The underdevelopment of the Nigerian maritime sector, particularly in shipping activities like fleet expansion, shipbuilding, and repairs, has been primarily attributed to a lack of funds. Despite efforts like the Cabotage Vessel Financing Fund (CVFF), administrative bottlenecks have hindered progress. This financial inadequacy has left Nigeria without a flag carrier for over three decades, heavily reliant on foreign shipping companies.

Ship repair, a critical aspect of maritime infrastructure, faces challenges due to the absence of a dry dock in the country. To address this, the Nigerian Maritime Administration and Safety Agency (NIMASA) acquired a modular floating dock, using the Nigerian Ports Authority (NPA) continental shipping yard for its operation.

These challenges highlight the overarching issue of inadequate funding in the Nigerian maritime sector. The CVFF, when operational, may only scratch the surface of financing shipping activities, considering the extensive requirements for a thriving shipping industry. Existing financial institutions also lack the capacity and understanding of maritime industry intricacies.

Surprisingly, the Central Bank of Nigeria (CBN) lacks a specialized desk for maritime issues, emphasizing the need for a dedicated financial institution for the sector. A maritime bank would serve as a catalyst for sector development, considering the growing awareness of the sector’s potential to replace oil as the country’s economic mainstay.

Specialized banks have proven successful in financing critical sectors, such as the Bank of Industry for manufacturing and the Infrastructure Bank for infrastructure development. A maritime bank, as advocated by the Nigerian Ship Owners Association, would address the financing needs of vessels, dockyards, shipbuilding, and general maritime infrastructure development.

To succeed, a maritime bank should be private-sector driven, established by the government. The Nigerian Liquefied Natural Gas company serves as a model for government-established, private sector-driven success. While not a panacea, a maritime bank would significantly contribute to the accelerated development of the sector, positioning Nigeria as a formidable player in global maritime business and reaping optimal economic benefits for the nation and its people.