Maritime experts have raised concerns over Nigeria's continued loss of over $500 million annually due to the absence of a structured and regulated shipbroking system—an issue that is significantly affecting small and medium-sized enterprises (SMEs) operating within the country's trade and logistics sector.
In a recent briefing with journalists in Lagos, Capt. Tami Adu, a seasoned maritime professional, highlighted how the lack of oversight in vessel chartering and cargo transactions has led to missed revenue opportunities for the government and poor outcomes for local businesses relying on maritime trade.
According to Adu, trained shipbrokers play a vital role in ensuring that vessel contracts are properly executed, technically compliant, and transparent. Their absence from mainstream operations has left a gap that exposes cargo owners, including SMEs, to higher costs, poor service, and inconsistent delivery timelines.
He pointed out that Nigeria's statutory cabotage tax—2% on every vessel contract—is largely unmonitored due to the informal nature of vessel chartering. "If shipbrokers were officially involved, every transaction would be documented and accounted for. Right now, we're losing more than $500 million annually," he said.
Also speaking, Mr. Sesan Ajayi, Chairman of the Nigerian chapter of the Institute of Chartered Shipbrokers (ICS), disclosed that fewer than 40 certified shipbrokers currently operate in Nigeria, while the market is crowded with unqualified individuals. This lack of professionalism, he noted, negatively impacts trade reliability and undermines Nigeria's ability to leverage frameworks like the African Continental Free Trade Area (AfCFTA).
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Ajayi stressed that poor maritime coordination translates into high logistics costs for businesses. "Our logistics cost stands at 23% of GDP—almost double the global average of 12%—because of inefficiencies in shipping and trade logistics. Certified shipbrokers are trained to address these gaps and lower operational costs for small businesses," he explained.
He commended the Ministry of Marine and Blue Economy for launching a new national maritime policy, but urged the government to follow through with strong regulatory enforcement and local capacity development.
"Shipbroking is still an emerging profession in Nigeria. But if we get it right, it can revolutionize how cargo is moved, how vessels are sourced, and how contracts are structured, especially for local SMEs," Ajayi added.
Supporting this position, Mr. Abdulrasak Arije, a senior member of ICS, described the institute as a benchmark for global best practices in maritime professionalism. He emphasized the importance of structured training and certification for shipbrokers, chartering agents, and cargo managers.
He also touched on the dormant Cabotage Vessel Financing Fund (CVFF), a government scheme designed to empower Nigerian shipowners. "Unfortunately, CVFF has been underutilized for nearly 20 years. Red tape and a lack of trust between regulators and stakeholders have stalled its impact," Arije said.
With Nigeria's maritime sector contributing less than 1% to the national GDP, stakeholders argue that integrating regulated shipbroking into national policy could significantly boost trade, reduce logistics costs for SMEs, and attract more private sector investment into coastal shipping.
