Nigeria’s maritime sector is ceding a staggering $500 million annually due to the absence of a regulated and professional shipbroking framework, maritime stakeholders have revealed. Speaking with journalists in Lagos, industry leaders emphasised how informal chartering mechanisms and lack of oversight undermine both government revenue and sector efficiency.
Capt. Tami Adu highlighted that local cargo and vessel chartering operates outside professional shipbroking channels, leading to uncollected cabotage tax—a statutory 2% charge on international vessel contracts. “If the government handed this process to trained shipbrokers, we would ensure every transaction is documented and remitted properly. Right now, what we are losing annually exceeds $500 m,” he declared.
Shipbrokers play a crucial role in vetting vessels, ensuring technical compliance, and providing vital market intelligence. According to Adu, their near absence in Nigeria leaves vessel owners and cargo charterers vulnerable to inefficient deals and weak fiscal oversight.
Mr Sesan Ajayi, chairman of the Nigeria Chapter of the Institute of Chartered Shipbrokers (ICS), disclosed that fewer than 40 certified shipbrokers serve the entire country—ironically, many operate without professional training. The consequences are stark: trade inefficiencies, lack of transparency, and lost revenues.
“A robust shipbroking framework is essential to reduce logistics costs, support intra-African trade, and close infrastructure gaps,” Ajayi affirmed, underscoring how poor shipbroker integration inflates Nigeria’s logistics cost—already at 23% of GDP, nearly double the global average of 12%.
Experts also pointed to the long-delayed implementation of the Cargo Tracking Note (CTN) system as exacerbating losses. Government agencies admit the CTN can plug revenue leakages and enforce transparency, but consistent non-implementation has cost the nation $500 million annually .
Enact and enforce regulations to mandate professional certification for shipbrokers, with heavy penalties for unqualified actors.
Integrate shipbroker channels into vessel chartering and cabotage procedures to capture all taxable transactions.
Train and certify local maritime professionals via partnerships with ICS and global institutions, creating a domestic pool of qualified brokers.
Fully operationalise CTN as a statutory mechanism for cargo verification and revenue capture.
Encourage skilled manpower development and enact strict regulatory oversight under the Ministry of Marine and Blue Economy.
Mr Abdulrasak Arije, senior ICS member, described the institute as a “neutral voice in policy dialogue,” responsible for training chartering and shipbroking professionals to international standards. However, he stressed a government-backed, skilled workforce is crucial to exploit the maritime sector’s full potential.
Delays and inefficiencies are consistent challenges across Africa’s ports. Experts estimate Nigeria’s shipping agency market loses over $100 billion annually, with many foreign shipping companies conducting local agency business outside the country, depriving local partners of revenue.
Meanwhile, constraints like poor port infrastructure, backlog delays, and corruption further erode maritime gains, leading to lost demurrage fees and lost opportunities for vessel turnaround revenue.
Revenue recovery: Mandatory shipbroker involvement ensures remittance of cabotage and chartering fees.
Lower logistics costs: Documented contracts and vetted vessels enhance trade reliability.
Foreign exchange savings: Reducing dependence on ad hoc agents helps keep fees within Nigeria’s economy.
Stronger policy enforcement: Shipbrokers can function as compliance agents, reinforcing CTN and maritime trade regulations.
As Nigeria seeks to boost its maritime GDP contribution—younger than 1% today—experts warn that institutionalising shipbroking and maritime monitoring can transform the sector. A properly regulated system is expected to generate improved revenue, attract investor confidence, and streamline intra-African trade.
If reforms are acted upon, communities across coastal states stand to benefit from increased foreign exchange earnings and job creation along the shipping-agency-vessel chartering value chain.