Indigenous Shipping Lines Collapse, As Shipowners Sell Off Assets To Pay Debt

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Similarly, another ship owner who craved anonymity said things are very tough for him now economically. He also confirmed that majority of the local ship owners who are indebted to the banks have resorted to selling their properties as the only way to repay their huge bank loans. Also speaking on the issue, President of Al-Dawood Shipping, a local shipping firm, Captain Niyi Labinjo said most of the ship owners have lost prime properties to the banks due to their non-performing loans.

“All the companies are also heavily indebted to banks and are mostly unable to service the loans they took to buy ships,” he said even as he declared that hehas sold most of his properties to pay bank debt.The general secretary of the Nigerian Shipowners Association (NISA), Tunji Brown also disclosed that the banks are on the trail of the debtor-ship owners to repay their huge debt.“We are unable to get jobs, banks are running after us to pay back loans, we are not able to access loans anymore because loans already provided to ship owners are not being paid so we are facing a difficult time,” he said.

Indigenous Shipping companies like Equatorial Energy, Oceanic Energy, Morlap Shipping, Peacegate, Pokat Nigeria Limited, Al-Dawood Shipping, Potram Nigeria Limited, Joseph Sammy, Genesis Worldwide Shipping and Multi-trade Group that were once thriving businesses are now either completely dead or are in abyssas majority of them have been selling their properties or being seized by the banks.However, when asked about what to do to get the local shipping industry back on track, Jolapamo  urged  the federal government to enact the Local Content Law and review its trade policies.The ship owners argued that part of what contributed to their problems was government allowing foreigners to take over the cabotage trade in the country.He also asked the government for intervention fund to save local shipping industry from imminent collapse.‘‘We gave a recommendation to federal government to give intervention fund and they said it’s a no go area and we asked them to change trade policy so that we sellour crude  on Cost Insurance Freight (CIF) but till today nothing has been done. We call on the government to strictly enforce Local Content Law and not allow foreigners take over the cabotage trade,’’ Jolapamo said.

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