Nigeria is reportedly losing billions of naira in potential revenue due to the heavy reliance on foreign vessels, particularly Chinese-owned ships, to transport goods under the African Continental Free Trade Area (AfCFTA) agreement. Indigenous shipowners have voiced concerns that the dominance of foreign vessels is hindering Nigeria’s ability to maximize the economic benefits of AfCFTA.
Despite the Nigerian government’s celebration of the nation's first AfCFTA shipment in July 2024, where companies like Dangote, Flour Mills Nigeria, Tolaram Group, and Hwani Industry Nigeria Limited exported products such as shea butter, black soap, smart cards, and sanitary ware to countries across East, Central, and North Africa, the reality of the situation is less favorable for the local shipping industry. The Chairman of Starzs Investments Company Limited (SICL), Engineer Greg Ogbeifun, raised the alarm during the 16th Marine and Technical Summit of the Association of Marine Engineers and Surveyors (AMES) over the weekend.
Ogbeifun noted that while Nigeria celebrates the success of AfCFTA exports, the country is missing out on significant revenue opportunities because no indigenous Nigerian vessels are participating in the AfCFTA sea trade. He criticized the government for allowing foreign, particularly Chinese, vessels to dominate this space, leading to capital flight and lost income that could have been generated domestically.
He emphasized that AfCFTA was designed to boost trade between African nations through land, air, and sea, yet Nigerian ships are not involved in the maritime movement of these goods. The cargoes are ours; Nigerian ships should be moving them to other African countries so as to generate revenue for the country,he stated.
This revelation highlights a critical gap in Nigeria's trade infrastructure under AfCFTA and calls for an urgent need for policy shifts that will support indigenous shipping companies. According to Ogbeifun, it is essential for the Nigerian government to create an enabling environment for local shipowners to participate in AfCFTA trade, thereby reducing capital flight and boosting revenue for the country.
The situation serves as a reminder that while trade agreements like AfCFTA hold great promise for economic growth, proper implementation and participation from all sectors, including local shipping, are necessary for Nigeria to truly reap the benefits.