Local Investors Struggle in Nigeria's $6 Billion Freight Market

Nigeria's freight market, estimated at $6 billion, is largely controlled by foreign companies, with local investors missing out on potential profits. Greg Ogbeifun, a shipowner with four decades of experience, highlights that 80% of freight earnings go to foreign players.

The Nigerian Cabotage Act reserves the right to carry Nigerian cargo for local ship lines, but local shipowners face financing challenges, as banks require cargo guarantees that the government does not provide. Ogbeifun notes that without government support, local shipping companies struggle to secure contracts.

The government recently opened a portal to disburse a $700 million shipbuilding finance fund, but its structure limits disbursements to $25 million per company, insufficient to cover the costs of new vessels. Temisan Omatsey, a former director at NIMASA, points out that local shipyards lack capacity for major repairs, forcing operators to seek services abroad, which incurs additional costs and delays.