To enforce the MARPOL Convention, the Nigerian government enacted the Merchant Shipping Act, 2007, and Merchant Shipping (Ship Generated Marine Waste Reception Facilities) Regulations, 2012. With crude oil being the mainstay of the Nigerian economy, the country faces contamination of its seas and oceans primarily due to oil-related activities, including offshore drilling that pollutes coastal communities and harms plants, animals, and people. Annually, over half a billion barrels of waste fluids are generated from oil and gas activities in Nigeria.
To address pollution at sea, the Federal Government, through the Nigerian Maritime Administration and Safety Agency (NIMASA), recently signed a concession agreement with XPO Marine Services Limited. The agreement aims to provide an Offshore Waste Reception Facility (OWRF) in Nigeria's Eastern Zone, spanning from Cross River State to Bayelsa State. The concession agreement, executed under a Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) public-private partnership (PPP) arrangement, is divided into four phases with a total cost of USD 72.2 million for an initial 10-year period.
The OWRF facility will handle inspections for compliance, collection and reception of ship-generated waste, waste processing, safe recycling, and disposal. It will also contribute to protecting the seas and oceans from pollution, with specialized vessels serving as first responders.
The Infrastructure Concession Regulatory Commission (ICRC), responsible for regulating the project, announced that the Federal Executive Council (FEC) approved three PPP projects for NIMASA, including the OWRF facilities. These projects are expected to generate over USD 1.1 billion for the Federal Government during the concession period. The Eastern OWRF is projected to generate USD 279.5 million, while the Central and Western zones are estimated to generate USD 765.3 million.
Provision of waste reception facilities is crucial for effective implementation of the MARPOL Convention, as recognized by the International Maritime Organization (IMO). The OWRF in Nigeria will contribute significantly to keeping the seas and oceans clean.
The offshore waste collection facility is timely, given the increasing maritime activities in Nigeria and plans to establish deep seaports. Additionally, NIMASA is preparing to operate its Floating Dry Dock, which will bring substantial commercial benefits in ship dry-docking and repairs. These initiatives align with Nigeria's objective of becoming a regional and global maritime hub.
The OWRF will help combat the escalating pollution resulting from the growing maritime industry. The facility will receive various classifications of residues and wastes, including oily waste, residues containing noxious liquid substances, sewage, garbage, ozone-depleting substances, and exhaust gas cleaning residues, as outlined in MARPOL I-VI.
Apart from preserving the marine environment, the OWRF project contributes to Nigeria's infrastructure development through PPPs, as stated in the Medium-Term Expenditure Framework and Fiscal Strategy Paper (METF/FSP) 2020-2022.
This project will save costs incurred by the Nigerian government in managing unstructured waste collection arrangements. Over the past five years, such arrangements have cost the Nigerian economy an estimated USD 149.9 million, while the Federal Government has lost approximately USD 64.3 million in revenue during the same period.
The OWRF facility will generate revenue for the government and provide an innovative infrastructure solution for offshore waste management. It will create employment opportunities, with an estimated 1,200 direct jobs and up to 2,000 indirect and ancillary jobs. The facility will also contribute to the education and training of maritime students and scholars, offering opportunities for data collection, investigation, and analysis.
Moreover, the waste collection project will stimulate economic activities in Nigeria's maritime industry and attract investments. The government bears no costs associated with the project, as all incidental risks are transferred to the concessionaire. The DFBOMT PPP strategy ensures that government funds are not involved from start to finish, and the government shares in the project's revenue. Furthermore, the asset will revert to the government upon the expiration of the concession period.
Nigeria's commitment to securing and preserving the environment for sustainable investment in the maritime sector is evident. From launching a wreck removal initiative to developing a Maritime Action Plan on Marine Litter and Plastics, the country has been proactive in addressing marine pollution. These efforts align with global concerns highlighted by the World Economic Forum (WEF) in its 2022 Global Risks Report, which identified environmental health as the biggest long-term worry for humanity.
Collaboration between governments and the private sector has proven effective in maintaining the health of oceans and seas worldwide. In the United Kingdom and the United States, licensed waste disposal contractors and waste reception/removal services play vital roles in keeping ports and harbors clean.
The partnership between NIMASA and XPO Marine Services for the offshore waste reception facility represents Nigeria's commitment to securing the marine environment for sustainable business and life. XPO Marine Services, with its extensive experience in providing offshore marine support services to the oil and gas industry in West Africa, is dedicated to achieving the project's goals.
By investing in initiatives like the OWRF, Nigeria aims to develop a favorable environment for its blue economy potential while mitigating the harmful effects of human activities on the marine ecosystem. With concerted efforts and strategic partnerships, Nigeria's maritime industry is on track to thrive as a regional and global player, ensuring ecological health and sustainable growth for the country.