By Abbas Nazil
Nigeria’s leading position in Africa’s maritime sector faces significant threats as local shipowners warn of imminent challenges if immediate action is not taken to address critical industry issues.
Shipowners under the African Shipowners Association Nigeria (ASA-NG) have sounded the alarm, stating that the country’s inability to fully leverage the African Continental Free Trade Area (AfCFTA) could cost Nigeria its leadership role.
The AfCFTA promises substantial growth in intra-African trade, but the country must develop a robust fleet of African-flagged vessels to capitalize on this opportunity.
At the ASA-NG scorecard event in Lagos, themed “One Year After Shipownership and Our Future Growth,” the association’s Secretary-General, Funmi Folorunsho, expressed deep concerns about the sector’s preparedness.
Despite Nigeria ranking 33rd globally in ship ownership, it trails other African nations like Kenya and Ghana in mobilizing fleets to tap into AfCFTA’s benefits.
Folorunsho warned that the race to dominate intra-African trade requires swift action.
She emphasized that the absence of adequate Nigerian-flagged vessels could result in the country being sidelined as other nations position themselves for the anticipated trade boom.
While acknowledging Nigeria’s intellectual capacity and financial potential, she decried the lack of collaboration, outdated policies, and limited access to financing as major hindrances to the growth of local ship ownership.
The Secretary-General criticized financial institutions for their reluctance to support Nigerian shipowners, contrasting this with their readiness to fund foreign stakeholders.
She revealed instances where proposals from local operators were rejected despite the banks having the capacity to finance them.
Folorunsho called for a unified effort between the private sector, financial institutions, and government agencies to reverse the decline and ensure Nigerian vessels dominate the AfCFTA trade routes.
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Further emphasizing the need for reform, Folorunsho highlighted the disconnect between Nigeria’s wealth of maritime expertise and its underwhelming performance on the global stage.
She stressed that Nigeria must leverage its resources and experts to lead the continent’s maritime sector effectively.
Folorunsho urged stakeholders to work towards increasing the number of Nigerian-flagged vessels, as collaboration and proactive engagement are vital for the industry’s future growth.
Temisan Omatseye, a former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) and past president of ASA Continental, also lamented the state of Nigeria’s maritime sector.
He criticized both the government and industry players for failing to harness the sector’s potential. Recalling his tenure as NIMASA’s head, Omatseye pointed out the systemic challenges local operators face, particularly in the oil and gas sector, where foreign companies consistently outmaneuver Nigerian stakeholders.
Omatseye described tactics employed by foreign entities to marginalize Nigerian operators, such as altering vessel technical specifications to exclude local players.
He urged the government to prioritize indigenous shipowners over foreign interests, stressing that a robust maritime administration should focus on protecting and empowering local operators.
The maritime expert also called on ASA-NG and other industry stakeholders to take a more proactive role in advising the government and advocating for policy reforms.
He expressed frustration with the Nigerian government’s approach, which he argued often undermines local capacity in favor of international players.
Stakeholders at the ASA-NG event reiterated the importance of addressing the challenges plaguing the Nigerian maritime sector.
They emphasized that Nigeria’s leadership potential could only be realized through effective collaboration, government support, and targeted reforms.
Without these efforts, they believed, the country risks losing its competitive edge in Africa’s burgeoning maritime trade landscape.
