EVALUATION OF THE CABOTAGE ACT IMPLEMENTATION IN THE NIGERIAN MARITIME INDUSTRY

Abstract

The Cabotage law came into force in April, 2004 (Cabotage Act, 2003) aimed at reserving the coastal shipping for Nigeria nationals. In essence, the system of maintaining domestic shipping industry is being regulated by the Cabotage law. This involves the merchant fleet, and the protection of the environment and bio-diversity. The maritime industry of any country is recognized as the orbit around which the economic development of that country revolves. Due to this fact, most maritime nations are quick to draft policies that assure protection from exploitation and dominance by foreigners.This study evaluates the implementation of Cabotage Act in the Nigerian Maritime Industry. Thus the object of the study is to estimate the percentage share of the coastal and inland traffic carried by Nigerian flagged vessels; evaluate the percentage of labour engage in coastal and inland shipping that are Nigerians; assess the percentage share of vessels involved in coastal and inland shipping that are made in Nigeria and also identify the problems mitigating against the implementation of Cabotage Act in the Nigerian Maritime Industry. The research made effort to highlight people’s view that are relevant to the study and this formed the literature review.The research relied on data gathered from both secondary and primary data. Secondary data were sourced from NIMASA and primary data were sourced through the use of questionnaires by the staffs of Cabotage department of NIMASA and staffs of indigenous shipping companies located in Lagos. The data obtained were statistically analyzed and presented using descriptive method of analysis and also inferential method of analysis. The findings of the study revealed factors hindering the achievement of the objectives of the Acts such as lack of political will, lack of funds, challenge of cabotage vessel financing fund, challenge of vessel acquisition. The result also revealed that there has not been much improvement in the fortunes of indigenous shippers in the country. The study is of the view that if Cabotage law is properly implemented, Nigeria will be able to maintain jobs and skills in an industry that is vital to its future.The study also recommended strategies to enhance indigenous participation and reduce the foreign dominance, it recommended the government to set in motion for the review of the existing Cabotage Act to be in realities on ground and also make the Cabotage Vessel Financing Fund (CVFF) available for the indigenous operators.