The House of Representatives has taken steps to strengthen Nigeria’s shipping sector with a proposed amendment to the Coastal and Inland Shipping (Cabotage) Act, 2003 to restrict operations of foreign vessels in domestic coastal activities.
The bill is titled: “A Bill for an Act to Amend the Coastal and Inland Shipping (Cabotage) Act, No. 5, 2003 to Restrict the Use of Foreign Vessels in Domestic Coastal and Inland Commercial Activities, to Promote the Development of Indigenous Tonnage and Establish a Cabotage Vessel Financing Fund and for Related Matters (HB.1593).
The proposed legislation which was passed for third reading after the consideration and approval of the clauses, aims to limit the involvement of foreign vessels in Nigeria’s coastal and inland shipping industry, encouraging greater participation by indigenous operators.
It also seeks to strengthen local shipping capacity by establishing a Cabotage Vessel Financing Fund (CVFF), which would provide financial support to Nigerian-owned shipping businesses.
