Nigeria shipping sector faces capacity gaps and fleet shortages

Captain Ladi Olubowale, former president of the African Shipowners Association, has identified inadequate indigenous shipping capacity and the lack of a strategic national fleet plan as primary challenges for Nigeria’s maritime sector. He noted that the country loses approximately $70,000 daily to foreign-owned vessels operating in coastal maritime trade.

Olubowale argued that the Cabotage Vessel Financing Fund (CVFF) could significantly aid national fleet development if deployed strategically. He emphasized that vessel acquisition should not be treated as a simple financing exercise but must be tied to identifiable cargo and long-term trade contracts to ensure revenue generation and loan repayment.

Under current guidelines from the Nigerian Maritime Administration and Safety Agency (NIMASA), applicants may be required to provide $3.7 million to attract up to $25 million in financing. Olubowale stressed the importance of matching vessel types to specific cargo requirements, such as dry cargo or cement, rather than disbursing funds without a holistic understanding of the country’s commercial demands.