Nigeria loses $15bn to foreign firms annually as maritime jobs and revenue slip away

Gloria Adesanya 08:00 - 03 June 2026

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Nigerian ship chandlers in orange overalls loading fresh food crates and supplies onto a vessel.

Local ship chandlers load essential provisions onto a vessel, a vital maritime service industry currently struggling against harsh foreign dominance.

Nigeria is losing an estimated $15 billion annually to foreign ship chandlers and maritime service providers, according to industry operators. Here is why the money is leaving and what it means for jobs and the economy.

Nigeria loses $15 billion every year because foreign companies dominate the maritime supply sector (ship chandling).

Over 95% of local supply companies have shut down, wiping out more than 25,000 jobs for Nigerian youth.

Foreign firms control the market despite local laws meant to reserve 95% of the business for Nigerians.

Harsh local regulations and high interest rates force international ships to buy their supplies from neighbouring countries like Ghana and Togo instead.

Nigeria is losing an estimated $15 billion yearly to foreign companies dominating its maritime sector, specifically in the ship chandling and allied services subsector.

Industry stakeholders say this development is costing the country thousands of jobs and much-needed foreign exchange earnings.

The claim was made by the President of the Nigerian Licensed Ship Chandlers Association (NLSCA), Dr Martins Enebeli, who said local operators continue to struggle against bureaucratic obstacles, limited access to financing, and weak enforcement of local participation laws.

Dr Martins Enebeli, President of the Nigerian Licensed Ship Chandlers Association, speaking during an interview.

Dr Martins Enebeli, President of the NLSCA, has repeatedly urged the Federal Government to reform outdated 1968 maritime laws to save local jobs.

Despite provisions in the Nigerian Local Content Policy Act designed to protect indigenous operators by allocating 95% of the market to them, foreign firms continue to control the highly lucrative business.

Ship chandling involves supplying vessels with food, water, spare parts, fuel-related consumables, and other essentials needed during voyages.

Ship chandling services

It is a major component of the maritime industry and supports a wide range of businesses, including agriculture, manufacturing, logistics, and marine services.

Industry data reveals that approximately 95% of local ship chandlers have been forced out of business due to a harsh domestic operating environment.

The sector has also seen the loss of over 25,000 direct and indirect jobs that could have otherwise absorbed unemployed youth.

According to local stakeholders, several factors contribute to this foreign dominance:

Excessive bureaucracy: Local operators face overlapping approvals from multiple government agencies, including the Nigeria Customs Service, the Nigerian Navy, the Nigerian Police, and Immigration.

High interest rates: Nigerian companies struggle with inadequate access to capital, while foreign counterparts enter the market backed by offshore finances featuring single-digit interest rates.

Outdated laws: The principal legislation regulating the business has not undergone a comprehensive review since 1968, failing to reflect modern maritime trends.

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He said vessels calling at Nigerian ports frequently obtain supplies and services from neighbouring countries such as Ghana, Togo, Benin Republic and Côte d’Ivoire because of the delays and costs associated with operating in Nigeria.

Large container ship docked under blue cranes at a modern West African port terminal.

Neighbouring West African ports frequently attract international vessels looking to bypass Nigeria's slow approval processes and high maritime operational costs.

As a result, billions of dollars that could have remained within the Nigerian economy are earned elsewhere.

"Foreigners have the financial muscle to elbow out Nigerians from businesses that are lawfully reserved for citizens," stated Charles Okorefe, Chief Executive Officer of Kamany Marine Services Limited.

"When you don't enforce your own local content laws, external actors will naturally take advantage of the gaps."

Enebeli noted that many ships simply carry enough fuel and supplies to bypass Nigerian service providers and complete their transactions in other West African countries.

He argued that if the sector were properly structured and supported, local farmers, manufacturers and service providers would benefit from increased demand while the country earns more foreign exchange.

Currently, only one per cent of Nigerian chandlers are engaged by multinationals operating in the nation's upstream petroleum sector.

Aerial view of a busy Nigerian shipping port container terminal with cargo ships and cranes.

A container terminal highlights the massive financial scale of Nigeria's maritime sector.

The issue is not new. Maritime stakeholders have raised similar concerns for years. In 2018, the NLSCA said foreign dominance in the sector was costing Nigeria more than $15 billion annually and contributing to the loss of about 25,000 direct and indirect jobs.

Industry operators also point to inadequate financial support as a major challenge.

According to Enebeli, many Nigerian banks do not have specialised products for ship chandling businesses, making it difficult for indigenous operators to access the capital required to service large vessels and offshore projects.

Enebeli has called on the Federal Government to introduce reforms that would simplify approvals, improve access to funding and encourage greater patronage of Nigerian operators.

He believes such measures could transform ship chandling into a significant source of jobs, export earnings and economic growth.