Nigeria losses over N20bn annually to undeveloped 853km coastline
By For failing to develop tourism infrastructure across its 853 kilometers coastline, Nigeria is losing estimated N20 billion revenue annually.
The revenue would have accrued to the government at both federal and state levels from taxes paid by hospitality companies, entertainment outfits, water transportation and marine services companies, tour companies, travel agencies among others that operate on the coastline. Sadly, the 853 kilometers of coastline across seven southern states are grossly underdeveloped due to the wealth from the abundance of crude oil in most of the states and lip service to economy diversification by the federal government over the years.
The failure has also denied the country from taking maximum advantage of its coastline to facilitate trade with landlocked West African countries of Niger, Mali and Chad.
By facilitating more trade with the likes of Mali, Chad and Niger, Peter Ocheme, a maritime transportation expert, noted that Nigeria could make additional N1 billion monthly and when you add tourism on the coastlines, the revenue could be over N20 billion annually.
According to Dakuku Peterside, director general, Nigerian Maritime Administration and Safety Agency (NIMASA), the country has a coastline of 853km and about 200 nautical miles of Exclusive Economic Zone, which should be judiciously utilized to facilitate trade in the West African sub region.
“To maximize the benefits of our coastline is to use it to facilitate trade between and among our landlocked neighbours and this can only be done by co-operating with our neigbhours. This cooperation is in our own interest politically, socially and economically”, he said.
However, tourism provides a more viable platform for optimal use of the coastlines. Lagos is the only state among the seven coastal states that is making effort at turning around its coastlines for viable revenue drive, especially with the ambitious Eko Atlantic City project, coastal resorts and parks. Yet, the state is estimated to lose about N7 billion annually for undeveloped coastline, which stretches 180 kilometers.
Of course, tourism contributed N800 billion to the State’s Gross Domestic Product (GDP) in 2017, and N50 billion in December 2017, but tourism experts insisted that the state and others who are interested at growing their GDP can do so by developing tourism infrastructure, especially along the coastline with the capacity to lure heavy spenders.
According to Wanle Akinboboye, president, La Campagne Tropicana Resort, Ibeju-Lekki, Lagos, noted that the Lagos coastline with its mild features that enable beach outing could contribute over N7 billion annually to Lagos State Government through taxes from hotels, restaurants, resorts and related business along the coastline.
He noted that tourism activities across Lagos coastline contributed a lot to the N50 billion revenue, which Lagos State earned from tourism in December 2017, and that the state could earn more if it encourages more tourism investments across the coastlines.
Magnus Ebiye, a Port Harcourt-based tour operator, noted that River State is yet to wake up to the reality that crude oil is no longer sustainable but tourism. “We have only a few beaches and many abandoned ones to oil spillage, militancy camp, and among others. There is urgent need to develop the coastlines now there is still money from oil because there may not be tomorrow”, Ebiye said.
He also encouraged indigenes not to take money made from the state to others states or outside the country for investments, “We can turn our militants’ hideouts, creeks, abandoned oil rigs and waterfronts into tourism attractions. We can earn huge internally generated revenue from our coastline, but we need to allow people to come and invest, safeguard their investments and ensure peace like Lagos State”, he said.
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