Maritime experts have blamed regulatory uncertainty, delays in vessel financing and stringent banking requirements for the slow growth of Nigeria’s indigenous shipping industry, calling for urgent reforms to improve access to capital and strengthen local operators.
The experts, who spoke at the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN), held in Lagos on Thursday said regulatory bottlenecks and inadequate financing structures were discouraging long-term investments required to develop a competitive Nigerian-owned fleet.
They stressed that Nigeria’s maritime industry urgently requires a stable, transparent and predictable regulatory framework to attract investors, facilitate vessel acquisition and enable indigenous shipowners to compete effectively with foreign operators.
Speaking at the summit, maritime lawyer, Founding Partner of AOL and former President of the Nigerian Bar Association, Dr Olisa Agbakoba, said regulatory uncertainty increases investment costs and discourages long-term financing commitments.
He called for consistent enforcement of maritime regulations, transparent administrative procedures, clearly defined institutional responsibilities and a predictable system for administering applicable waivers to restore investor confidence.
Agbakoba warned that without proactive intervention by NIMASA, indigenous operators would continue to lose lucrative opportunities in coastal shipping to foreign competitors.
He emphasised the need for effective coordination among NIMASA and key government institutions, including the Federal Ministry of Marine and Blue Economy, Nigerian Ports Authority (NPA) and Nigerian Ports Economic Regulatory Agency (NPERA).
According to him, an aligned and transparent regulatory environment is essential to ensuring timely financing disbursements and empowering indigenous shipowners to contribute meaningfully to the nation’s maritime economy.
The maritime lawyer also challenged commercial banks and institutional investors to become active partners in developing Nigeria’s national fleet through specialised maritime financing expertise.
“Banks and institutional investors must become active partners in developing Nigeria’s National Fleet. This requires specialised maritime credit expertise, reliable vessel valuations, technical assessments, and sound legal advice on ship mortgages, charter contracts, insurance, and cross-border enforcement,” he said.
He explained that vessel financing should reflect the commercial circumstances of individual ships, noting that vessels backed by credible long-term charter contracts present different risk profiles from those dependent on uncertain spot-market earnings.
Agbakoba urged commercial banks, development finance institutions, insurers, private investors and export credit agencies to explore combinations of debt, equity, leasing, guarantees and other financing arrangements.
On the Cabotage Vessel Financing Fund (CVFF), he described it as an important instrument for supporting indigenous vessel ownership but cautioned that fleet development should not depend principally on public financing.
According to him, public financing should support viable projects and mobilise private capital rather than replace a functioning commercial shipping market.
He called for transparent eligibility criteria, rigorous credit assessment, appropriate collateral, clear risk allocation, effective monitoring and recovery arrangements in the administration of the CVFF.
Agbakoba argued that the focus should shift from merely seeking funds to acquire vessels towards developing viable transactions that connect cargo demand, suitable vessels, credible operators and willing financiers.
“Without dependable cargo, shipowners will struggle to attract capital. Without credible operators and effective security, lenders will hesitate. Without regulatory certainty, investors may decline otherwise viable opportunities,” he stated.
He urged stakeholders to move beyond the question of where money for vessel acquisition would come from and pay greater attention to identifying the cargo and commercial opportunities that would make Nigerian vessels attractive to financiers.
Also speaking, former Director-General of NIMASA, Temisan Omatseye, criticised the capacity of Nigerian commercial banks to finance large-scale shipping investments, arguing that their short-term lending structures were unsuitable for the capital-intensive nature of the industry.
Omatseye said acquiring a single liquefied natural gas (LNG) tanker could cost about $250 million, with repayment periods extending to at least 15 years, making conventional short-term bank lending inadequate.
“There is money available for this, and I keep telling people that we can never be competitive in our shipping industry because of what? Sorry, bankers may not like this. The banks in Nigeria do not have the capacity to finance shipping.
“One LNG tanker alone is about $250 million. Repayment cannot be less than 15 years. I’m sorry to say this again, our banks are just traders looking for short-term loans,” he said.
He maintained that the existing financing models needed to be reconsidered to enable indigenous operators acquire modern vessels and compete effectively in the international shipping market.
Meanwhile, the United Bank for Africa (UBA) has called for structured partnerships between financial institutions, regulators and maritime industry operators to address the funding challenges confronting indigenous shipowners.
The bank’s Regional Manager, Apapa, Nelson Edoye, who represented its Group Managing Director, Oliver Alawuba, said access to patient capital and regulatory complexities remained major obstacles to the development of local shipping businesses.
“The maritime sector remains a cornerstone for economic diversification, job creation and national prosperity. Yet, indigenous shipowners continue to face the twin challenges of access to patient capital and regulatory complexities.
“Bridging this gap requires deliberate partnership between the financial sector, regulators, and industry stakeholders,” he said.
Edoye reaffirmed UBA’s commitment to supporting indigenous participation in the maritime value chain through tailored financing solutions, trade facilitation and advisory services.
He noted that the bank, with operations in 20 African countries and a global presence, understood the capital-intensive nature of shipping and the need for innovative, de-risked financing structures.
He expressed confidence that stronger collaboration between financial institutions and maritime stakeholders would unlock investment opportunities, enhance the competitiveness of indigenous operators and promote sustainable growth in Nigeria’s maritime industry.
