Why Nigeria cannot build ocean-going vessel for international trade

Hope that Nigeria will build its ocean-going vessel for international trade has been dashed as the absence of steel production, stable power supply and ship demolition yards poses obstacles.

The Guardian learnt that to build such a vessel requires large steel production, and extremely high temperatures of about 800 degrees centigrade, as well as a demolition yard for old vessels.

Technical Consultant at the Nigerian Maritime Administration and Safety Agency (NIMASA), Iroegbu Cookey, cited energy supply as a critical bottleneck, explaining that shipbuilding depends heavily on steel processed at extremely high temperatures of about 800 degrees Celsius, which cannot be achieved solely with generators.

“For you to lay the keel of a ship of a good size that can sail internationally, you need a temperature of not less than 800 degrees centigrade. If you want to have such temperatures for steel, it has to come from a power generation system, not just from a generator. No matter how you pair generators, the highest you can get is 350 degrees centigrade. And if you are running it on a generator set for 5,000 kVA, you will be spending like 102 litres of diesel per hour.

The Delta Steel Company is currently operating at about 20 per cent capacity, while the operational status of the Ajaokuta Steel Complex remains uncertain, forcing shipbuilders to rely on imported steel.

He said Nigeria has the technical capacity and human resources to build ships locally, including internationally trained naval architects, marine engineers, and structural engineers who are fully capable of delivering world-class shipbuilding projects, but structural limitations have denied them the space to operate at that level.

Cookey further lamented Nigeria’s failure to develop ship demolition and recycling yards, noting that obsolete vessels in the country are routinely sold to India and Turkey.

He argued that establishing demolition yards in locations such as Aladja or Warri would help feed local steel plants and strengthen the shipbuilding value chain.

Cookey, however, expressed optimism, noting that Nigerians are already building barges and high-quality passenger boats locally, while several vessels currently operating in Nigerian waters are being refurbished domestically.

“Every demolition that is supposed to be done here is taken abroad. We are exporting resources. When ships go down and are no longer in the trade, we just sell them out to India, to Turkey. Establishing demolition yards in locations such as Aladja or Warri would help feed local steel plants and strengthen the shipbuilding value chain.

This shows the level of skill we have. Once steel production and energy supply are addressed, Nigerian engineers will build ships,” he said.�He maintained that with the right industrial and policy support, shipbuilding could become a thriving sector in Nigeria’s maritime economy.

The Head of Research at the Sea Empowerment and Research Centre (SEREC), Dr Eugene Nweke, said Nigeria’s inability to scale domestic steel production through Ajaokuta and other plants has left local shipyards and automotive original equipment manufacturers (OEMs) heavily dependent on imported steel and fabricated components.

According to Nweke, this structural weakness has made local shipbuilding and repair operations cost-inefficient and uncompetitive, especially when compared with regional and international counterparts that enjoy access to affordable domestic steel.

While acknowledging the strategic importance of Ajaokuta Steel, Nweke described its revival as “politically sensitive and slow”, arguing that decentralised steel production offers a lower-risk and faster pathway to industrial recovery.

To address the challenge, Nweke called for a shift away from reliance on single, large-scale steel revival projects toward more pragmatic and decentralised solutions.

Nweke also urged the Federal Government to provide guaranteed offtake arrangements—such as steel supply windows tied to public infrastructure projects and the fleet maintenance needs of agencies like the Nigerian Ports Authority—to attract private-sector investment into domestic steel production.