Ship Financing: Experts Urge Banks To Establish Dedicated Maritime Desks

Maritime finance experts and key industry stakeholders have called on Nigerian banks to establish dedicated maritime finance desks as part of efforts to bridge the funding gap confronting indigenous shipping operators and improve access to vessel acquisition financing.

The recommendation was one of the major outcomes of a maritime finance roundtable convened by Olisa Agbakoba Legal (OAL), where participants stressed that specialised banking units with maritime expertise would strengthen lenders’ capacity to assess shipping risks and structure sustainable financing solutions.

The experts also identified cargo-backed financing and long-term Contracts of Affreightment (COA) as practical mechanisms for creating predictable revenue streams for indigenous shipowners, thereby improving their creditworthiness and ability to secure and repay vessel financing facilities.

According to the participants, long-term cargo contracts would provide the stable cash flow required by financial institutions to support vessel acquisition while reducing lending risks.

To deepen expertise in the sector, the Forum resolved to expand its membership to include ship management professionals, marine insurance practitioners, marine surveyors, engineers and valuers, creating a broader knowledge base to support safe and sustainable ship financing in Nigeria.

The stakeholders also nominated Mr. Wale Mesioye of Fidelity Bank as Coordinator of the Forum. He is expected to work with Olisa Agbakoba Legal to develop a robust body of knowledge and best practices on maritime financing.

In addition, participating financial institutions were encouraged to strengthen their internal maritime finance capabilities by creating dedicated desks focused on the shipping sector.

The roundtable attracted representatives from leading financial institutions, insurance companies and maritime organisations, including Fidelity Bank Plc, Zenith Bank Plc, TAJBank, Lotus Bank, the Bank of Industry, SUNU Assurances Nigeria Plc, Capstone Insurance Brokers Limited, NBC Maritime and Seamate Group.

The discussions come as stakeholders continue to deliberate on the implementation of the Cabotage Vessel Financing Fund (CVFF), established under the Cabotage Act to support vessel acquisition by indigenous operators, enhance local shipping capacity and increase Nigerian participation in coastal trade.

Speaking at the close of the meeting, maritime lawyer and former Nigerian Bar Association president, Dr Olisa Agbakoba (SAN), said the initiative would continue with broader stakeholder participation.

According to him, the next edition of the roundtable will bring together more indigenous shipowners, additional financial institutions and representatives of the Federal Ministry of Marine and Blue Economy to advance practical solutions for sustainable ship financing in Nigeria.