Nigeria is losing between $8 billion and $9 billion annually to foreign shipping companies due to its limited participation in international maritime trade, industry stakeholders have warned.
The concern was raised during a stakeholders’ engagement organised by the Ministry of Marine and Blue Economy, where experts called for urgent reforms and stronger collaboration among government agencies to reverse the trend.
Despite ranking as Africa’s largest trading economy by population and cargo volume, Nigeria remains largely absent from global shipping operations. As a result, foreign vessels continue to dominate the transportation of the country’s imports and exports, leading to significant capital flight.
Chairman and CEO of Starzs Investments Company Limited, Greg Ogbeifun, described the situation as a structural economic loss that demands immediate action. According to him, Nigeria’s heavy reliance on foreign shipping lines continues to drain billions from the economy.
“Every day of inaction compounds a structural loss. Approximately eight to nine billion dollars are lost annually to foreign ships carrying Nigerian cargo,” he said.
Ogbeifun noted that while Nigeria has made notable investments in port modernisation, it has failed to build a complementary national fleet capable of participating in global trade. He argued that the country’s population size and cargo throughput justify a return to international shipping, similar to the era three decades ago when Nigerian-flagged vessels were active globally.
He identified regulatory barriers as a major obstacle, particularly the requirement for operators to own vessels before being granted national carrier status. This, he explained, discourages investment due to the absence of guaranteed cargo.
“To acquire a ship, there must be certainty about cargo. Without that assurance, investors are reluctant to commit,” he said.
As a solution, Ogbeifun proposed that the government allocate specific import and export cargoes to Nigerian operators and issue letters of intent to enable them secure financing for vessel acquisition.
He also recommended leveraging the Cabotage Vessel Financing Fund as a sovereign guarantee rather than direct funding, allowing local shipowners easier access to international credit facilities.
Highlighting fiscal challenges, he pointed out that Nigerian operators face import duties of up to 14 percent on vessels—far higher than what foreign competitors pay—making local participation less competitive. He advocated a zero-duty regime for Nigerian-owned ships to stimulate growth in the sector.
Ogbeifun further stressed that Nigeria’s challenge lies not in policy formulation but in weak implementation, urging stronger political will to enforce the National Policy on Marine and Blue Economy.
He also distinguished between establishing a national carrier and building a national fleet, advising the government to focus on supporting multiple indigenous operators rather than a single state-backed shipping line.
“A national fleet allows government to mobilise local vessels during emergencies. During COVID-19, Nigeria had no ships to rely on,” he noted.
In addition, he called for structured international partnerships that mandate collaboration with Nigerian firms in shipbuilding, repairs, and workforce development to strengthen local capacity.
Speaking at the event, the Manager of the Central Results Delivery Coordination Unit, Ismail Okunola, emphasised the importance of inter-agency collaboration in unlocking the sector’s full potential.
He described the National Policy on Marine and Blue Economy (2025–2035) as a comprehensive 10-year roadmap containing over 200 initiatives aimed at driving economic growth, job creation, and environmental sustainability across sectors such as fisheries, maritime transport, tourism, offshore energy, and biotechnology.
However, Okunola identified poor coordination among government agencies as a major bottleneck. Issues such as overlapping responsibilities, multiple inspections, weak information sharing, and institutional rivalry continue to increase the cost of doing business at Nigerian ports and delay cargo clearance.
“These inefficiencies undermine trade competitiveness and reduce overall sector performance,” he said.
He pointed to the success of the Deep Blue Project—also known as the Integrated National Security and Waterways Protection Infrastructure—as evidence of what effective collaboration can achieve. The initiative, involving multiple security agencies, has eliminated piracy in Nigerian waters since 2021 through coordinated enforcement efforts.
“This shows that when agencies operate within a unified framework, the results can be transformative,” Okunola added.
To address existing gaps, he recommended the creation of a central coordinating body for port operations, adoption of joint inspections, deployment of integrated digital systems such as the National Single Window, and regular inter-agency engagement.
Both speakers agreed that Nigeria’s marine and blue economy holds immense potential for boosting trade, enhancing food security, and diversifying the economy. However, they warned that without decisive action, the country will continue to lose value to foreign operators.
They concluded that a mix of policy reforms, fiscal incentives, capacity development, and institutional collaboration is critical to positioning Nigeria as a competitive force in global maritime trade.
