A source at the Federal Ministry of Budget and Planning has disclosed that Nigeria has recorded a total of $50 billion loss in its shipping services to international ship companies from 2015 to 2022. The source gave the breakdown as $25 billion between 2015 and 2017 and another $25 billion from 2018 to 2022. Nigeria has spent $20 billion on dry and wet cargoes that were transported by foreign ships between 2018 and 2019 because local fleets did not apply international routes.
The anonymous source said that loss has been recurring for some years in the sector. He hinted that there was over $9 billion opportunity loss in 2010 and $9.6 billion was lost in 2020 on the export and import of cargoes. He urged subsidiaries to patronize the indigenous shipping companies in Nigeria to improve their businesses and enable them to take over shipping business, which will in turn reduce the country’s loss and grow the economy.
Expert asked FG to provide conducive environment with good policies.
Gbolahan Adesoji, a shipping expert, charged the Federal Government to provide a conducive environment with good policies and incentives for shipping companies and staff. This will help boost their operations. He recalled the history of cargo exports and imports since 1956. He talked about how it rose in those days and called for its present-day development. He said that there has been a rapid rise in cargo throughput, which has culminated in an unprecedented volume in 2011.
“It is worthy of note that average cargo throughput from 1956 to 2005 is 14,467,024 metric tons, while the average throughput increased from 49,173,324 metric tons,” he said. The yearly average cargo throughput of 70,926,939.38 metric tons of cargo from 2006 to 2018 over the yearly average of 14,467,024 metric tons from 1956 to 2005 shows a percentage increase of 490.26 percent. Adesoji said that this trend shows the remarkable progress that was made in Nigeria’s port development efforts since the port concession era.
Country loses $5bn annually in freight to foreign shipping companies.
The Nigerian Export-Import (NEXIM) Bank has said that Nigeria is losing over $5 billion yearly as freight payment for shipping services without any alternatives to domesticate such funds in the nation. Mr. Hope Yongo, the Technical Adviser to the Managing Director/CEO of NEXIM Bank, revealed this while speaking at the just-concluded 9th African Shippers’ Day in Lagos. He said that with investments in fleet being championed by the Sealink Consortium, the nation and other countries in Africa, will be able to keep the colossal shipping funds in the continent.
Nonetheless, he said that Nigeria could explore the export of bulk commodities worth $600 million to $1.2 billion annually with the provision of adequate transport infrastructure. Nigeria is endowed with about 38 valuable solid minerals, but he said no one reckons with the country in this aspect because of the numerous challenges with infrastructure in moving these commodities. Because of this, solid minerals such as coal, iron ore, lead, zinc, etc. are not being explored at an optimal level for export because of infrastructure challenges.
Sealink Consortium reveals how African countries can gain economic control.
Worried by the foreign dominance of freight earnings from shipping services in Africa, the Chairperson, Sealink Consortium, Mrs. Dabney Shall-Holma revealed how African nations could regain economic control. She revealed this while delivering a paper titled, “Coastal Shipping: A Sine qua non for Integration of Trade in Africa” at the 9th African Shippers’ Day, in Lagos. She explained that ownership of cargoes means that Nigeria and other nations on the continent could dictate shipping conditions for their cargoes. She bemoaned the low level of trade among African nations, stating that only one out of ten exports from countries in the region ends up in Africa while the stats for West Africa is worse with less than one-tenth export trade within the sub-region.
Related Link
Wikipedia: Website
Nigeria loses $50bn to foreign ship companies – The accumulated loss spanned 2015 to 2022 due to shipping services. – Express your point of view.
It is quite unfortunate we continue to lose huge amount to shipping. We need to be more protected to do business that requires shipping of goods.
Nigeria is endowed with roughly 38 important solid minerals, but according to him, no one considers the nation to be competitive in this area due to the various infrastructure issues that arise while moving these commodities.
Yet another loss!
It’s so bad that we are still loosing money despite the challenges the country has been undergoing, the FG must provide a conducive environment with good policies and incentives for shipping companies and staff, this will help boost their operations and in turn gives to us.
A source at the Federal Ministry of Budget and Planning has disclosed that Nigeria has recorded a total of $50 billion loss in its shipping services to international ship companies from 2015 to 2022.
He claims that despite Nigeria’s abundance of about 38 significant solid minerals, the country is not viewed as competitive in this field due to the many difficulties associated with transporting these commodities due to inadequate infrastructure.
It has been happening consistently for several years in this industry, which is a really concerning trend.
Companies to support the indigenous shipping companies in Nigeria, helping those companies to strengthen their operations and paving the way for them to take over the shipping industry.
This is so bad we are losing a huge amount of money this is a big loss to the country the government need to protect and improve the business to stopped all this loss from occuring again
It’s a shame that we still lose a lot of money on shipping. In order to conduct trade, which often involves the transport of goods, we want more secure shipping options.
The fact that we continue to lose money despite the difficulties facing the nation is unacceptable; the FG must create a positive atmosphere by enacting sound legislation and offering incentives to the shipping industry and its employees.
We’re losing a ton of money, and that’s bad news for everyone. The government should step in tremendous safeguard and enhance the industry so that this doesn’t happen again.
It’s unfortunate that we continue to lose money on shipping. We need more secure shipping options in order to conduct trade, which frequently entails the transportation of goods.
Since the beginning of the port concession era, Nigeria’s port development initiatives have made great strides, and this pattern demonstrates those efforts’ success.
If Nigeria had access to suitable transport infrastructure, the country might investigate the possibility of exporting bulk commodities with a yearly value of between $600 million and $1.2 billion.
The amount of cargo that was processed at airports and seaports has increased at an alarming rate, reaching an all-time high in 2011.
the low volume of trade between African countries, with estimates showing that fewer than one-tenth of exports from countries in the region are sold inside Africa, and that these numbers are even lower in West Africa.
For Nigeria to be able to reduce the loses to foreign ship companies as suggested by Gbolahan Adesoji, a shipping expert,who charged the Federal Government to provide a conducive environment with good policies and incentives for shipping companies and staff. This will help in boosting their operations.With these the country can generate revenue and the local shipping companies can generate more income too.
Nigeria loses $50bn to foreign ship companies. This is very big amount of money. We need to do the needful
The local shipping companies in Nigeria will keep losing expect if Federal Government can provide a conducive environment with good policies and incentives for shipping companies and staff. It help to boost their performance and operations.