Nigeria suffers an estimated loss of $26.3 billion annually to piracy and other forms of criminality perpetuated on waterways say, President Muhammadu Buhari.
According to the International Maritime Bureau (IMB), a division of the International Chamber of Commerce (ICC), all of Nigeria’s waters are risky, with several attacks being unreported.
He made this known during his speech at the inauguration of the Falcon Eye Project, Nigerian Navy’s Strategic Maritime Surveillance System, which took place at the naval headquarters in Abuja on Tuesday.
Vice-President Yemi Osinbajo represented the president at the ceremony where he noted that Nigeria’s shipping lanes are important to the nation’s economic interests.
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He said securing Nigeria’s shipping lanes is critical to the nation’s economic interests and the development of the maritime industry.
“Why is this project so important to us as a nation? The maritime industry occupies a prominent position in the matrix of our vital economic interests, and it encompasses activities ranging from fishing and resource exploration to marine research and shipping, among other endeavours,” he said.
“Of all these activities, shipping stands out as a critical link in Nigeria’s international trade engagements because it is the cheapest and most efficient means of moving large volumes of goods.
“Given our economic aspirations and our commitment to international trade, ensuring the security of shipping lanes within, and proximate to our waters, is in our national interest.”
Buhari further stated that threats within Nigeria’s maritime environment had worsened the economy and safety of citizens.
He said Nigeria’s hydrocarbon resources remain a major contributor to Nigeria’s economy, adding a need to enhance maritime security architecture.
“It accounts for 55 percent of our GDP, 95 percent of our export earnings, and about 70 percent of government revenue,” he said.
“These include piracy, armed attacks on ships, kidnapping for ransom, crude oil theft, smuggling, as well as Illegal Unregulated and Unreported Fishing (IUU).
“It is estimated that Nigeria loses about 26.3 billion dollars annually to various forms of criminality, particularly sea robbery.
“On account of the escalated risks in some of our maritime areas, insurance premiums for commercial vessels coming to these areas have risen sharply, making maritime trade an unattractive proposition.
“This underscores the need to enhance our maritime security architecture; consequently, a critical contribution of the Falcon Eye System will be the provision of actionable intelligence for curbing maritime threats to our economy.”
