Nigeria’s maritime industry is bleeding over $500 million annually due to the unchecked and unregulated activities in the shipbroking subsector, experts have revealed. Stakeholders have now issued a resounding call for the formalisation and professionalisation of shipbroking as a strategic step to plug fiscal leakages, boost compliance, and elevate Nigeria’s maritime sector to global standards.
Addressing journalists in Lagos, the Chairman of the Nigerian Chapter of the Institute of Chartered Shipbrokers (ICS), Sesan Ajayi, said that the absence of regulation has allowed unqualified individuals to flood the shipbroking space, leading to poor contract execution, loss of national revenue, and increased risks in logistics and trade.
“There are fewer than 40 certified shipbrokers in Nigeria today, yet hundreds operate without proper training or licensing. This is a major problem for trade reliability, logistics efficiency, and revenue generation,” Ajayi stated.
He further explained that the shipbroker’s role is central in ensuring proper cargo-to-vessel matching, contract compliance, vessel vetting, and market intelligence—functions that directly affect the success of Nigeria’s trade operations, particularly under frameworks such as the African Continental Free Trade Area (AfCFTA).
Ajayi cited Nigeria’s logistics cost—23% of GDP, compared to the global average of 12%—as a clear indicator of inefficiency in the maritime value chain. He attributed this largely to poor shipping practices and the absence of professional shipbrokers trained to manage vessel chartering transparently.
The ICS chairman also highlighted the two per cent cabotage surcharge, which applies to vessel contracts under Nigerian cabotage laws, noting that poor oversight and lack of enforcement have created major revenue gaps.
“Without licensed shipbrokers overseeing transactions, funds due to government through cabotage tax are neither tracked nor remitted. This alone accounts for hundreds of millions in lost revenue,” he said.
He commended the Federal Government’s creation of the Ministry of Marine and Blue Economy and the launch of the National Blue Economy Policy, but stressed that manpower development and regulatory enforcement are essential to make those initiatives impactful.
Supporting Ajayi’s position, maritime veteran Captain Tami Adu described the situation as dire, asserting that formalising shipbroking operations is no longer optional.
“What we are losing annually in untracked vessel chartering activities exceeds $500 million. If this process were handed over to trained shipbrokers, every transaction would be professionally managed, documented, and remitted,” Adu stated.
He explained that shipbrokers act as vital intermediaries between cargo owners and vessel providers, ensuring vessel seaworthiness, legal compliance, and accurate contract documentation. However, with Nigeria’s regulatory landscape lagging behind international benchmarks, these core functions remain dangerously neglected.
According to Adu, Nigeria is yet to align with global best practices as promoted by the London-based Institute of Chartered Shipbrokers (ICS), which sets the gold standard for training and certifying professionals in the shipbroking ecosystem.
A senior ICS member, Abdulrasak Arije, echoed these sentiments and urged Nigerian operators to embrace certification and professionalism through ICS training. He noted that ICS trains experts in chartering, vessel sales, cargo logistics, and shipbroking, equipping them with tools to operate ethically and efficiently in global markets.
“ICS maintains the highest level of maritime professionalism. Our standards are globally recognised, and Nigeria must adopt them if it hopes to compete regionally and globally,” Arije said.
Despite Nigeria’s strategic location and abundant maritime potential, the sector contributes less than 1% to the nation’s GDP, a figure stakeholders say could quadruple with proper regulation and skilled manpower.
The consensus among experts is clear: formalising shipbroking and enforcing compliance frameworks would transform Nigeria’s maritime industry, improve trade documentation, reduce fiscal leakages, and restore investor confidence.