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Posted: September 8th, 2022

An evaluation of cabotage law in Nigeria

An evaluation of cabotage law in Nigeria
The Cabotage law in Nigeria is covered in the Cabotage Act of 2003. It was conceptualized in 2003 and enacted in May of 2004 with two primary objectives;
i. To empower native and upcoming operators to register and operate ships and participate in the commercial transportation of goods and services.
ii. To retain the shipping power within the Nigerian coastal and inland water vessels built, owned, and operated within Nigeria and by Nigerian citizens.
The law prohibits any vessel apart from that is built, registered and wholly owned and operated by Nigerian citizens from taking part in domestic and costal shipping business within the coastal, territorial and inland waters, including islands within Nigeria’s economic zone.
In addition, the cabotage law extends its influence to prohibit international shipping companies from involvement in towage and salvage services within Nigeria’s coastal waters. However, these companies are allowed to extend their services to vessels, persons, or aircraft that might be in distress within the Nigeria waters.
Despite the enactment of the cabotage law more than a decade later, the implementation and regulation of this act have been an arduous task. Today, the transportation process is dominated by international shipping companies and maritime industries as domestic shipping firms continue to writhe under the unrivalled competition.

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