By Abbas Nazil
The Federal Government of Nigeria may soon halt the issuance of waivers to foreign vessels operating under the Coastal and Inland Shipping Act of 2003 (Cabotage Act), as part of a broader strategy to revive and strengthen the nation’s maritime industry.
Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Sunday during a meeting in Abuja with representatives from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group.
The meeting also served as the formal unveiling of Unity Shipping World (USW), a new joint venture between the three firms aimed at building a robust tanker operation capable of transporting crude oil, refined petroleum products, and liquefied natural gas (LNG) within Nigeria and across the globe.
According to a statement issued by Oyetola’s spokesperson, Bolaji Akinola, the minister expressed strong dissatisfaction with the long-standing practice of issuing waivers to foreign vessels due to a perceived lack of local capacity.
He argued that this policy had stifled the growth of indigenous shipping companies and diminished opportunities for Nigerian maritime professionals.
Emphasizing the need to reverse the trend, Oyetola declared the federal government’s decision to phase out what he termed “indiscriminate waivers” in order to promote local tonnage, support domestic employment, and give Nigerian operators a fair chance to thrive.
The Cabotage Act was originally enacted to reserve coastal shipping operations for Nigerian-owned, -crewed, -built, or -flagged vessels.
However, due to limited local capacity, successive administrations granted waivers to foreign vessels to fill the gap.
Oyetola maintained that this practice had become counterproductive and pledged government support to help indigenous shipowners grow.
In line with this commitment, he directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF).
This fund, generated through cabotage levies, is meant to assist Nigerian shipowners in acquiring vessels and expanding their fleet capacities.
Oyetola also reiterated the government’s plan to establish a national shipping carrier under a public-private partnership (PPP) arrangement, which is expected to boost Nigeria’s regional maritime influence.
Speaking during the event, Bode Makanjuola, CEO of Caverton Offshore, described the creation of Unity Shipping World as a transformative step for the industry, noting that the venture would deliver reliable and sustainable marine transport services to meet Nigeria’s growing energy demands.
He revealed that USW would acquire both new and existing vessels, focusing on cost-efficiency and modern standards.
Panos Gliatis, Managing Director of NNPC Shipping, noted that the alliance would bolster domestic refining capacity and strengthen Nigeria’s global role in energy logistics.
Erik Hånell, President and CEO of Stena Bulk, highlighted that the collaboration aligns with the firm’s strategy to expand in vital energy markets.
He believed the venture would blend global expertise with local capabilities, contribute to training a new generation of Nigerian seafarers, and fly the Nigerian flag with pride.
