AN EXAMINATION OF CABOTAGE LAWS AND IMPLICATIONS FOR NIGERIAN MARITIME INDUSTRY
AN EXAMINATION OF CABOTAGE LAWS AND IMPLICATIONS FOR NIGERIAN MARITIME INDUSTRY
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Date
2021
Authors
Waamene, NWINEEWII
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Abstract
The Coastal and Inland Shipping (Cabotage) Act1 was enacted on 30th April 2003 to reform
maritime business within the coast of Nigerian. With its coastline measuring over
800kilometers and a wealth of natural resources including rich hydrocarbon deposits, zinc
and iron ore, Nigeria has numerous global trade opportunities2
. I have always been intrigued
by the Maritime Sector of the Nigerian economy, particularly Cabotage and its activities and
this prompted my choosing a dissertation topic in this area of law. The main objective of this
Act is to reserve the commercial transportation of goods, services and persons within
Nigeria’s coastal and inland waters to vessels flying the Nigerian flag and owned by persons
of Nigerian citizenship, in other words, to promote development of indigenous man power in
the Nigerian Maritime industry. Given the financial challenges associated with the
acquisition of vessels, the Act established the Cabotage Vessel Financing Fund (CVFF) to
provide credit facilities to interested Nigerians3
thus facilitating indigenous ship acquisition.
The Act restricts foreign participation in Nigeria’s internal water as such foreign vessels are
restricted within Nigerian’s waters except when rendering assistance to persons, vessels, or
aircraft in danger or distress. Nigerian waters include coastal, territorial and inland waters
and islands or waters within the Exclusive Economic Zone of Nigeria. This work examined
the implications of the Coastal and Inland Shipping (Cabotage) Act, how it affects in
particular, inter-state trade, the capacity of local traders to meet with the provisions of the
Act, making funding accessible to indigenous participants for vessel acquisition and the
restrictions placed on foreign ships and proffered suitable policy options and
recommendations for reform. But despite its laudable provisions, they are still plagued with a
lot of problems amongst which are the inability of indigenous shipping company to draw
from the Cabotage Vessel and Financing Fund (CVFF) and the nagging challenge of
indiscriminate granting of licenses to foreign vessels and waivers. The objectives of this study
was achieved using the doctrinal research methodology, relying on primary sources such as
Statutes, Case Laws, Rules and Regulations and Secondary sources such as textbooks,
journals and internet sources. This research recommended that the Federal government of
Nigeria through the regulatory agency Nigerian Maritime and Security Agency (NIMASA)
should as a matter of urgent National security and importance unlock the funds in the
Cabotage Vessel and Financing Fund (CVFF). The work further recommended that a designated reputable indigenous accounting firm or a Commercial Bank be put in place as the one-stop shop for accessing the fund
Description
A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE
STUDIES, AHMADU BELLO UNIVERSITY, IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF LAWS
(LL.M)
DEPARTMENT OF COMMERCIAL LAW,
FACULTY OF LAW,
AHMADU BELLO UNIVERSITY,
ZARIA, NIGERIA