Business
How Maritime Sector Fared In 2020
Activities in the Nigerian maritime sector in 2020 were greeted with mixed feelings as the sector witnessed a lot of ups and downs.
In the first quarter of 2020, the sector recorded great improvement across the nation’s seaports as maritime activities boomed. Container traffics across the nation’s six seaports were on the increase due to local and foreign patronage by investors.
The ports within the period recorded high volume in foreign vessels. In the two ports in Rivers State – Onne and Rivers Port Complex, for instance, the volume of container traffic was so high that importers and clearing agents were smiling to the banks. It also generated huge revenue for the Nigerian Ports Authority (NPA) and the government.
The outbreak of the Coronavirus pandemic in the first quarter of the year, however, halted the progress being made in the sector. For nearly four months, activities at the ports ceased, while move-ment of vessels and personnel were restricted due to the lockdown imposed by the government as a result of the pandemic.
In a nutshell, the sector was confronted by three major challenges that generally hampered socio-economic development in the country. These are piracy, Corona-virus pandemic and EndSARS protests across the country.
An x-ray of the above challenges would assist in knowing how the maritime industry feared in 2020.
Piracy:
Piracy constituted one of the major setbacks to the maritime industry in 2020. The sector witnessed a decline in operations due to incessant attacks on ship owners by sea robbers. The menace became a daily norm in the indu-stry, scaring away foreign investors and reducing investments in the sector.
Many stakeholders, investors and vessel owners abandoned the nation’s ports and relocated to other African countries for safety of their crews and vessels.
Over 138 crew members, vessel owners and other personnel were kidnapped in the Gulf of Guinea by rampaging pirates in the year under review. Many died in the process while huge ransom were paid to rescue some from the hands of hoodlums.
Here in Rivers State, over 15 persons, including passengers, were hacked down on their way to Bonny, Andoni, Bille and other riverine communities with their valuables worth millions of Naira carted away by sea hoodlums.
Sea robbers within the year under review, also stole over 16 speed boat engines and other personal items, frustrating operators to do business and rendering the sector unproductive.
This situation forced many foreign ship owners to hire at a huge cost the services of the Nigerian Navy to escort their vessels to the points of destination.
Coronavirus:
Coronavirus is a global pandemic that wreaked havoc on the socio-economic activities of the entire globe. Beside causing death, it led to the closure of industries and restriction of goods and services.
The maritime sector had its own share of the adverse effects of the pandemic. Due to lull in maritime activities, many dockworkers lost their jobs, while seafarers, ship owners, crew members and vessels were stranded at sea for months. Some were quarantined and many lost their lives to the pandemic. Vessels laden with cargoes were suspended on high sea while most perishable goods got spoilt.
#EndSARS Protests:
The EndSARS protests that rocked the nation in the month of October affected operations at the nation’s ports. For instance, the headquarters of the Nigerian Ports Authority (NPA) in Lagos was set ablaze by hoodlums that hijacked the End-SARS protests in Lagos. The attack led to the destruction and looting of some of the NPA’s valuables worth millions of Naira. Over N807 million had been earmarked to rehabilitate the port.
Maritime activities were also disrupted in all the six seaports in the country including Apapa and Tin Can ports, Lagos; Onne and Rivers ports in Rivers State; Warri and Calabar ports, thereby depriving the sector a huge billions of naira.
Any Hope For The Sector In 2021?
Notwithstanding the numerous challenges that confronted maritime industry in 2020, there is a ray of hope for the sector in the coming year going by several efforts being made to reposition the sector.
It would be recalled that the Federal Government had, earlier in 2020, approved the construction of Port Har-court to Maiduguri Eastern narrow gauge railway with new branch lines and trans shipment facilities to boost and facilitate maritime operations in the country.
Approval has also been given for the construction of deep seaport at Bonny, Rivers State by the Federal Government at a cost of over $46.924.369 to boost operations in the sector.
Meanwhile, the National Inland Waterways Authority (NIWA) has commenced the trial movement of containers from Onne Port to Onitsha River Port by barges with the aim of decongesting Onne Port and boosting maritime activities in the eastern zone.
In a bid to curb insecurity on the waterways, the Nigerian Navy is planning to acquire two warships to tackle piracy in the Gulf of Guinea in 2021 and make the water more navigable and safer for ship owners.
In recognition of the leadership role being played by Nigeria in tackling insecurity in the Gulf of Guinea, the International Maritime Organisation (IMO) through its Secretary General, Kitsch Lum, wrote a commendation letter to the Federal Government through IMO Director, Maritime Safety Division, Heike Daggim.
There are also good news from the International Transport Workers Federation (ITF) through its African Regional Secretary, Muhammed Safiyanu, that Nigerian seafarers would henceforth be assisted to secure jobs with foreign vessels.
Another window of opportunity for the sector to bounce back was the training of over 500 dockworkers and seafarers by the Nigerian Maritime Administration and Safety Agency (NIM-ASA) across the nation’s ports to boost maritime activities in the country.
The NPA has also earmarked over N807 million for the rehabilitation and repair of the damaged facilities at the NPA headquarters during the EndSARS protests in Lagos.
It is also noteworthy that the West African Containers Terminal (WACT) has acquired two mobile Harbour Cranes at Onne Port to boost marine operations.
There is no gainsaying the fact that all these efforts are geared towards putting the maritime sector on a good footing in the Year 2021, beginning from today. But the success of these efforts in the maritime sector depends on the political will and sincerity of all the players in the sector, especially the government.
By: Chinedu Wosu
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
