Market News

By : Adaku Onyenucheya

• Fault govt agencies’ inability to secure vessels after paying security fees in dollars

The Shipping Lines Association of Nigeria (SAN) has decried the mandatory $4.6 million paid yearly to government over the 2,340 stowaways apprehended yearly in the country, despite shipping companies paying security fees in United States dollars to government agencies in the maritime domain to secure vessels.

The Chairman of SAN, Boma Alabi, who disclosed this on Friday in Lagos while addressing some selected journalists, expressed concern over the persistence of stowaways on vessels despite payments made to government agencies tasked with securing ships and port environments.

The shipping group, which represents major shipping-line agents and maritime stakeholders operating in Nigeria, noted that for each repatriated stowaway, shipping lines are mandated to pay $2,000 to the government.

Giving a breakdown of the arrests, Alabi, who is also the President of Shipping, Shipping Agencies Clearing and Forwarding Employers Association, explained that a minimum of two to three stowaways are arrested every week per ship.

“We have about 15 ships coming to Nigeria. So, if you multiply three stowaways into 52 weeks making up a year by 15 ships that come to the country, you will have 2,340 stowaways every year. And for each stowaway that is repatriated, we pay $2,000,” she explained.

Alabi criticised the practice of charging security fees in United States dollars, describing it as a form of “dollarisation” of the economy that delivers little or no value in return.

She argued that agencies responsible for vessel and port security have failed to provide the level of service they are being paid for, leaving ships vulnerable and operators exposed to unnecessary risks.

Alabi lamented that shipping companies and vessel operators continue to bear financial obligations for security services, yet the effectiveness of these measures remains questionable as unauthorised persons still gain access to ships.

According to Alabi, the consequences go beyond financial losses, as the continued presence of stowaways on vessels has serious human implications.

She noted that some stowaways lose their lives during these dangerous journeys, often driven by ignorance and desperation, a situation Alabi said could be avoided with proper enforcement of security protocols.

Alabi described stowaways as a major pandemic in the country that needs to be dealt with, warning that failure to effectively secure vessels not only endangers lives but also undermines the credibility of Nigeria’s maritime security framework.

“Meanwhile, we are paying these agencies for the safety of the vessels and they are collecting their payment in U.S. Dollars. Again, dollarising the economy and yet, you are not providing the service. You are not providing the service. You are putting Nigerians at risk because these stowaways, some of them lose their lives in the process,” Alabi stated.

The Chairman of SAN charged the government agencies to discharge their duties efficiently in the interest of national economic growth.

She, however, warned that continued operational failures within regulatory and enforcement bodies are undermining trade and costing the country jobs as well as stalling expansion across the maritime industry, as businesses are unable to grow in an environment where demand is suppressed by systemic bottlenecks.