NSML MD, Abdulkadir Ahmed Says Access to Finance Crucial for Ship Acquisition , Construction, Others
The Managing Director and CEO of NLNG Shipping and Marine Services Limited (NSML), Abdulkadir Ahmed, has declared that access to finance is key for the acquisition and construction of ships, as well as critical for advancing Nigeria’s maritime sector on the global stage.
Ahmed disclosed this in his keynote address at the 2024 edition of the Association of Maritime Journalists of Nigeria (AMJON) Maritime Finance Conference in Lagos, themed: VESSEL ACQUISITION/CONSTRUCTION, NIGERIA’S BANKS, INSURANCE FIRMS, GOVERNMENT, AND THE BLUE ECONOMY and harped on the importance of strict adherence to standards in ensuring that ships are built and operated to the highest quality and safety levels.
He highlighted that such compliance is vital for ships to be competitive both locally and internationally, adding that “Shipping is a highly capital-intensive industry, and accessing finance is key for acquisition and construction activities.”
According to him, “Regardless of the market in which owners operate, the role of finance cannot be overstated.”
Managing Director and CEO of NSML, pointed out that stakeholder, including shipowners and prospective players, must have a deep understanding of the evolving dynamics within the maritime sector to ensure successful outcomes.
This understanding, he said, extends to compliance with maritime regulations from the outset, which is critical for vessels to be fully operational and tradeable on a global scale.
Ahmed underscored the significant role that financial and insurance institutions play in the global shipping industry. Citing the Petrofin Index for Global Ship Finance,
He cited that the top 40 banks lending to the shipping industry in 2023 accounted for a total of US$284.27 billion, with overall global bank lending, including local banks, reaching nearly US$375 billion.
He hinted on the growing complexity of modern vessels, which are increasingly equipped with advanced technology, stressing that this complexity demands a high level of technical competence and expertise from the design and acquisition phases through to their operation.
“Maritime regulations are becoming more stringent, impacting the design and operation of both new and existing vessels,” he added.
He pledged NSML’s commitment to maintaining its clients’ vessels to the highest global standards, ensuring they remain seaworthy, cargo-worthy, and globally tradeable.
He stated further that by maintaining these standards, shipowners can achieve a good return on investment, which is crucial for loan repayment.
He revealed that the shipping and maritime industry is heavily regulated, with a strong focus on safety, reliability, and environmental sustainability, adding that compliance with international conventions and regulations, such as the International Maritime Organization’s (IMO) SOLAS (Safety of Life at Sea) and MARPOL (Maritime Pollution) conventions, is central to global maritime operations.
Ahmed acknowledged NSML’s leadership in driving compliance with these standards, as well as the ongoing training and development of its personnel to ensure they are prepared to navigate the ever-changing maritime industry.
He explained that with the global push towards decarbonization and the reduction of greenhouse gas emissions, shipowners must stay informed about new rules and regulations when acquiring vessels.
He reiterated that NSML remains at the forefront of these efforts, ensuring that its operations continue to meet the highest industry standards.
Earlier in his welcome address, The President of AMJON, Mr Paul Ogbuokiri, highlighted on the urgency of bridging the financing gap in the maritime industry, which has hindered the development of Nigeria’s blue economy, as the government seeks to diversify its revenue streams.
Ogbuokiri, stated this at the 2024 Maritime Finance Conference held in Lagos with the theme: “Vessel Acquisition/Construction: Nigeria’s Banks, Insurance Firms, Government and the Blue Economy.”
Ogbuokiri emphasised on the association’s commitment to nation-building through informed reporting and advocacy.
He said the theme of this year’s conference was carefully chosen to bring together regulators, investors, financiers, and insurers to find a solution to the challenges retarding the growth of the Nigerian maritime industry.
The AMJON president said this is particularly crucial as the country looks to fully exploit its blue economy resources, especially with the establishment of the Ministry of Marine and Blue Economy.
He also extended his gratitude to NSML for their collaboration, emphasising the importance of collective efforts in addressing the challenges facing the maritime sector.
“With the government’s focus on diversifying the economy and boosting revenue, the time for all hands to be on deck in developing the Nigerian maritime industry is now,” he added.
He called on stakeholders to engage in deep discussions on fostering greater collaboration between the financial sector, government, and maritime industry players to unlock the full potential of Nigeria’s blue economy.
The event, which was co-hosted by NLNG Shipping and Marine Services Limited (NSML), drew industry leaders, government officials, and financial experts together to address the pressing financing gaps hampering the growth of Nigeria’s maritime sector and the broader blue economy.
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