NIGERIA NEEDS STRATEGIC FLEET PLAN.TO STOP $70,000 DAILY CAPITAL FLIGHT

Shipowner: Nigeria Needs Strategic Fleet Plan To Stop $70,000 Daily Capital Flight

By Babatunde Aremu

Nigeria is losing between *$20,000 and $70,000 daily* to foreign-owned vessels operating in the country’s maritime trade, even as efforts to develop an indigenous fleet remain slow.

Maritime expert and shipowner, *Captain Ladi Olubowale*, disclosed this at the Maritime Reporters Association of Nigeria, MARAN, Roundtable held on Monday in Lagos.

Olubowale, former Chapter President of the African Shipowners Association, ASA, identified inadequate indigenous shipping capacity and the absence of a strategic national fleet plan as major challenges confronting Nigeria’s shipping industry.

He said the huge financial leakages were occurring because foreign vessels were taking advantage of opportunities created by Nigeria’s cargo and oil trade.

According to him, Nigeria urgently needs to determine the types of vessels required to serve its different cargo segments.

The shipowner noted that the country’s inability to develop a strategic fleet is particularly evident in the tanker sector, where Nigeria lacks some of the vessels required by oil terminals and other cargo owners.

Olubowale argued that vessel acquisition should not be approached simply as a financing exercise. He said ships must be acquired based on identifiable cargo and long-term trade contracts capable of generating revenue.

“Nobody buys ships without a trade,” he stressed, explaining that ship finance globally is tied to trade because long-term cargo contracts provide the business required to sustain vessel operations and repay financing.

He therefore called for a strategic fleet analysis to determine the vessels Nigeria needs and the cargoes they would carry, rather than disbursing financing to individual operators without a holistic understanding of the country’s shipping requirements.

Olubowale also linked the challenge to the implementation of the *Cabotage Vessel Financing Fund, CVFF*, arguing that the estimated *$700 million fund* could contribute significantly to national fleet development if deployed strategically.

He disclosed that his company had applied for the CVFF and that several banks had approached the company with term sheets outlining equity contributions and other requirements.

According to him, the fund should not be viewed merely as money for individual ship purchases but as an opportunity to develop a national fleet covering both dry and liquid cargo sectors.

He said about *$25 million* could be sufficient to acquire a sizeable vessel when properly matched with a specific trade opportunity and backed by a cargo contract.

“The industry needs to change the narrative that ship ownership necessarily requires enormous capital,” he said, noting that availability of cargo and guaranteed trade could help drive vessel financing and repayment.

Olubowale said government’s role should be to create the enabling environment, while the private sector and shipping professionals should drive vessel ownership and fleet development.

He added that Nigeria cannot achieve a sustainable national fleet by merely announcing policies without measuring their economic value and determining how Nigerian shipowners can participate.

The maritime expert also called for stronger coordination between regulators and industry stakeholders. He said regulators should focus on safety and compliance, while the private sector drives commercial development.

“From January to date, what are the economic value of this thing?” he asked, stressing the need for measurable outcomes from government interventions in the maritime sector.