The cabotage act was enacted in response of the increased demand of nigerian stakeholders within the maritime industry for legislative intervention to stimulate the participation of nigerians in its domestic coastal trade. An evaluation of the effectiveness of the cabotage act 2003 on nigerian. C51 cabotage act, vessels with foreign seafarers working onboard will be detained with effect from 1st june 2018. An evaluation of the effectiveness of the cabotage act 2003. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well cabotage rights are the right of a company from one country to trade in another country. Cabotage is the carriage of revenue traffic by a foreign air carrier solely between two u.
In essence, the system of maintaining domestic shipping industry is being regulated by the cabotage law. Nigeria coastal and inland shipping cabotage act 2003 no. The cabotage that will host potentials, which will be technological advanced, safe, secure, efficient, effective, accessible, globally competitive, dynamic, affordable and environmentally a responsible system. Seeks more opportunities for nigerians dr dakuku peterside dg nimasa. Cabotage act fails first legal interpretation jones act. This circular concerns the interpretation of a new section 2a in the regulation on international transport of passengers and goods, and cabotage, of 26 march 2003 no. Some of the operators challenged the assessments and subsequently sought judicial reliefs. A maritime lawyer, mrs jean chiazoranishere, has urged the federal government to implement the cabotage act 2003 to enable nigeria achieve the status of maritime hub in west and central africa. Reference 1963 immigration act of parliament cap 171, laws of the federation nigeria. The cabotage law came into force in april, 2004 cabotage act, 2003 aimed at reserving the costal shipping for nigeria nationals. Following the guidelines, nimasa issued assessment notices to operators of drilling rigs in nigeria.
Thus, in terms of nature and scope of statutory responsibility, nimasa is the apex organisation saddled with huge responsibilities. Lawyers benefited from these millions and they guided the. Cabotage services in pursuance of the success of nigeria on maritime reforms, nigeria made a bold attempt to change the face of maritime business within its coasts when it enacted the coastal and inland shipping cabotage act 2003, though designed to restrict foreign participation in nigerias domestic coastal trade, nevertheless a lot of. Cabotage act, 2003 the guidelines wherein drilling rigs were included as eligible vessels liable to the 2% cabotage levy. To facilitate the enforcement of the cabotage act, the honorable minister of transport constituted a committee on the modalities for the implementation of the cabotage on the 12th of february, 2004. Coastal and inland shipping cabotage bareboat registration regulations. For the purposes of this study, cabotage under the act covers. Cabotage definition and standards for emergency exemption. An evaluation of the effectiveness of the cabotage act 2003 on nigerian maritime.
Assessment of the impact of the implementation of the. C51, laws of the federation of nigeria, 2004 cabotage act2. Why cabotage act implementation failed the nation newspaper. The coastal and inland shipping cabotage act was passed in 2003 and its objective was to reserve commercial transportation of goods and services within. Pdf a strategic reposition of the maritime industry for. Cabotage act fails first legal interpretation jones act issues, questions and answers maritime attorneys jones act lawyers last updated friday, 23 october 2009 17. The agency spent several millions of naira between 2002 and 2003 to ensure the enactment of the cabotage act. Jan 04, 20 the one year bridging period was for the industry to make the necessary adjustments and to be fully sensitized on the expectation of the regime. African journal of business management a strategic. Aug 28, 20 under the two acts, nimasa act 2007 and cabotage act 2003 there is a provision as to how the scheme is to be funded, section 17 of nimasa act made provision for what is termed maritime fund which purpose the law says is only for the furtherance of the objectives and function of nimasa under the act, the money accordingly may be used to. Abstract of impact of the cabotage act on local capacity development. In pursuance of the success of nigeria on maritime reforms, nigeria made a bold attempt to change the face of maritime business within its coasts when it enacted the coastal and inland shipping cabotage act 2003, though designed to restrict foreign participation in nigerias domestic coastal trade, nevertheless a lot of opportunities exist for foreign involvement.
Thus, cabotage regimes are laws regulating the transportation of persons and merchandise from one point to another along the coastal waters of a nation. These legal frame shape both the functions and structure of the agency, distinct from its precursor organizations. In essence, the system of maintaining domestic shipping industry. Please reference appendix b guidelines on implementation of coastal and inland shipping cabotage act 2003. Frittelli analyst in transportation resources, science, and industry division summary the jones act is a perennial issue in congress. The significance of these two statutes and the accompanying regulations and guidelines derives from the following. By 2007, the national assembly passed a law formalizing the establishment of the nigerian maritime administration and safety agency nimasa known as nimasa act 2007 empowering it to implement and enforce the cabotage act 2003 usoro, 2010. The registration of foreign owned vessel under the nigerian cabotage act 2003 1 p a g e the primary objective of the nigerian coastal and inland shipping cabotage act1the cabotage act is to restrict the use of foreign vessels in domestic coastal. Circular concerning cabotage in goods transport by road.
The dissertation also analyses the effects of the policy on indigenous shipping. The one year bridging period was for the industry to make the necessary adjustments and to be fully sensitized on the expectation of the regime. Coastal and inland shipping cabotage act nigerialaw. The nigerian cabotage law came into force in april, 2004 cabotage act, 2003. Inland shipping act, 2003 was a protectionist law enacted to create exclusive areas of operations in the coastal trade for indigenous operators. Pdf notable amendments to nigerias cabotage act ngozi.
The act insists that the shipping companies must be incorporated by the corporate affairs commission under cama, lfn, 2004. It was stipulated that the provisions of the cabotage act would become enforceable from 1st may 2004. This involves the merchant fleet, and the protection of the environment and biodiversity. The kernel of this paper is to critically analyse the cabotage regime in nigeria from the lenses of ship acquisition and shipbuilding with a view to enhancing indigenous participation in coastal and inland waterway transport in the country. The bill is now known as the coastal and inland shipping cabotage act 20031 and its objective is basically to restrict participation in the. An act to restrict the use of foreign vessels in domestic coastal trade to promote the development of indigenous tonnage and to establish a cabotage vessel financing fund. The cabotage act has the lofty objective of, among other things restricting participation in cabotage trade to vessels that are wholly manned by nigerian citizens. For renewal purposes, applicants are expected to show evidence of an improved level of compliance with the provisions of the cabotage act on manning, ownership and shipbuilding requirements. The national assembly on 30 april 2003 passed the coastal and inland shipping cabotage act. This act may be cited as the coastal and inland shipping cabotage act, 2003.
The national assembly on 30th april 2003 passed the coastal and inland shipping cabotage act the cabotage act into law. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well. Impact of the cabotage act on local capacity development. A reference in this act to a proprietary maritime claim is a reference to a a claim relating to. The cabotage act is administered by the nigerian maritime administration and safety agency nimasa, which is the regulatory agency for nigeriasmaritime industry. Opinion the cabotage act, known more appropriately as the coastal and inland shipping cabotage act 2003, has been operational for over ten years now. I certify, in accordance with section 21of the acts authentication act, cap. A critical assessment of the inland waterways operations and. The much awaited guidelines for the implementation of the provisions of the cabotage act were. This act may be cited as the costal and inland shipping cabotage act, short title.
Nigeria, nimasa, m, nimasa, maritime, cabotage act, shipping. This act may be cited as the costal and inland shipping cabotage act. The cabotage regime introduced in 2003 via the cabotage act is the most effective legislation that has guaranteed employment for nigerian maritime workers. But igbokwe 2006, benard 2010 and ezem 2011 were neither able to examine the interface between the institutional incapacity to monitor compliance and enforcement of the cabotage act 2003 by nimasa nor able to explore the nexus between capacity gap and poor compliance with the cabotage act. In continuation of its quest to ensure full implementation of the cabotage act, 2003 for the benefits of nigerians, the nigerian maritime administration and safety agency nimasa has introduced new nimasa cabotage compliance strategy nccs towards the actualization of a successful coastal and inland trade regime. Act 2003 as well as its ability to bridge the capacity gap in the maritime leading to poor compliance. An appraissal of the nimasa act, 2007 by mfon ekong usoro oom. To evaluate the nations level of involvement and concern towards the inland waterways operations and management through coastal shipping cabotage act.
The suspension of the grant of waivers from manning requirements of the. Section 2a regulates cabotage in transport of goods by road. A strategic reposition of the maritime industry for economic. Pdf the purpose of this study is to critically evaluate the effectiveness of the cabotage act 2003 on nigerian maritime administration. In may 2003, the federal government of nigeria signed the cabotage bill, which had earlier been passed by the national assembly into law. To investigate the effectiveness and efficiency of the cabotage act on the operational and managerial activities of the inland waterways in nigeria over the years. Cabotage services in pursuance of the success of nigeria on maritime reforms, nigeria made a bold attempt to change the face of maritime business within its coasts when it enacted the coastal and inland shipping cabotage act 2003, though designed to restrict foreign participation in nigerias domestic coastal trade, nevertheless a lot of opportunities exist for foreign involvement. The registration of foreign owned vessel under the nigerian. The effects of cabotage regime on indigenous shipping in.
The cabotage act, also known as coastal and inland shipping act 2003 defines coastal trade or cabotage to mean. Act to restrict the use of foreign vessels in domestic coastal trade to promote the development of indigenous tonnage and to establish a cabotage vessel financing fund and for related matters. The cabotage act preserves the rights of foreign investors under the nigerian investment promotion commission act, cap n17, lfn 2004 by establishing a special register for cabotage fully foreign owned vessel for foreign. Coastal trade or cabotage meaa the carriage ofgoods by vessel, orby vessel andanyother mode. Nigerian oil and gas industry content development act 2010 the local content act and the coastal and inland shipping cabotage act 2003. The registration of foreign owned vessel under the nigerian cabotage act 2003 1 p a g e the primary objective of the nigerian coastal and inland shipping cabotage act1the cabotage act is to restrict the use of foreign vessels in domestic coastal trade within the nigerian coastal and inland waters and also promote indigenously.
Interpretation in this act cargo means goods carried in or on a vessel whether or not of commercial value and includes livestock. Coastal and inland shipping cabotage act, 2003 122. The paper relied so gathered from secondary sources. Dec 19, 2017 the kernel of this paper is to critically analyse the cabotage regime in nigeria from the lenses of ship acquisition and shipbuilding with a view to enhancing indigenous participation in coastal and inland waterway transport in the country. Nigeria coastal and inland shipping cabotage act 2003. Nimasa introduces new compliance strategy for cabotage. This study contends that, one, the nigerian maritime. The impacts of cabotage law implementation on nigerias. In 2003, the cabotage law was adopted with the provisions of the empowerment of local investors to take domestic trade controls of shipping and develop enough muscle to assume the right place for nigeria as maritime nation in the movement of its import export. Crs report for congress federation of american scientists. Crs report for congress received through the crs web order code rs21566 july 8, 2003 the jones act. The aim was to reserve the costal shipping business by nigeria national.
In april 2007, the federal ministry of transportation the ministry issued guidelines on implementation of the cabotage act, 2003 the guidelines wherein drilling rigs were included as eligible vessels liable to the 2% cabotage levy. The paper relied solely on data gathered from secondary sources. Cabotage levy, drilling rigs and drilling operations. A critical assessment of the inland waterways operations. Prior to this decision, nimasas position was that the cabotage regime applied to every commercial activity on, in or under nigerian territorial waters and as a result, required all operators of all drilling rigs. The purpose of this study is to critically evaluate the effectiveness of the cabotage act 2003 on nigerian maritime administration.
The study is of the view that if the cabotage law is properly. Cargo means goods carried in or on a vessel whether or not of conunercial value and includes livestock. The registration of foreign owned vessel under the. This paper examines the coastal and inland shipping cabotage act of 2003, to see whether the law has been extensively maximize, it also looks at the agency of the government whose responsibility it is to enforce the law challenging their inability.
An evaluation of the effectiveness of the cabotage act. Effect of the cabotage act 2003 on the nigerian maritime industry. The coastal and inland shipping cabotage act the cabotage act was enacted in 2003 and came into force on 1st may 2004. The registration of foreign owned vessel under the nigerian cabotage act 2003 january, 2018 the primary objective of the nigerian coastal and inland shipping cabotage act1the cabotage act is to restrict the use of foreign vessels in domestic coastal trade within the nigerian coastal and. National assembly enacted the coastal and inland shipping cabotage act in 2003 to enhance indigenous. The effects of cabotage regime on indigenous shipping in nigeria. Restricts the use of foreign vessels in domestic coastal trade, promotes the development of indigenous tonnage and establishes a cabotage vessel financing fund.
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