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By Steve Agbota
The African Shipowners Association Nigeria (ASA-NG) has warned that Nigeria risks losing its status as a global leader in ship ownership due to its sluggish efforts in mobilising its fleet to take full advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA).
The association cautioned that without swift government action to resolve the challenges faced by local shipowners, Nigeria risks forfeiting its leadership position in Africa’s maritime sector.
The AfCFTA promises a boom in intra-African trade, creating a demand for robust fleets of African-flagged vessels. Speaking at the ASA-NG Scorecard event themed “One Year After Ship Ownership and Our Future Growth” in Lagos, ASA-Continental Secretary General, Ms. Funmi Folorunsho, voiced deep concerns over Nigeria’s missed opportunities.
She noted that while Nigeria ranks 33rd globally in ship ownership, it lags behind African countries such as Kenya and Ghana in preparing its fleet to seize the AfCFTA’s potential.
“We are in a race, and we have a lot of work to do. If we don’t act quickly, Nigeria could be left behind. AfCFTA is creating enormous opportunities for African countries to dominate intra-African trade, but that will only happen if we have the vessels to transport goods. The challenge is, how many of those vessels will be Nigerian-flagged?”
She explained that other African nations with smaller fleets are already positioning themselves strategically, while Nigeria’s shipowners struggle with outdated policies, limited financing, and inadequate government support.
Folorunsho called for a concerted effort between the private sector, financial institutions, and government agencies to reverse this trend and ensure Nigeria’s fleet leads the AfCFTA revolution.
“The Nigerian maritime industry has the intellectual capacity to lead the continent but is hindered by a lack of collaboration and effective policies. If we continue to rest on our oars, we will miss out on the vast opportunities AfCFTA offers,” she warned.
She emphasised the role of Nigeria’s financial institutions, which she said could provide the capital needed to expand the fleet. However, she expressed frustration over the unwillingness of some banks to support local shipowners.
“I’ve had conversations where banks outrightly rejected proposals, despite having the means to fund them. Yet, when foreign stakeholders come in, they’re welcomed with open arms. This must change if we are to compete on the global stage,” she lamented.
Folorunsho also stressed the need for unity among stakeholders to increase the number of Nigerian-flagged vessels.
“The time for talk is over. We need action. By 2025, we must significantly increase Nigerian-flagged vessels operating across African trade routes, or we will fall behind,” she said.
She warned that failure to act would relegate Nigeria to the sidelines of a maritime boom it should lead, stating,
“Countries that control the ships will control the trade. We must rise to the occasion with the right policies, investments, and collaboration to make Nigeria the maritime leader in Africa.”
Former ASA Continental President and former NIMASA Director General, Mr. Temisan Omatseye, criticized both the government and the maritime industry for failing to harness Nigeria’s shipping potential.
Omatseye recounted his experiences with foreign companies outmaneuvering local operators in the oil and gas sector.
He lamented that local vessels were consistently sidelined, even when registered under the Nigerian flag.”The problem is that we don’t believe in our own capabilities. We’re always looking to others to show us how to do things,” he said, accusing the Nigerian National Petroleum Corporation Limited (NNPC) of failing to support indigenous shipowners.
“The system is rigged. Nigerian-owned ships are not getting the opportunities they deserve. The primary focus of a maritime administration should be to protect its indigenous shipowners, not serve foreign interests,” Omatseye stated.
ASA-NG President, Capt. Ladi Olubowale, highlighted the association’s achievements over the past year, including robust stakeholder engagement and an increase in ASA-NG membership.
With AfCFTA revolutionising trade across Africa, Nigeria’s shipowners and maritime stakeholders are calling for urgent reforms to secure the nation’s place as a leader in the global maritime industry.
