L-R: Director, Maritime Safety and Security, Federal Ministry of Marine and Blue Economy, Mr. Babatunde Bombata; Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola; Permanent Secretary, Federal Ministry of Marine and Blue Economy, Mr. Olufemi Oloruntola; Chief Executive Officer, Caverton Offshore Support Group, Mr. Olabode Makanjuola; Honourable Minister of Marine and Blue Economy, His Excellency Adegboyega Oyetola (CON); Chief Executive Officer, Stena Bulk, Mr. Erik Hanell; Managing Director, NNPC Shipping Limited, Panos Gliatis and Chief Operating Officer, Caverton Offshore Support Group, Mr. Rotimi Makanjuola, when the officials of Caverton, Stena Bulk and NNPC Shipping visited Oyetola in his office in Abuja, recently.
Indigenous shipowners have raised strong objections to the recent launch of Unity Shipping World (USW), which is a new joint venture involving NNPC Shipping, international shipping giant; Stena Bulk, and Caverton Offshore Support Group. The indigenous players accused the Nigerian National Petroleum Company Limited of undermining the Cabotage Law and sidelining local operators in the nation’s maritime industry.
Recall that the Federal Government had early last week announced the formation of the partnership firm; USW during a high-profile meeting in Abuja. At the meeting, the Minister of Marine and Blue Economy, Adegboyega Oyetola had emphasized that the venture marked the beginning of the end of foreign dominance in Nigeria’s shipping space, stating that the USW it would drive the transportation of crude oil, refined products, and LNG, both locally and internationally.
However, indigenous shipowners and maritime experts who spoke to Shipping Position Daily last week see the development differently, alleging that the move undermines indigenous participation in Nigeria’s shipping sector.
Speaking on the development last week, President of the Nigerian Shipowners Association (NISA), Otunba Sola Adewumi described the move as “a deliberate attempt to undercut local shipowners.” He accused NNPC of deliberately undermining local operators and violating the spirit of the Cabotage Law.
The NISA President questioned NNPC’s eligibility in benefiting from the Cabotage Vessel Financing Fund (CVFF), a government fund designed to support indigenous shipowners. “Before you partake in CVFF, you must be a contributor. Did NNPC contribute to the CVFF? No. Yet they are entering partnerships that may exploit CVFF benefits. They’re just using Caverton as a front to bring in foreign vessels under bareboat charters and mask them as Cabotage-compliant vessels. It’s a way to crowd-out Nigerian shipowners under the guise of local content.” Adewumi alleged
Otunba Adewumi further warned that the new venture could serve as a backdoor for foreign vessels to flood the Nigerian market under the guise of CVFF-backed operations. “What they will do is hide under that pretext and bring in vessels on bareboat charter, claiming they are Cabotage-compliant. It’s just a way of undercutting Nigerians,” he said.
The NISA President expressed concern that despite NNPC’s stated cap of $25 million per operator under CVFF disbursement, the corporation and its partners could use their influence to monopolize the domestic shipping space.
Describing the development as a “deliberate attempt to undermine Nigeria’s shipowners”, Adewumi called on stakeholders and regulatory authorities to scrutinize the arrangement and ensure that the interests of indigenous players are protected in line with Nigeria’s maritime laws.
Backing the sentiment, Dr. Chris Ebare, Immediate Past Chairman of the Institute of Chartered Shipbrokers (ICS) condemned the recent Memorandum of Understanding (MoU) between the NNPC and Caverton Offshore Support Group, describing the development as a major setback for indigenous shipping in Nigeria.
Dr Ebare said the deal exposes a systemic neglect of indigenous shipowners and reflects a broader pattern of policy sabotage against local capacity. He questioned why the NNPC, rather than empowering the Nigerian Shipowners Associations and its members with support from the CVFF, chose to partner with a private firm he described as having questionable origins.
Citing past remarks by former NIMASA DG Dr. Dakuku Peterside, who once admitted that no Nigerian bank could finance vessel acquisition, Ebare expressed concern that the new shipping venture could mark the total collapse of indigenous participation in the maritime sector. He however urged stakeholders to resist policies and partnerships that continue to sideline indigenous players in the shipping industry.
“What stops NNPC from augmenting the little indigenous shipowners get from CVFF and help them acquire serviceable vessels to move NNPC’s products, create jobs, and boost the economy? We already know who is behind Caverton and what is going on within the NNPC cycle.
“With this MoU, I think they just want to annihilate, strangulate, and completely kill Nigerian shipowners who are already struggling. It’s now difficult for us in Nigeria to point at a single vessel and say, ‘this vessel belongs to Mr. AAA Nigeria Limited” Ebare lamented.
On his part, another shipowner, Otunba Sola Olatunji accused the NNPC of being a consistent enemy of indigenous shipping development, describing the move as a calculated attempt to undermine the country’s Cabotage law and weaken local participation in maritime trade.
Olatunji described the development as “the more you look, the less you see,” asserting that the state-owned oil corporation has never acted in the interest of Nigerian shipowners. He identified NNPC as one of the key institutions responsible for the failure of Cabotage Act 2003, noting that over two decades after its enactment, the law has yet to be fully implemented.
The shipowner also criticized what he described as the government’s deceptive rhetoric around the long-awaited disbursement of the CVFF, calling it a smokescreen to distract shipowners. “NNPC has never been a strategic partner of indigenous shipowners. They have always been sabotaging us. They are, in my opinion, the biggest enemy of the national economy by initiating this national shipping line at a time they are exploring the limitation of the Cabotage law.
“Nigeria’s shipping industry has gone underground. We have not been able to explore the maritime economy for the benefit of our people. Instead of investing in local capacity, some people continue to promote foreign interests at our expense. It’s sad, it’s a contradiction, and it must stop,” Olatunji concluded.
