NPERA Links Efficient Port Operations To Growth Of Indigenous Shipping

By Samuel Egbewole

The Nigerian Ports Economic Regulatory Agency (NPERA) has identified efficient port infrastructure, predictable regulations and access to affordable long-term financing as critical requirements for strengthening indigenous shipping and improving the competitiveness of local shipowners.

The agency’s Director-General, Dr Pius Akutah, stated this on Thursday in Lagos at the annual event of the Shipping Correspondents Association of Nigeria (SCAN), themed “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory, Financial Bottlenecks”.

Akutah, who was represented by the Director of Consumer Affairs at NPERA, Mrs Ify Okolue, said sustainable growth in the indigenous shipping industry required coordinated efforts among financial institutions, shipowners and regulatory authorities.

He explained that access to affordable financing would enable local operators to acquire vessels, expand their fleets and compete more effectively in the global shipping market.

However, he cautioned that financing alone could not address the challenges confronting the industry, noting that the ability of shipowners to repay loans was also influenced by the efficiency of port services and the transparency of charges.

According to him, developing a competitive indigenous shipping sector requires sound policies, innovative financing arrangements and sustained public-private partnerships rather than government declarations without practical implementation.

The NPERA boss said the NPERA Act, 2026, provides the legal framework for establishing a fair, transparent and economically sustainable port system capable of reducing avoidable operating costs and strengthening investor confidence.

He reaffirmed the agency’s commitment to sustained stakeholder engagement, regulatory compliance, effective complaint resolution and improved service delivery to make Nigerian ports more cost-effective and attractive to maritime businesses.

Also speaking at the event, a former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Temisan Omatseye, advocated a private sector-driven approach to building a sustainable and competitive indigenous shipping industry.

Omatseye identified crude oil transportation, fuel supply to the Dangote Refinery, liquefied natural gas (LNG) shipments and the evacuation of solid minerals as major opportunities that should shape Nigeria’s shipping development and investment plans.

He disclosed that the Federal Ministry of Budget and Economic Planning and the Nigerian Content Development and Monitoring Board receive multi-year operational plans from international oil companies detailing their maritime requirements.

According to him, making such information available to indigenous shipowners would give them a clearer picture of future cargo demand and vessel requirements, allowing them to plan investments while enabling financial institutions to design more appropriate financing arrangements.

He, however, highlighted the difficulties local operators face in accessing competitive shipping finance, citing the estimated $250 million cost of an LNG tanker and domestic lending rates of about 25 per cent, compared with approximately two per cent in some foreign markets.

The former NIMASA chief explained that foreign shipping operators enjoyed considerable financing advantages, with access to loans covering up to 85 per cent of vessel acquisition costs at lower interest rates, while Nigerian operators contended with high borrowing costs and stringent collateral requirements.

To address the funding gap and unlock the sector’s potential, Omatseye urged the Federal Government to create an enabling environment for a private sector-led special purpose vehicle that would drive vessel acquisition, gas development and broader maritime growth for the benefit of the national economy.