Nigeria is making significant strides in bolstering its maritime sector with the advancement of plans for the establishment of a Regional Maritime Development Bank (RMDB).

This initiative, spearheaded by the Federal Government, is poised to inject vitality into the region’s maritime industry and stimulate economic growth across West and Central Africa.

The Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, Babatunde Bombata, revealed the latest developments during a stakeholders meeting in Lagos organized by the ministry.

He said the RMDB would play a pivotal role in fostering robust maritime infrastructure, facilitating vessel acquisition, and promoting human capacity development, among other strategic objectives.

With an envisaged capital base of $1 billion, RMDB is set to become a pivotal financial institution in the region.

Nigeria, which will host the bank’s headquarters, is slated to have the highest share of 12 percent among the member states of the Maritime Organization of West and Central Africa (MOWCA).

This underscores Nigeria’s commitment to driving maritime excellence and fostering regional cooperation.

The bank’s establishment reflects a collaborative effort between the public and private sectors, with MOWCA states holding a 51 percent shareholding and institutional investors owning the remaining 49 percent.

This hybrid model ensures a balanced governance structure that prioritizes the interests of all stakeholders while fostering transparency and accountability.

In addition to providing vital funding for port infrastructure, vessel acquisition, and human capacity development, the RMDB will serve as a catalyst for indigenous shipowners, enabling them to access financing at favorable terms.

By empowering local stakeholders, the bank aims to stimulate economic activity, create employment opportunities, and enhance the competitiveness of the region’s maritime sector on the global stage.

Activity in Nigeria’s air cargo sector declined with cargo volumes dwindling across airports in the country.

The decline fueled by a myriad of factors including rising production costs, diminished purchasing power, and elevated exchange rates, has underscored the broader economic strain facing the nation.

Throughout 2023, key players in the sector, such as the Nigerian Aviation Handling Company (NAHCO) and the Skyway Aviation Handling Company (SAHCO), reported notable decreases in their total tonnage figures compared to the previous year.

NAHCO recorded a six percent decline in total tonnage to 61.09 million kg, while SAHCO’s total tonnage decreased to 63.56 million kg. These declines were observed across various services, including import, export, and courier.

According to industry experts, the downturn in cargo volumes can be attributed to the escalating costs of production, which have soared due to various factors such as higher diesel prices, increased supply chain costs, and fuel surcharges.

Also, the adverse impact of elevated exchange rates, influenced by Central Bank of Nigeria’s policies on Customs Currency Exchange Platform, has further exacerbated the situation.

Seyi Adewale, CEO of Mainstream Cargo Limited, highlighted the challenges facing the industry, pointing to higher local transport and distribution costs, as well as the closure of production/manufacturing companies.

Adewale also noted government policies aimed at promoting local sourcing of raw materials, which have added to the complexities faced by cargo operators.

The broader economic downturn has led to a contraction in Nigeria’s economy, with imports declining as a response to the prevailing economic conditions.

Ikechi Uko, organizer of the Aviation and Cargo Conference (CHINET), emphasized the shrinking economy and reduced import activities, which have had a ripple effect on air cargo volumes.

Furthermore, the scarcity of foreign exchange and trapped funds experienced by carriers have contributed to the decline in cargo operations.

Major cargo airlines, including Cargolux, Saudi Cargo, and Emirates Cargo, have ceased operations in Nigeria, leaving Turkish Airlines as one of the few carriers still operating, albeit on a limited scale.

The absence of freighter cargo airlines has forced importers and exporters to resort to chartering cargo planes at exorbitant rates, further straining the air cargo sector.

Point of Sale (PoS) operators in Nigeria are gearing up for a legal battle against the Corporate Affairs Commission (CAC) as they contest the legality of a directive mandating registration with the commission.

The move comes amidst a growing dispute over regulatory oversight and the interpretation of existing laws governing business operations in the country.

Led by the National President of the Association of Mobile Money and Bank Agents in Nigeria, Fasasi Sarafadeen, PoS operators have expressed staunch opposition to the CAC directive, arguing that it oversteps its jurisdiction and violates established legal provisions.

Sarafadeen, in a statement addressing the matter, emphasized that the directive from the CAC contradicts the Companies and Allied Matters Act (CAMA) of 2004, which explicitly states that the commission does not have jurisdiction over individuals operating as sole proprietors.

“The order to enforce CAC directive on individual PoS agents operating under their name is wrong and will be challenged,” Sarafadeen asserted, citing section 863(1) of CAMA, which delineates the commission’s scope of authority.

According to Sarafadeen, the PoS operators are prepared to take their case to court to seek legal redress, highlighting their commitment to upholding their rights and challenging what they perceive as regulatory overreach.

“We shall challenge it legally. The court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent must register with CAC,” Sarafadeen stated, emphasizing the association’s determination to pursue a legal resolution.

The crux of the dispute lies in the distinction between individual and non-individual PoS agents. Sarafadeen clarified that while non-individual agents, operating under registered or unregistered business names, are subject to CAC registration requirements, individual agents conducting business under their names fall outside the commission’s purview.

“Individual agents operate under their names and are typically profiled with financial institutions under their names,” Sarafadeen explained.

“It is this second category of agents that the Corporate Affairs Commission can enforce the law on.”

Moreover, Sarafadeen highlighted the integral role of sub-agents within the PoS ecosystem, noting that they function as independent branches of registered companies and should not be subjected to the same regulatory scrutiny as non-individual agents.

“Sub-agents are not carrying out as an independent company but branches of a company,” Sarafadeen clarified, urging for a nuanced understanding of the operational dynamics within the fintech and agent banking industry.

In addition to challenging the CAC directive, Sarafadeen emphasized the need for regulatory bodies to prioritize addressing broader issues affecting businesses in Nigeria, such as the high failure rate of registered enterprises.

“The Corporate Affairs Commission should prioritize addressing the alarming failure rate of registered businesses in Nigeria, rather than targeting sub-agents,” Sarafadeen asserted, calling for a shift in regulatory focus towards fostering a conducive business environment.

As PoS operators prepare to navigate the complex legal terrain ahead, their decision to challenge the CAC directive underscores a broader struggle for regulatory clarity and accountability within Nigeria’s burgeoning fintech sector.