…as experts call for legal, financial, operational reforms of Nigeria’s shipping industry
Yvonne Ezekiel, managing partner at Olisa Agbakoba Legal (OAL), has called for the adoption of ship management as a strategic commercial solution for distressed vessels, highlighting its potential to ensure business continuity, asset sustainability, and profitability in Nigeria’s struggling maritime sector.
Ezekiel, who heads the Corporate and Business Advisory Practice at OAL, made this case at the firm’s Breakfast Meeting on Ship Management and Marine Projects, held Wednesday in Lagos. Themed ‘Ship Management: A Commercial Strategy for Business Rescue’, the high-level event convened shipowners, bankers, regulators, oil and gas companies, marine lenders, and global maritime experts to explore pathways for revitalising Nigeria’s shipping industry.
“This event is about ship management from the commercial side,” Ezekiel stated. “It’s a commercial decision that banks and shipowners need to take when they have this asset, and the asset runs into trouble, either because the shipowner is unable to pay the bankers or financiers who acquired the vessel”, she noted.
She explained that rather than allowing vessels to deteriorate or remain grounded due to financial or legal challenges, a more viable path is to engage experienced ship managers.
“What we’re advocating is that a commercial decision should be taken: the ship manager should be brought in to manage the ship. And the ship manager, when he’s managing, he pays the shipowner, he pays the bank, and he pays himself, so there’s a win-win all around,” she added.
Read also: After two decades, Nigeria moves to disburse cabotage fund in push for indigenous shipping
The OAL managing partner noted that Nigeria’s maritime industry is beset by challenges ranging from poor access to finance and high-interest loans to a weak vessel maintenance culture. She emphasised that clear, well-structured ship management agreements could help shipowners retain commercial control of their assets while outsourcing complex operational and technical aspects to experts.
“Let’s begin to see ship management as a business tool, not just a fallback. It’s time we shifted from reactive to proactive asset management in the maritime industry,” Ezekiel said.
The forum, designed to promote commercially-viable solutions to vessel mismanagement and financial losses, was inspired by a surge in legal briefs from banks grappling with distressed vessels.
According to Senior Partner, Olisa Agbakoba, SAN, many of these cases stem from technical failures rather than vessel quality. “When we looked at it, we found that it was more to do with the technical capacity to manage the vessels, and not that the vessels were bad,” he said.
The former President of the Nigerian Bar Association added that “ship management presents a lifeline for such assets, especially in a volatile market. A vessel that sits idle for a day is a vessel that’s losing money”, pointing out that aligning the interests of banks, shipowners, and professional managers can revive many struggling operations.
During the panel session moderated by Ezekiel, Sunny Eja, president of the Ship Owners Association of Nigeria (SOAN), addressed the harsh financial realities of the sector. He recalled cases where oil clients pressured shipowners to slash daily rates by as much as 40%, significantly squeezing profit margins. “If I sit here and I give you a 40% discount, it means I’ve been defrauding you,” he said.
Eja also lamented delays in the disbursement of the Cabotage Vessel Financing Fund (CVFF), urging the Government to emulate the Nigerian Content Development and Monitoring Board (NCDMB), which had successfully administered similar funds. He flagged Nigeria’s limited shipyard capacity and dry-docking facilities as major structural setbacks, citing a case where one of his vessels had been due for dry dock since January without resolution.
Otumba Adewunmi, President of the Nigerian Shipowners Association (NISA), echoed concerns about underfunding and structural inefficiencies. He recalled how his company received less than half of a $2.3 million Government-backed loan, leading to a rushed partnership with a foreign firm and the eventual loss of the vessel. He also decried regulatory overlaps, saying, “You have quarantine, customs, and multiple other agencies all doing similar checks,” which inflate costs and deter serious investors.
Representing the financial sector, Wale Mesioye, divisional head of Project Finance and Advisory at Fidelity Bank, underscored the complexities of vessel financing. “It is specialised and complex,” he said, pointing to the need for long-term, renewable contracts, competent operators, and proven financial management to secure bank loans.
“If you’ve only managed $5 million exposure in the past, jumping to $15 million could overwhelm you,” Mesioye warned.
Offering practical industry insight, Nicholas Bernard, managing director of NBC Maritime and Director at ABC Maritime, explained how professional ship management can drastically cut operating costs and improve asset efficiency.
“Ship management is everything from crew and technical maintenance to regulatory compliance and class requirements,” the captain said.
With over 33 vessels under its portfolio, Bernard noted that NBC Maritime offers economies of scale that smaller fleet owners can leverage to reduce OPEX and maximize value.
“Even with my management fee included, our clients often find their operating costs lower than when they handled it alone,” he said.
