By ebosele@hotmail.com
The Nigeria Shipowners Association (NISA) has accused the Nigerian Maritime Administration and Safety Agency (NIMASA) of undermining the competitiveness of indigenous shipowners through regulatory bottlenecks, warning that such measures, coupled with limited access to affordable financing, could constrain the growth of Nigeria’s indigenous shipping industry.
The President of NISA, Otunba Sola Adewumi, made the allegation in a goodwill message sent to the Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN), held in Lagos on Thursday.
The summit, with the theme, “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory and Financial Bottlenecks,” brought together stakeholders to examine ways of improving access to finance and creating an enabling environment for indigenous shipping operators.
Adewumi, who identified NIMASA as the agency responsible for regulating indigenous shipping and overseeing maritime administration in Nigeria, expressed concern that some of its regulatory measures were weakening the competitiveness of local shipowners.
He argued that Nigerian shipowners have 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 in regional and international shipping markets.
According to him, access to affordable, long-term financing remains one of the major obstacles to developing a competitive indigenous shipping fleet.
“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.
Adewumi stressed the need for a predictable and transparent regulatory framework, innovative financing mechanisms and effective risk-sharing arrangements to unlock the potential of indigenous shipping.
“To unlock the potential of indigenous shipping, we need 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,” he stated.
He maintained that without deliberate measures to address the structural challenges, local operators would continue to struggle to expand their fleets, acquire modern vessels and compete with foreign shipping companies that have greater access to capital.
The NISA president further emphasised that developing a stronger indigenous shipping fleet was essential to retaining more maritime revenue within the Nigerian economy, creating employment opportunities, building local capacity and strengthening the country’s participation in regional and international trade.
He urged regulators and policymakers to ensure that their policies supported the growth and sustainability of indigenous shipping businesses rather than impose constraints capable of weakening their competitiveness.
Although Adewumi did not identify specific NIMASA regulations responsible for the concerns, his remarks highlighted the regulatory and financial challenges confronting indigenous shipowners.
He, however, reaffirmed NISA’s commitment to constructive engagement with regulators, policymakers and financial institutions to promote policies and initiatives that would make Nigerian shipowners more bankable, competitive and sustainable.
Adewumi called on stakeholders to move beyond discussions and implement practical and measurable measures that would improve access to capital and create the necessary conditions for indigenous shipping companies to thrive.
He also commended SCAN for providing a platform for industry stakeholders to deliberate on the challenges facing the maritime 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 Nigeria’s maritime industry and strengthen the position of local shipowners across the shipping value chain.
