The financial impact is severe, with an estimated annual loss of $147.8 million in docking fees, repair services, and associated costs. This issue highlights longstanding problems in Nigeria’s maritime infrastructure, including the continued non-operation of the N50 billion modular floating dock acquired in 2018.

This lack of ship maintenance facilities has resulted in massive financial losses. Reports indicate that between 2022 and June 2024, Nigeria lost N2 trillion ($1.25 billion) to foreign shipyards. The records of the Nigerian Maritime Administration and Safety Agency (NIMASA) show that Nigeria has a fleet of over 4,000 flagged vessels and over 1000 cabotage vessels. Despite these figures, ship owners are left with no option but to move their vessels abroad for maintenance.

The cost of such maintenance is substantial. Large vessels incur daily docking fees ranging from $5,000 to $20,000, with total fees for a standard repair period reaching between $50,000 and $600,000. When additional expenses such as voyage costs, fuel consumption, and crew wages are considered, the overall burden becomes immense. The pressure is further compounded by the volatility of the exchange rate, making foreign repairs even more expensive for Nigerian ship owners.

Nigeria once had shipyards capable of handling repairs, but these have now fallen into disrepair. Key facilities, including the Nigerian Ports Authority (NPA) Dockyard in Apapa, Lagos, the Federal Ship Repair Yard in Port Harcourt, and others in Calabar, Warri, Rivers, Koko, and Burutu, remain largely unused. These shipyards have suffered from financial neglect, outdated equipment, and poor management, preventing them from functioning effectively.

A glaring example is the N50 billion modular floating dock acquired by NIMASA in 2018, which remains idle seven years after its purchase. The former NIMASA Director General, Dr Bashir Jamoh, highlighted last year that due to its non-operation, Nigeria loses over 110,000 vessels annually to foreign shipyards. Although there have been attempts to initiate operations through public-private partnership arrangements, these efforts have failed to materialise, leaving the asset dormant.

As Nigeria struggles to revive its shipyard industry, neighbouring countries have capitalised on the situation. Ghana, Kenya, Togo, Ivory Coast, Benin Republic, and Cameroon now handle the ship repair needs of Nigerian vessels. The PSC Tema Shipyard in Ghana, for example, operates a functional floating dock with a 10,000-tonne capacity and a graving dock that accommodates vessels up to 200 metres in length. Similarly, shipyards in South Africa and Kenya offer modern repair services, attracting business from Nigerian ship owners.

Ship owners who have used these foreign facilities report that repairs are completed more efficiently, with turnaround times measured in weeks rather than months, and often at a lower cost. This efficiency and internationally recognised certification have made these countries attractive destinations for ship maintenance.

The loss of ship maintenance revenue is only one part of the problem. The absence of functional shipyards means that job opportunities in the maritime sector remain limited. Thousands of skilled professionals, including engineers, welders, and technicians, are either unemployed or forced to seek work abroad. Maritime students who graduate from Nigerian institutions struggle to find positions in the industry due to the lack of viable ship repair facilities.

Furthermore, the wider maritime industry suffers. A functioning shipyard sector could stimulate the economy, supporting local businesses that supply materials and services to the industry. This economic activity's loss means Nigeria is missing opportunities to strengthen its local supply chains and develop a competitive maritime industry.

To address these issues, experts suggest investing in infrastructure by modernising Nigeria’s shipyards and dockyards to meet international standards through facility upgrades, advanced machinery acquisition, and proper maintenance. Capacity building is also essential, as training and developing a skilled workforce will enhance the quality of ship maintenance services.

 In addition, enforcing maritime laws such as the Cabotage Act would encourage local ship maintenance and reduce reliance on foreign facilities. Lastly, public-private partnerships can play a key role in financing and managing shipyards more effectively, fostering a more sustainable maritime industry.

The ongoing loss of ship maintenance business to foreign countries underscores the urgent need for Nigeria to revitalise its maritime infrastructure. The financial burden of maintaining vessels abroad continues to grow, draining valuable resources that could be reinvested locally. The non-operation of key facilities, including the NIMASA modular floating dock, highlights deep-rooted inefficiencies that require immediate attention.

With proper investment, management, and policy enforcement, Nigeria has the potential to build a thriving shipyard industry that creates jobs, retains revenue, and strengthens the maritime sector. Until these changes are made, the country will continue to lose billions as its ships seek maintenance in foreign waters.

Research & Advocacy Department,

Chartered Institute of Directors (CIoD)

28, Olawale Edun Road (Formerly Cameron Road), Ikoyi, Lagos.