An Assessment of The Constraints to Cabotage Operation to Nigeria

ABSTRACT  

The study assesses the level of cabotage administration in relation to cabotage operation in Nigeria since its inception. To properly evaluate the cabotage operation in Nigeria, it is important to state the four cardinal reasons federal government introduced cabotage administration. The four cardinal points are: cabotage vessels must be wholly owned by Nigerians, cabotage vessels must be manned by Nigerians, cabotage vessel must be registered in Nigeria and cabotage vessels must be built in Nigeria. Data were collated from coastal shipping companies and maritime transport workers. Chi-square technique was used to analyse and evaluate the data collected. The findings show that only 2% of cabotage vessels were built in Nigeria, also that 65% of the cabotage vessel in Nigeria are owned by foreigners, that 50% cabotage ship operators in Nigeria are registered. The study recommends that federal government should reposition the cabotage section of the NIMASA and the various government agencies that have responsibility in the implementation and enforcement of cabotage regime. Effective and proper management of cabotage vessels fund and finance must be administered to enable federal government to assist more Nigeria entrepreneurs to acquire ships as acquisition is capital intensive.