Maritime Stakeholders Lament $500m Annual Loss in Shipbroking Revenue

Nigeria’s maritime experts have raised the alarm over the estimated annual loss of $500 million in shipbroking revenue, attributing the shortfall to the persistent dominance of foreign firms in vessel chartering and brokerage services. The stakeholders say the country’s inability to harness the full potential of its maritime sector is costing the economy heavily, with urgent calls being made for regulatory reforms and investment in local capacity.

The Nigerian Chamber of Shipping (NCS), Association of Marine Engineers and Surveyors, and other maritime professionals have voiced concerns that the lack of a structured and vibrant indigenous shipbroking industry continues to divert potential revenue to foreign operators. They argue that if properly developed and regulated, shipbroking — which involves the negotiation, sale, and leasing of vessels — could be a major contributor to Nigeria’s non-oil revenue.

Speaking during a recent forum in Lagos, the President of the Nigerian Chamber of Shipping, Aminu Umar, described the loss as a result of both policy neglect and underinvestment in the training and empowerment of local shipbrokers. He emphasized that Nigeria, with its extensive coastline and strategic location in West Africa, has the capacity to be a regional hub for maritime services, including brokerage, crewing, ship management, and surveying.

Umar noted that shipbroking has become a critical component of global maritime trade and that other countries are reaping immense benefits through strategic positioning and investment. Unfortunately, in Nigeria, most vessel chartering and commercial shipping contracts are still being negotiated by foreign entities, often sidelining qualified Nigerian professionals.

He lamented the absence of comprehensive legislation or policies that support the development of shipbroking as a formal industry. According to him, local professionals are frequently denied opportunities to participate in deals involving ships transporting crude oil, petroleum products, LNG, and dry bulk cargo, despite the fact that these commodities originate from Nigerian ports.

Other stakeholders also attributed the situation to the absence of a national fleet and the decline of indigenous shipping companies. Without active local players in vessel ownership and management, foreign firms dominate the scene and dictate the terms of business, including brokerage arrangements. As a result, revenue that should be retained within the Nigerian economy continues to flow out to foreign companies.

The Director of the Centre for Maritime Economics and Logistics, Dr. Roseline Ugboma, called for immediate government intervention to reverse the trend. She proposed the creation of a national shipbroking policy framework that would encourage the involvement of indigenous firms in vessel chartering, including a quota system that mandates the participation of Nigerian brokers in deals involving Nigerian cargo or ports.

Dr. Ugboma also stressed the importance of professional certification and training. She noted that many Nigerian graduates are unaware of shipbroking as a viable career path due to limited exposure and educational resources. She urged maritime institutions and regulatory agencies to develop shipbroking curricula, promote awareness, and provide access to internationally recognized certification programs.

Industry experts have further suggested the revival of the Nigerian National Shipping Line (NNSL) or the establishment of a similar government-backed shipping company that can serve as an anchor for local shipbrokers and marine service providers. This, they argue, would provide a platform for building expertise and driving economic value locally.

In addition, maritime unions and professional bodies are advocating for the enforcement of the Cabotage Act, which seeks to reserve certain segments of maritime operations for Nigerian-owned vessels and companies. They believe that effective implementation of this law could give indigenous brokers and agents a stronger foothold in the industry.

The President of the Nigerian Institute of Shipping (NIS), Mr. Anthony Ogbuigwe, warned that failure to act could result in the further erosion of Nigeria’s maritime sovereignty. He urged the federal government to include shipbroking in national economic planning and maritime investment strategies, noting that developed nations have long since recognised its value as a foreign exchange earner.

Maritime operators also appealed to the Nigerian Maritime Administration and Safety Agency (NIMASA) to take the lead in implementing a national shipbroking development policy. They recommended that NIMASA collaborate with stakeholders to provide start-up grants, mentorship programmes, and tax incentives for new entrants into the sector.

Ultimately, the consensus among experts is that Nigeria cannot afford to keep losing half a billion dollars annually to a gap that can be bridged with targeted policy, capacity building, and institutional support. They believe that with the right framework in place, the country can not only reclaim lost revenue but also emerge as a formidable force in Africa’s maritime economy.

As the country seeks ways to diversify its economy and reduce dependence on oil, maritime professionals insist that shipbroking offers a viable and underexplored opportunity. The onus, they say, now lies with the government, regulatory bodies, and the private sector to work together and ensure that Nigeria claims its rightful share of the global maritime pie.