Stakeholders list reasons why ship owners don’t list in stock market

The Chairman, Indigenous Ship owners Association of Nigeria (ISAN), Isaac Jolapamo has said indigenous shipping Ashiru companies could not go to the stock market because they were not doing well.
Jolapamo who spoke in Lagos, said that as long as shipping business was not taken seriously in the country, getting listed would continue to be a dream.
“Shipping companies in Nigeria can’t go to the Stock Exchange because they are not doing well. All the Nigerianowned shipping companies are virtually dead. There is no foreseeable future for the industry, as the foreign ships are thriving in our domain. Most of the companies are privately-owned and lack the confi dence in future to want to get listed on the exchange,’’ Jolapamo said.
The ship owner said that it was not even a common practice in continents such as Europe, America and Asia for shipping companies to be listed on the stock exchange, stressing that this was so because most of the shipping companies were family-owned businesses.
The ISAN Chairman recalled that members of the association, in 2008 jointly fl oated a shipping line which they wanted the Federal Government to encourage by making it a National carrier.
He said that government did not, however, respond to the association’s request.
Capt. Adewale Ishola, a former President of the Nigerian Association of Master Mariners (NAMM), said it would be a welcome idea if more shipping companies could be listed on the NSE.
Ishola said that so far, there was only one shipping company listed on the exchange — Japaul Oil and Maritime Services Ltd. “It will be a welcome idea, if more shipping companies can come on board and raise funds through the Stock Exchange to buy ships. The Stock Exchange has come to the shipping companies severally to tutor us on the advantages and ways of getting listed on the exchange, but there are some factors making it diffi cult for the companies to attempt getting listed,’’ Ishola said.
He said that indigenous shipping companies were hindered by the lack of business, especially lack of long-term contracts to execute.
Olu Akinsoji, the former Sole Administrator of the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom, said that the shipping companies were not ripe enough for listing on the stock exchange.
“The capital layout for companies listed on the exchange is too large for Nigerian shipping companies. Nigerians do not have ships in international waters. What they have are bunkering ships,’’ he said.
Akinsoji said that most shipping companies did not like public partnerships.
“Furthermore, most people are self-centered and do not want to share ownership,’’ the marine engineer said.
Akinsoji, a former Government Inspector of Ships, said that government needed to give ship owners incentives and assure them of policies that would make them thrive.
The mariner said that government should also translate its political achievements to socio-economic activities. “As long as the Nigerian shipping industry is dominated by foreigners, the government’s Cabotage policy would not work,’’ he said.
Capt. Adejimi Adu, the President of NAMM, said that Nigerian ship owners lacked the human and fi nancial resources for listing on the exchange.
Adu said that the companies had also not been able to meet up with the regulations and benchmarks required by the Stock Exchange.
Source: National Mirror Online