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By Steve Agbota
Sixty-five years after independence, Nigeria’s maritime sector is still crawling on its belly. It has failed to claim a share of the nation’s lucrative crude oil exports.
While foreign ships cash in, the country continues to forfeit billions of dollars that could have boosted jobs, revenue and economic growth in general.
The situation is very worrisome, especially for a country with coastline of 852 kilometres bordering the Atlantic Ocean in the Gulf of Guinea and a maritime area of over 46,000 sq km, fresh mangrove swamps, creeks, coastal rivers, estuaries, bays and offshore waters.
28 of Nigeria’s 36 states can be accessed through water, with over 250 ethnic groups. It is estimated that one quarter of Nigeria’s population lives in the coastal zone.
More so, eight out of the 36 Nigerian states, with 25 per cent of Nigeria’s total population, share the Atlantic Ocean coastline.
Despite its abundant resources embedded in its maritime sector to back its economic diversification and development drive, Nigeria has yet to take full advantage of and harness the enormous potential in the industry.
Till date, the nation does not own a vessel that flies the nation’s flag.
Stakeholders who spoke to Daily Sun lamented that Nigeria is losing over $10 billion annually as freight and $100 billion annually as shipping agency services to foreigners due to a lack of awareness of national shipping lines.
Paradoxically, 65 years on, Nigeria still has no national carrier since the collapse of the Nigerian National Shipping Line (NNSL) in 1995. With the NNSL’s 20-vessel fleet long gone and repeated revival attempts failing, most notably after Pacific International Lines (PIL) pulled out, foreign vessels have continued to dominate the nation’s coastal waters.
Today, more than 80 per cent of indigenous shipping companies have equally gone under, swept away by the harsh tide of the inclement economic climate. All these are attributed to the previous governments’ negligence and lack of a legislative framework for the industry.
Experts say Nigeria’s maritime sector has recorded only modest progress, particularly in port reforms introduced in 2006, when sections of the ports were concessioned to private terminal operators. Beyond that, however, the industry is still crawling compared to other nations, largely because of weak legislation, corruption, policy inconsistency, decaying infrastructure, and the absence of a national shipping line.
Stakeholders note that despite its vast potential, Nigeria is yet to fully benefit from maritime trade within the Gulf of Guinea. “Ironically, Nigeria has the potential to own and operate the biggest and most efficient ports in Africa because of its strategic location and population of more than 200 million,” one expert observed. “But despite this enormous potential, the sector is still crawling and struggling to rise.”
Nigeria’s shortcomings are glaring. Apapa Port, once earmarked to be the cargo hub of West Africa, has lost that status to Ghana, which now receives more cargo despite having fewer ports. With over 16 major container and oil terminals, Ghana has overtaken Nigeria as the preferred hub.
Speaking to Daily Sun, Dr. Charles Okerefe, a lecturer at the Maritime University, said Nigeria has made efforts to remain relevant globally since the establishment of formal ports in Port Harcourt (1912), Apapa (1924), and Tin Can (1976). But much of that early promise has faded.
“Don’t forget, we had a national shipping line, the Nigerian National Shipping Line (NNSL), formed as far back as 1959, even before independence,” Okerefe said. “Unfortunately, it collapsed due to lack of continuity. At one time, we had vessels flying the Nigerian flag across the world. If NNSL had survived, we wouldn’t be facing today’s challenges with moving our cargo.”
He explained that Nigeria’s inability to operate ocean-going vessels has undermined its position under the UNCTAD 40-40-20 Code, which guarantees countries the right to lift part of their international cargo. “Because we don’t have vessels, we lose out. And worse still, Nigeria still sells crude oil on Free On Board (FOB) terms, meaning buyers nominate the vessels. Since 1958, Nigeria hasn’t earned a dime in freight from crude oil exports. Every argument to shift to CIF has hit a brick wall,” he lamented.
Okerefe acknowledged some positive developments, such as the Onne Port for oil and gas cargo and the new Lekki Deep Sea Port. He also highlighted NIMASA’s Deep Blue Project, which has helped reduce piracy in the Gulf of Guinea.
However, he raised concerns about the Ministry of Marine and Blue Economy, created two years ago. “They launched a policy to guide the sector, but what impact has it made? If you ask me, I’d say it’s not yet visible. The ministry has to up its game so that our waters, rivers, and lakes can truly drive economic growth,” he stressed.
Also speaking, the Managing Director/Chief Executive Officer, Mikky Excellency Nigeria Limited, Alhaji Abdulazeez Mukaila, said It has been 65 years of lack of infrastructure, and ageing infrastructure without replacement, saying that Nigeria still lacks that niche as a global player.
“Our operations and processes have remained so riddled with corruption. The recent kind of bone faces all attempts to make it look as if we are now practically going towards a global niche. It has been more talk without substance. The human element is still very high, as you are aware. The infrastructure has not really developed. It is not competitive.
“It can’t even compete with sub-Saharan Africa. I mean, it can’t compete with the West African region, sub-Saharan Africa. A lot more needs to be done. A lot of investment needs to happen. A lot more global investors need to come on board. Having said all that, I think the present government is determined to put in the requisite funds and open the door for investors so that we can compete.
“Let’s hope that with the new drive, we’ll be moving away from corruption towards global best practices. The practitioners have not fared better. No Customs broker can come out to say, yes, I’m a successful one. Even though it’s a very successful profession globally. It has been riddled with a lot of politics instead of professionalism. So Nigeria has a very long way to go.
The creation of the blue economy is a plus with the coastline of this country. I wonder why no government has ever thought about that all along. So, the natural resources can be tapped into. It’s not bad news all the way. With the new move of this present government, I think it will sustain. Maybe in the next 10 years, we can see where we are as a starter. That’s my take,” he said. The President of the Merchant Seafarers Association of the USA Inc. and Nigeria, Prof. Alfred Oniye, said that for 65 years, Nigeria’s maritime sector has been like a sleeping giant, massive, powerful, but slow to rise.
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“With one of the most strategic coastlines in Africa, we should’ve been a global shipping titan. Instead, we spent decades watching foreign vessels sail away with our wealth while our own ports rusted in bureaucratic silence.
“1960s–2000s, Nigerian waters were ruled by foreign shipping lines. We paid billions in freight, yet owned almost nothing. Apapa and Tin Can became symbols of inefficiency, choked with traffic, corruption, and delays. Cabotage Laws meant to empower local operators were passed, but enforcement was weak. The dream of indigenous shipping faded. Inland Waterways with over 10,000 km of navigable routes, Nigeria could’ve built a Venice of trade. Instead, we let them rot.
“2010s–2020s, the sector began to stretch, yawn, and blink into the sunlight. Thanks to the Deep Blue Project, Nigerian waters have been piracy reduction. That’s not luck, it’s strategy. Paperless ports, blockchain trials, and RFID cargo tracking brought us into the 21st century. Seafarers’ wages jumped from N70,000 to N200,000. That’s not just a raise, it’s a reckoning. Funtua Inland Dry Port opened, decentralizing trade and unclogging Lagos,” he said.
According to him, 2023 and beyond, the creation of the Ministry of Marine and Blue Economy is more than a bureaucratic move, it’s a declaration of intent. From sustainable fishing to marine biotech and ocean energy, Nigeria is sitting on a trillion-naira frontier.
“We must build our own ships, train our own crews, and own our trade routes. Full automation could make Nigerian ports the most efficient in Africa. We could still blow it. Without political will, private investment, and youth engagement, this ship could sink again. The maritime sector is no longer just a sleeping giant, it’s a giant rubbing its eyes, ready to rise. But it needs captains, not passengers. If we get this right, Nigeria won’t just be a maritime nation, we’ll be a maritime powerhouse,” he said.
National President of the Association of Nigerian Licensed Customs Agents (ANLCA) Emenike Nwokeoji, said the maritime industry has come a long way from the day of Nigeria’s independence to today, saying a whole lot has happened.
“The most important thing is that we are not where we used to be, but we are not yet where we are supposed to be. The ports are becoming more effective. With the concessioning of the ports, things have changed.
“When you come to documentation, a lot of things about the documentation have changed. A lot of activities can now be carried out online using human contacts. With those few things, I think we are moving, but not with the speed expected of a man of 65 years.
“It’s unfortunate that before now, when we were 30-something years, Nigerian owned vessels and owned aircrafts that were flying Nigerian flags. It is unfortunate that as of today, we don’t own one single vessel as a national carrier.
“Even now that we are generating more cargo than ever before, now that we have a deep seaport, we have ocean terminals. So, like I said, we are not where we are supposed to be, but we’ve made some little progress here and there.It’s nothing to celebrate,” he said.
A maritime expert, Edmund Chilaka, said there have been four phases in the development of Nigeria’s merchant marine industry since her existence as an independent maritime nation, composed of a rise, a golden age, and a decline, in that order.
He said Government policy, positive or negative, has been the trigger for each development. He said the first phase of Nigeria’s development in international shipping began in 1959 when a state-owned carrier was established called the Nigerian National Shipping Line (NNSL) following the clamour by nationalist leaders in the 1940s and 1950s.
He added that the dividends of NNSL’s emergence included foreign exchange generation, rapid indigenous seamanship training, which resulted in more than 2000 trained master mariners, marine engineers, radio officers, catering officers and other skilled ranks to fill the crew list and appropriate workforce, afloat and ashore, for operating the shipping line at that time.
“Moreover, there was a domino effect of additional foreign remittances from Nigerian sailors working abroad for other shipping lines in Saudi Arabia, Iraq, Iran, Turkey, Singapore, and many European countries.
“The weakness of the era, however, was that though Nigeria had this semblance of a flowing maritime trade, it was still a toddler maritime nation because of ineptitude in the ranks of the shipping managers at the Lagos headquarters and various Nigerian offices, including the main UK representative office called Niger Line UK where the ships’ sailing schedules, ship maintenance office and cargo marketing departments were based.
“Moreover, NNSL only succeeded in carrying about 12% of the total volume of the Nigerian trade out of its 40% share of the UNCTAD sharing formula, 40-40-20. After the Shagari administration made the mistake of sacking the British managers in charge of the Nigerline Office in the UK, NNSL operations began to unravel due to the incompetence of the Nigerians who took over from them and the loss of the white faces that formerly eased cargo marketing. This was the first stage of the decline of the indigenous trade which culminated in the liquidation of the company in 1995,” he explained. He said the second phase of the development of Nigeria’s international shipping trade started in 1987 when General Ibrahim Badamosi Babangida signed Decree 10 which gave birth to the National Shipping Policy and the National Maritime Authority (NMA).
According to him, this signaled the onset of Nigeria’s golden era in international merchant marine competition as the law provided for supportive policies that empowered indigenous private sector shipping companies to emerge and compete against the foreign carriers in the carriage of cargoes for the Nigerian market.
He said many shipping companies were registered by the NMA and supported to carry cargo belonging to the Federal, State, and Local Governments of the country.
“It is ironic that a military regime displayed such a keen understanding of the mechanisms of international shipping and successfully equipped many Nigerians to claim our national rights; soldiers, who are usually perceived as unfit for public administration, being trained mainly for defense. But they understood the rudiments of having a seat at the dinner table of the world. No other administration since Nigeria’s independence in 1960 has displayed similar shrewdness, found mostly in the shipping policies of the traditional maritime nations of Europe, North America, and Asia.
“In addition to allocating cargoes to indigenous as well as foreign carriers, the NMA gave $92 million in loans to eight indigenous shipping companies, including the NNSL, to buy and repair ships under the Ship Acquisition and Ship Building Fund (SASBF). Since independence, this was the only era marked by these robust maritime policies that catalyzed further positive developments for the larger economy, unlike the present era where the disbursement of the Cabotage Vessel Financing Fund (CVFF) cannot be administered by NIMASA due to myopic politics.
“In sum, the NMA successfully implemented the National Shipping Policy, which improved all the right indices of indigenous participation in international shipping, until the era ended under the Obasanjo administration in 2001 when he unwisely suspended the cargo reservation programme and the Ship Acquisition and Ship Building Fund,” he added.
He said the third phase of Nigeria’s maritime development began in 1995 when the NNSL was liquidated.
“Just as the founding of the company raised the profile of indigenous participation in ocean shipping and related merchant marine activities, the liquidation cast a gloomy spell on the economy. Thousands of employees were laid off, its assets discounted against the liabilities in Nigeria and Europe, cadet training floundered due to the lack of sea-time berths for navigation and engineering graduates of our nautical colleges, and the foreign competitors took over more of the vacated turf.
“This led to the fourth phase in the evolution of the indigenous trade, marked by the suspension of cargo reservation policy and the SASBF in 2001. The promulgation of the Coastal and Inland Shipping (Cabotage) Act in 2004, which ought to have brought an encore to the role of the NNSL, failed to lift the fortunes of indigenous shipping companies. The feedback from local operators is unflattering, as their aged fleets are dubbed ‘rust buckets’ and business is not channeled their way.
“Hence, the recovery of Nigeria’s indigenous maritime trade requires stronger, motivated leadership at NIMASA and the reactivation of supportive policies to empower local operators’ cargo-carrying capacity, as was done by the NMA during the 1980s and 1990s,” he said.
