Indigenous shipowners are struggling to expand their fleets as regulatory uncertainties and stringent lending conditions frustrate access to vessel financing, with former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, alleging that Nigerian banks lack the capacity to finance shipping projects.
Omatseye spoke at the 2026 annual summit of the Shipping Correspondents Association of Nigeria (SCAN), themed “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory, Financial Bottlenecks.”
He argued that the high cost of acquiring commercial vessels and lengthy investment recovery periods made conventional short-term bank loans unsuitable for developing a globally competitive indigenous shipping industry.
“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,” he said.
Similarly, maritime lawyer and former President of the Nigerian Bar Association, Dr Olisa Agbakoba, identified regulatory uncertainty as another major obstacle to investment in the domestic shipping industry.
Agbakoba, represented by Akunne John Paul, said unpredictable regulations increased investment costs and discouraged the long-term financial commitments required to build a competitive Nigerian fleet.
He urged government and maritime agencies to ensure consistent enforcement of regulations, transparent administrative procedures and predictable policies on applicable waivers.
He warned that without proactive intervention by NIMASA, indigenous operators would continue losing lucrative coastal shipping opportunities to foreign competitors.
Agbakoba also called for stronger coordination among NIMASA, the Federal Ministry of Marine and Blue Economy, the Nigerian Ports Authority and the Nigerian Ports Economic Regulatory Agency to improve investor confidence and facilitate financing.
Beyond regulatory reforms, he urged commercial banks and institutional investors to develop specialised maritime credit expertise, including vessel valuation, technical assessment and legal support for ship mortgages, charter contracts and insurance.
He said financing structures should reflect individual projects’ risk profiles, noting that vessels backed by credible long-term charter contracts presented different risks from those dependent on uncertain spot-market earnings.
Agbakoba advocated a mix of debt, equity, leasing, guarantees and export credit facilities to expand access to capital and support indigenous shipowners in acquiring vessels and competing effectively with foreign operators.
