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ABUJA, Nigeria (NAN) - The Minister of Marine and Blue Economy, Adegboyega Oyetola, has revealed intentions to cease the granting of waivers under the Coastal and Inland Shipping Act of 2003.
Oyetola made this announcement on Sunday after meeting with representatives from NNPC Shipping, Stena Bulk, and Caverton Offshore in Abuja.
This meeting reinforced Oyetola's pledge to reduce the dependency on waivers for foreign vessels operating in Nigerian waters.
It coincided with the launch of Unity Shipping World, a new cooperative venture among NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group, aimed at establishing a robust tanker operation for transporting crude oil, refined products, and LNG within Nigeria, across West Africa, and globally.
The Cabotage Act mandates that coastal shipping be conducted by vessels that are Nigerian-owned, crewed, built, or flagged. Nonetheless, waivers have often been permitted for foreign vessels due to a lack of local capacity, which has stunted the growth and competitiveness of domestic shipping.
Oyetola criticized this ongoing practice, arguing that it hinders the progress of local shipping companies and diminishes opportunities for Nigerian maritime professionals.
He expressed that this decision seeks to fortify the maritime sector, generate employment, and boost local participation within the shipping industry.
To facilitate this policy change, the minister has directed NIMASA to start the disbursement of the Cabotage Vessel Financing Fund. This fund, accrued from cabotage levies, aims to assist Nigerian shipowners in acquiring vessels and enhancing their operational capabilities.
Oyetola emphasized the importance of timely disbursement of the fund, branding it essential for empowering local operators amidst the reduction of foreign waivers. “As the waiver period concludes, it is crucial to support indigenous shipowners,” he remarked.
Additionally, he reiterated the government's intention to establish a national shipping carrier via a Public-Private Partnership to bolster Nigeria’s maritime presence on a regional scale.
Caverton Offshore’s CEO, Bode Makanjuola, referred to the new joint venture as a game-changer for Nigeria’s maritime sector.
He mentioned that USW would offer efficient, reliable, and sustainable marine transportation services to meet the nation’s rising energy demands.
Makanjuola indicated plans to develop a modern fleet by acquiring both new and pre-existing vessels while prioritizing cost-effectiveness and operational efficiency.
He emphasized that the fleet would mainly support NNPC’s logistics but also cater to other oil producers and energy traders.
He affirmed USW’s dedication to sustainability, safety, and training for Nigerian seafarers to ensure the industry’s long-term advancement.
Managing director of NNPC Shipping, Panos Gliatis, stated that the partnership would bolster domestic refining and enhance Nigeria’s position in global energy logistics.
President and CEO of Stena Bulk, Erik Hånell, also expressed that this alliance aligns with his company’s global strategy, highlighting their commitment to operational excellence and growth in significant energy markets.
"This collaboration enhances Nigeria’s shipping and energy sectors," Hånell stated.
