*Seeks N100b maritime industrialisation fund
Nigeria’s maritime sector is losing between $3 billion and $5 billion every year due to inefficiencies in freight charges, port congestion, weak industrial base, poor multimodal integration systems, import dependence, FX volatility and policy inconsistency, a new report by the Sea Empowerment and Research Center (SEREC) has claimed.
The independent report signed by the Head of Research, Dr Eugene Nweke, titled ‘Nigeria at 65: A Deep X-Ray of the Maritime Sector — Milestones, Diagnostics and Action Agenda’, noted that if reforms are disciplined and policies coherently executed, the sector could generate as much as $10 billion to $15 billion yearly by 2035.
SEREC stated that Nigeria spends between $3 billion and $4 billion yearly on freight charges to foreign carriers, while over 70 per cent of the country’s 1.8 million TEU throughput remains concentrated in Lagos ports, where containers take an average of 19 days to clear compared to four to seven days in Tema and Durban.
According to the report, this delay alone costs the economy over $1 billion each year in demurrage, storage, and corridor inefficiency, adding that capturing even 10 per cent with a disciplined national line would save the economy $300 million to $500 million yearly.
“The national container line launched in 2025 could, if efficiently run, save shippers $150 to $250 per TEU in foreign transhipment surcharges, translating into over $500 million yearly in potential savings on Nigeria’s over 1.6 million TEU throughput,” the report stated.
On multimodal deficiency, the report stated that over 90 per cent of port cargo moves by road, resulting in excess trucking costs of N150,000 to N200,000 per container, equivalent to nearly N1 trillion yearly, adding that rail-waterway integration could halve these costs.
SEREC noted that the absence of domestic steel production for shipbuilding/repair imports (vessels, spare parts, steel inputs) drains another $2 billion to $3 billion yearly, adding that mini-mills tied to shipyards could retain up to 40 per cent of this value locally.
On maritime security costs, the research body noted that despite progress, Gulf of Guinea war-risk premiums still cost Nigeria-linked trade $200 million to $400 million yearly, noting that a sovereign risk-pool could halve these losses.
“A reduction in piracy has helped cut insurance surcharges, but Nigeria still pays 3–4 times higher risk premiums than South Africa,” the report stated.
The report highlighted seafarer training pipelines that have produced over 2,000 cadets under the Nigerian Maritime Administration and Safety Agency (NIMASA) Nigerian Seafarers Development Programme (NSDP) since inception, but fewer than 30 per cent secure global-standard employment placements, leaving a large share underutilised.
SEREC stated that while hundreds of cadets yearly are gaining sea time, scaled to 5,000 certified officers, Nigeria could earn over $400 million yearly in seafarer remittances, similar to the Philippines’ model.
The research body stated that FX and CBN policy changes (NFEM Code) have introduced some stability, but volatility still adds five to 10 per cent to clearance costs for importers, as an estimated N700 billion yearly in cost pass-through to consumers.
SEREC stated that the Inland Dry Ports activation can divert up to 300,000 TEUs inland, potentially cutting Lagos corridor congestion costs by N250 billion yearly.
The body also stated that Nigerian ports lag in decarbonisation, adding that shore power and green retrofits could reduce emissions costs and improve competitiveness, attracting over $500 million in climate-linked investment financing.
On export–import disparity, SEREC said non-oil imports exceed $60 billion yearly versus non-oil exports of just $10 billion.
According to SEREC, this drains FX reserves and pressures port economics. It added that strategic substitution in refined fuels and agro-processing could save $5 billion to $7 billion yearly.
On underutilised ports, SEREC stated that Apapa handles 70 per cent of container traffic, while eastern ports (Onne, Calabar and Warri) operate at less than 30 per cent capacity, costing the economy over $500 million yearly in lost opportunities and added congestion costs.
SEREC’s roadmap proposes urgent reforms in phases, which include the short term that recommends a N100 billion Maritime Industrialisation Fund to attract five times that amount in private investment, alongside a Lagos Corridor Digital Command that could cut dwell times by 20 per cent and save N200 billion yearly.
The body stated that within the next three years, mini steel mills tied to shipyards could replace $500 million in imports yearly, while ICD–rail pilots could yield savings of N200 billion to N300 billion.
The body also stated that green-port retrofits would also open access to $200 million to $400 million in climate-linked financing.
In the longer term, SEREC noted that maturing seafarer employment pathways could bring in $400 million yearly in foreign exchange earnings, while fisheries, aquaculture, and coastal tourism clusters could deliver a GDP impact of $5 billion to $7 billion each year.
The body further added that a competitive national carrier anchored on private participation could retain $500 million to $1 billion yearly in freight costs.
