The Nigerian government, through the Minister of Maritime and Blue Economy, Adegboyega Oyetola, recently reaffirmed its determination to revitalize the national maritime industry. This commitment is reflected in several structural measures aimed at strengthening local capacity and reducing dependence on foreign players who have historically dominated the sector.

Key Measures Announced

Ending exemptions to the Coastal Shipping Act (Cabotage Act 2003): The government will end exemptions that allowed foreign companies to operate in the domestic market, in order to stimulate the growth of the local maritime sector and foster the emergence of a competitive national fleet.

Financial support for Nigerian shipowners: Accelerating the disbursement of the Cabotage Vessel Financing Fund (CVFF), intended for Nigerian companies to acquire modern vessels and effectively compete with international operators.

Promoting strategic partnerships: Launching Unity Shipping Worldwide, a joint venture between NNPC Shipping (Nigeria), Stena Bulk (Sweden), and Caverton Offshore Support (Nigeria), to build a fleet dedicated to transporting crude oil, refined products, and LNG, both in Nigeria and in West Africa and beyond.

Infrastructure Development: Investments in ship repair and shipyards to reduce overseas maintenance costs and improve the competitiveness of local operators.

Objectives and Expected Impacts

Strengthening Maritime Sovereignty: By reserving cabotage for Nigerian vessels and limiting foreign competition, Abuja aims to build a robust maritime industry that creates jobs and generates added value for the national economy.

Economic Growth: The maritime sector is expected to generate USD 2.7 billion in revenue by 2024, according to the Ministry’s forecasts, while supporting other sectors of the economy through improved logistics and growing exports.

Building Local Skills: New initiatives, such as Unity Shipping Worldwide, also aim to promote skills transfer and the development of a skilled workforce in Nigeria.