Foreign fleets maintain dominance in Nigeria’s maritime support industry

Nigeria, Africa's largest oil and gas producer, still relies heavily on foreign fleets for essential maritime support services, according to Captain Ladi Olubowale, former Nigerian Chapter President of the African Shipowners Association. This reliance means a substantial amount of revenue from logistics, charter hire, marine services, technical management, and offshore transportation leaves the Nigerian economy.

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Without ships, offshore energy production stops. Yet despite Nigeria’s position as Africa’s leading oil and gas producer, much of this critical maritime support continues to be provided by foreign-owned fleets.

Olubowale, who also leads Seamate Maritime Integrated Services Limited, highlighted that offshore energy projects are critically dependent on vessels for various operations, from equipment transport to emergency response. "Without ships, offshore energy production stops," he stated. He characterized Nigeria's economic model as "exporting commodities while importing capabilities," deeming it unsustainable.

The UTM FLNG Project, Nigeria's first indigenous-led floating liquefied natural gas development, is presented not just as an energy facility but as a potential catalyst for maritime industrial transformation. Olubowale emphasized that this project offers a unique chance to reshape the nation's maritime economy, bolster indigenous shipping capacity, and reclaim billions of naira currently flowing to foreign operators.

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This means that while Nigeria earns revenue from its natural resources, a significant share of the logistics, charter hire, marine services, technical management, and offshore transportation revenues leaves our economy. In economic terms, we continue to export commodities while importing capabilities. That model is no longer sustainable.

He drew a parallel with Norway, suggesting that maritime success stems from deliberate capacity building, not just resource discovery. Olubowale urged that the UTM FLNG Project should spearhead Nigeria's maritime industrial revolution, fostering a future where the country retains greater economic value from its offshore activities.

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The UTM FLNG Project offers Nigeria a rare opportunity to reshape its maritime economy, deepen indigenous shipping capacity, and retain billions of naira in economic value that has traditionally gone to foreign operators.