Coastal and Inland Shipping (Cabotage) Act

An Act restricts coastal and inland shipping trade within Nigeria to vessels that are Nigerian-owned, built, and crewed. This mandate promotes indigenous participation in the maritime sector and reserves domestic routes for Nigerian vessels. The law aims to develop local maritime capacity and boost employment for Nigerian seafarers.

What Is This Policy?

Restricts coastal and inland shipping trade within Nigeria to Nigerian-owned, Nigerian-built, and Nigerian-crewed vessels, promoting indigenous participation in the maritime industry.

Who Does It Target?

Nigerian shipping companies and vessel owners Foreign shipping operators in Nigerian waters Offshore oil and gas logistics operators Coastal and inland waterway transporters

What Does It Aim to Achieve?

Reserve Nigerian domestic shipping routes for Nigerian vessels Develop indigenous maritime capacity Reduce foreign exchange outflow from shipping services Promote Nigerian seafarer employment

Key Features

Vessel Ownership Requirement: Coastal trade vessels must be majority Nigerian-owned. Crew Nationality Rules: Nigerian seafarers must constitute a majority of vessel crew. Cabotage Vessel Financing Fund (CVFF): Fund established to help Nigerians acquire vessels for coastal trade.

Current Status

In force. The Cabotage Act 2003 is actively enforced by NIMASA, with waivers issued in cases where Nigerian-owned vessels are insufficient to service specific routes.

Legal Framework

Constitution of the Federal Republic of Nigeria 1999 (exclusive legislative list on maritime); Nigerian Maritime Administration and Safety Agency Act 2007; Merchant Shipping Act; Cabotage Act 2003 (principal Act); IMO Conventions ratified by Nigeria