Experts have voiced concern over the state of Nigeria’s maritime sector, describing it as a paradox of untapped potential marred by economic stagnation. Despite Nigeria’s vast maritime resources — including an 853-kilometer coastline along the Atlantic Ocean and an exclusive economic zone extending over 200 nautical miles — the country has yet to fully harness its sea-bound assets.

A significant challenge lies in the areas of vessel financing and construction, where Nigeria’s maritime ambitions have been hampered by a lack of effective national policies and inadequate private sector investment. Indigenous shipping companies often struggle to secure financing for vessel acquisitions, resulting in substantial financial losses to foreign competitors. The absence of strategic policies has also slowed progress in shipbuilding, repairs, and dry docking, thereby limiting the growth of the blue economy.

On a global scale, vessel financing is a major financial sector, with extensive investment in ship acquisition and construction. In 2023, the top 40 banks lent $284.27 billion to the shipping industry, with total global lending reaching approximately $375 billion. The Petrofin Index places global ship finance, including leasing and export finance, at around $600 billion. This demonstrates the critical role of financial institutions in supporting global maritime operations.

However, Nigerian banks face several obstacles in supporting local shipping growth, including high interest rates and outdated financing methods. To unlock the full potential of Nigeria’s maritime sector, innovative financing solutions and robust national policies are urgently needed.

At a recent forum organized by the Association of Maritime Journalists of Nigeria, experts emphasized the need for comprehensive policies and increased private sector investment to overcome the challenges of vessel financing. A strategic approach could significantly enhance Nigeria’s maritime industry and position it as a global competitor.

Abdulkadir Ahmed, Managing Director and CEO of NLNG Shipping and Marine Services Limited, highlighted the importance of adhering to international standards for ship quality and safety. He stressed that access to financing is vital for both vessel acquisition and construction, and understanding the evolving maritime landscape is key to achieving success.

Barr. Pius Ukeyima Akutah, Executive Secretary of the Nigerian Shippers’ Council, underscored the role of the blue economy in global trade, which accounts for 90% of international trade and contributes 70% of global trade revenue. He called for expanded financial support mechanisms, such as the Shipping Sector Support Fund and the Cabotage Vessel Financing Fund, to maximize Nigeria’s maritime resources and foster economic development.

Dr. Dayo Mobereola, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), reiterated the economic importance of shipping and the need for renewed focus on vessel acquisition and construction. Represented by NIMASA’s Director of Administration and Human Resources, Mr. Isichei Osamgbi, he stressed that fleet ownership is strategically important for enhancing Nigeria’s economic position and creating jobs.

Charles Okorefe, Advisory Head and CEO of Kamany Marine Services Limited, criticized Nigerian banks for their short-term investment strategies, which are not conducive to long-term shipbuilding projects. He urged better communication of the benefits of shipping finance to encourage more substantial investments.

To transform Nigeria’s maritime sector and fully realize its blue economy potential, the country must implement targeted investments, strategic policies, and innovative financing solutions. By addressing these challenges, Nigeria can leverage its maritime assets to drive economic growth and establish itself as a key player in the global shipping industry.