Nigeria’s Maritime Sector Struggles as Foreign Carriers Dominate Domestic Waters

Nigeria’s maritime industry is floundering under the weight of foreign dominance due to the Federal Government’s failure to effectively enforce the Cabotage Act of 2003 and the Nigerian Maritime Administration and Safety Agency (NIMASA) Act of 2007, maritime operators have warned. This regulatory lapse has sidelined indigenous shipping companies, leaving them unable to compete in transporting crude oil, non-oil exports, and imports in Nigeria’s own waters.

Speaking at a recent workshop in Lagos for maritime journalists, themed “Regulating the Maritime Industry: The NIMASA Perspective”, Mr Anthony Ogadi, a retired Director of Shipping Development at NIMASA, highlighted the severe impact of weak enforcement on the growth of Nigeria’s shipping sector. In his presentation, “NIMASA’s Role in Nigeria’s Participation in International Shipping Trade”, Ogadi pointed out key sections of these laws that were designed to bolster national carriers by granting them exclusive rights to transport federal, state, and local government cargo.

“Despite the existence of these laws, many have not been fully operationalised, hindering the growth and protection of indigenous shipping operators,” Ogadi noted, adding that the lack of enforcement had opened the door to foreign carriers dominating domestic trade.

The consequences of this regulatory failure are far-reaching. In the past, Nigeria played a significant role in international shipping conferences, with its national carriers securing substantial cargo allocations. Ogadi recounted that these conferences, which included the Far East-West African Conference and the UK West-African Conference, were essential in maintaining a balance between national and foreign carriers. However, corruption and favouritism eroded Nigeria’s standing in these forums, allowing foreign interests to seize control.

Dr Bolaji Akinola, CEO of Ships and Ports Limited, echoed these concerns, criticising the state of Nigeria’s indigenous shipping industry, which has deteriorated over the last 64 years. “Not a single Nigerian-owned vessel is among the more than 5,000 ships that call at our seaports yearly,” Akinola lamented, underscoring how foreign-owned ships dominate Nigeria’s waters while the country remains a bystander in its own trade logistics.

The collapse of the Nigerian National Shipping Line (NNSL), once a symbol of national pride, is emblematic of the sector’s wider problems. Established in 1960, the NNSL was intended to give Nigeria a strong presence in global shipping and secure its economic autonomy. However, mismanagement and neglect have left Nigeria’s shipping industry in tatters, with foreign companies reaping the rewards of transporting the country’s oil, gas, and agricultural products.

Both Ogadi and Akinola urged the government to act swiftly, calling for a revitalisation of the maritime sector through the proper enforcement of existing laws and stronger support for indigenous carriers. Without this, they warn, Nigeria risks remaining a passive observer as foreign interests continue to dominate its waters and deplete its economic potential.