At a recent quarterly stakeholders’ meeting organized by the Ministry of Marine and Blue Economy , maritime expert, shipowner and Managing Director/CEO of Starzs Marine and Engineering Ltd., Engineer Greg Utomwen Ogbeifun, examined the deep-rooted challenges limiting Nigeria’s participation in international shipping, despite its vast cargo potential and ongoing port modernization efforts. Here, he highlights the significant financial losses incurred through dependence on foreign vessels, critiques policy and regulatory bottlenecks, and calls for urgent reforms to enable indigenous operators compete globally. He also outlines practical solutions, including improved access to cargo, fiscal policy adjustments, and stronger government support, while emphasizing the need for political will to drive implementation and reposition Nigeria as an active player in global maritime trade.
Govt should introduce zero or reduced import duties for Nigerian-flagged vessels.
Nigeria’s focus should be on building a strong national fleet rather than relying on a single carrier.
You have consistently advocated for Nigeria’s return to international shipping. Why is this so important now?
It is important because Nigeria has all the fundamentals required to be an active player in international shipping. We have a large population, significant import volumes, and substantial export potential driven by our natural resources. However, despite these advantages, we are not participating in the actual transportation of our cargo. Foreign vessels dominate both our imports and exports, which means we are merely spectators in a value chain that we should be leading. Years ago, Nigeria had a presence in international shipping, flying its national flag across global trade routes, but that capacity has disappeared. The longer we delay in addressing this gap, the more we deepen the economic losses associated with our absence.
You mentioned that Nigeria is losing billions annually. Can you explain this further?
Nigeria is currently losing between eight and nine billion dollars annually to foreign shipping companies that transport our cargo. These are earnings that should ordinarily remain within the country to stimulate economic growth, create employment, and strengthen our maritime sector. Instead, this wealth is being transferred abroad through freight payments. This situation represents a structural imbalance in our economy because we generate cargo but do not participate in the logistics value chain that delivers it globally. Until we correct this, the losses will continue to accumulate year after year.
Nigeria has invested in modernizing its ports. Why hasn’t this translated into growth in indigenous shipping?
The modernization of our ports is commendable and necessary, but it highlights a major contradiction in our maritime strategy. We are upgrading infrastructure primarily for the benefit of foreign vessels, because we do not have enough Nigerian ships to utilize these facilities. While the ports are improving in capacity and efficiency, indigenous participation in shipping remains weak. Essentially, we are creating world-class infrastructure without building the domestic capacity needed to take advantage of it. For real growth to occur, infrastructure development must go hand-in-hand with deliberate efforts to build and support Nigerian-owned vessels.
What are the major challenges preventing Nigerians from owning and operating international vessels?
One of the biggest challenges lies in policy and regulatory constraints, particularly in the requirements for obtaining national carrier status. The current framework makes it difficult for investors to enter the sector because it demands that prospective operators provide detailed ship specifications without guaranteeing access to cargo. This creates a fundamental dilemma, as no rational investor will acquire a vessel without knowing the type or volume of cargo it will carry. The result is a stalemate that discourages participation. What is needed is a more practical approach where government identifies available cargo and provides assurances that enable investors to make informed decisions about vessel acquisition.
Financing is often cited as a major barrier. How can this be addressed?
Shipping is highly capital-intensive, and financing vessels requires more than just access to bank loans. Financial institutions need assurance that investments will be viable and secure. This is where government intervention becomes critical. Instead of directly funding ship acquisition, government can use existing maritime funds to provide sovereign guarantees that reduce the risk for lenders. Such guarantees would make it easier for Nigerian operators to secure financing and compete internationally. This approach has been successfully implemented in other maritime nations, and there is no reason Nigeria cannot adopt a similar model.
What role should government agencies play in repositioning the sector?
Government agencies are central to the success of any maritime strategy, because international shipping involves multiple layers of regulation and coordination. Institutions such as Nigerian Maritime Administration and Safety Agency, the Nigerian Ports Authority, and the Ministry of Marine and Blue Economy must work in alignment to achieve shared objectives. While Nigeria already has numerous policies and frameworks designed to support the sector, the real issue lies in implementation. What is required now is strong political will and effective collaboration among these agencies to translate policy into tangible outcomes.
How does the issue of manpower development affect the industry?
Nigeria has invested in training maritime professionals, but there is a disconnect between training and employment opportunities. Many graduates from maritime institutions do not have access to vessels where they can gain practical experience. This limits their professional growth and reduces the overall capacity of the sector. To address this, Nigeria must ensure that international agreements include provisions for the placement of Nigerian cadets on foreign vessels. This will not only enhance skill development but also ensure that the country builds a competent workforce capable of supporting a revived shipping industry.
You raised concerns about fiscal policies. How do these affect competitiveness?
Nigeria’s fiscal policies place local operators at a significant disadvantage compared to their foreign counterparts. For instance, Nigerian ship owners are required to pay high import duties on vessels, sometimes as much as fourteen percent of the vessel’s cost, while foreign competitors often pay minimal charges. This disparity makes it difficult for Nigerian operators to compete effectively in both domestic and international markets. To create a level playing field, the government must review and reform these policies, including the introduction of zero or reduced import duties for Nigerian-flagged vessels.
What lessons can Nigeria learn from global experiences in shipping?
Global maritime leaders have achieved success through deliberate and consistent policy support. Countries that dominate international shipping have created enabling environments that encourage investment, reduce operational costs, and support local operators. Nigeria must adopt a similar approach. Additionally, global disruptions such as the COVID-19 pandemic and geopolitical tensions have shown the risks of relying entirely on foreign shipping. During such periods, countries with strong national fleets are better positioned to secure their supply chains, while countries like Nigeria face significant challenges.
You made a distinction between a national carrier and a national fleet. Why is this important?
The distinction is important because a national carrier typically refers to a single entity, while a national fleet represents a collection of vessels owned and operated by multiple indigenous companies. Nigeria’s focus should be on building a strong national fleet rather than relying on a single carrier. A diversified fleet provides greater resilience, encourages competition, and ensures broader participation in the industry. It also aligns more effectively with the goal of creating sustainable growth in the maritime sector.
What is your view on foreign partnerships in the shipping sector?
Foreign partnerships can play a valuable role in developing the sector, but they must be structured in a way that benefits Nigeria. Such partnerships should not be exclusive or designed to sideline local operators. Instead, they should promote collaboration, knowledge transfer, and capacity building. Foreign investors should work with Nigerian companies, ensuring that local expertise is developed and that the benefits of such partnerships are shared within the domestic economy.
What immediate steps should be taken to reposition Nigeria in international shipping?
The government needs to take decisive action by ensuring that Nigerian operators have access to cargo, providing guarantees that facilitate vessel financing, and reforming fiscal policies that hinder competitiveness. There must also be stronger coordination among government agencies, as well as investments in shipbuilding and repair infrastructure. Most importantly, existing policies must be implemented effectively. Without action, even the best frameworks will remain ineffective.
Are you optimistic about the future of Nigeria’s maritime sector?
I am cautiously optimistic, because there are indications of renewed commitment within the sector, particularly from the current leadership in the Ministry of Marine and Blue Economy. However, optimism must be matched with action. Nigeria has the potential to reclaim its position in international shipping, but this will require deliberate and sustained efforts. The cost of inaction is simply too high.
What is your final message to stakeholders?
Nigeria must move beyond being a cargo-generating nation to becoming a cargo-carrying nation. This transition is essential for economic growth, job creation, and national development. The opportunity is there, and the resources are available. What remains is the collective will to act decisively and strategically.
