Tag: Cabotage Act

Lack of commitment by the Federal Government, banks’ failure to support indigenous shipowners to buy vessels and conspiracy by importers and some clearing agents have been listed as the bane of Cabotage Law implementation.

At a stakeholders’forum in Lagos, a maritime lawyer, Mr Sesan Arowora, said the Coastal and Inland Shipping Act, 2003 was a protectionist law enacted to create exclusive areas of operations in the coastal trade for indigenous operators.

Indigenous shipowners, he further said, have complained that the waiver clause has made implementation of the law difficult.

He said the law could be easily implemented, if the Federal Government supported NIMASA, the agency saddled with enforcing the law.

“This is the time for the Federal Government to give the necessary support to NIMASA and see to the implementation of the Cabotage Act.

“There is no doubt that some powerful individuals in government are trying to frustrate the implementation of the law.

“Nigerians are waiting to see the government that will see to the quick implementation of the law. Any government that is ready to enforce the law would make it compulsory that every ship that calls at our port should first declare its arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

Arowora said the implementation should not be a problem.

His words: “NIMASA does not even need to get to the jetty to arrest a vessel; it can ask a vessel to tell her its point of loading. So, if it is offshore Lagos or Cotonou, the agency can verify if it is on the list of Cabotage-registered vessels. Therefore, implementation should not be a major issue. From all indications, there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country,” he said.

He said Nigerian shipowners ought to be supported by the government and banks to buy vessels to adequately carry out coastal trade.

“Much as it is estimated that marine transportation offshore alone has a potential annual revenue profit of millions of naira as against coastal trade in commodity and products, it is believed that harnessing the opportunities of effective implementation of Cabotage will provide a springboard for indigenous operators to acquire requisite capacity and expertise to launch themselves into global shipping.

“The target is for Nigerian carriers to have a share of about $4 billion per annum gross value of freight in and out of Nigeria. Only 20 per cent share of the market will stimulate the local economy to the tune of about $600 million gross per annum,” Ariwora said.

Olive Venture Chairman Mr Samson Ojikutu said the cabotage regime covers ship building, ship ownership, manning and registration. Unlike the Cabotage Law in other nations, he noted that Nigeria’s Cabotage Law provides for waivers.

Ojikutu said the government should stir maritime development, by using its agencies to do so.

Three factors were identified last week, as the bane of Cabotage law implementation in the country.

Firstly, lack of commitment by the side of Federal Government to assist local ship owners.

Secondly, the failure of the banks in supporting indigenous shipowners to buy sufficient vessels to adequately carry out coastal trade.

Thirdly, conspiracy among importers and some clearing agents to always deceive security agents at the ports.

These operators said, are sabotaging the implementation of Cabotage Law.

Speaking at a stakeholders’ forum at the week end in Lagos, a maritime lawyer, Mr Sesan Arowora, said the Coastal and Inland Shipping Act, 2003, is a protectionist law enacted to create exclusive areas of operations in the coastal trade for indigenous operators.

Indigenous ship owners, he further said, have complained that the waiver clause has helped make implementation of the law difficult.

The implementation of the law would have been very easy, but for lack of commitment on the side of government and conspiracy between agents, importers and other port users.

He said the law can be easily implemented if the Federal Government supports NIMASA, the agency saddled with the responsibility of enforcing the law, and champion the move to do so.

“This is the time for the Federal Government to  give the necessary support to NIMASA and see to the implementation of the cabotage Act.

“There is no doubt that some powerful individuals in government are trying to frustrate the implementation of the law.

“Nigerians are waiting to see the government that will see to the quick implementation of the law. Any government that is ready to enforce the law would make it compulsory that every ship that calls at our port should first declare its arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

Arowora said the implementation should not be a problem. “NIMASA does not even need to get to the jetty to arrest a vessel; she can ask a vessel to tell her its point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels. Therefore, implementation should not be a major issue. From all indications, there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country”.

He said Nigerian ship owners must be supported by the government and banks to buy sufficient vessels to adequately carry out coastal trade.

“Much as it is estimated that marine transportation offshore alone has a potential annual revenue profit of millions of naira as against coastal trade in commodity and products, it is believed that harnessing the opportunities of effective implementation of Cabotage will provide a springboard for indigenous operators to acquire requisite capacity and expertise to launch themselves into global shipping.

“The target is for Nigerian carriers to have a share of about $4 billion per annum gross value of freight in and out of Nigeria. Only 20 per cent share of the market will stimulate the local economy to the tune of about $600 million gross per annum,” Ariwora said.

Another operator and Chairman, Olive Venture, Mr Samson Ojikutu, said the Cabotage regime covers ship building, ship ownership, manning and registration. Unlike the Cabotage Law in most other maritime nations of the world, he however, observed that Nigeria’s Cabotage law provides for waivers.

Ojikutu said the government should stir maritime development in the country, by using its agencies to coordinate and regulate the industry.

The implementation of the Cabotage Act is being sabotaged by stakeholders, a university teacher has said.

Mr Dipo Alaka of the Lagos State University (LASU) said the law could be implemented if the agency saddled with enforcing it mustered the political will to do so.

“This is the time for the government to buckle up and see to the implementation of the Cabotage law. But we need to understand the problems confronting the agency before we can say yes, maybe some individuals in government are trying to frustrate the implementation.

“My thinking is that every ship that calls at our port should first declare arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

Alaka said: “The agency saddled with enforcing the law does not even need to get to the jetty to arrest a vessel; she can ask a vessel to tell her its point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels.

“Therefore,implementation should not be a major issue. From all indications, there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country.”

He said Nigerian ship owners should be supported by the government and banks to buy sufficient vessels to adequately carry out coastal trade.

The implementation of the Cabotage Act is being sabotaged by stakeholders, a university teacher has said.

Mr Dipo Alaka of the Lagos State University (LASU) said the law could be implemented if the agency saddled with enforcing it mustered the political will to do so.

“This is the time for the government to buckle up and see to the implementation of the Cabotage law. But we need to understand the problems confronting the agency before we can say yes, maybe some individuals in government are trying to frustrate the implementation.

“My thinking is that every ship that calls at our port should first declare arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

Alaka said further: “The agency saddled with enforcing the law does not even need to get to the jetty to arrest a vessel; she can ask a vessel to tell her its point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels.

“Therefore,implementation should not be a major issue. From all indications, there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country.”

He said Nigerian ship owners should be supported by the government and banks to buy sufficient vessels to adequately carry out coastal trade.

The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside,  has been urged to implement the Cabotage Act.

The Act, Mr Dipo Alaka of the Lagos  State University (LASU) said, is being sabotaged by agents, importers and other operators.

He said the law could be implemented if the agency mustered the political will to do so.

“This is the time for the government to buckle-up and see to the implementation of the Cabotage law. But we need to understand the problems confronting the agency before we can say yes; maybe some individuals in government are trying to frustrate the implementation.

“My thinking is that every ship that calls at our port should first declare arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

Alaka said the execution of the law should not be a problem.“The agency saddled with enforcing the law does not even need to get to the jetty to arrest a vessel; it can ask a vessel the point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels.

“Therefore, implementation should not be a major issue. From all indications there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country.”

He said ship owners must be supported by the government and banks to buy sufficient vessels for coastal trade.

The Coastal and Inland Shipping Act, 2003, he said, is a protectionist law enacted to create exclusive areas of operations in the coastal trade for indigenous operators.