Stories by Steve Agbota
At the two-year mark of President Bola Tinubu’s tenure, Nigeria’s maritime sector reflects both promise and unfinished business.
While significant groundwork has been laid through policy reforms and infrastructure upgrades, the journey toward a fully revitalised and globally competitive industry is far from complete.
According to stakeholders, the sector’s future sails on steady winds of opportunity, but the final destination remains over the horizon.
To navigate it, they are calling for genuine commitments both in human and material resources, especially as President Tinubu came into power with lofty promises, which raises expectations.
For decades, the sector was plagued with so many challenges that successive governments failed to address. The maritime industry was the only sector without a substantial ministry and it was overseen by the Ministry of Transportation.
But within a few weeks, the President created the Ministry of Marine and Blue Economy to oversee the affairs of the maritime industry and made the ministry official during the inauguration of his cabinet, and also announced Adegboyega Oyetola as the Minister of the ministry.
The creation of the ministry was described as a welcome development by stakeholders as they believe the potential domiciled in the maritime industry will be harnessed.
But two years later, there are mixed reactions as some of the expectations are yet to be met by Tinubu’s administration despite rolling out some policies to reshape the industry.
While some stakeholders acknowledge that President Tinubu has made modest strides in the maritime sector, others argue that the past two years have been marked by persistent and daunting challenges. Critical issues such as dilapidated access roads to seaports, the lack of holding bays and functional quays, inadequate truck parks, and poor traffic management, especially around the congested Lagos ports, continue to hamper efficiency and stifle the sector’s full potential.
Dearth of national shipping line
Today, Nigeria does not have its own vessel to lift its cargo. As a maritime nation, Nigeria relies majorly on foreign vessels to lift its cargo, which costs about $10 billion annually.
Stakeholders had anticipated that this administration would prioritise and resolve key bottlenecks in the maritime sector within its first two years in office. Among the most pressing is the long-standing issue of the Cabotage Vessel Financing Fund (CVFF), which remains undisbursed despite being established to empower indigenous shipowners. However, in a significant policy shift, the Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola, recently directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to initiate the long-awaited disbursement process. This move, coming after two decades of administrative inertia, signals a renewed commitment to reposition Nigeria’s indigenous shipping industry for growth and competitiveness.
“Successive administrations failed to operationalise the fund until now. Under President Bola Tinubu and my determined stewardship, the federal government has signalled a deliberate course correction”.
FX crisis/decline in importation
Nigeria’s maritime sector faced a litany of challenges that threatened to stifle its growth and efficiency. The forex crisis created financial strain, while a sharp decline in importation further weakened the sector.
The importation of bulk cargo has declined by 15%, vehicle imports by 55%, and containerised cargo by 35%. This downturn has led to the closure of hundreds of businesses, while thousands of Nigerians have lost their jobs, largely due to soaring exchange rates and increased import duties on cargo clearance at the country’s seaports.
Daily Sun gathered that following President Bola Tinubu’s move to float the exchange rate, the value of the naira has skyrocketed by over 300%, with the exchange rate for the U.S. dollar jumping from N455/$1 to N1,766/$1 in just two years.
The Central Bank of Nigeria (CBN) has adjusted the Customs import duty so many times, which has forced some importers to abandon the nation’s ports for the neighbouring ports of Togo, Ghana, and the Benin Republic in search of stable and cheap exchange rates to do business.
Key factors driving these trends include the soaring exchange rate, scarcity of dollars, fluctuating exchange rates, constant hikes in Customs duties, a decline in importation, and rampant multiple taxation. These, coupled with other external challenges, have collectively stunted the growth of the maritime industry in the last two years.
Stakeholders who spoke with Daily Sun said that to worsen the narrative, soaring port charges drove up operational costs, compounding the difficulties for businesses and stakeholders.
Key performances
While some stakeholders criticized President Tinubu for not meeting their expectations, others praised him for recent policies aimed at repositioning the maritime industry. They believe that if these policies are well implemented, the sector will significantly improve for all involved.
For instance, Tinubu approved Nigeria’s 10-Year National Policy on Marine and Blue Economy, spanning 2025 to 2034. The policy, backed by a robust implementation plan, is designed to harness Nigeria’s vast marine resources to drive economic growth.
This approval comes amid growing global interest in the blue economy. Anchored in a comprehensive framework, the policy aims to leverage Nigeria’s extensive marine resources — including over 853 kilometres of coastline — as a key driver of sustainable economic growth, environmental stewardship, and job creation.
A notable achievement of the policy is its role in stabilizing the naira-dollar exchange rate, unlike previous periods of dollar fluctuation that slowed importation and discouraged importers from operating in Nigeria’s ports.
Furthermore, 16 years after previous failed attempts, Tinubu approved Nigeria’s hosting of the long-awaited Regional Maritime Development Bank (RMDB) and appointed a Nigerian, Mr. Adeniran Aderogba, as the Bank’s first President and CEO.
This approval marks the historic launch of a project that has been in progress since 2009, when member states of the Maritime Organization of West and Central Africa (MOWCA) first approved the bank’s establishment.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, said the long delay in operationalizing the institution is now over, with President Tinubu breaking another jinx and giving a much-needed boost to the regional maritime sector.
Oyetola said: “This is a moment of great significance for Nigeria and the entire West and Central African sub-region. After 16 years of waiting, the Regional Maritime Development Bank is finally taking off, thanks to the decisive leadership of President Bola Ahmed Tinubu.”
The RMDB is envisioned as a dedicated financial institution providing long-term funding for port infrastructure, fleet acquisition, shipping logistics, and intermodal transport systems.
Under Tinubu’s administration, China and Nigeria also renewed a 15 billion yuan ($2 billion) currency-swap agreement aimed at enhancing trade and investment between the two nations.
The renewal of the currency-swap deal is expected to deepen economic ties, facilitate cross-border trade, and encourage investment by reducing reliance on third-party currencies such as the US dollar.
The arrangement is also anticipated to bolster financial cooperation and promote broader use of the yuan and naira in bilateral transactions.
Stakeholders’ views
Speaking with Daily Sun, the former President of the Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, said the administration started on a rough note, noting that initially, Nigerians were sceptical because everyone was confused about the policy.
However, in the last few weeks, he said it is clear that if properly implemented, the policy will begin to yield results.
According to him, with the creation of a blue economy, the previously unstable naira has now stabilized, thanks to the open market.
“You know, before now, we had two exchange rates. Now, we have one exchange rate. Also, the government’s intention not to rely solely on the dollar is a welcome development. As I speak about the naira swap deal with China, it will increase our volume of imports and exports. Moreover, most of the currency or economy policies being formulated are now yielding results.
“So I want to say that we are on a good note now. If it is well monitored and implementation is free of the typical Nigerian factor, I believe we will start seeing the dividends of democracy in the next few months. That is what I am very sure of. Another concern is that this government has not yet addressed policies on used vehicles, which would help alleviate the suffering of Nigerian masses,” he said.
However, he pleaded with the government to reconsider the 15% duty paid on used vehicles, saying that if it can be removed, Nigerians will have more purchasing power, and young Nigerians will be able to afford used vehicles.
“That is it. Another issue I want the government to address is the 4% Customs levy, which is set to be implemented soon. If it will eventually be enforced, then the government should find a way to manage the existing 7% charged on imports to avoid double taxation.
“You will recall that recently, the tax bill was passed by the National Assembly and is awaiting the president’s assent. Once implemented, many issues of the CEMA will be resolved. There will be an agency to report to as the final arbiter when disputes arise.”
On dwindling imports, Farinto said the volume of imports has been decreasing over the last two years due to the unstable exchange rate.
“But I want to assure you that going forward, imports are increasing because of the federal government’s efforts, the naira swap deal, and the recent stabilization of the dollar,” he said.
Meanwhile, the President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, said stakeholders have yet to see any achievements, describing the current situation as slow cargo movement.
He lamented, “The cargo is very slow and not arriving as usual. Many people have lost their jobs due to the current economic crisis.
“Many people cannot even leave their homes. Transport costs that were around N1,000 have almost tripled to over N3,000. So, people, especially agents, don’t come out regularly. Clearing goods has become expensive because of the exchange rate. What the government has done is to dollarize both the exchange rate and import duty collection. This is not done anywhere else in the world.
“And if you dollarize the exchange rate, import duty collection should be stabilized. But everything is being doubly applied, affecting many people. Businesses have closed down, and in markets, about 50% of traders don’t show up. At trade fairs and jewelry markets, attendance has dwindled. People are just managing their lives.”
He explained further, “Import trade depends on the port, which is not as active as before. Although the exchange rate has stabilized between 1.5 and 1.7, when you procure exchange at that rate and process import duty at the same rate, it makes goods very expensive.
“In other countries, when they have an exchange rate, they try to control the domestic front to manage processing costs,” he added.
Amiwero warned that the calculation of duty should not be dollarized, stressing that while the government may dollarize the exchange rate, it should not apply the same principle to import duty calculations because duty is a domestic issue.
He urged the government to address these challenges and called for a total overhaul of the port system, recommending the appointment of experts to fix issues and avoid duplication.
Future
The Head of Research of the Sea Empowerment Research Centre, Eugene Nweke, said the Ministry of Marine and Blue Economy, established under President Bola Tinubu’s administration, has made notable progress in its first two years in the maritime sector.
He said through the federal government he said the ministry must tackle some challenges by ensuring sustainable management of marine resources and ecosystems, which is crucial to prevent destabilization of the delicate balance of these ecosystems.
According to him, the ministry needs to address environmental challenges such as marine pollution, overfishing, and coastal degradation and developing modern infrastructure and attracting investment in the maritime sector is essential to improve productivity and resilience.
While offering future directions, he said the ministry should leverage private sector investment to drive growth in the blue economy, adding that integrating sustainability into policies and strategies will be crucial to ensure the long-term health of marine ecosystems.
He said there is a need to establish an inclusive committee with stakeholders and partners that will facilitate effective collaboration and decision-making.
“The presidential consent and enactment of the maritime industry regulatory agency laws of the NSC. Act swiftly on committees recommendations, for example, the committee that reevaluated the accidents on our waterways,” he added.