Nigerian National Shipping Line
Encyclopedia
The Nigerian National Shipping Line (NNSL) was established by the Nigeria
n government in 1959.
Despite heavy investment and subsidies, the state-owned company was unable to compete with European lines.
Much of the investment went to enriching the political elite.
Deeply indebted, the NNSL was liquidated in 1995 and all 21 of its vessels were sold.
, both British companies, while the Nigerian government held 51%. In 1961, the Nigerian government acquired all the shares.
The NNSL started operations in 1959 with three vessels.
By 1964 it had grown to a total of 16 vessels.
The public company was assisted by private businessmen.
The tycoon Sir Louis Ojukwu
was an early member of the board, dying in 1966.
The chairman from 1967 to 1973 was Oloye Adekunle Ojora, formerly of the United Africa Company
, who later became a highly successful businessman in his own right.
the army made free use of the NNSL for transport of troops.
The ships played a key role in the advances along the coast in 1969.
With the end of the Civil War in January 1970, General Yakubu Gowon
announced an extensive program to revive the economy. In place of expensive hired vessels two new ships were bought for the NNSL and the ports at Calabar and Port Harcourt were rehabilitated.
In 1977 the government ordered construction of 19 new vessels to replace the aging fleet. By 1979 the company had 24 oceangoing ships.
The NNSL was an important source of training for seamen of the Nigerian Merchant Navy
.
In January 1980 President Shehu Shagari
talked to reporters about his first 100 days in office.
He said that during this period the NNSL increased its percentage of imported goods from about 8% to 11.3% and had started bringing in components for the Peugeot assembly plant in Kaduna, components that had previously been flown in.
On a less positive note, heroin smuggling by crew members was a significant issue in the 1970s and 1980s, with Nigeria serving as a major transit point for drugs bound for Europe.
compared results to the benefits that the United Nations Conference on Trade and Development
had estimated would come from entry of Nigeria into shipping. The findings were that the investment had made no sigificant contribution to Gross Domestic Product, employment, the balance of payments, exercising countervailing power, national security or the country's image. The gains had been less than the opportunity costs of the resources used.
In 1988 the National Maritime Authority granted six Nigerian shipping lines "national carrier" status, including the state-owned Nigerian National Shipping Line. The NMA planned to extend this status to more domestic companies so as to reduce control of trade by foreign-owned lines.
The Shipping Policy Decree of 1987, which established the NMA, gave approval for a 50-50 share between foreign and domestic lines for non-conference cargos. However, in 1988 the 24 ships of Nigerian national carriers including the NNSL took only 11% of the cargoes at Nigerian ports. The NNSL and the private companies suffered from financial problems and lacked the facilities needed to attract cargoes.
In the 1990s several of the company's vessels were seized in different parts of the world for alleged breach of contract and unpaid bills.
The NUL, fully owned by the Nigeria Maritime Authority, began commercial operations in July 1996 as Nigeria's national flag carrier.
The NUL had just one ship, MV Abuja.
In August 2005 the government put the NUL up for sale. The company now had no vessels, but owned a shipping license.
In July 2010 it was reported that the Nigerian Maritime Administration and Safety Agency
, the successor to the NMA, had completed arrangements to establish a new national shipping line for Nigeria.
A fresh attempt was made to relaunch and sell the NUL in 2011.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
n government in 1959.
Despite heavy investment and subsidies, the state-owned company was unable to compete with European lines.
Much of the investment went to enriching the political elite.
Deeply indebted, the NNSL was liquidated in 1995 and all 21 of its vessels were sold.
Formation
Nigeria formed the NNSL in 1957. At first 33% of the capital was held by the Elder Dempster Line and 16% by the Palm LinePalm Line
The Palm Line was a British-owned shipping line that was engaged in the West African trade from 1949, primarily servicing the ports along 5,000 miles of coastline from Morocco in the north to Angola in the far south....
, both British companies, while the Nigerian government held 51%. In 1961, the Nigerian government acquired all the shares.
The NNSL started operations in 1959 with three vessels.
By 1964 it had grown to a total of 16 vessels.
The public company was assisted by private businessmen.
The tycoon Sir Louis Ojukwu
Louis Odumegwu Ojukwu
Sir Louis Odumegwu Ojukwu, KBE, was an extremely successful Nigerian businessman from Nnewi. Ojukwu was the first and founding President of The Nigerian Stock Exchange as well as President of The African Continental Bank. He was also on the board of directors of some of Nigeria's most powerful and...
was an early member of the board, dying in 1966.
The chairman from 1967 to 1973 was Oloye Adekunle Ojora, formerly of the United Africa Company
United Africa Company
The United Africa Company was a British company which principally traded in West Africa during the 20th century.The United Africa Company was formed in 1929 as a result of the merger of the Royal Niger Company, which had been effectively owned by Lever Brothers since 1920, and the African &...
, who later became a highly successful businessman in his own right.
Expansion
During the Nigerian Civil WarNigerian Civil War
The Nigerian Civil War, also known as the Nigerian-Biafran War, 6 July 1967–15 January 1970, was a political conflict caused by the attempted secession of the southeastern provinces of Nigeria as the self-proclaimed Republic of Biafra...
the army made free use of the NNSL for transport of troops.
The ships played a key role in the advances along the coast in 1969.
With the end of the Civil War in January 1970, General Yakubu Gowon
Yakubu Gowon
General Yakubu "Jack" Dan-Yumma Gowon was the head of state of Nigeria from 1966 to 1975. He took power after one military coup d'etat and was overthrown in another...
announced an extensive program to revive the economy. In place of expensive hired vessels two new ships were bought for the NNSL and the ports at Calabar and Port Harcourt were rehabilitated.
In 1977 the government ordered construction of 19 new vessels to replace the aging fleet. By 1979 the company had 24 oceangoing ships.
The NNSL was an important source of training for seamen of the Nigerian Merchant Navy
Nigerian Merchant Navy
The Nigerian Merchant Navy consists of ships, their crew and supporting organizations owned by Nigerians and engaged in cabotage and international trade with Nigeria....
.
In January 1980 President Shehu Shagari
Shehu Shagari
Shehu Usman Aliyu Shagari, Turakin Sakkwato served as the President of Nigeria's Second Republic , after the handover of power by General Olusegun Obasanjo's military government....
talked to reporters about his first 100 days in office.
He said that during this period the NNSL increased its percentage of imported goods from about 8% to 11.3% and had started bringing in components for the Peugeot assembly plant in Kaduna, components that had previously been flown in.
On a less positive note, heroin smuggling by crew members was a significant issue in the 1970s and 1980s, with Nigeria serving as a major transit point for drugs bound for Europe.
Decline
A 1987 study of the NNSL for the World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
compared results to the benefits that the United Nations Conference on Trade and Development
United Nations Conference on Trade and Development
The United Nations Conference on Trade and Development was established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues....
had estimated would come from entry of Nigeria into shipping. The findings were that the investment had made no sigificant contribution to Gross Domestic Product, employment, the balance of payments, exercising countervailing power, national security or the country's image. The gains had been less than the opportunity costs of the resources used.
In 1988 the National Maritime Authority granted six Nigerian shipping lines "national carrier" status, including the state-owned Nigerian National Shipping Line. The NMA planned to extend this status to more domestic companies so as to reduce control of trade by foreign-owned lines.
The Shipping Policy Decree of 1987, which established the NMA, gave approval for a 50-50 share between foreign and domestic lines for non-conference cargos. However, in 1988 the 24 ships of Nigerian national carriers including the NNSL took only 11% of the cargoes at Nigerian ports. The NNSL and the private companies suffered from financial problems and lacked the facilities needed to attract cargoes.
In the 1990s several of the company's vessels were seized in different parts of the world for alleged breach of contract and unpaid bills.
Successor
The NNSL was liquidated in September 1995. Its assets were assumed by the newly formed National Unity Line (NUL).The NUL, fully owned by the Nigeria Maritime Authority, began commercial operations in July 1996 as Nigeria's national flag carrier.
The NUL had just one ship, MV Abuja.
In August 2005 the government put the NUL up for sale. The company now had no vessels, but owned a shipping license.
In July 2010 it was reported that the Nigerian Maritime Administration and Safety Agency
Nigerian Maritime Administration and Safety Agency
The Nigerian Maritime Administration and Safety Agency , formerly the National Maritime Authority is responsible for regulations related to Nigerian shipping, maritime labor and coastal waters...
, the successor to the NMA, had completed arrangements to establish a new national shipping line for Nigeria.
A fresh attempt was made to relaunch and sell the NUL in 2011.