ASSESSMENT OF CABOTAGE ACT IMPLEMENTATION NIGERIA

This research assesses the implementation of Cabotage Act in Nigeria. The Act was enacted to empower domestic shipping operators to take control of the coastal shipping trade and from it, develop the Nigerian maritime Industry to be a force to reckon with in the world maritime trade. The aim of this study is to assess the degree of the implementation of the Cabotage act. Secondary data were used for this study, showing relationship between local and foreign operators in terms of revenue earned, ownership of Cabotage vessels, manning of Cabotage vessels, and Cabotage vessel building. The difference of means statistical method was used for this study and the hypothesis of this research was tested using a paired T-test method of analysis. H0A was accepted showing that there were no significant difference foreign and locally owned vessels; H0B was rejected showing that foreign operators were earning more than local operators; H0C was rejected showing that local manning was more than foreign manning; H0D was rejected showing the existence of more foreign built vessels compared to locally built vessels. The result of this analysis revealed that there has not been much improvement in the fortunes of indigenous shippers in the country. Therefore the body tasked with the implementation of this Act should shift its focus on just generating revenue from shippers but also ensuring that these indigenous shippers are well positioned in the Nigerian maritime industry. Regardless of the poor implementation of the Act, it still remains the hope for a vibrant indigenous shipping industry.

TABLE OF CONTENTS

CERTIFICATIONi

DEDICATIONii

ACKNOWLEDGEMENTSiii

ABSTRACTiv

TABLE OF CONTENTSv

LIST OF CHARTSx

CHAPTER ONE1

INTRODUCTION1

1.1 BACKGROUND1

1.2 PROBLEM STATEMENT3

1.3 RESEARCH QUESTIONS4

1.4 AIM AND OBJECTIVES OF THE STUDY4

1.5 HYPOTHESES5

1.6 SCOPE OF STUDY5

1.7 JUSTIFICATION OF STUDY5

CHAPTER TWO6

LITERATURE REVIEW6

2.1`NIGERIAN MARITIME INDUSTRY6

2.1.1 Nigeria’s Initial Involvement in Shipping Trade8

2.2 NIGERIAN MARITIME CABOTAGE10

2.2.1Overview of the Nigerian Cabotage12

2.2.1.1 Registration13

2.2.1.2 Waivers13

2.2.1.3 Licences14

2.2.1.4 Enforcement14

2.2.1.5 Cabotage Vessel Financing Fund15

2.2.1.6 Structure of the Act15

2.2.1.7 Objectives of the Act17

2.3 AN OVERVIEW OF OTHER NATION’S CABOTAGE19

2.3.1United States of America19

2.3.2 Greece20

2.3.3 Malaysia20

2.3.4 Brazil20

2.3.5 Denmark21

2.3.6 India21

2.3.7 Philippines22

2.3.8 Australia22

2.4 AGENCIES INVOLVED IN THE ENFORCEMENT OF CABOTAGE ACT23

2.4.1 Nigerian Maritime Administration and Safety Agency Act, 200723

2.4.2 Nigerian Ports Authority26

2.4.3 Nigerian Shippers Council27

2.4.4 The National Inland Waterways Authority (NIWA)27

2.5 ASSESSING THE IMPACT OF NIMASA AND ITS PROBLEMS28

2.5.1 Seafarers’ Training Programme and Development29

2.5.2 Historical Perspective of Seafarers’ Training in Nigeria30

2.5.3 NIMASA Efforts to Provide Practical Training for Trainee Seafarers – Onboard Placement32

2.5.4 Ship Building and Ship Repair Industry33

2.6 CONSTRAINTS IN THE MARITIME CABOTAGE SERVICE AND THE CHALLENGES OF CABOTAGE LAW IN NIGERIA34

2.6.1 Capacity Building36

2.6.2 Over Regulation38

2.6.3 Tonnage Availability Constraints39

2.6.4 Financing Constraints39

2.6.5 Human Resource Constraint40

2.6.6 Institutional Factors41

2.7 PROSPECTS OF CABOTAGE ACT41

2.7.1 Growth of Inland Water Transportation42

2.7.2 Increased Economic Activities42

2.7.3 Development of Shipbuilding and Ship Repair Facilities42

2.7.4 Increased Domestic Fleet43

2.7.5 Employment Opportunities43

2.7.6 Revenue Generation and Conservation of Foreign Exchange43

2.7.7 National Defence and Security44

CHAPTER THREE45

METHODOLOGY45

3.1 RESEARCH DESIGN45

3.1.1 Ex Post Facto45

3.2   SOURCE OF DATA45

3.3   DATA ANALYSIS46

CHAPTER FOUR47

TESTING AND INTERPRETATION OF HYPOTHESIS47

4.1 TEST OF HYPOTHESIS A47

4.2 TEST OF HYPOTHESIS B50

4.3 TEST OF HYPOTHESIS C53

4.4 TEST OF HYPOTHESIS D56

CHAPTER FIVE59

SUMMARY, RECOMMENDATION AND CONCLUSION59

5.1 SUMMARY OF FINDINGS59

5.2 CONCLUSION61

5.3 RECOMMENDATION61

REFERENCES63

APENDICES66