Shipowners Association President Laments Nigeria’s Backwardness in Ship Ownership, Says Foreign Interests Earn $9bn Annually
ASA PRESIDENT CAPT Olubowale
By Francis Ugwoke
An indigenous shipping operator and President of African Shipowners Association (ASA), Capt. Ladi Olubowale, has raised alarm over Nigeria’s backwardness in ship ownership, saying the industry is dominated by foreign shipping lines.
Olubowale said this means billions of dollars in freight revenue leave our economy every year, revealing that in 2023 alone, freight payments exceeded $9bn, mostly earned by non-Nigerian operators.
In a paper presentation titled ‘Nigeria’s Shipping Carriage Gaps, CVFF Funding and Fading Manpower’, on the occasion of the 30th anniversary celebration of Port News in Apapa last week, he said Nigeria has remains cargo owners without shipping power.
He said, “Today, Nigeria moves over 150 million tonnes of cargo annually; crude oil, gas, containers, and dry bulk. Yet less than 10% of that trade is carried by Nigerian-owned vessels.
“Foreign shipping lines dominate our trade. This means billions of dollars in freight revenue leave our economy every year. In 2023 alone, freight payments exceeded $9 billion, mostly earned by non-Nigerian operators.
This dependence makes us vulnerable to global shocks and limits our economic sovereignty.
“Let’s talk about the “carriage gap”. The difference between the cargo we produce and the cargo we carry.
Nigeria exports oil, LNG, and agricultural products. Yet our shipping presence is minimal. We have become cargo owners without shipping power. This gap weakens our trade balance, employment base, and technical capacity.
Every vessel we don’t own represents lost jobs, lost taxes, and lost experience”.
Olubowale identified the Cabotage Vessels Financing Fund (CVFF) as the only way assist indigenous shipping companies grow their fleet.
According to him, “ the CVFF was created to help Nigerian shipowners acquire vessels. Today, that fund holds significant potential, built from the contributions of Nigerian operators. It was designed to be recycled back into the industry to promote ownership and national carriage capacity.
Recent efforts by the Ministry of Marine and Blue Economy and NIMASA to finally disburse the CVFF represent a turning point. If used transparently and strategically, it can bridge the carriage gap and rebuild our maritime pride.
“We must ensure that CVFF loans go to real operators; those with the technical capacity, management experience, and employment commitment to make the vessels work.
Every disbursed dollar must create ships, jobs, and cadet berths. That is how you build national shipping power sustainably”.
He pointed out that Nigeria’s maritime manpower is fading, adding that
between 2015 and 2023, the number of active Nigerian seafarers dropped by nearly 40%.
“ Our training institutions are underfunded, our cadets struggle to gain sea-time, and our officers are aging out of service.
By 2026, Nigeria may face a -.shortfall of 96,000 trained maritime professionals across seafaring, engineering, and logistics if we don’t act now”, he said.
He added that without manpower, ships are just steel floating on water, stating, “it is people, Nigerian people, who make vessels operate, ports function, and logistics move.
“We must rebuild the seafarer pipeline: through structured cadetship programs, scholarship bonds, and employment quotas linked directly to CVFF financed vessels”.
“When Nigerians operate Nigerian ships, the value chain expands domestically. More taxes stay home, more jobs are created, and local businesses; from ship chandlers to port services grow.
Each new vessel creates an average of 40 direct jobs and 200 indirect jobs in the maritime economy. Imagine what 50 new Nigerian-owned vessels could mean”
He also opined that the revival of Nigerian shipping cannot be achieved by
government alone, saying this requires “blended financing; public, private, and development finance working together. It requires that our laws support competitiveness, our banks understand maritime risk, and our training institutions are revitalized.
“We must think beyond Cabotage to true national shipping participation in global trade”.
On the way forward, he called on all stakeholders, including government to be transparent in CVFF disbursement and long term shipping -policy.
He also called on financial institutions to have maritime desks and loan guarantee, while training institutions should embark on
modernisation and global partnership.
For investors , he called for patience capital that sees shipping as a strategic national asset, while urging shipowners for accountability and employment commitment.
He was of the view that looking to the future the “Nigeria of tomorrow must not only produce cargo, it must carry it”.
He added, “We must train young Nigerians, invest in green and LNG-powered vessels, and position our fleet within the African Continental Free Trade Area (AfCFTA) logistics network.
“Our vision must be regional dominance and global respect.
“If the NNSL gave us pride in the past, the new Nigerian fleet must give as prosperity in the future.
A fleet of Nigerian-owned, Nigerian-crewed vessels, supported by CVFF and modern financing can redefine our place in global shipping.
“The Ocean will always move. The question is, will Nigeria move with it?
We have the knowledge. We the people. And now through CVFF, we have the means. Let us not miss this tide of opportunity.
“We can either continue importing our shipping or rebuild it. The choice defines our economic sovereignty”
About Post Author
