Ship owners under the African Ship Owners Association Nigeria (ASA-NG) have warned that Nigeria risks losing its leadership role in Africa’s maritime sector if the government does not take immediate steps to address the challenges facing local ship ownership.
The warning comes as the African Continental Free Trade Area (AfCFTA) promises a boom in intra-African trade, but with it, a growing need for a robust fleet of African-flagged vessels to dominate these new trade routes.
Speaking at the ASA-NG Scorecard themed: One Year After Shipownership and our Future Growth event on Thursday in Lagos, Ms. Funmi Folorunsho, Secretary General of ASA-Continental, expressed deep concerns about the country’s failure to capitalize on the opportunities presented by the AfCFTA.
She highlighted that while Nigeria is already a global leader in ship ownership—ranking 33rd in the world—it lags behind other African nations when it comes to mobilizing its fleet to take advantage of the AfCFTA’s potential.
“We are in a race, and we have a lot of work to do,” said Folorunsho. “If we don’t act quickly, Nigeria could be left behind. AfCFTA is creating an enormous opportunity for African countries to dominate intra-African trade, but that will only happen if we have the vessels to transport goods between nations. The challenge is how many of those vessels will be Nigerian-flagged?”
According to Folorunsho, while other African countries, like Kenya and Ghana, may have smaller fleets, they are already positioning themselves to benefit from this surge in demand. In contrast, Nigeria’s ship owners are struggling with outdated policies, limited access to financing, and a lack of government support.
Folorunsho called for a concerted effort between the private sector, financial institutions, and government agencies to reverse this trend and ensure that Nigeria’s fleet is at the forefront of the AfCFTA revolution.
“The Nigerian maritime industry has the intellectual capacity to lead the continent, but it is being hindered by a lack of collaboration and effective policies,” Folorunsho remarked. “We have experts who can guide other African countries, yet we’re not leveraging these resources to improve our own industry. If we continue to rest on our oars, we will miss out on the vast opportunities that AfCFTA offers”, she warned.
She also pointed to Nigeria’s well-positioned financial institutions, which could play a crucial role in providing the capital needed to expand the fleet.
However, Folorunsho expressed frustration with the unwillingness of some financial bodies to support local ship owners. “I’ve had conversations where banks outrightly rejected proposals, despite having the means to fund them,” she said.
“Yet, when foreign stakeholders come in, they’re welcomed with open arms. This must change if we are to compete on the global stage.”
Folorunsho’s speech also included a challenge to the Nigerian maritime sector, calling for unity and proactive engagement in the growth of the industry.
She emphasized that the country’s ship ownership potential can only be realized if stakeholders worked together to push for more Nigerian-flagged vessels in the coming years.
“The time for talk is over,” she said. “We need action. By 2025, we must have significantly increased the number of Nigerian-flagged vessels operating across African trade routes. Otherwise, we’ll continue to fall behind, and the opportunities will slip away.”
She added that Nigeria must respond to the rapidly changing dynamics of the maritime sector under the AfCFTA framework.
As the African market becomes increasingly integrated, she explained that the countries that control the ships will control the trade. She expressed that if Nigeria fails to act, it may find itself relegated to the sidelines of a maritime boom it should be leading.
“We must rise to the occasion, we are capable, but we need the right policies, the right investments, and the right collaboration to make Nigeria the maritime leader in Africa”.
Speaking also at the event, a former president of ASA Continental, and former Director General NIMASA, Mr. Temisan Omatseye, accused both the government and the maritime industry of failing to harness the true potential of Nigeria’s shipping sector.
Omatseye recounted a casual conversation he had with a Nigerian trader which sparked a realization about the disconnect between Nigerian business owners and the global maritime industry.
“The problem we have in Nigeria is that we don’t believe in our own capabilities. We’re always looking to others to show us how to do things,” he stated.
The former NIMASA chief described how, during his tenure at the agency, he encountered various obstacles while trying to navigate both local and international waters. He explained the complex dynamics of the oil and gas sector, where local operators were consistently outmaneuvered by foreign companies.
“I knew all their tricks, how they would change technical specifications for vessels just to keep Nigerian businesses at bay,” Omatseye said, recounting his experience of trying to get local vessels recognized internationally. Despite buying foreign vessels and registering them under the Nigerian flag, he revealed that his efforts were thwarted by the very companies Nigeria depended on for oil exports.
“There are enemies within us,” Omatseye bluntly stated. He referenced the Nigerian National Petroleum Corporation Limited (NNPC), which he claimed failed to support local vessel owners despite the country’s vast oil wealth. “The system is rigged. Nigerian-owned ships are not getting the opportunities they deserve,” he said,
He also expressed frustration with the Nigerian government’s approach to maritime administration. “The primary focus of a maritime administration should be to protect its indigenous ship owners, not to serve the interests of foreign players,”
He called on ASA-NG and other stakeholders to take a more proactive role in advising the government and pushing for reforms.
Speaking also at the event, the President ASA-NG, Capt Ladi Olubowale noted some of the major achievements the association achieved in the last one year, which include robust stakeholders’ engagement, agenda settings, including increased numbers of ASA-NG members.
