Economy

Nigeria’s Loss to Foreign Ship Companies Accumulates to $50bn

Nigeria has recorded a total of $50 billion loss in its shipping services to international ship companies from 2015 to 2022.

This was disclosed by a source at the Federal Ministry of Budget and Planning who gave the breakdown as $25 billion between 2015 and 2017 with another $25 billion from 2018 to 2022.

Investors King reports that Nigeria spent $20 billion on dry and wet cargoes transported by foreign ships between 2018 and 2019 as indigenous fleets didn’t ply international routes.

The senior official who pleaded anonymity said loss had been recurring for some years in the sector.

He hinted that over $9 billion was recorded as opportunity loss in 2010 and $9.60 billion in 2020 on the export and import of cargoes.

He urged subsidiaries to better patronage the indigenous shipping companies in Nigeria to improve their businesses and enable them to take over shipping business which will in turn reduce the country’s loss and grow the economy.

A shipping expert, Gbolahan Adesoji charged the government to provide a conducive environment with good policies and incentives for shipping companies and staff as this will help to boost their operations.

He reflected on the history of cargo exports and imports since 1956, discussed its rise in those days and called for the present day development.

“Since 1996, there has been a rapid rise in cargo throughput culminating in an unprecedented volume in 2011. It is worthy of note that average cargo throughput from 1956 to 2005 is 14,467,024 metric tons while the average throughput increased from 49,173,324 metric  tons.’

“The yearly average cargo throughput of 70,926,939.38 metric tons of cargo from 2006 to 2018 over the  yearly average  of 14,467,024  metric tons  from 1956  to  2005 shows a percentage increase of 490.26 per cent.

“This shows the remarkable progress made in our port developmental efforts since the port concession era. The statistics on Table 1 also  shows that  the cargo throughput increased from 49,173,324 metric tons,” Adesoji explained.

Blessing Akorowosi

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Blessing Akorowosi

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