By Radarr Africa Business Desk
LAGOS, November 9 (Radarr Africa) – Nigerian shipowners are registering more vessels under foreign flags than on the national register, depriving the country of registration fees, tonnage taxes and local jobs, according to data from the United Nations Conference on Trade and Development (UNCTAD) and industry figures.
UNCTAD data through June 2026 show that foreign-flagged vessels beneficially owned by Nigerians rose by 28.1 per cent over six years, compared with 17.5 per cent growth for vessels on the Nigerian register. The figures work out at 35 foreign-flagged vessels for every 100 Nigerian-owned vessels on the national register.
Citing Clarksons data, UNCTAD lists 82 Nigerian-owned vessels of up to 1,000 gross tonnes under foreign flags, against 235 on the Nigerian register.
Dakuku Peterside, a former director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA), said lenders often require foreign flags because recovering a financed asset is seen as harder in Nigeria. He said NIMASA can issue internationally recognised certificates, but confidence in certificates from different flag administrations is not equal.
Aminu Umar, president of the Nigerian Chamber of Shipping, said certification of ships, equipment and seafarers must be endorsed by the flag state, and that some requirements are not yet implemented in Nigeria. His company, Sea Transport Services Nigeria Limited, flagged most of its 12 tankers in Nigeria but placed vessels reserved for international trade on foreign registries.
AbdulKadir Ahmed, managing director of NLNG Shipping and Marine Services, said at an October summit in Lagos that Nigeria must build seafarer certification to international standards. His firm’s 13 ocean-going vessels are reportedly all flagged abroad.
Temisan Omatseye, a former NIMASA director, said the closed registry deters owners, partly because of requirements such as a 100 per cent Nigerian crew. He backs a sub-registry open to foreign owners. The Shipowners Association of Nigeria (SOAN) also advocates a second, open international registry.
Costs are a further factor. Customs said a 1,000-ton tanker bought for $1 million attracts about N270.35 million in charges on permanent import. Foreign-flagged vessels pay only a temporary importation levy, which is much cheaper than full import duty.
Peterside said one shipowner asked a bank for nearly N1 billion (about $726,420) to cover Customs and NIMASA and Nigerian Content Development and Monitoring Board registration costs for a single oil tanker. He said the sum exceeded official fees and included what he called under-the-table payments.
Speed also counts. Nigerian registration takes more than a week, while Liberia, Panama and the Marshall Islands offer 24-hour timelines. NIMASA is testing a digital Nigerian Ship Registry intended to speed up registration and issue electronic certificates.
The revenue at stake is considerable. When owners use foreign registries, registration and regulatory fees, tonnage taxes and employment opportunities go to other countries. The International Transport Workers’ Federation (ITF) has cited Liberia’s registry as bringing in more than $20 million in annual direct revenue, about 6 per cent of that country’s national budget.
Flag states are the countries in which a vessel is registered and whose laws govern it. Owners choose among them on the basis of financing terms, certification, taxes and speed. A closed registry, where ownership and crew must be largely national, narrows that choice, which is why some industry figures want a separate open register for international trade.
