Lack of financial support, others, up Nigeria’s annual loss to $15bn-Enebeli
By Temitope Adebayo
The Nigerian Licensed Ship Chandlers Association, has said that lack of financial support, among many other critical issues, led to Nigeria’s $15 billion annually loss in ship chandling and related services.
President of the Association, Dr Martins Enebeli, who highlighted the critical issues facing Nigeria’s maritime sector, recently stated that the country’s significant loss is attributed to a combination of a challenging operating environment, limited access to capital, and the cumbersome activities of various government agencies.
Enebeli emphasizes the need for regulatory and bureaucratic reforms to enhance Nigeria’s competitiveness in the global maritime industry.
The Ship chandling in Nigeria is governed by the Customs and Excise Management Act (CEMA) Section 74, alongside laws promoting local participation and the Nigerian Maritime Administration and Safety Agency (NIMASA) Act.
He said the involvement of multiple security agencies, including the Nigerian Navy, Police, Civil Defense, and Immigration, creates redundancies and delays that ultimately deter ships, leading them to seek services in neighbouring countries.
He advocates for a streamlined process through a presidential Executive Order to consolidate regulatory oversight and simplify procedures for ship chandlers.
According to him, Another significant barrier to the growth of Nigeria’s ship chandling sector is the lack of financial support.
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Enebeli notes that there is virtually no financial infrastructure tailored to the unique needs of ship chandling, with local banks and the Central Bank of Nigeria (CBN) offering little to no specialized services or accounts for the industry. In contrast, countries like Britain have explicit fiscal policies supporting ship handling, providing a competitive edge that Nigeria currently lacks.
He calls on the CBN and local banks to develop policies and products that cater to the ship chandling industry.
While being optimistic about the future of ship chandling in Nigeria, he provided that the proposed reforms are implemented.
“By streamlining regulatory processes and improving financial support for ship chandlers, Nigeria could transform into a major hub for maritime services, tapping into a lucrative market that could significantly boost the country’s economy.
“The potential for creating jobs, enhancing local industry, and earning substantial revenue in hard currency is immense, but achieving this vision requires concerted effort and political will to enact the necessary changes.
“As Nigeria stands at a crossroads, the call for reform in the ship chandling sector presents an opportunity for the country to claim its rightful place in the global maritime industry. With the right policies and support, Nigeria could harness its strategic location and maritime resources to become a leading destination for ship chandling and related services, reaping economic benefits that extend far beyond the docks”, he added.
