In a pivotal development for Nigeria’s maritime sector, Minister of Marine and Blue Economy, Adegboyega Oyetola, has confirmed the government’s decision to end the issuance of waivers under the Coastal and Inland Shipping Act of 2003. The announcement, made on Sunday, was followed by a meeting with representatives from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group.
The meeting, held at the Ministry in Abuja, marked a significant moment in Nigeria’s efforts to boost local participation in the maritime industry. Oyetola reaffirmed his commitment to ending the country’s dependency on waivers for foreign vessels in Nigerian waters, a practice that has long undermined the growth of domestic shipping firms.
This announcement comes at a critical time, coinciding with the unveiling of Unity Shipping World, a new joint venture between NNPC Shipping, Stena Bulk, and Caverton Offshore. The venture aims to create a robust tanker operation capable of transporting crude oil, refined products, and LNG within Nigeria, across West Africa, and globally.
The move aligns with Nigeria’s Cabotage Act, which mandates that coastal shipping be restricted to Nigerian-owned, -crewed, and -flagged vessels. However, limited local capacity has often led to waivers being granted to foreign vessels, diluting the potential for Nigerian firms to compete effectively on a global scale.
In his statement, Oyetola strongly criticized this practice, describing it as detrimental to the growth of local shipping businesses and the wider maritime sector. “The era of indiscriminate waivers is ending. We can’t keep weakening local capacity under the guise of temporary foreign assistance. It is time to build Nigerian tonnage, support local employment, and give indigenous operators a fair chance to succeed,” Oyetola declared.
To facilitate the shift away from foreign dependency, Oyetola has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to expedite the disbursement of the Cabotage Vessel Financing Fund. The fund, sourced from cabotage levies, is intended to help Nigerian shipowners acquire new vessels and enhance their operational capabilities.
“As the waiver era ends, supporting indigenous shipowners becomes even more crucial,” he emphasized.
In addition to the termination of foreign vessel waivers, the Nigerian government plans to launch a national shipping carrier through a public-private partnership, further boosting the country’s maritime influence both regionally and internationally.
The launch of Unity Shipping World is seen as a transformative step for Nigeria’s maritime industry. Caverton Offshore’s CEO, Bode Makanjuola, described the new joint venture as a game-changer, emphasizing its potential to provide efficient and reliable marine transport services while prioritizing sustainability and the training of Nigerian seafarers. The venture also aims to support the logistics operations of NNPC, while serving other oil producers and energy traders.
Panos Gliatis, Managing Director of NNPC Shipping, stressed that the partnership would help enhance Nigeria’s role in domestic refining and solidify the country’s position in global energy logistics. Stena Bulk President and CEO, Erik Hånell, echoed these sentiments, stating that the alliance aligns with his company’s global strategy to strengthen key energy markets.
The government’s bold decision marks a significant turning point in the maritime industry’s landscape, fostering local talent and capacity-building to ensure long-term sustainability and growth for Nigeria’s shipping sector.
