Shipping experts in Lagos have pointed to poor regulatory frameworks and stringent bank conditions as the root causes of delays in disbursing money from Nigeria's cabotage vessel financing fund. Speaking at the annual summit of the Shipping Correspondents Association of Nigeria, the experts said that regulatory uncertainty is driving up investment costs and discouraging the long-term financial commitments needed to build a strong domestic maritime fleet. They stressed that Nigeria's maritime sector urgently needs a stable and transparent operational framework to succeed.
Dr Olisa Agbakoba, a maritime lawyer and former President of the Nigeria Bar Association, said that regulatory uncertainty increases investment costs and deters long-term financing. Without intervention from NIMASA, he warned, indigenous operators will continue to lose lucrative opportunities in coastal trade to foreign competitors. Agbakoba called for consistent enforcement of maritime regulations, transparent administrative procedures, clearly defined institutional responsibilities, and a predictable system for administering applicable waivers. He emphasised the need for effective coordination between NIMASA and key government bodies including the Federal Ministry of Marine and Blue Economy, the Nigerian Ports Authority, and the Nigerian Ports Economic Regulatory Agency.
Agbakoba outlined the financing challenge facing local shipowners. A single LNG tanker costs about $250 million, with repayment timelines of at least 15 years. He said that commercial banks, development finance institutions, insurers, private investors, and export credit agencies should explore appropriate combinations of debt, equity, leasing, guarantees, and other financing arrangements. He noted that the Cabotage Vessel Financing Fund remains important for supporting indigenous vessel ownership, but fleet development cannot depend principally on public financing. Public funding should support viable projects and mobilise private capital, not replace a functioning commercial shipping market.
Temisan Omatseye, a former Director-General of NIMASA, presented a critical assessment of local commercial banks, arguing that current financing models fall short of empowering local operators to compete globally. Nigerian banks lack the capacity to finance shipping because they function as short-term lenders rather than providers of patient capital, he said. Nelson Edoye, Regional Manager at United Bank for Africa in Apapa, called for structured partnerships across sectors. He said that bridging the gap between capital availability and regulatory complexity requires deliberate partnership between the financial sector, regulators, and industry stakeholders, and that his bank remains committed to supporting indigenous participation in the maritime value chain through tailored financing solutions.
Agbakoba highlighted a fundamental question underlying the financing challenge: without dependable cargo, shipowners will struggle to attract capital; without credible operators and effective security, lenders will hesitate; and without regulatory certainty, investors may decline otherwise viable opportunities. The focus must shift from simply seeking money to acquire vessels towards developing viable transactions that connect cargo demand, suitable vessels, credible operators, and willing financiers. He argued that the maritime sector remains a cornerstone for economic diversification, job creation and national prosperity, yet indigenous shipowners continue to face access to patient capital and regulatory complexities.