CHALLENGES HAMPERING THE EFFECTIVENESS OF CABOTAGE REGIME AND INDIGENEOUS SHIPPING IN NIGERIA

Abstract

The shipping industry has over the years played a key role in economic development of nations, recognizing this, nations with an enabling coastline for maritime industry put in place regulations to protect their shipping interest. This regulation is known as Cabotage policy. Cabotage as a concept has several identities in different jurisdictions which includes: coasting trade, coastwise trade, short sea shipping; signifying the freedom or lack of it to perform maritime activities within the maritime region of a country. The purpose of enacting cabotage law differs from countries to countries, however, it is generally seen as a protectionist policy, which gives a common purpose of shielding or restricting coastal shipping from foreign dominance. Cabotage policy can be relaxed or liberalized, depending on the choice of a nation. Nigeria enacted the Coastal and Inland Shipping Act in 2003, also known as the Cabotage Act, with the intent to restrict the dominance of foreign participation in domestic coastal trade and promote indigenous tonnage. However, years after the enactment of the Cabotage Act, there appears to be no significant improvement on indigenous shipping, implementation of the Provisions of the Act appears to be slow, participation has been low and the policy has not recorded a remarkable development since its enactment. This Article gave an overview of the Act, appraised its implementation by the Nigerian Maritime Administration and Safety Agency, revealed the challenges hindering the achievement of the intention of the Cabotage Act, and went further to give sustainable recommendations.