An economist, Prof. Bongo Adi, has urged the Federal Government to address port delays, high risks and legal uncertainty to improve its maritime competitiveness and attract investment.
Adi said that the challenges were pricing Nigeria out of its own waters and discouraging carriers, insurers and lenders from investing in the country’s maritime sector.
He spoke at the 17th Lecture and Annual General Meeting of the Nigerian Maritime Law Association (NMLA) on Friday in Lagos.
He described Nigeria’s maritime challenge as a failure to convert its vast potential into economic gains, noting that investors were attracted by risk-adjusted returns rather than opportunities alone.
Using the O-ring theory of economic development by Prof. Michael Kremer, Adi explained that competitiveness depended on the strength of interconnected activities, with the weakest link determining the overall outcome.
He said that Nigeria’s ports handled 68.2 million tonnes of cargo and 815,236 twenty-foot equivalent units (TEUs) of containers in the first half of 2026, yet the country ranked 45th in global liner connectivity, behind smaller regional competitors.
According to him, quay infrastructure is no longer the weakest link, as Apapa, Tin Can and Onne ports have improved their vessel turnaround times compared with ports in Lome, Tema and Abidjan.
He, however, identified delays in cargo clearance as a major constraint to the sector’s competitiveness.
Adi said that shipping companies, insurers and lenders assessed Nigeria based on turnaround time, investment risks and the enforceability of legal agreements.
He called for a reduction in cargo clearance time from the current 21-day target to seven days.
The economist proposed that the NMLA should introduce an annual Maritime Justice and Competitiveness Scorecard from November 2027, supported by a reliable official data system.
He also urged stakeholders to direct funding towards addressing the weakest links in the maritime value chain.
The President of NMLA, Mr Mike Igbokwe, SAN, said the lecture provided an opportunity for stakeholders to share perspectives, raise questions and contribute to discussions on the development of the maritime sector.
Igbokwe expressed optimism that the deliberations would produce useful outcomes, urging participants to engage actively and support stronger collaboration within the industry.
He said that Nigeria had an adequate legal framework, particularly the Admiralty Jurisdiction Act, to protect the interests of maritime lenders.
He, however, identified delays in enforcement, prolonged judicial processes and statutory priorities that placed mortgage holders at a disadvantage as major challenges.
At a panel session titled, “Bankability of the Nigerian Maritime Industry and What Lenders Really Want”, participants examined the conditions required to attract financing into the sector.
The moderator, a maritime lawyer, Mr Ogochukwu Eze, said that the discussion should focus on practical factors that encouraged lenders to provide capital, protect cash flows and enforce security in Nigeria.
Also, Mr Chibueze Moubuikwu, a maritime lawyer said that lenders first examined the purpose of a vessel’s acquisition, its employment contract and the certainty of cash flows for loan repayment.
He said that other considerations included vessel particulars, existing financial obligations, the borrower’s credibility, insurance coverage and the enforceability of ship mortgages.
Similarly, the Division Head, Institutional Banking Group, Sterling Bank Plc, Ms Moyomade Akinsoye, said that lenders assessed the credibility of sponsors, operators’ track records, contract terms, counterparties, vessel age, nationality and insurance arrangements.
Akinsoye said that maritime financing was possible but required careful assessment, particularly because long-term lending involved patient capital.
A legal counsel at Tere Maritime Ltd., Ms Ogonnaya Emele, said that shipowners must demonstrate that their vessels could generate sufficient revenue to cover operating costs, repay loans and deliver profits.
She identified market research, charter commitments, employment plans, technical capacity and predictable cash flows as essential requirements for bankable maritime projects.
A financial expert, Ms Yewande Sebore, said that bankability depended largely on legal certainty and clarity in financing agreements.
Sebore, also a lawyer, said that legal practitioners contributed to bankability through due diligence, assessment of sponsors’ credibility, contract reviews and examination of assignment rights and potential obstacles to cash flows.
A retired Admiral of the Nigerian Navy, Mr Niyi Labinjo, said that maritime financing covered vessel acquisition, working capital, maintenance and operations, requiring appropriate financial structures from the outset.
He advocated blended financing involving commercial banks, development finance institutions and government intervention to provide concessional lending rates and sustainable funding for shipowners.
The News Agency of Nigeria (NAN) reports that the event was attended by the President of the Maritime Arbitrators Association of Nigeria, Ms Jean-Chiazor Anishere, SAN; NMLA Secretary, Mrs Nneka Obianyor; the association’s First Vice-President, Prof. Adewale Olawoyin; and a member, Mrs Oluseyi Fajuyogbe.
Other participants included maritime lawyers, representatives of agencies under the Federal Ministry of Marine and Blue Economy, bankers, students and other industry stakeholders. (NAN)