Nigerian shipowners have voiced their alarm over substantial financial losses, estimating that the country loses about $86 billion each year due to the overwhelming presence of foreign vessels in the freight forwarding industry. They attribute this issue to the Federal Government’s inaction and unfavorable policies that have hindered the growth of local operators, resulting in significant revenue loss to foreign shipping companies.
During the 16th Marine and Technical Summit hosted by the Association of Marine Engineers and Surveyors in Lagos, Capt. Emmanuel Iheanacho, Managing Director of Genesis Shipping, emphasized that Nigeria’s losses extend far beyond the previously estimated $9.2 billion when considering freight for petroleum products.
Iheanacho stated, “In our crude oil transportation, Nigeria is losing more than $9.2 billion. We are facing an annual loss exceeding $86 billion due to foreign dominance in our freight business.”
Greg Ogbeifun, Chairman of Starzs Investments Company Limited, echoed these concerns, highlighting that the lack of indigenous capacity and government backing has allowed foreign vessels to dominate Nigeria’s freight market.
In his presentation titled “What is hindering the resurgence of Nigerian global trading?”, Ogbeifun pointed out Nigeria’s strategic position along the Atlantic Coast, which could make it a key marine hub. He noted that despite a rising demand for shipping services, government policies have not facilitated local operators in acquiring ships, leading to a heavy reliance on foreign vessels for transportation.
“Conservatively, Nigeria loses about $9.2 billion to the dominance of foreign vessels in trade. This is money that we are essentially giving to foreign ship owners,” he explained.
Ogbeifun stressed that every Nigerian involved in trade ultimately bears this financial burden, with Nigeria accounting for roughly 70 percent of total cargo in the West and Central African regions.
He lamented, “At Apapa Port, Tincan Port, Warri Port, Onne Port, and the new Lekki Port, it pains me to see that while all these ports are bustling with activity, not one ship is owned by a Nigerian.”
He also highlighted the struggles faced by local shipping pioneers like Capt. Emmanuel Iheanacho, Chief Isaac Jolapamo, and Temisan Omatseye, whose investments have been thwarted by systemic obstacles.
“There have been significant challenges since the collapse of the Nigerian National Shipping Line in 1995 that have made it nearly impossible for the country to own ships. Our leaders must recognize the urgency of enabling Nigerians to participate in shipping freight,” Ogbeifun said.
As the chair of the Benin Port Project Technical Committee, he urged the government to adopt policies that would empower local shipping operators to effectively compete with foreign vessel owners who benefit from advantageous tax regimes.
“It is critical that enabling policies are put in place. How can Nigerians compete with foreign owners who enjoy zero duty and nearly no taxes? It is time for our leaders to implement policies that support indigenous shipping in Nigeria,” he concluded.
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