Abstract
If Nigeria's economy is essentially import based, then the issue and fact that her infrastructure for industrial development and export are grossly underdeveloped, when the nation is having abundant national mineral resources to improve on her foreign earning, being a maritime and oil producing nation, Nigeria is not gaining enough from this natural resources due to the poor position of policy guiding the shipping trade and oil business. In this research work emphasis was laid on indigenous shipping operations in the areas of cargo oil shipment (importation and exporting) with the necessary policy guiding the operation in the business i.e. the National Shipping Policy Act of April, 1987 and the United Nation Conference on Trade and Development (UNTAD) code of conduct on conference lines and the role of Nigerian National Petroleum Corporation (NNPC) in area of oil shipment as defined by the NNPC policy on oil transportation by sea. Emphasis on the demerits of foreign shipping lines, continued domination of the shipping trade particularly in area of oil cargo; the challenges, prospect and the need of indigenous participation in oil shipment business, that Nigeria can use at the benefit of balance of payment was researched. While, the foreign shipping lines and operators continue to dominate the oil shipment trade in Nigeria even at the turn of the 21st century, Nigeria's corporate policy on shipping especially as it affects her indigenous operations remains hazy and at best epileptic. This research work in addition unraveled some of the policy and action that have kept Nigerian Indigenous Shipping Companies in a perpetual state of near paralysis and how such avoidable trends could be reversed in favour of growth and development of the Nation in general. DOI: 10.7176/JRDM/77-04 Publication date: July 31 st 2021
Highlights
In discussing any economic issues in Nigeria since the existence of the nation, reference must be given to the Maritime and Oil sector in which Nigeria have more advantage to correct the balance of payment
It is unfortunate that available statistic shows that non of the crude oil Cargo are lifted by indigenous carriers, even as the importation of refined petroleum products rose from around 65 per cent to 95 per cent, the indigenous shipping operators are less than 5 per cent in contract of affreightment
Nigeria has duty to improve on her shipping services as a vehicle for the international trade as well as a means of earning and considering invisible incomes and improving her balance of payment, Nigeria shipping trade development should remains the focal point of the West African traffic
Summary
In discussing any economic issues in Nigeria since the existence of the nation, reference must be given to the Maritime and Oil sector in which Nigeria have more advantage to correct the balance of payment. Nigeria a maritime nation and an OPEC member producing an average of 2, 000,000 barrel per day, makes Nigeria by far the Cargo Oil and Gas producer within the Sub-Saharan West Africa Region, controlling over six per cent (6%) of the world entire Crude Oil production Dy this fact, it is unfortunate that available statistic shows that non of the crude oil Cargo are lifted by indigenous carriers, even as the importation of refined petroleum products rose from around 65 per cent to 95 per cent, the indigenous shipping operators are less than 5 per cent in contract of affreightment. The importance of maritime trade and petroleum to our national economy requires no lengthy explanation; despite a long history of crude oil production, exportation and at present the importation of refined products; no indigenous vessel (tanker) has lifted our crude oil which accounts for over ninety (90) percent of our foreign exchange (CBN 1994). Www.iiste.org iii.Nigeria shipping trade should be left in hands of the foreign operators since the latter have already been doing a good job
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