Deployment of N50bn Modular Floating Dock to Prevent N300bn Capital Flight and Generate N1bn Monthly
Stakeholders in the maritime industry are advocating for the deployment of a N50 billion modular floating dock, which has remained unused since its acquisition in 2018. They argue that activating this asset will support the Federal Government’s blue economy agenda, prevent an annual capital flight of over N300 billion, and generate approximately N1 billion monthly. Additionally, the dock is expected to provide essential maintenance facilities for ships and boats, ultimately boosting the maritime industry’s capacity.
Key Points:
- The modular floating dock, acquired by the Nigerian Maritime Administration and Safety Agency (NIMASA) in 2018, is seen as a crucial tool to enhance the nation’s ship repair capacity and stimulate employment and wealth creation in the maritime sector.
- Currently, Nigeria lacks serious dry-docking facilities, leading many shipowners to seek these services abroad, incurring substantial foreign exchange costs.
- If put into operation, the floating dock is estimated to save Nigeria around N300 billion annually in capital flight.
- Activation of the dock will yield various benefits, including conservation of foreign exchange, job creation, capacity development, and training opportunities for maritime students.
Analysis: The activation of the modular floating dock represents a significant opportunity for Nigeria’s maritime industry. By providing essential maintenance facilities domestically, the nation can retain a substantial portion of capital that would otherwise be spent abroad. This move aligns with the broader goals of economic diversification and capacity development, which are crucial for the sustainability and growth of the maritime sector. The involvement of private sector partners in managing the floating dock further underscores the potential for business opportunities and job creation. However, effective implementation and oversight will be essential to ensure that the asset is utilized optimally for the benefit of Nigeria’s economy and maritime industry.
