we will need N30 more for every dollar. So if I am going for $5 million that means N30 multiply by $5 million which gives you N150 million extra.

“Second effect is that capital flight will also increase. If we have been hiring ships for $50,000 a day and we have been paying at N165 per dollar, now we have to pay another N30. So the capital flight will be more and the cost of buying a ship will be more.

“Since our services have been taken over by foreigners, whether we like it or not, we must ensure that we return our shipping services to Nigerians. It is at times like this that we must ensure that our fiscal laws are not infringed by anybody under whatever guise.

“This is the right time to make sure that your services are provided by your people. This is what people do when they devalue their currency; you make sure that local production grow to encourage local operators.

“If we do not want to suffer because we will suffer greatly, if we want to limit our suffering, we must increase our production, local production because if you do not need dollar, you do not worry about the cost of dollar. But if you need dollar, you have to increase your local production.

“And one area you can reduce the effect is shipping, make sure that your shipping services are handled by your people.” he concluded.