The possibility is very high that 2016 will go down in history as the
hardest year so far for dredging companies operating in Nigeria. This
fate is obviously more intense for majority of the Nigerian dredging
outfits whose combined experience in the industry is less than twenty
years. As for the big European dredging multinationals such as Dredging
International, Nigerian Westminster Dredging and Marine (Boskalis),
Jan de Nul, Van Oord and Royal Haskoning, the impact of the bad times
was also palpable. Many indications abound about their cut-back of hitherto
routine and non-core expenditure. For all the dredging firms, local
and multinational, the signs of the depression are not far-fetched at
The causes of the drag in the sector are also clear as daylight. Dredging
services are mostly a derived demand. The oil and gas sector, according
to the National Bureau of Statistics (NBS) contracted by 17.48% while
the non-oil sector contracted by 0.38%. When the oil-and-gas-based mono-crop
economy is in such dwindle, the repercussions come with a domino-effect
on the rest of the sectors. It is worse when that dwindle was partly
actuated by incompetent political leadership and a rumble amongst the
host communities, as Nigeria experienced with the breakage of oil installations
in the Niger Delta region. Dredging activities in the area, which account
for not less than 60% of the sub-sector in Nigeria, were short-circuited
by the collateral effect of this political overflow.
In Lagos, the year began with a presumptive order by the Lagos State
Government that dredging activities all over the state were banned forthwith.
When it convened a meeting at the State Secretariat Complex Alausa shortly
after, the Ministry of Waterfront Infrastructure Development (MWID)
clarified that many operators were yet to renew their licenses and meet
other fiscal and tax obligations for their continued operation in the
state. Nevertheless, the so-called blanket ban went a long way to cast
a gloomy pall on the entire state’s sand-mining industry, which
forms the base of all activities in the sector.
Going forward, the outlook for 2017 is uncertain. The IMF has announced
a contraction of about 1.7% of the Nigerian economy in the new year,
whereas the federal government is looking to borrow nearly $30 billion
to recover from recession. In this edition, we have covered how NIMASA,
the apex regulatory agency in the maritime industry is retooling its
core mandates to achieve better performance. Also, we have focused on
why Nigerian ports are losing business to sister ports in the sub-region
due to rusty customs procedures and poor port administration. Dredging
activities would do better with improved leadership and administrative
sagacity in these areas.
/ Training : DREDGING & MARINE *Consultancy on Nigerian dredging projects; Management
of Dredgers; Marine and Maritime Businesses or Reports...
EVENTS MANAGEMENT *Management
or partnering on Seminars, Workshops, Conferences, Etc...
STAFF TRAINING MODULES
*In-house training of dredger crews; Ports and Terminal Workers; Training
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