Sierra Leone’s New Shipping Line Puts Nigeria’s Maritime Ambitions In Focus — Olubowale

By Modinat Eniodunmo

Former President of the Africa Shipowners Association (ASA), Captain Ladi Olubowale, has challenged the Federal Government to accelerate plans for a Nigerian national shipping line, warning that continued dependence on foreign vessels is costing the country billions of dollars in freight earnings annually.

Olubowale said the launch of the Sierra Leone Ocean Shipping Company (SLOSCo) by President Julius Maada Bio should serve as a wake-up call for Nigeria to translate its maritime potential into tangible economic benefits.

He spoke during a media interaction in Lagos, where he examined the implications of Sierra Leone’s new national carrier for Nigeria and the wider African shipping industry.

The Group Managing Director of Seamate Maritime Services Limited congratulated the Sierra Leonean government, particularly the Minister of Transport and Aviation, Ambassador Alhaji Fanday Turay, the Sierra Leone National Shipping Agency and members of Parliament who approved the agreement that paved the way for the company.

He described the initiative as a demonstration of political commitment and strategic thinking, expressing hope that it would encourage other African countries to take greater control of their maritime trade.

“Let me begin by warmly congratulating President Bio, the Government and people of Sierra Leone on this landmark achievement,” Olubowale said.

He added that the success of a national shipping venture depended less on the ceremony surrounding its launch than on the quality of its strategy, financial discipline and long-term management.

“In my years in African shipping, including as President of the Africa Shipowners Association, I have watched many national shipping ventures launched with ceremony. Some became fleets. Most became footnotes. The difference was never the size of the country or the scale of the ribbon-cutting. It was strategy, discipline and the will to see a plan through to the end,” he said.

Olubowale explained that SLOSCo emerged from a structured process involving legislation, a strategic partnership and parliamentary approval.

According to him, Sierra Leone’s Parliament passed the Sierra Leone National Shipping Agency Act in 2025, transforming the country’s former national shipping company, established in 1972, into an agency empowered to serve as the country’s national carrier for international trade.

The agency inherited the assets and liabilities of the former company and an earlier national carrier venture.

In August 2026, Parliament ratified a joint venture agreement between the agency and Zhejiang Xiehai Group, a Chinese company, leading to the establishment of SLOSCo. President Bio subsequently presided over its official launch.

Olubowale said the sequence demonstrated the importance of establishing a legal framework and securing the necessary partnerships before launching a national shipping operation.

Although the company’s long-term commercial prospects will depend on its ability to attract cargo, operate efficiently and compete with established shipping companies, he said Sierra Leone had taken an important first step.

“That is why SLOSCo matters to Nigeria. And it is why it should matter to every African government that still treats shipping as someone else’s business,” he stated.

Africa Losing Control of Its Maritime Trade

The former ASA president said the establishment of SLOSCo reflected a broader recognition across Africa that the continent must strengthen its participation in the global shipping industry.

He cited efforts by South Africa to establish a national carrier, alongside investments in port infrastructure by coastal countries from Morocco to Kenya.

Despite being home to nearly one-fifth of the world’s population, Africa continues to have a disproportionately small share of the global merchant fleet, he noted.

Olubowale referenced figures from the United Nations Conference on Trade and Development (UNCTAD), which identify Nigeria as Africa’s largest ship-owning nation, while Nigerian-owned vessels account for only slightly more than 0.5 per cent of the world fleet by value.

He argued that the challenge extends beyond national prestige to the question of who controls the movement of African goods and earns revenue from their transportation.

According to him, the African Continental Free Trade Area (AfCFTA) could expand trade between African economies, but the benefits would remain limited if cargo moving between cities such as Lagos, Freetown, Abidjan and Durban continued to depend largely on foreign-owned vessels.

He also recalled the sharp increase in Asia-Africa shipping contract rates in 2022, warning that African importers and consumers bear the consequences when freight costs rise beyond their control.

Nigeria’s Shipping Legacy and The Cost of Inaction

Olubowale recalled that Nigeria once operated a substantial national fleet through the Nigerian National Shipping Line (NNSL), which had approximately 30 ocean-going vessels and contributed to the training of a generation of Nigerian seafarers.

He said the collapse of the company left the country increasingly dependent on foreign shipping operators to transport its international trade.

Industry estimates, he noted, place Nigeria’s annual loss in freight earnings to foreign shipping companies at between $8 billion and $9 billion.

The maritime expert acknowledged recent government efforts to establish a new national carrier.

In April 2026, the Minister of Marine and Blue Economy, Adegboyega Oyetola, announced progress towards reviving a national shipping line, with interest reportedly expressed by international port and logistics companies DP World and AD Ports Group.

However, Olubowale said Nigeria needed to move beyond announcements and demonstrate measurable progress.

“Until a vessel flies the flag of a Nigerian national carrier, the announcement remains an announcement,” he said.

He added that Nigeria already possessed important assets for building a competitive shipping industry, including an indigenous fleet that UNCTAD counted at 291 vessels, the Lekki Deep Sea Port and the Deep Blue Project.

The minister has also reported that Nigeria recorded no piracy incidents in its territorial waters over a four-year period.

For Olubowale, these developments demonstrate that Nigeria has a foundation on which to build, but the country must address persistent policy and implementation challenges.

“Nigeria has the assets. What it has lacked is follow-through,” he said.

The former ASA president identified the delayed disbursement of the Cabotage Vessel Financing Fund (CVFF) as one of the clearest tests of the government’s commitment to developing indigenous shipping capacity.

Established under the Coastal and Inland Shipping (Cabotage) Act of 2003, the fund was designed to provide Nigerian shipowners with affordable, long-term financing to acquire vessels.

It is financed through a two per cent surcharge on contracts involving coastal shipping activities.

Olubowale said the fund had remained largely unused for years despite repeated government promises, with its value estimated at approximately $700 million by 2025.

He acknowledged recent steps by the administration of President Bola Tinubu, including the opening of an application portal in January 2026, the provision of an initial $25 million, an increase in participating lending banks from five to 12 and presidential approval for disbursement in September.

Nevertheless, he expressed concern about the pace of implementation.

According to figures cited by the minister in September, the Nigerian Maritime Administration and Safety Agency (NIMASA) had received 92 applications, of which 20 were forwarded to participating banks. Only one had been reviewed and sent for final approval at the time.

The minister subsequently directed NIMASA and the banks to accelerate the process.

Olubowale said the delay raised questions about the country’s readiness to manage a national carrier capable of competing with major international shipping companies.

He argued that a sustainable national fleet would require more than government ownership of vessels. It would also depend on a strong community of indigenous shipowners, qualified Nigerian seafarers, functional ship repair facilities and financial institutions capable of supporting maritime investments.

“The CVFF was designed to build exactly that base. If Nigeria cannot move money it already has into the hands of its own shipowners, it is fair to ask how it will run a national carrier that must compete with the world’s largest shipping companies,” he said.

He also highlighted the difficulties facing Nigerian cadets who have completed training but struggle to obtain the sea time required for professional certification because of the shortage of suitable vessels.

Olubowale cited a recent statement by the Ijaw Youth Council that more than 100 cadets sponsored over a decade ago were still awaiting completion of their certification.

He maintained that every vessel financed through the CVFF or deployed by a national carrier could provide valuable training opportunities for young Nigerians pursuing careers at sea.

“Without the ships, the training is money spent on a promise,” he said.

To address these challenges, Olubowale urged the Federal Government to treat shipping as a strategic national asset rather than merely another commercial sector.

He called for a clear sequence of reforms, enforceable deadlines for CVFF disbursement and greater transparency in the administration of the fund.

He specifically urged NIMASA to publish the names of approved beneficiaries, the amounts disbursed and the vessels acquired through the financing scheme.

He also stressed that any new national carrier must be insulated from political interference and managed according to international commercial standards.

“The NNSL did not fail because Nigerians could not run ships. It failed because politics was allowed to run the company,” he said.

Beyond establishing its own national carrier, Olubowale urged Nigeria to explore a regional shipping alliance that would bring together West African coastal states and their shipping operators.

He argued that individual countries could struggle to compete with global shipping giants such as Maersk and MSC if they attempted to develop small fleets without regional coordination.

Under his proposal, Nigeria could contribute its substantial cargo volumes, while countries such as Sierra Leone could provide additional shipping capacity, strategic harbours and commercial partnerships.

He identified Freetown’s natural harbour as one of the assets that could support a regional maritime network linking Lagos, Freetown, Accra, Abidjan and Dakar.

Such an arrangement, he said, could facilitate vessel-sharing agreements, coordinated schedules and feeder services, allowing African-owned ships to carry more cargo between regional markets.

Olubowale urged Nigeria to initiate discussions with SLOSCo and other regional carriers under the framework of the Economic Community of West African States (ECOWAS).

He also proposed the creation of a regional maritime financing facility, supported by development banks and jointly governed by participating countries, to help shipowners across West Africa acquire vessels.

In addition, he advocated shared training berths that would allow cadets from participating countries to gain practical experience aboard vessels operating within the alliance.

He said such cooperation could strengthen the region’s shipping capacity while addressing the shortage of sea-time opportunities for aspiring maritime professionals.

“No single West African country can match Maersk or MSC. Together, they can at least make sure African cargo on African routes pays African shipowners,” Olubowale said.