Strategy for the Implementation of Cabotage Policy for the Development of Indigenous Maritime Capacity in Nigeria

Abstract

The paper is a study of cabotage policy regime in Nigeria and how it has affected the development of indigenous maritime capacity since its enactment as an Act twenty years ago with so much promises and expectations from various stakeholders in the Nigerian shipping industry. The Policy Implementation theory was utilized to explain the organisational and inter-organisational implementation behavior of policies. In carrying out this study, both primary and secondary data were used. Primary data involves obtaining information by means of interviews and questionnaire to gauge the opinions of stakeholders, as to the success of the policy. On the other hand, secondary data involves the collection and examination of available data of relevance to a study. They include relevant textbooks, journals and periodicals, seminar papers, reports, magazines and internet. The various findings revealed that the policy has not met the expectations of the indigenous operators.
Despite the existence of the Cabotage policy as enshrined in the Cabotage Act, inaddition to the
provision of vessel purchase fund, the development of indigenous shipping has not significantly
improved. More so, the expected fleet expansion has not necessarily been achieved. Findings also showed that cabotage has failed woefully to build indigenous capacity in shipping which has resulted in the loss of trillions of Naira in revenue for the government. However, the study suggested that the renewed efforts of government, especially NIMASA, if sustained, will change the situation for the better. Also, on the Cabotage Vessel Financing Fund (CVFF), government should make haste to ensure that all impediments to access the Fund by indigenous operators are promptly removed; it should also make haste to commence disbursement of the Fund. This will ensure the acquisition of relevant and needed vessels by the indigenous shipping operators, thereby giving them the necessary impetus to actually participate in the cabotage trade to the benefit of Nigerians and the achievement of the objectives of the Cabotage Act.