Poor regulations affecting shipping industry, say operators

Maritime operators have said that the Federal Government’s inability to effectively enforce the Cabotage Act of 2003 and the Nigerian Maritime Administration and Safety Agency Act of 2007 to support national carriers has led to foreign dominance in the domestic market.

They claimed that this had deterred indigenous shipping companies from transporting crude oil and non-oil imports and exports.

A retired Director of Shipping Development at NIMASA, Mr Anthony Ogadi, made this point in Lagos recently at a one-day workshop for maritime journalists, themed ‘Regulating the maritime industry: The NIMASA perspective’ organised by NIMASA in collaboration with 4E Best Solution Limited.

In his paper presentation, titled ‘NIMASA’s role in Nigeria’s participation in international shipping trade’ Ogadi highlighted specific sections of the Acts, such as the provisions granting national carriers exclusive rights to transport federal, state, and local government cargo.

He emphasised the need for better implementation of those laws to support the growth of the indigenous shipping industry.

“Despite the existence of these laws, many have not been fully operationalised, hindering the growth and protection of indigenous shipping operators and the nation’s maritime sector,” he said.

According to Ogadi, this situation has left Nigeria vulnerable to foreign dominance in shipping and trade logistics.

He lamented the erosion of Nigeria’s rights within the maritime sector.

He noted that in the past, Nigeria held a significant stake in various international shipping conferences, with national and foreign carriers each entitled to 40 per cent of cargo allocations, while cross traders were entitled to 20 per cent.

Ogadi said those conferences, including the Far East-West African Conference, UK West-African Conference, Brazil West-African Conference (Brazil Route),  America West-African Conference and the Mediterranean West African Conference, were essential platforms for regulating cargo and maintaining balance in trade relations.

However, Ogadi criticised the mismanagement of that system, attributing the loss of Nigeria’s competitive edge to corruption and favouritism, which allowed foreign carriers to outbid local operators.

He said foreign carriers had reached agreements to dominate those conference lines, a practice that disadvantaged Nigerian companies and ultimately diminished their influence in the industry.

Ogadi also provided a detailed account of how cargo allocations used to be monitored, with strict oversight from authorities like the Central Bank of Nigeria and the Nigerian Postal Service.

Also, the Chief Executive Officer of Ships and Ports Limited, Dr Bolaji Akinola, criticised the state of the country’s indigenous shipping industry for 64 years, lamenting that not one Nigerian company owned a single vessel among the over 5,000 ships that call at the nation’s seaports yearly.

“These ships, owned by foreign interests, dominate waters and enrich their nations while Nigeria remains a passive observer, exporting oil, gas and agricultural products as well as importing goods with no stake in the transportation process,” Akinola stated.

He noted the dire state of the indigenous shipping industry, which had been crippled by decades of mismanagement and government neglect.

He expressed concern over the collapse of the Nigerian National Shipping Line, which was once a symbol of national pride and economic strength but is now a stark reflection of poor governance and neglect in the maritime sector.

He said the NNSL, established at independence in 1960, was envisioned as a national carrier that would boost the nation’s standing in global trade and solidify its economic autonomy.

“Despite its vast resources and regulatory powers, Nigeria’s presence in the global shipping industry remains negligible,” he said.