Stakeholders have lamented the unfriendly government policies that have crippled indigenous shipping operations in the country, resulting in a yearly loss of $86 billion due to the domination of Nigeria’s freight business by foreign vessels.
This concern was raised yesterday at the 16th Marine and Technical Summit of the Association of Marine Engineers and Surveyors (AMES) held in Lagos.
They stated that while Nigeria currently generates about 70 per cent of the total cargo between the West and Central African regions, these unfavourable policies have driven indigenous ship owners out of business, leaving room for foreign vessels that enjoy zero duty and near-zero tax regimes, making it difficult for Nigerians to compete.
The Managing Director of Genesis Shipping, Captain Emmanuel Ihenacho, noted that the actual loss is far greater than the previously cited $9.2 billion when the freight of petroleum products is considered in the calculation of what Nigeria is losing.
“We are losing over $86 billion yearly to the domination of foreign vessels in our freight business,” Ihenacho stated.
The Chairman of Starzs Investments Company Limited (SICL), Greg Ogbeifun, expressed his disappointment that despite Nigeria’s strategic positioning as the maritime hub of the Gulf of Guinea, its freight trade is dominated by foreign vessels due to a lack of indigenous capacity.
Ogbeifun, who presented a paper, titled: “What is Militating Against the Resurgence of Nigerian Global Trading?” pointed out that Nigeria’s geographical location along the Atlantic Coastline grants it significant access to shipping operations, making it a crucial hub for marine activities.
“Conservatively, Nigeria is losing about $9.2 billion to the dominance of foreign vessels in its trade. We are paying that money to foreign vessel owners. Every Nigerian, who imports or exports, is paying heavily,” Ogbeifun explained.
Ogbeifun, who also serves as the Chairman of the Benin Port Project Technical Committee, highlighted that ports such as Apapa, Tin-Can, Warri, Onne, and Lekki are all vital to Nigeria’s import and export trade.
“It breaks my heart to see our ports filled with ships at the quays and jetties, yet not one of these ships is owned by a Nigerian,” he stated.
He further noted that individuals like Captain Emmanuel Ihenacho, Chief Isaac Jolapamo, and Temisan Omatseye, who once owned ships, had their businesses destroyed by systemic challenges.
“The jobs they provided and the economic benefits they contributed to the nation have all disappeared. Since the collapse of the Nigerian National Shipping Line in 1995, this country has faced immense challenges in owning ships,” he stated.
Earlier in the event, the President of AMES, Israel Obadan, announced that the association, in collaboration with the Nigerian Maritime Administration and Safety Agency (NIMASA), is working on establishing a training programme for junior cadets at the Dangote Refinery.
