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Global Shipping Levy in Nigeria: Call to action ahead of IMO conference

As the world grapples with the escalating impacts of climate change, the maritime industry is increasingly recognised as a significant contributor to greenhouse gas emissions. In response, the International Maritime Organisation (IMO) has proposed a Global Shipping Levy, aimed at reducing the carbon footprint of shipping activities.

Olumide Idowu
Olumide Idowu, Executive Director, ICCDI Africa

This proposal has profound implications for Nigeria, a country with extensive coastlines and vital shipping routes. The implementation of this levy could lead to substantial changes in Nigeria’s shipping industry, potentially mitigating climate change effects while fostering sustainable economic growth.

Nigeria’s port system, particularly the Lagos Port Complex, has faced numerous challenges that hinder efficient shipping operations. Congestion, inadequate infrastructure, and poor maintenance of facilities have long plagued these ports, leading to increased emissions from idling ships and delayed deliveries.

A case study of the Apapa Port highlights these challenges; it is often described as one of the most congested ports in Africa, with vehicles frequently stuck in traffic for hours. This congestion not only contributes to carbon emissions but also affects local communities through increased air pollution and detrimental health impacts.

The Global Shipping Levy could serve as a catalyst for the Nigerian government and stakeholders to invest in modernising port infrastructure. By investing levy revenues into sustainable port facilities, Nigeria could improve operational efficiency and reduce the environmental impact of shipping practices.

For example, implementing green technologies such as electric cranes and renewable energy sources in port operations would significantly lower carbon emissions. Moreover, enhancing the logistics network surrounding ports would alleviate congestion, thereby reducing idle time and emissions from waiting vessels.

However, the success of the Global Shipping Levy in Nigeria hinges on the government’s commitment to climate policies and sustainable practices. Policymakers must prioritise environmental considerations in their economic planning, ensuring that the levy is used effectively for climate action. This approach aligns with Nigeria’s obligations under international climate agreements, such as the Paris Agreement, and signals to the global community its readiness to participate in collective efforts to combat climate change.

Local communities, particularly those residing near ports, are often the first to experience the adverse effects of shipping emissions. Residents of Apapa, for instance, have reported rising cases of respiratory illnesses linked to air pollution from port activities. Acknowledging these impacts is crucial. The Nigerian government must engage with affected communities to formulate inclusive policies that address their concerns while also promoting sustainable shipping practices. Community involvement can lead to more effective solutions and ensure that the voices of those most affected are heard.

As the IMO conference in London approaches, it is imperative for Nigeria to take a proactive stance on the Global Shipping Levy. The country has a unique opportunity to advocate for the interests of developing nations, emphasising the need for equitable financing mechanisms that support climate adaptation and mitigation efforts. A united front among African nations could strengthen Nigeria’s position in international negotiations, ensuring that the voices of vulnerable communities are prioritized in discussions around climate action.

In conclusion, the Global Shipping Levy presents both a challenge and an opportunity for Nigeria as it navigates the complex interplay between economic growth and environmental sustainability. The time to act is now. Nigerian stakeholders must collaborate to leverage this levy to modernise ports, engage local communities, and advocate for fair climate policies.

The upcoming IMO conference is not just an event; it is a pivotal moment for Nigeria to lead by example and commit to a sustainable future for its ports and communities alike. It’s imperative for all parties involved – from government officials to local residents – to unite in this endeavor and champion the necessary changes that will protect both the environment and the livelihoods of millions.

By Olumide Idowu, Executive Director, ICCDI Africa. @OlumideIDOWU

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