Nigeria loses $26.3bn annually to piracy, says Buhari

President Muhammadu Buhari says Nigeria loses an estimated $26.3 billion annually to piracy and other forms of criminality perpetuated on waterways.

The International Maritime Bureau (IMB), a division of the International Chamber of Commerce (ICC), had said all Nigeria’s waters are risky, with several attacks unreported.

Buhari spoke at the inauguration of the Falcon Eye Project, Nigerian Navy’s Strategic Maritime Surveillance System, held at the naval headquarters in Abuja on Tuesday.

According to the News Agency of Nigeria (NAN), Buhari, who was represented by Vice-President Yemi Osinbajo, said Nigeria’s shipping lanes are important to the nation’s economic interests.

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 said threats within Nigeria’s maritime environment had taken more harmful dimensions to 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 per cent of our GDP, 95 per cent of our export earnings, and about 70 per cent 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.”

Buhari noted that in June 2019, he assented to the suppression of piracy and other maritime offences bill.

He said the “act provides the much-needed legal and institutional framework to improve maritime security and ensure safe and secure shipping in Nigerian waters”.

The president added that his administration had commenced prosecution and secured convictions under the law.

In his remarks, Awwal Gambo, chief of naval staff, said the falcon eye project arose out of the need to enhance the safeguard of the immense hydrocarbon, living and other mineral resources in the nation’s maritime domain.

Babagana Monguno, national security adviser, also noted that the project is borne out of the need to combat the myriad of security problems within the maritime sector.