Domestic Shipbuilding and Repair as a Priority Industrial Policy

Across Nigeria’s sprawling coastline and bustling ports lies a maritime paradox: though the country handles a large volume of maritime traffic and commerce, much of its vessel repair, maintenance, and construction still depends on foreign shipyards. This reliance drains foreign exchange, incurs high costs and long downtimes, and denies the nation a chance to build a robust maritime industrial base. As global maritime dynamics evolve, now is the moment for Nigeria to reframe domestic shipbuilding and repair not as an afterthought but as a central pillar of national industrial and economic policy.

 The Cost of Neglect

Industry stakeholders estimate that Nigeria loses more than USD 147 million annually because vessels operating in domestic waters are sent abroad for dry‑docking, maintenance, or repair.

Reports show that many of the country’s once‑viable yards have fallen into disuse or run-down condition. The result: shipowners turn to neighbouring countries like Ghana, Benin or Togo, or distant yards overseas, paying high transaction fees and incurring long delays.

Moreover, a lack of large-scale domestic capacity means that despite Nigeria’s economic size and coastal access, the country remains unable to construct ocean‑going vessels at home — a critical gap in maritime sovereignty and industrial autonomy.

Unearthed Potential: Why Domestic Shipbuilding Matters

Rebuilding domestic shipbuilding and repair capacity offers multiple strategic and economic gains:

Foreign exchange retention: By servicing vessels locally, Nigeria can prevent millions of dollars flowing out annually. Investment in local yards can transform repair costs into domestic value.

Job creation and skills development: A thriving shipyard industry could revive allied sectors such as steel‑working, fabrication, marine engineering, and logistics. Estimates suggest that robust shipbuilding could create thousands of skilled jobs and re‑energise industries long since dormant.

Industrial linkages and value chain development: Shipbuilding is not just about repairing or building ships — it demands a supporting industrial ecosystem: steel production, mechanical fabrication, equipment supply, maritime services, and specialised labour. Revival of a domestic steel capacity and integration with shipyards is critical.

Improved maritime sovereignty and national security: Domestic maintenance and construction capacity ensure that vessels — including surveillance, security, and logistics ships — can be serviced locally, reducing reliance on external jurisdictions and potential delays.

Economic diversification and export potential: With functioning shipyards, Nigeria could attract regional maritime business, service ships operating in West and Central Africa, and even compete on international repair and maintenance markets.

Signs of Revival: Emerging Commitments and Investments

After decades of neglect, there are encouraging signals that domestic shipbuilding and repair may soon become a priority once more. The Regional Maritime Development Bank (RMDB) — a new regional financing institution — has secured funding to the tune of USD 150 million for the upgrade and expansion of a major Nigerian shipyard.

Complementing this, the Nigerian Maritime Administration and Safety Agency (NIMASA) has recently inspected ongoing repair work at Nigerdock in Snake Island Free Zone, Lagos, affirming that Nigeria already has the capacity — at least in part — to undertake vessel repair and construction.

These developments suggest a potential pivot: away from passive reliance on foreign yards, toward proactive revitalisation of local capacity, anchored by investment, regulation, and institutional support.

The Missing Link: Industrial Infrastructure and Policy Coherence

Yet serious structural obstacles remain — chief among them the lack of a functioning domestic steel industry. Without reliable domestic steel and heavy‑industry supply, shipyards remain dependent on imported materials, which inflates costs, undermines competitiveness, and renders long‑term viability uncertain.

Observers argue that revival must go hand‑in‑hand with industrial policy. Shipyard restoration must be accompanied by renewed investment in mini‑steel mills, foundries, fabrication plants, and ancillary manufacturing capacity. This kind of integrated industrial ecosystem is what underpins maritime power in competitor nations.

Policy coherence is also lacking. Although legislation such as the Nigerian Coastal and Inland Shipping (Cabotage) Act — intended to prioritise Nigerian-flagged vessels and encourage domestic participation — exists, inconsistent enforcement and regulatory inertia have limited its intended effect.

A Roadmap Forward: Policy, Investment, and Private‑Public Synergy

For Nigeria to realise the promise of domestic shipbuilding and repair, a multi‑pronged strategy is required:

Institutional commitment and funding: Government agencies, development banks, and private investors must back shipyard upgrades, floating docks, and modern dry‑docking infrastructure. Projects like RMDB’s investment should be fast‑tracked and expanded.

Revival of steel and heavy‑industry base: Restarting steel production — through modular mini‑mills or revitalising legacy plants — is essential to supply local shipyards with cost‑effective materials.

Capacity building and skills development: Maritime training institutes must offer curricula for naval architects, marine engineers, welders, and repair technicians, supported by funding and regulatory incentives.

Regulatory enforcement and incentives: The Cabotage Act and related maritime legislation must be enforced, with incentives for local shipowners, repairers, and operators to use domestic facilities.

Public–private partnerships and value‑chain development: Encourage integrated maritime clusters — shipyards, steel mills, logistics, maintenance services, brokerage, insurance — to build a sustainable ecosystem.

Regional and continental positioning: With strong shipbuilding capacity, Nigeria can position itself as a hub for West and Central Africa — offering vessel maintenance, repairs, and maritime services to neighbouring states, reducing capital flight and boosting foreign exchange retention.

From Opportunity to Industrial Reality

The neglect of Nigeria’s shipbuilding and repair industry has long been an economic and strategic oversight. But the tides may be shifting. With renewed interest from development finance institutions, regulatory agencies signalling support, and increasing recognition of the sector’s economic potential, the time is ripe for Nigeria to reclaim its maritime heritage.

Turning this opportunity into sustained industrial reality will require deliberate policy action, deep investment, and private‑public cooperation. If pursued with discipline and vision, a reborn shipyard industry could become a cornerstone of Nigeria’s industrial renaissance — creating jobs, enhancing maritime security, retaining wealth, and positioning the country as a competitive maritime hub for Africa’s future.

(Sponsored by: OceanSpring Trust)