The Central Bank of Nigeria has been urged to initiate effective policies that would encourage multinational oil companies in Nigeria to focus more on local contents in oil service activities with the Nigerian maritime industry.
The Executive Director, Administration and Finance, Nigerian Maritime Administration and Safety Agency, Mr. Adeniran Aderogba, said this in an interview with our correspondent during a collaborative summit of the Institute of Chartered Accountants of Nigeria, Lagos Mainland District Society, and NIMASA in Lagos on Tuesday.
He added that the policy would encourage the conservation of foreign exchange and boost maritime activities.
Aderogba said, “The CBN needs to ensure that the international oil companies – Mobil, Chevron – are actively encouraged, as a matter of policy, to utilise the services of indigenous operators in performing most of oil service works within the Nigerian maritime space.
That is very key. Once you see that happening, you find out that there will be more involvement of Nigerian participants in what is essentially close to $15bn yearly worth of business. Local content participation today is very disappointing, about 10 or 15 per cent of that amount. So you can imagine if you rank it up to even 50 per cent of that amount, you will have a lot of foreign exchange being conserved for and kept in Nigeria.”
Of course, once that happens, you will see the maritime sector begin to develop. The CBN can actively encourage the multinationals persuasion.”
Aderogba said the reforms in the banking sector had restored investors’ and depositors’ confidence in the sector.
He added that there should be concerted efforts by the banks to support the maritime sector in terms of giving credit to indigenous operators so that they could buy vessels and take part in the opportunities that exists within the maritime space.
These, he said, were in the area of cabotage where coastal-land trade was supposed to be done strictly by Nigerian companies.
He said, “The reforms are a welcome development and something that is long overdue. I think the Governor of the Central Bank of Nigeria is on the right path.”