Maritime operators are raising serious concerns about the Federal Government’s failure to effectively enforce the Cabotage Act of 2003 and the Nigerian Maritime Administration and Safety Agency Act of 2007.
This oversight has allowed foreign companies to dominate the domestic shipping market, hindering the growth of indigenous carriers.
At a recent workshop held in Lagos, themed ‘Regulating the Maritime Industry: The NIMASA Perspective,’ retired Director of Shipping Development at NIMASA, Mr. Anthony Ogadi, highlighted these issues during his presentation on Nigeria’s participation in international shipping trade.
He stressed that the government’s lack of action has deterred local shipping firms from engaging in the transport of crude oil and various non-oil imports and exports.
Ogadi pointed out specific provisions within the Cabotage Act that are meant to support national carriers, including exclusive rights to transport cargo for federal, state, and local governments.
He underscored the critical need for better enforcement of these laws to foster 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 remarked.
The current situation has left Nigeria vulnerable to foreign dominance in shipping and trade logistics, eroding the nation’s rights within the maritime sector. Ogadi lamented how Nigeria once held a significant stake in various international shipping conferences, with national and foreign carriers each entitled to 40 percent of cargo allocations, while cross traders received 20 percent.
He noted that conferences like the Far East-West African Conference and the Mediterranean West African Conference were vital for regulating cargo and balancing trade relations.
However, Ogadi criticized the mismanagement of these systems, attributing Nigeria’s loss of competitive edge to rampant corruption and favoritism, which have allowed foreign carriers to outbid local operators.
He explained that foreign carriers have reached agreements to dominate conference lines, a practice that has significantly disadvantaged Nigerian companies and diminished their influence within the industry.
Ogadi also provided an insightful overview of how cargo allocations were once meticulously monitored, with strict oversight from institutions like the Central Bank of Nigeria and the Nigerian Postal Service.
Chief Executive Officer of Ships and Ports Limited, Dr. Bolaji Akinola, echoed these concerns, lamenting the state of Nigeria’s indigenous shipping industry over the past 64 years.
He pointed out that not a single Nigerian company owns any of the more than 5,000 ships that dock at the nation’s seaports annually.
“These ships, owned by foreign interests, dominate our waters and enrich their nations while Nigeria remains a passive observer, exporting oil, gas, and agricultural products, and importing goods without any stake in the transportation process,” Akinola stated.
He emphasized the dire consequences of decades of mismanagement and government neglect on the indigenous shipping industry.
Akinola expressed deep concern over the collapse of the Nigerian National Shipping Line (NNSL), which once symbolized national pride and economic strength but now stands as a testament to poor governance in the maritime sector.
Established at the nation’s independence in 1960, the NNSL was intended to serve as a national carrier that would enhance Nigeria’s global trade stature and economic autonomy.
“Despite its vast resources and regulatory powers, Nigeria’s presence in the global shipping industry remains negligible,” he concluded, highlighting the urgent need for reforms to revive the sector.
