• Nigeria loses $148m yearly to other West African countries
• Outdated infrastructure, limited capacity, crippling Nigeria’s shipyard industry
• Dozens of Nigerian shipyards facilities left to rot away

Nigeria continues to miss out on the windfall accruing from vessel maintenance due to the absence of functional shipyards and dockyards, The Guardian understands.

Consequently, 1,102 Cabotage (local vessels) vessels are compelled to fulfil their repair and maintenance requirements in neighbouring countries. Numerous international vessels which dock on Nigeria’s shores also look elsewhere for maintenance.

Nigeria presently has an idle N50 billion modular floating dock acquired in June 2018 by NIMASA alongside other abandoned and inactive dockyards in the country.

This results in substantial financial losses, estimated at $147.8 million in docking fees, repair services and other additional costs for each vessel yearly.

The figure is based on a conservative single general maintenance every five years. This supposes that 220 or 20 per cent of the Nigerian vessels carry out maintenance yearly at an average cost of $670,000 (per visit).

The costs are incurred when vessels are transported to neighbouring countries for repairs and maintenance.

According to data from the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria currently has a fleet of 4,610 flagged vessels with a total tonnage of 6,131,814.55 gross registered tonnage (GRT) and 1,102 cabotage vessels with a combined tonnage of 2,037,184.63 GRT.

Whereas the flagged vessels could also carry out their maintenance in Nigeria, they have the choice of doing it elsewhere. But Cabotage vessels move within the countries but would need to visit neighbouring countries for repairs.

Due to the limitations of local shipyards and dockyards, the owners of the vessels resort to taking them to neighbouring countries such as Ghana, Kenya, Togo, Ivory Coast, Benin Republic and Cameroon for dry docking and repairs. This practice does not only lead to increased unemployment but also impedes the development of skills in the maritime sector, experts said.

The Guardian gathered that Nigerian vessels visit various African countries for maintenance and dry docking, despite their limited shipyard facilities.

One notable example is PSC Tema Shipyard in Tema Harbour, Ghana. The shipyard has a functional floating dock with a capacity of 10,000 tonnes and a graving dock that can accommodate vessels up to 200 meters in length.

The Durban Dry Dock, one of the largest dry docks in the Southern Hemisphere, can accommodate vessels up to 350 meters in length. It also offers services for smaller vessels and is renowned for its efficiency and high standards.

Also, Cape Town Dry Dock in South Africa is equipped with modern facilities and can handle a wide range of vessels, including large cargo ships and oil tankers.

The facilities are positioned along major shipping routes, making it a convenient stop for vessels travelling between the Atlantic and Indian Oceans. They offer a full range of repair and maintenance services, including hull repairs, engine overhauls and electronic system upgrades.

The African Marine & General Engineering Company Limited, located in Mombasa, Kenya, is an ISO-certified facility that offers dry docking and repair services for a variety of vessels, including cargo ships, tankers, and fishing vessels.

The facility is conveniently located for vessels travelling between Europe, the Cape, India and the Far East.

Nigeria’s inability to fully meet the dry docking and repair needs of ship owners has significant financial implications, experts said.

The frequency of ship repairs, maintenance and dry docking varies based on several factors, including the type of vessel, its age and its usage to ensure that ships remain in optimal condition and comply with international safety and regulatory standards.

According to information gathered by The Guardian, most ships are required to undergo dry-docking at least once every five years. This process involves taking the ship out of the water for thorough inspection, cleaning and repairs.

For some vessels, such as cruise ships, dry docking may be required more frequently, with inspections of the ship’s bottom every year and dry docking twice within five years.

The Secretary-General of the Merchant Seafarers Association of Nigeria (MESAN), Captain Alfred Oniye, explained that regular maintenance and repairs are usually performed more frequently than dry docking.

Dry docking, which may involve routine inspections, minor repairs and preventive maintenance, can occur monthly or yearly depending on the vessel’s operational schedule and specific maintenance requirements.

The Guardian learnt that the cost of transporting a vessel for dry-docking, maintenance and repairs to Kenya, Ghana and South Africa varies significantly among Nigerian-flagged vessels and foreign vessels that call at Nigeria’s ports. Several factors influence this variation, including the vessel’s size, the distance to the repair facility and the mode of transportation, such as towing or self-propulsion.

For towing, smaller vessels incur costs ranging from $10,000 to $50,000, while larger vessels may cost up to $100,000 or more. Self-propelled vessels face fuel costs ranging from $20,000 to $100,000 or more, depending on the distance and fuel prices.

Docking fees also vary based on the vessel’s size, the duration of the stay and the specific services required. Small to medium-sized vessels pay daily docking fees between $1,000 and $5,000, while for a typical repair period of 10-30 days, total docking fees can range from $10,000 to $150,000.

Large vessels incur daily docking fees between $5,000 and $20,000, and for a similar repair period, total docking fees can range from $50,000 to $600,000.

These figures amount to an average of $595,000 per vessel, which does not include other additional costs including crew wages, insurance and port fees.

Nigeria’s non-functional ship repair yards and dockyards are due to a combination of financial constraints – lack of investment, outdated equipment and broader economic challenges.

The Nigerian Ports Authority (NPA) Dockyard located in Apapa, Lagos, has been inactive for many years due to lack of maintenance and funding. The same applies to the Federal Ship Repair Yard in Port Harcourt which has been neglected over a decade due to mismanagement.

Others are the Calabar Ship Repair Yard, which has been abandoned and is currently in a state of disrepair, Warri Ship Repair Yard, Rivers State Ship Repair Yard, Koko Ship Repair Yard and Burutu Ship Repair Yard among others.

The former Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, last year stated that Nigeria lost over 110,000 vessels yearly to Togo, Ghana and the Republic of Benin for dry docking and repairs.

Nigeria also failed to secure N350 billion this year due to the idle N50 billion modular floating dock acquired in June 2018 by NIMASA. The facility is yet to commence operation.

Oniye, who is also a dean at City University, Cambodia, said despite the notable shipyards including Nigerdock FZE and the Naval Dockyard Limited, the country’s shipyards face challenges such as outdated infrastructure, limited capacity and insufficient investment, which hinder their ability to meet the demands of modern maritime operations.

He said the financial implication of Nigeria’s inability to fully meet the dry docking and repair needs of ship owners is significant as ship owners incur additional costs for transporting vessels to other countries for repairs as well as higher fees in foreign shipyards compared to local facilities.

Oniye also noted the extended repair time, stressing longer repair times due to travel and scheduling delays that can lead to increased operational downtime, noting that ships out of service for extended periods result in lost revenue for ship owners.   On the economic impact, Oniye said Nigeria misses out on potential revenue from docking fees, repair services and associated economic activities, adding that the limited functionality of local shipyards affects job creation and skill development in the maritime sector.

He said enhancing the functionality of Nigerian shipyards and ship repair yards is crucial for the country’s maritime industry.

Onyie said investment in modern infrastructure, capacity building and adherence to international standards can help Nigeria become a preferred destination for ship repairs, reducing financial burdens on ship owners and boosting the local economy.

NIMASA had last year released a list of 15 private accredited ship/boat building, repairs and maintenance yards in the country with the construction and designs of vessels to be flagged or registered under the Nigerian Flag Administration to be restricted to these facilities.

Also, all dry-dock maintenance by Nigerian and foreign-flagged vessels is required to be conducted at the accredited yards, with a warning that failure to comply would attract appropriate sanctions.

The accredited marine vessels building, repairs and maintenance yards include, Naval Dockyard Limited, Niger dock FZE and IGA Shipbuilding and Repair Yard in Lagos State as well as MG Vowgas Limited, Elschon Nigeria Limited, Starzs Marine and Engineering Limited and West Atlantic Shipyard in Rivers State.

Others located in Delta State are Python Engineering Company Limited, Gredor Nigeria Limited, Tuwasco Marine Services Limited, Warri Boat Yard, Niger- Benue Transport Company, Big Fingers Oil Services Limited, West High Logistics Resources Limited and Yade Barge Operator Limited.

Despite the many facilities, vessels are taken outside for repairs, maintenance and drydocking, costing the country huge foreign exchange losses.

The Founding President of the Nigerian Ship Owners Association (NISA), Isaac Jolapamo, explained that ship repairs and maintenance in these foreign countries incur high additional costs, including voyage expenses, fuel consumption, and international service rates, all priced in U.S. dollars, making it even more expensive given the current exchange rate challenges.

Jolapamo lamented that while Nigeria’s major shipyard, Niger Dock, is no longer operational due to mismanagement and lack of patronage, small shipyards in Ghana have remained functional for over seven decades.

Jolapamo also condemned the mismanagement of funds intended to support ship maintenance and industry development.

He criticised the failure of NIMASA’s modular floating dock project, calling it a misallocation of resources that has hindered local ship development.

He pointed to the NIMASA’s floating dockyard project as a failed initiative that diverted crucial resources, saying. “Instead of using funds to refurbish local ships, allowing them to compete with foreign vessels, the money was wasted on an ill-conceived floating dock project.”

“If Nigeria wants to revive its maritime sector, there must be a concerted effort to invest in local shipyards, provide financial support for shipowners, and enforce policies that genuinely encourage local participation,” Jolapamo urged.

A former member of the Presidential and Ministerial Committee on Fiscal Policy Measures, Lucky Amiwero, said the country’s shipyard industry is crumbling under poor infrastructure, political negligence and lack of implementation of existing maritime laws, such as the Cabotage Act.

Amiwero criticised the deteriorating state of the nation’s shipyards, the inability to repair vessels locally and the devastating economic losses the country suffers due to this oversight.

Amiwero pointed out that vessels are left to decay on Nigerian waters, while shipowners are forced to take their ships to other African countries for repairs.

He said Nigeria is losing significant foreign exchange because of a lack of functional shipyards, noting that small nations like Ghana and Togo have advanced beyond Nigeria in maritime infrastructure, while Nigeria, despite its potential, remains stagnant.

Amiwero emphasised the importance of the Cabotage Act, which was designed to boost the country’s shipbuilding, repairs and maintenance capacity as well as encourage local operators.

The decline of Nigeria’s shipyards is also hurting employment, as Amiwero lamented that students who study maritime-related subjects in institutions locally and abroad are left jobless upon returning, as the infrastructure to support their skills does not exist in Nigeria.

He urged the government to refocus on infrastructure development that can create jobs and boost the economy, pointing out that the shipyard industry is a critical part of maritime infrastructure, which, if developed, could provide employment and generate wealth domestically.

“We must develop our shipyards, implement the Cabotage regime and create a sustainable maritime industry that benefits our economy and future generations,” he stated.

The Vice Chairman of the Business Action Against Corruption (BAAC) Integrity Alliance, Jonathan Nicol, highlighted the ongoing struggles of Nigeria’s ship repair industry, noting that owners are increasingly spending a fortune in neighbouring repairs due to the inefficiency of local dry docking facilities.

Nicol, who is a former president of the Shippers Association of Lagos (SALS), explained that Nigeria once had functional ship repair yards, including facilities run by the Nigerian Ports Authority (NPA) and the well-known Niger Dock, which have either become too expensive or have fallen into disuse.

He said the NPA’s dockyard, which used to service smaller vessels at competitive rates, has long ceased operations, while the once thriving Niger Dock shipyard, has also struggled due to its high costs, leading ship owners to seek alternatives abroad.

One of the biggest issues, Nicol pointed out, is the inefficiency of the ship repair process in Nigeria.

He said shipowners often face extended repair times, with some dry docking procedures taking up to six months, noting that this is in stark contrast to neighbouring countries like Ghana, where repairs can be completed in a matter of weeks at much lower costs.

Nicol also emphasised the importance of certification and international recognition in the ship repair industry, pointing out that Nigeria lacks the facilities and certifications, such as Lloyd’s shipping certification, that are available in other countries.

[Guardian]