Stakeholders in Nigeria’s maritime industry have expressed concerns over the limited involvement of Nigerian banks and insurance firms in financing ship acquisition and vessel construction, which they say is stalling the sector’s growth. Speaking at the 2024 Association of Maritime Journalists of Nigeria (AMJON) Maritime Finance Conference in Lagos, industry leaders highlighted the critical role that finance and insurance play in advancing the maritime sector.
In his keynote address, Abdulkadir Ahmed, Managing Director and CEO of NLNG Shipping and Marine Services Limited (NSML), emphasized the importance of financial access for acquiring and constructing ships, which is essential for Nigeria to emerge as a global maritime player. He noted that without the support of Also read and insurance institutions, the growth of the maritime industry and the development of the country’s blue economy are severely hindered.
Ahmed highlighted the vast scale of global ship finance, citing figures from the Petrofin Index for Global Ship Finance, which recorded $284.27 billion in lending from the top 40 banks in 2023. The total global bank lending, including local banks, approached $375 billion, with total global ship finance, including all forms of lending, reaching approximately $600 billion. He stressed that these substantial amounts underscore the vital role of financial institutions in the global maritime industry.
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“Shipping is a capital-intensive activity, and accessing financing is crucial for both acquisition and construction activities. Fully compliant vessels capable of international trade are essential, and all stakeholders must understand the evolving dynamics of the industry to ensure compliance,” Ahmed said.
The NSML boss called for a deeper understanding among ship owners and prospective players of the factors that contribute to success in the constantly evolving maritime sector.
Meanwhile, AMJON President Paul Ogbuokiri underscored the conference’s theme, which was aimed at bringing together regulators, investors, financiers, and insurers to address the challenges hindering the growth of Nigeria’s maritime industry. He pointed out that the absence of adequate financing has hampered the exploitation of Nigeria’s blue economy resources.
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“With the establishment of the Ministry of Marine and Blue Economy, and the Nigerian government’s focus on diversifying the economy, it is crucial that all stakeholders collaborate to develop the Nigerian maritime industry,” Ogbuokiri said, thanking NSML for its support in making the conference possible.
This call to action underscores the urgent need for Nigerian banks and insurance firms to play a more active role in financing the maritime sector to unlock its full potential and contribute to the nation’s economic growth.
