The Chairman of Starzs Investments Company Limited (SICL), Greg Ogbeifun, has sounded the alarm on the urgent need for reforms in the maritime sector, emphasising the pivotal role shipping plays in the economy.
Speaking at a recent industry forum, Ogbeifun delivered a candid critique of current policies and proposed strategic solutions to position Nigeria as a global maritime hub.
Ogbeifun highlighted the adverse impact of Nigeria’s reliance on free-on-board (FOB) terms for crude oil exports and Cost, Insurance, and Freight (CIF) terms for imports.
According to him, these practices have stunted the development of local ship ownership and maritime infrastructure. “Nigeria exports crude oil under FOB terms, allowing foreign buyers to dictate shipping arrangements. This not only limits local participation but also results in lost economic opportunities,” he said.
Ogbeifun advocated for a shift to CIF terms for exports and FOB terms for imports, explaining that this approach would compel Nigeria to own and operate ships for its trade, thereby creating jobs and stimulating the local economy.
“By controlling the transportation of our imports and exports, we would foster local ship ownership and generate more revenue,” he stated. Ogbeifun dismissed the notion that government intervention alone could resolve the sector’s challenges, calling for the private sector to take charge.
“Government has proven ineffective over decades. We need to look inward, collaborate, and innovate. The solution lies in private sector initiatives,” he said.
He also pointed out the barriers facing Nigerian shipowners, such as high customs duties, lack of tax incentives and a competitive disadvantage compared to foreign operators.
Ogbeifun argued that Nigerian shipowners are disadvantaged by policies that make it more expensive to operate locally than to register ships abroad. Ogbeifun emphasised the importance of sustainability in the maritime industry, advocating for generational planning and capacity building.
“Shipping and ship repair are generational industries. We must focus on training young Nigerians and bridging the gap in skilled labour. Today, most of our waters are manned by foreigners, which is unacceptable,” he said.
Ogbeifun shared his experience commissioning a Nigerian-crewed vessel built in China in 2018, highlighting the challenges and the need for policy support. He urged the government to provide tax holidays and zero-duty policies for ship imports, develop a comprehensive national shipping framework, and form private sector consortia to pool resources for research, fleet acquisition, and global market entry.
The shipowner encouraged local flagging, ensuring that Nigerian ships are registered under the national flag to promote domestic industry credibility. Ogbeifun further called for the re-establishment of a national shipping line that could serve as an auxiliary navy in times of national need, citing Nigeria’s involvement in the ECOMOG peacekeeping mission as an example.
