Shipping, a vital element of maritime trade, has not hitherto received adequate attention in studies on Nigerian colonial economic history. This article therefore fills a gap in the literature by studying aspects of the shipping trade during the First World War, when shipping was indispensable for maintaining economic links between Britain and her colonies. Shipping in Nigeria revolved around the practices of the Elder Dempster Shipping Company, which enjoyed an undisputed monopoly of the trade throughout the war, and the reactions of the colonial government and private shippers to them.
Scarcity of tonnage and higher freights were the chief features of shipping during the war. The allocation of shipping space, however, ranged the colonial government, the shipping company and the Combine (that is, big European) firms against non-Combine shippers. While Elder Dempster's allocation formula suited the government and the Combine firms, it was considered inequitable by other shippers. This arrangement reflected the community of interests between the colonial state and Big Business vis-à-vis smaller traders.
The interests of the government and Elder Dempster were, however, incompatible on the question of ocean freights. Thus, high freights which boosted the firm's turnover were detrimental to the economic interests of the colonial state. The company's monopoly and the non-intervention of the Imperial government enabled it to have its way. Consequently, despite losses at sea, requisition by the Imperial government and rising running costs, Elder Dempster conducted a profitable business during the war. In achieving this, it also served the Imperial interest by effectively linking Nigeria with the metropolis.
On the whole, wartime shipping conditions, particularly Elder Dempster's practical monopoly, were a departure from pre-war trends. There was a gradual return to normality in the early 1920s but the firm remained pre-eminent in the West African shipping trade.