Rising diesel prices cripple fishing sector, 80% of vessels grounded

Members of the Nigerian Trawlers Owners Association (NITOA) have disclosed that more than 80 per cent of their vessels are currently grounded due to the sharp rise in diesel prices.

A visit to the Ijora fish showed that there are low quantities of fishes caught by Nigerian Trawlers, a development that brought about scarcity of the commodity.
At the Ijora Fish Market, a sharp decline in the volume of fish supplied by Nigerian trawlers was noted, resulting in scarcity of the commodity.

The development has also triggered a sharp increase in the prices of available fish across markets.
Commenting on the development, National Executive Secretary of the Fisheries Cooperatives Federation of Nigeria, retired Navy Captain Oladele Robinson, said both the artisanal and industrial segments of the sector are being adversely affected by the rising cost of diesel and petrol, which is impacting operators’ activities.

Robinson further explained that operators in the artisanal segment rely on Premium Motor Spirit (PMS) to power their fishing boats, while the industrial sub-sector depends on diesel to run trawlers.

He stated that operators often deploy their vessels without securing sufficient catch to justify the high cost of petrol or diesel, adding that the situation has become unsustainable for continued operations.

He said: “At times, operators go to sea but are unable to secure enough catch to justify the cost of fuel, a situation that has driven up the prices of fish and other seafood.”
Efforts to reach Mrs Ben Okonkwo, President of NITOA, was futile as she was not in the office when our Correspondent visited her office in the Kiri-Kiri area of Lagos but sources close to her office told Vanguard that the cost of Automated Gas Oil (AGO), which powers fishing vessels, has surged by over 100 per cent, rendering operations largely unsustainable.

The source explained that deploying a vessel for a 50-day fishing trip under current fuel costs would result in significant financial losses.

According to the source, “The problem is AGO, which is diesel. The vessels run 100 per cent on AGO.
“Right now, the prices are so high that you can’t even think of fuelling a vessel for a 50-day trip. The vessel will come back at a very big loss.

“What has happened is that operational costs have gone far beyond what companies can handle. That’s why operators have brought their trawlers back to the jetty rather than remain at sea and continue recording losses.

“We used to get diesel at about ₦900 per litre. Today, it is between ₦1,800 and ₦2,000 per litre, well over a 100 per cent increase.”

She noted that the spike in fuel prices has pushed the industry into a critical state, with operators unable to sustain vessel operations while overhead costs remain unchanged.
“The implication is that trawlers cannot operate under these conditions. The industry is in a critical situation. Companies are going aground,” she said.
The source warned that the development poses risks to food security, stressing that fish remains an affordable source of protein for many Nigerians.
“For the economy, this affects food security. If vessels do not go to sea, there will be a shortage of fish,” the source added.
It also raised concerns over potential job losses across the value chain.
“If vessels are not running, where do the seafarers go? These vessels are meant to be at sea, not tied up at the harbour. Across the industry, both direct and indirect labour, close to 10,000 jobs are at risk if there is no immediate government intervention,” she stated.

The current situation was attributed part of the diesel price surge to global market disruptions linked to the ongoing hostilities involving Iran, which have impacted oil and gas logistics.
“Part of the issue is tied to global factors like the Iran situation affecting fuel prices. However, there should be some form of cushioning possibly a subsidy or targeted intervention to support the fishing industry.

“Yes, diesel affects everyone, but this industry runs 100 per cent on it. There is no alternative. Without diesel, operations stop completely.

“Put the financial burden into perspective, imagine running your diesel generator all day, every day, for 50 consecutive days without stopping—that’s the kind of energy demand required to operate a fishing trawler.”