Nigeria to End Foreign Shipping Waivers, Boost Local Maritime Industry
Minister Oyetola Announces Policy Shift
The Minister of Marine and Blue Economy, Adegboyega Oyetola, has announced plans to phase out waivers granted under the Coastal and Inland Shipping Act 2003. This strategic move aims to strengthen Nigeria’s domestic shipping sector and reduce dependence on foreign vessels.
New Joint Venture Launched
The announcement coincided with the unveiling of Unity Shipping World (USW), a joint venture between NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group. This partnership will develop tanker operations for transporting crude oil, refined products, and LNG across Nigeria, West Africa, and international markets.
Cabotage Act Enforcement Strengthened
The Cabotage Act mandates that coastal shipping be restricted to Nigerian-owned, crewed, and built vessels. However, waivers have frequently been granted due to limited local capacity. Minister Oyetola criticized this practice, stating it has hindered the growth of indigenous shipping companies and reduced opportunities for Nigerian maritime professionals.
“The era of indiscriminate waivers is ending. We can’t keep weakening local capacity under the guise of temporary foreign assistance. It is time to build Nigerian tonnage, support local employment, and give indigenous operators a fair chance to succeed,” Oyetola emphasized.
Support for Local Shipowners
To facilitate this transition, the Minister has directed NIMASA to begin disbursing the Cabotage Vessel Financing Fund (CVFF). This fund, generated through cabotage levies, will help Nigerian shipowners acquire vessels and expand operations.
National Shipping Carrier Planned
The government also plans to establish a national shipping carrier through a Public-Private Partnership to enhance Nigeria’s regional maritime influence.
Industry Leaders Welcome Changes
Caverton Offshore’s CEO, Bode Makanjuola, described USW as transformative for Nigeria’s maritime sector, emphasizing its commitment to sustainability and seafarer training. NNPC Shipping’s Panos Gliatis and Stena Bulk’s Erik Hånell both highlighted the venture’s potential to boost Nigeria’s energy logistics capabilities.
This policy shift represents a significant step toward developing Nigeria’s blue economy and creating sustainable employment in the maritime sector.
Source: Daily Nigerian