Blue Economy
The Presence of Foreign Crew Aboard Our Coastal Vessels: What Must be Done to Enforce the Nigeria Cabotage Law – Part One
The Presence of Foreign Crew Aboard Our Coastal Vessels: What Must be Done to Enforce the Nigeria Cabotage Law
A Comprehensive Special Report on Legislative Intent, Systemic Failures, Human Costs, and the Reform Agenda Nigeria Cannot Afford to Delay
By Oghenewoke Osaweren | Maritime Desk, Waterways News | Tuesday, March 17, 2026
INTRODUCTION: A NATION’S WATERS, ANOTHER NATION’S GAIN
There is a striking paradox at the heart of Nigeria’s maritime economy. Nigeria possesses Africa’s largest economy, one of the world’s most prolific oil-producing coastlines, a network of navigable inland waterways stretching thousands of kilometres, and a growing pool of trained but largely underemployed seafarers. Yet the ships that sail its waters, deliver its goods, and evacuate its crude oil are overwhelmingly foreign-flagged, foreign-owned, and foreign-crewed.
This is not an accident of geography or market forces. It is, in significant part, the consequence of more than two decades of institutional weakness, political inertia, legal ambiguity, and a persistent failure of will in enforcing one of Nigeria’s most strategically important statutes — the Coastal and Inland Shipping (Cabotage) Act of 2003.
Nigeria’s continuous failure to fully implement and enforce the Coastal and Inland Shipping (Cabotage) Act 2003 is costing the country an estimated $100 billion yearly in freight earnings, expatriate employment costs, and capital flight in the oil and gas maritime logistics chain.
This is not a figure confined to specialist journals. It is money that should be circulating in Nigerian businesses, training Nigerian seafarers, and building Nigerian shipyards. Instead, it flows outward — financing foreign economies while the architects of the Cabotage Act watch their vision remain unrealized.
This four-parts report examines the full scope of the problem: what the law intended to achieve, why those intentions have not been realized, the human and economic toll of continued non-compliance, and — critically — what concrete steps experts, researchers, and regulatory agencies say must be taken to bring the letter and spirit of the Cabotage Act to life. Here is part one of the report.
PART ONE: THE VISION — WHAT THE CABOTAGE ACT WAS DESIGNED TO ACHIEVE
The Coastal and Inland Shipping (Cabotage) Act was enacted on May 1, 2003, and came into force in 2004. Its foundational provision is unambiguous. The Act states that a vessel other than a vessel wholly owned and manned by a Nigerian citizen, built and registered in Nigeria, shall not engage in the domestic coastal carriage of cargo and passengers within the coastal, territorial, inland waters, island, or any point within the waters of the Exclusive Economic Zone of Nigeria.
The four pillars of the Act — Nigerian ownership, Nigerian crewing, Nigerian building, and Nigerian registration — were conceived not merely as regulatory requirements but as instruments of sovereign economic development. The cabotage practice serves as a means of local content development in the maritime and shipping industry. Its major objective is to minimise unnecessary competition between foreign and domestic ships or ships registered within the country, thereby promoting the growth and development of inland shipping and reducing capital repatriation.
Several economic advantages were anticipated from the proper implementation of cabotage laws in Nigeria, including triggering economic growth and development, generating job opportunities, fostering skill acquisition, increasing internal revenue generation, and developing the country’s shipping capacity, which is vital for its future.
The employment dimension of the Act was particularly ambitious. Proper harnessing of the maritime industry could create over 20,000 jobs. Where Nigeria effectively enforces this law, it would give Nigeria’s maritime sector a stable foundation and contribute to the country’s economic growth. It would support the development of the country’s maritime fleet by providing employment opportunities to over 30,000 trained but unemployed seafarers, increase training requirements at the Maritime Academy of Nigeria, ensure optimal utilisation of the currently underutilised Niger Dock facilities, and encourage the development of the necessary infrastructure.
Beyond jobs, the fiscal logic was compelling. If the Cabotage Act is effectively implemented, Nigeria will be able to retain employment opportunities and necessary skills in a crucial industry, and Nigerians would earn the freight and insurance fees that would have previously been paid to foreigners. The reference point often invoked by Nigerian maritime lawyers is the United States Jones Act of 1920. Statistics have shown that the government of America generates not less than $250,000,000 (Two Hundred and Fifty Million Dollars) as income tax from those gainfully employed under the Jones Act.
The national security rationale was equally significant. Effective cabotage implementation has been regarded as one of the most effective ways to achieve and maintain internal security in Nigeria. Foreign vessels that are normally employed for or participating in espionage activities would be barred from the nation’s shore under the Cabotage policy, which is designed to prevent foreign ships from participating in trade within coastal and inland waters.
In summary, the Act was designed to simultaneously build a domestic shipping fleet, create mass employment in the maritime value chain, curb capital flight, develop local shipbuilding and repair capacity, and safeguard national security. It was, on paper, among the most comprehensive maritime development instruments ever enacted in Africa.
NIMASA Receives Over 60 CVFF Applications, Vows Open and Accountable Disbursement
By Okeoghene Onoriobe | Waterways News Correspondent | Lagos
The Nigerian Maritime Administration and Safety Agency (NIMASA) has disclosed that it has received more than 60 applications for the Cabotage Vessel Financing Fund (CVFF), a development that signals fresh momentum in the push to strengthen indigenous participation in Nigeria’s shipping sector.
The agency equally assured stakeholders that the disbursement of the fund would be handled transparently, with strict accountability measures guiding every step of the process.
The disclosure came on Thursday in Lagos, during the signing of the 2026 Performance Bond between NIMASA’s Director-General, Dr. Dayo Mobereola, and the Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola.
At the event, Minister Oyetola left no room for ambiguity, issuing a pointed directive to heads of agencies under his ministry to focus on results and shun complacency.
“Let me emphasise that all Departments and Agencies under the Ministry must remain firmly focused on delivering tangible results,” the Minister stated.
He further stressed that the performance bonds carry real weight, describing them as binding commitments subject to close monitoring and rigorous evaluation — not documents to be signed and shelved.
“These are not ceremonial documents. They are binding commitments. Accountability will not be optional,” Oyetola declared.
Speaking after the signing, Director-General Mobereola said the reforms being pursued at NIMASA are deliberate and are being driven with strong backing from the Ministry, adding that the agency remains firmly aligned with the Federal Government’s Renewed Hope Agenda.
On maritime security, Mobereola highlighted a landmark achievement: Nigeria has recorded zero piracy incidents in its territorial waters over the past four years. He attributed this record to enhanced surveillance systems and improved collaboration among security agencies.
The NIMASA chief also announced that the agency is close to completing the automation of its ship registry processes — a reform expected to eliminate administrative delays, speed up turnaround times, and sharpen Nigeria’s competitiveness in the global maritime industry.
Additionally, Mobereola noted that Nigeria has deposited three maritime conventions with the International Maritime Organization (IMO), with three more pending Federal Executive Council approval. He also highlighted Nigeria’s re-election into Category C of the IMO Council in November 2025 as a milestone that restores the country’s standing in global maritime governance and reinforces its leadership role on the African continent.
Waterways News | www.waterwaysnews.ng
Oyetola Orders NSC Probe into Alleged Plot to Squeeze Out Local Barge Operators
Minister vows zero tolerance for anti-competitive behaviour as indigenous operators cry foul over foreign interference at Nigerian seaports
By Oghenewoke Onoriode|Waterways News Correspondent, LAGOS
The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, has ordered the Nigerian Shippers’ Council (NSC) to investigate allegations that a coordinated effort is underway to push indigenous barge operators out of Nigeria’s seaport logistics chain.
The directive came during the 2026 First Quarter Citizens/Stakeholders’ Engagement, Sectoral Performance Review, and Ministerial Management Retreat of the Federal Ministry of Marine and Blue Economy, held in Lagos on Thursday.
Operators Raise the Alarm
Representatives of local barge operators used the platform to allege that certain foreign interests are engaged in a deliberate campaign to undermine their operations. They told the Minister that policies, operational bottlenecks, and preferential treatment allegedly extended to foreign-linked entities by some terminal operators are tilting the competitive landscape against Nigerian businesses.
The operators warned that if left unaddressed, the situation could erode local capacity and destabilise Nigeria’s maritime logistics ecosystem.
NSC Given the Mandate
Responding to the allegations, Dr Oyetola reaffirmed the Federal Government’s commitment to protecting local investments and ensuring a level playing field in the maritime sector. He directed the NSC — in its capacity as port economic regulator — to conduct a thorough and impartial investigation into the claims.
The Minister was unequivocal: any anti-competitive behaviour or policy inconsistency that disadvantages Nigerian businesses would not be tolerated.
Engagement as Policy Tool
Dr Oyetola also used the occasion to underscore the importance of regular stakeholder engagement in driving effective sectoral governance. He noted that the government remains firmly focused on developing the marine and blue economy as a pillar of national growth, employment generation, and sustainable development.
Nigeria Watch
The allegations against terminal operators echo long-standing concerns in the Nigerian maritime industry about the marginalisation of indigenous players in port operations. Local barge operators form a critical link in Nigeria’s cargo evacuation chain — particularly at Apapa and Tin Can Island ports — and their displacement would deepen the country’s dependence on foreign logistics providers.
The NSC’s mandate as port economic regulator makes it the appropriate body to probe these claims. However, the effectiveness of the investigation will depend on the Council’s willingness to act on its findings — including, where necessary, imposing sanctions on terminal operators found to have violated fair competition principles.
For the Federal Ministry of Marine and Blue Economy, Thursday’s engagement signals a more assertive posture on indigenous content in maritime logistics — one that stakeholders will be watching closely.
Waterways News — Covering Nigeria’s Maritime, Shipping and Blue Economy Sector
Blue Economy
Tinubu Approves Cargo Tracking Scheme That Could Save Nigeria N900bn in Lost Import Revenue
Tinubu Approves Cargo Tracking Scheme That Could Save Nigeria N900bn in Lost Import Revenue
Presidential approval secured for ICTN as Nigerian Shippers’ Council begins procurement; scheme expected to go live before year-end
By Emetena Ikuku, Lagos
President Bola Ahmed Tinubu has approved the full implementation of the International Cargo Tracking Note (ICTN), a flagship initiative of the Nigerian Shippers’ Council (NSC) designed to plug revenue leakages in the country’s import trade and strengthen regulatory oversight of inbound cargo.
The approval, confirmed at a stakeholders’ engagement convened by the Federal Ministry of Marine and Blue Economy in Lagos, ends months of uncertainty over the scheme’s future and sets the stage for what industry analysts say could be one of the most consequential reforms in Nigeria’s maritime sector in recent years.
What the ICTN Does
The ICTN is a real-time, online cargo tracking system that monitors the movement of inbound shipments from origin to destination. Beyond logistics visibility, it is designed to function as an economic intelligence tool — capturing import data that can be used to close gaps in revenue declaration and combat under-invoicing.
Industry projections suggest the system could help Nigeria recover up to N900 billion annually in import revenue currently lost to leakages — a figure that underscores the commercial stakes of getting the rollout right.
Procurement Underway
Pius Akutah, Executive Secretary and CEO of the Nigerian Shippers’ Council, confirmed to stakeholders that presidential approval had been secured and that procurement processes were already in motion. He expressed confidence that the ICTN would become operational before the end of the year.
Akutah acknowledged that previous implementation attempts had been suspended due to unresolved operational challenges, but said the Council had drawn lessons from those setbacks.
He noted that the Minister of Marine and Blue Economy, Adegboyega Oyetola, is personally committed to ensuring a seamless rollout, with the ministry taking deliberate steps to resolve all outstanding issues before the scheme goes live.
Nigeria Watch
The ICTN revival is significant beyond its revenue implications. For years, Nigerian freight forwarders, cargo agents, and port operators have operated in an environment where cargo data is fragmented and often unreliable — creating fertile ground for manifest fraud, valuation disputes, and customs evasion.
A fully operational ICTN would give the NSC, the Nigeria Customs Service, and the Nigerian Ports Authority (NPA) access to a unified cargo data stream, potentially transforming how import risk is assessed at Apapa, Tin Can Island, and the emerging Lekki Deep Sea Port.
For the broader blue economy agenda being championed by Minister Oyetola, real-time cargo intelligence also supports Nigeria’s ambitions to position its ports as West Africa’s premier logistics hub — a goal that requires the kind of regulatory credibility the ICTN is designed to provide.
Stakeholders will be watching the procurement timeline closely. The scheme has been suspended before, and the maritime industry’s confidence in its delivery will depend on whether the ministry can demonstrate tangible progress before the year runs out.
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