NPERA: Regulatory Uncertainty Raising Maritime Investment Risks
The Nigerian Ports Economic Regulatory Agency (NPERA) has raised concerns over growing investment risks in the maritime sector, warning that uncertainty in the business environment is limiting indigenous shipowners’ access to affordable financing.
The agency identified regulatory reforms, transparent port charges and predictable business conditions as essential measures to reducing investment risks and attracting affordable capital into Nigeria’s indigenous shipping industry.
The Director-General of NPERA, Dr Pius Akutah, stated this during the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN), held in Lagos over the weekend.
The summit was themed, ‘Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory, Financial Bottlenecks.’
Akutah, who was represented by the Director of Consumer Affairs at NPERA, Ify Okolue, said Nigeria’s ambition to become a major maritime power would remain difficult to achieve without strengthening the financial capacity of indigenous entrepreneurs to own, operate and compete with vessels involved in international trade.
He described indigenous ship ownership as a vital instrument for economic sovereignty, national competitiveness, employment generation and increased participation in global commerce.
According to him, a stronger Nigerian-owned fleet would create employment opportunities for seafarers, stimulate maritime-related services, support exporters and deepen local participation across the shipping value chain.
The NPERA chief executive noted that the capital-intensive nature of the shipping business, alongside the high costs of vessel acquisition, maintenance, insurance, fuel, crew and regulatory compliance, continued to make affordable financing difficult for local operators.
He explained that financial institutions often imposed stringent lending conditions, demanded stronger collateral and charged higher interest rates because of the perceived risks associated with maritime investments.
Akutah stressed that addressing the financing challenges required more than encouraging banks to lend to indigenous shipowners, adding that efforts must focus on reducing the risks that make legitimate maritime investments expensive.
He maintained that low-risk capital did not mean risk-free funding but required an investment environment where risks were properly assessed, managed and distributed among shipowners, lenders, insurers, cargo owners, investors and government institutions.
The NPERA boss further emphasised that regulatory certainty would enable shipping companies to prepare credible financial projections, negotiate long-term commercial agreements and demonstrate their capacity to meet financial obligations.
He said effective economic regulation was essential to building investor confidence through transparent charges, fair competition, consistent regulatory decisions and predictable commercial arrangements.
According to him, uncertainty increases the cost of doing business and could determine whether potential shipping investments proceed or are abandoned.
Akutah added that although NPERA was committed to promoting transparency, fair competition and efficient port economic practices within its statutory mandate, the agency’s regulatory responsibilities should not create unnecessary barriers to legitimate business activities.
He, however, acknowledged that the financial challenges confronting indigenous shipowners extended beyond port regulation, requiring coordinated interventions in credit access, vessel acquisition, insurance, foreign exchange, maritime safety and other operational areas.
He called for stronger collaboration among maritime regulators, financial institutions, development finance partners, shipowners and other industry stakeholders, noting that no single government agency could independently resolve the sector’s structural challenges.
The NPERA chief executive also urged indigenous shipowners to embrace innovative financing arrangements, strengthen commercial partnerships and maintain sound business practices to improve their attractiveness to investors and lenders.
He called on industry associations and shipowners to engage the agency through documented concerns and practical recommendations that could help address existing challenges.
Akutah further stressed the need for operators to demonstrate transparency, professionalism and financial discipline, noting that building a sustainable indigenous shipping industry required responsibilities from both regulators and private-sector participants.
He said Nigeria’s objective should extend beyond increasing the number of locally owned vessels to developing a financially sustainable, professionally managed and internationally competitive shipping industry.
“Capital follows confidence; confidence grows with predictability; and predictability is strengthened by transparent institutions, sound business practices and consistent rules,” he said.
He added that government policies alone could not build a competitive indigenous shipping industry without credible regulation, responsible entrepreneurs, innovative financiers and sustained public-private collaboration.
Akutah also commended the Shipping Correspondents Association of Nigeria for its contributions to maritime journalism and public accountability, urging journalists to sustain accurate, balanced and evidence-based reporting on shipping finance, port economics and indigenous maritime development.
