Shipowners decry regulatory constraints stifling maritime devt

The Nigeria Shipowners Association has warned that regulatory bottlenecks and limited access to affordable financing are restricting the growth of Nigeria’s indigenous shipping industry.

The President of NISA, Sola Adewunmi, stated this over the weekend while speaking during an event in Lagos.

Adewunmi said that Nigerian shipowners possess the capacity, expertise and ambition to contribute significantly to the nation’s maritime economy, “but persistent regulatory challenges, high financing costs and perceived investment risks continue to limit their ability to compete effectively in regional and international shipping markets.”

He noted that the challenges confronting local shipowners required urgent attention through a predictable and transparent regulatory framework, innovative financing mechanisms and effective risk-sharing arrangements.

“Access to affordable, long-term financing remains a major obstacle to the growth of indigenous shipping in Nigeria. Our shipowners have the capacity, expertise and ambition to contribute meaningfully to the nation’s maritime economy, but high financing costs, perceived investment risks and regulatory bottlenecks continue to limit our competitiveness,” he said.

According to him, to unlock the potential of indigenous shipping, there is a need for a predictable and transparent regulatory environment, innovative financing mechanisms, effective risk-sharing frameworks and stronger collaboration among government agencies, financial institutions, development partners and industry operators.

“We must also recognise that a stronger indigenous shipping fleet is essential to retaining more maritime revenue within our economy, creating jobs, building local capacity and strengthening Nigeria’s participation in regional and international trade,” he said.

Adewunmi called for stronger collaboration among government agencies, financial institutions, development partners and maritime industry operators to address the structural constraints facing indigenous shipping businesses.

He emphasised that the inability of local shipowners to access affordable, long-term financing remains one of the major obstacles to developing a competitive Nigerian-owned fleet.

The NISA boss maintained that without deliberate measures to address these challenges, indigenous operators would continue to struggle to expand their fleets, acquire modern vessels and compete with foreign shipping companies with greater access to capital.

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He said that strengthening indigenous shipping was critical to retaining more maritime revenue within Nigeria, creating employment opportunities, building local capacity and increasing the country’s participation in regional and international trade.

Adewunmi urged regulators and policymakers to ensure that their policies support the growth and sustainability of local shipping businesses rather than impose constraints that could weaken their competitiveness.

He called for a more predictable and transparent regulatory environment amid longstanding industry concerns over the financing and operational challenges confronting indigenous shipowners.

He reiterated that NISA remained committed to constructive engagement with regulators, policymakers and financial institutions to promote policies and initiatives that would make Nigerian shipowners more bankable, competitive and sustainable.

“We must also recognise that a stronger indigenous shipping fleet is essential to retaining more maritime revenue within our economy, creating jobs, building local capacity and strengthening Nigeria’s participation in regional and international trade,” Adewunmi said.

He called on stakeholders to move beyond discussions and implement practical, measurable measures that would improve access to capital and create the conditions necessary for indigenous shipowners to thrive.

Adewunmi also commended organisers of the event for providing a platform for industry stakeholders to deliberate on the challenges facing the sector, noting that the media had an important role to play in informing the public, highlighting industry concerns and promoting workable solutions.

He urged participants at the summit to ensure that their deliberations translated into concrete actions capable of improving the operating environment for indigenous shipping companies.

The NISA president reiterated the association’s readiness to collaborate with relevant stakeholders to advance the development of Nigeria’s maritime industry and strengthen the position of local shipowners in the shipping value chain.