The Maritime Researchers and Authors Association of Nigeria (MARASSON) said dependence on government, lack of working capital, inadequate fleet management, government interference, corruption and mismanagement led to the collapse of the Nigerian National Shipping Line (NNSL).
The research group, in an analysis by the Director of International Trade, titled ‘The Factors That Led to NNSL’s Bankruptcy’, said that the state-owned shipping company’s downfall was the result of decades of inefficiency, weak governance structures and an overdependence on government funding.
According to him, failure to diversify ship types and sizes, coupled with outdated vessels, made it difficult for NNSL to compete with European shipping lines that consistently upgraded their fleets and operations.
He further explained that the NNSL’s dependence on government subsidies and support made it vulnerable to funding cuts and policy changes, which created long-term financial instability.
The MARASSON official also pointed to corruption and mismanagement as major contributors to the company’s downfall, with allegations of diverted funds and mismanaged resources, as well as poor accountability.
Other key issues included a lack of working capital, as insufficient funds hindered operations, particularly after introducing new vessels without adequate financial backing.
Ademuyiwa also identified excessive government interference and control, which led to poor decision-making with frequent changes in management and policies driven by political interests rather than commercial needs.
Ademuyiwa cautioned that lessons from NNSL’s experience should serve as a blueprint for Nigeria’s next attempt at establishing a national shipping line.
He said to avoid similar pitfalls, any new shipping venture must adopt a private sector–driven model to ensure sustainability, efficiency and reduced reliance on government funding.
The MARASSON official also emphasised the need for investments in modern fleets and technology to enhance competitiveness and efficiency, alongside diversified services such as cargo handling, logistics and shipping to create multiple revenue streams to help the new line to stay afloat.
Ademuyiwa further advocated for corporate autonomy and good governance, warning that only transparency, accountability and professional management can prevent the kind of corruption, mismanagement and interference that doomed NNSL.
He, however, stressed the importance of robust financial planning, including securing stable funding sources and prudent debt management, to ensure the new national carrier’s long-term viability.
“The story of NNSL should not repeat itself. If Nigeria must re-establish a shipping line that will thrive in the global maritime space, it must be built on sound business principles, not bureaucracy or politics,” Ademuyiwa concluded.
