The Maritime Researchers and Authors Association of Nigeria (MARASSON) has called on the Nigerian Maritime Administration and Safety Agency (NIMASA) to utilize the three percent gross freight levy collected on international cargo to establish a public-private partnership (PPP) national carrier. The association warned that Nigeria is losing billions of dollars annually and risks surrendering long-term control of its maritime trade to foreign operators if the levy is not invested strategically.
In a position paper titled 'Don’t waste the three per cent levy: Nigeria’s Path to a PPP national carrier,' MARASSON stated that freight charges, insurance earnings, and shipping profits continue to flow to maritime nations such as Greece, Norway, and Singapore. Nigeria, meanwhile, bears the burden of providing cargo, port infrastructure, and associated risks without capturing substantial economic value. The researchers estimated that the country loses approximately $5 billion yearly in freight earnings, strategic supply chain control, and over 10,000 potential jobs.
Call for Strategic Investment
Speaking on behalf of MARASSON, the Director of International Trade, Sunday Ademuyiwa, noted that Nigeria handles roughly 120 million metric tonnes of seaborne trade annually, yet about 92 percent of the cargo is transported by foreign-owned and foreign-flagged vessels. He lamented that the levy fund has allegedly been spread across fragmented procurements, contracts, and equipment acquisitions rather than strategic investments that could generate long-term maritime assets.
MARASSON criticized the proposal to allocate portions of the levy to individual radars, arguing that acquiring equipment without Nigerian-owned vessels to protect and service would not deliver sustainable returns on investment. Ademuyiwa emphasized that the emergence of the Dangote Refinery has heightened the urgency of developing indigenous shipping capacity.
Dangote Refinery Impact
Ademuyiwa explained that the 650,000-barrels-per-day refinery would generate between 150 and 200 vessel calls monthly for refined petroleum products and petrochemicals. He warned that without Nigerian-owned vessels, shipping contracts would be tied to foreign shipping companies under long-term agreements lasting up to 10 years, permanently shutting out local operators. He stressed that once the Dangote Refinery finalizes and signs long-term shipping agreements with foreign lines, Nigeria could lose strategic leverage in the sector for another decade.
The three percent levy, Ademuyiwa maintained, presents Nigeria with a rare opportunity to become an equity participant in maritime trade rather than remain dependent on foreign operators.
Proposed National Carrier Structure
As an alternative, MARASSON proposed that NIMASA deploy the levy as equity and credit enhancement to establish a PPP-driven national carrier named Nigeria Maritime Line Limited. Under the proposed structure, the Federal Government would hold 40 percent ownership through NIMASA and the Nigerian Ports Authority, while the remaining 60 percent would come from private investors including the Dangote Group, Nigerian banks, pension funds, and indigenous shipowners.
The association recommended a first-phase fleet consisting of six Nigerian-flagged and Nigerian-crewed vessels: three 50,000 deadweight tonnage product tankers, two 2,000 twenty-foot equivalent unit container feeder vessels, and one 30,000 deadweight tonnage bulk carrier. Additionally, a 10-year Contract of Affreightment anchored on cargo commitments from Dangote Refinery estimated at three million metric tonnes yearly was proposed, with additional support cargo from BUA Group, Indorama, and the Nigerian National Petroleum Company Limited (NNPCL).
Governance and Economic Benefits
Ademuyiwa stressed that the proposed national carrier should operate under an independent board with professional management and measurable performance indicators tied to Nigerian content development, safety standards, and profitability. The researchers projected that the PPP carrier could retain up to $2 billion yearly in foreign exchange by replacing foreign charter services, while creating over 10,000 direct and indirect jobs across seafaring, shipbuilding, and logistics within five years.
Drawing comparisons with countries such as Indonesia, Turkey, and Egypt, Ademuyiwa argued that those nations successfully utilized state-backed funding to catalyze national carriers that generated jobs, assets, and dividends, unlike what he described as consumable equipment purchases. He further stated that the initiative would align with the Cabotage Act, the Marine and Blue Economy agenda, and Nigeria's competitiveness objectives under the African Continental Free Trade Area agreement (AfCFTA).
