Mounting Piracy Issue Recognised But Capacity Remains An Issue
BMI View : The pledge to effectively curb the piracy problem in Nigerian territorial waters is a positive policy sign from Nigeria, signalling that the country is taking note of the alarming seriousness of the situation. While the announced measures could reduce acts of piracy, we note that low levels of maritime security capacity in the region and high capacity building costs could hinder the successful implementation of these initiatives. A failure to stem the mounting piracy could result in a further deterrent on exploration offshore Nigeria, and lead to an eventual downgrade of our forecasts if the security situation worsens.
Lieutenant Colonel Abu Kefas, the Chairman of Nigeria Maritime Administration and Safety Agency (NIMASA) board, pledged that he plans to effectively curb the increasing criminality in Nigeria's territorial waters over the next year. Illegal bunkering, crude oil theft, smuggling and piracy in Nigerian territorial waters have increased in recent years and could increasingly affect the Nigerian offshore oil industry.
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