By Oluyinka Onigbinde
Stakeholders in Nigeria’s maritime industry have expressed cautious optimism, alongside concerns over transparency, implementation, and sustainability, following plans by the Federal Government to establish a national shipping line.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, had recently reaffirmed the government’s commitment to launching a new national carrier, reviving a sector many believe is critical to Nigeria’s economic independence and maritime growth.
The proposal has since sparked reactions from shipowners, industry groups, and maritime experts, many of whom agree on its potential benefits, but question the government’s capacity to execute effectively.
Dr. Edward Sowho, Chairman of the Cabotage Vessel Financing Fund (CVFF) Committee of the Nigerian Indigenous Shipowners Association, described the idea as fundamentally sound, noting that Nigeria had previously operated a national shipping line.
“In my opinion, there’s nothing wrong with the country having a national shipping line. We used to have one anyway, and there was nothing wrong with it,” Sowho said.
He, however, stressed that transparency must be at the core of the new initiative, particularly regarding ownership structure.
“We just want them to be transparent about the ownership—what percentage is going to foreigners, what goes to the Federal Government, and what goes to Nigerian shipowners. Otherwise, for me, it’s a very good idea.”
Sowho highlighted key economic benefits, including employment generation, tax revenue, and capacity building for Nigerian seafarers.
“First and foremost, employment. You employ seafarers—many people who are not employed today. They pay tax to the government. Most of the foreign vessels don’t pay tax. Then, of course, they carry our cargo. There will also be training of Nigerians. If they can achieve it, it’s a major thing.”
Despite his support, he criticized the pace of government action, describing it as a major obstacle.
“The question is that they are quite slow in taking decisions—very, very slow. How long will it take to implement a decision? They talk and talk and talk. At the end of the day, they may not have done anything in four years.”
He also expressed doubts about whether the current administration would deliver before the end of its tenure.
“If they can launch it and bring in a vessel before the end of this government, that’s good. But I don’t think they will do that,” he said, citing delays in disbursing the CVFF as an example of stalled maritime reforms.
Sowho further disclosed that NISA is already positioning itself to participate in the proposed national carrier through partnerships and potential equity stakes.
“We are on it. NISA has a shipping company, and we may be part of the national shipping line as shareholders. So, it’s not like we are outside the system—the only issue is that they move too slowly.”
Similarly, a shipowner, Prince Ayorinde Adedoyin, described the initiative as long overdue, emphasizing Nigeria’s continued dependence on imports and foreign shipping lines.
“We really need a national shipping line to tap into the potential because, whether we like it or not, we’re still heavily import-dependent,” he said.
According to him, the dominance of foreign operators in cargo movement continues to deprive Nigeria of significant revenue.
“All these foreign liners are making all the money anyway. So, we need to start reaping from our own system.”
Adedoyin pointed out that the high capital requirements for acquiring or leasing vessels make it difficult for individual investors to undertake such a project without government backing.
“Individuals are not investing in freighters. Most are buying service boats. Who can command that kind of resources? For now, it’s still the government.”
However, he raised concerns about profitability and operational efficiency, warning that the success of the initiative would depend heavily on its structure.
“My fear is, are they going to be able to run it profitably? That is another issue we have to deal with. The setup is the most important thing—how they want to run it.”
He also noted that government involvement could ease access to funding, especially from international financiers.
“Foreign funders are more likely to support government-backed projects than individual companies. So, raising funds may not be the issue—it depends on how they structure ownership.”
Drawing a comparison with national carriers in aviation, Adedoyin argued that Nigeria’s size and economic status justify the need for a national shipping line.
“A country this big should not be without a national airline or a shipping line—it doesn’t make sense.”
