By Milcah Tanimu
The Nigerian Trawlers Owners Association (NITOA) has voiced deep concern over the declining fortunes of fishing and trawling businesses in the country, warning of an annual loss exceeding $100 million in fish exports. They called on the Federal Government to urgently intervene to prevent the sector’s total collapse, citing challenges such as the soaring price of Automobile Gas Oil (diesel) as a major hindrance.
Ben Okonkwo, President of NITOA, expressed these concerns during a stakeholders’ engagement on enhancing activities in the blue economy sector in 2024. He highlighted NITOA’s pivotal role in industrial fishing, shrimp trawling, and processing, both domestically and internationally, underscoring its contribution to Nigeria’s economy through foreign exchange earnings and job creation.
Okonkwo lamented the significant decline in industry employment levels due to high operational costs, attributing the downturn to various factors including pirate attacks and difficulties in accessing foreign exchange. He noted that while NITOA member companies were open to policies aimed at growing the fisheries industry, urgent action was needed to address the sector’s challenges.
The high cost of Automobile Gas Oil (AGO), accounting for over 70 percent of operational input, emerged as a critical issue. Okonkwo stressed that there were no viable alternatives to AGO for their operations, resulting in exorbitant operational expenses. He called for government support to mitigate these costs, suggesting reduced prices or discounts on AGO to alleviate the financial burden on operators.
Additionally, Okonkwo advocated for duty waivers on imported vessel component parts, citing the absence of local manufacturing plants for such items. He highlighted challenges with cabotage regulations and emphasized the need for streamlined government regulations to facilitate industry growth.
In conclusion, Okonkwo emphasized the fishing sub-sector’s significant contribution to the economy and underscored the potential for job creation and industry expansion with adequate support from the government. He called for dedicated terminals for new entrants into the fishing business, stressing the importance of collaborative efforts to address the sector’s challenges and ensure its sustainable growth.
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