Nigerian Shipowners Unable to Secure Funding Despite Cabotage Legislation

Nigerian shipowning companies have found themselves struggling to secure funding in recent years.

The primary reasons for this stagnation include a lack of jobs available and an inability to enforce cabotage laws designed to protect Nigerian owners.

National publication Leadership reports:

In 2003, the National Assembly enacted the Coastal and Inland Shipping Act, also known as the Cabotage Act, to give the indigenous shipping companies a competitive edge over their foreign counterparts doing business in Nigeria. But the government and the larger companies have continued to patronise the foreign ships.

The Cabotage Act gives the local shipping companies the right of first refusal and provides the CVFF, which undisbursed funds stood at over $150 million (N23.4billion) as at June 2012. The Act is also not enforced. 

Potential solutions to the issue have yet to be seen; in fact, earlier this year the OGSR reported that the Nigeria Institute of Shipping called for opening the nation's registry.