The Nigerian Trawlers Owners Association (NITOA) has bemoaned the declining future of fishing and trawling industries in Nigeria. Along with other key players, NITOA called on the federal government to step in quickly to avoid the sector’s complete collapse, given the annual loss of more than $100 million from decreasing fish exports. Businesses in the industry are at risk of complete shutdown due to the rising cost of Automobile Gas Oil (diesel) and other challenges, according to the association. Immediate action is needed to tackle this issue before it’s too late.
At the 2024 stakeholders’ engagement for enhancing activities in the Blue Economy sector, the President of NITOA, Ben Okonkwo, expressed concern about the poor condition of the industry. NITOA, which represents companies involved in industrial fishing, shrimp trawling, and processing for both local and global markets in Europe, America, and the UK, plays a crucial role as a non-oil Export sector that has contributed to Nigeria’s Economy by generating foreign exchange revenue. Okonkwo stressed that in addition to boosting foreign exchange earnings, the organization plays a vital role in creating jobs for people in Nigeria.
Securing logistical support would benefit the industry.
He expressed concern about the decrease in employment in the industry due to the soaring costs of operations. During a period of time, these companies experienced a significant decline in their business success as a result of pirate attacks, challenges in obtaining foreign currency for transactions, and struggles with procurement. The environment became unfavourable, leading to numerous Investors either redirecting their funds to different opportunities or ultimately closing their businesses. Currently, there are eight companies with a total of 156 vessels, ranging from large to medium sizes.
There are currently 10,000 individuals employed in the workforce, which includes support staff. According to him, companies associated with NITOA are open to any policy changes that will benefit the growth of the sector. Diesel accounts for over 70% of operational expenses, with no substitutes, making it essential for their operations. He said a significant decrease in costs supported by government intervention would greatly benefit the industry, as nearly half of our ships are currently inoperative due to high fuel costs. Securing logistical support from NNPC and Dangote could have a significant positive impact as well.
Expanding the industry through providing support.
Okonkwo highlighted that the industry brings in 80 to 100 million US dollars each year, stressing the importance of lowering diesel costs. She also pointed out the necessity of duty exemptions on imported boat parts, as these components are not produced locally. The NITOA president brought attention to the obstacles posed by cabotage regulations and underscored the importance of simplifying government rules. Additionally, she pointed out the opportunities for creating jobs and expanding the industry through providing support, while also pushing for specialized terminals for individuals entering the sector.
In May, the federal government announced a new initiative aimed at reducing Poverty and promoting entrepreneurship by increasing fish production. The goal is to produce a total of 18 million tons of fish, with 15 million tons intended for export to various countries. Recent data from Volza’s Nigeria Export shows that shipments of fish were exported from Nigeria by 99 exporters to 123 buyers. The top destinations for Nigeria’s fish exports are India, Netherlands, and Indonesia. The Fish and Seafood industry was estimated to reach a Revenue of US$18.34 billion by the year 2024, with a compound annual growth rate of 13.37% expected from 2024 to 2028.
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Nigeria’s fisheries sector plays a crucial role in the economy, going beyond just providing food. It makes a significant contribution to the country’s GDP and offers valuable job opportunities, especially in rural regions where other work options are scarce. By exporting fish, Nigeria earns a substantial amount of foreign exchange, which helps strengthen the economy and lessens the country’s reliance on revenue from oil. The sector has the opportunity to make a significant impact on the global demand for sustainable seafood, as the world focuses on the importance of responsible food systems. However, failure to address the challenges within the sector could potentially harm its ability to export seafood.