Oyetola Makes Bold Maritime Move to End Cabotage Waivers and Strengthen Indigenous Shipping
Kathy Kyari
In a bold move aimed at revitalizing Nigeria’s maritime sector, the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, has announced plans to phase out the longstanding practice of granting waivers under the Cabotage Act, a development that could mark a turning point for indigenous shipping operators.
Oyetola made his intentions clear while hosting senior representatives from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group in Abuja shortly after the formal unveiling of Unity Shipping World (USW), a newly launched joint venture between the three companies.
The Minister's remark come as his Ministry sharpens its focus on building local shipping capacity, with directives already given to the Nigerian Maritime Administration and Safety Agency (NIMASA) to initiate the long awaited disbursement of the Cabotage Vessel Financing Fund (CVFF). The fund, which has grown through levies imposed under the Cabotage Act, was created to help Nigerian shipowners acquire vessels and upgrade their operations.
“The era of indiscriminate waivers is coming to an end,” the Minister said firmly. “We cannot continue to undermine our local capacity under the guise of temporary foreign intervention. It is time to build Nigerian tonnage, support Nigerian jobs, and give indigenous operators a fair chance to thrive. That is the only sustainable path to maritime development.”
“The disbursement of the CVFF is no longer optional, it is imperative,” Oyetola stressed. “Our indigenous operators must be empowered to acquire modern vessels and effectively render services that have, for too long, been dominated by foreign shipping concerns. As we work to bring the waiver regime to a close, this support becomes even more critical.”
He also reaffirmed plans to establish a national shipping carrier via a Public-Private Partnership (PPP) model, a long standing ambition that, if realized, would help reclaim Nigeria’s stake in regional and global maritime trade.
Caverton Offshore Support Group’s CEO, Bode Makanjuola, hailed the launch of Unity Shipping World as a transformative step for Nigeria’s maritime industry.
“This partnership is the culmination of extensive planning and shared vision,” Makanjuola said. “It combines local expertise with international best practices to create a maritime powerhouse. Unity Shipping World will proudly fly the Nigerian flag and play a critical role in training and empowering Nigerian seafarers.”
USW is expected to operate a fleet that will handle logistics for NNPC and serve a wider clientele across the energy sector. Makanjuola emphasized the importance of operational efficiency, sustainability, and local capacity development, saying the company aims to build and acquire modern vessels that meet global standards.
Managing Director of NNPC Shipping, Panos Gliatis, also expressed confidence in the alliance, noting that the collaboration strengthens Nigeria’s logistics capacity across the energy value chain.
“With this strategic alliance, we are enhancing domestic refining, imports, and exports, reinforcing Nigeria’s pivotal role in global energy logistics,” Gliatis said.
Echoing that sentiment, Erik Hånell, President & CEO of Stena Bulk, pointed to the synergy between the joint venture and his company’s strategic objectives.
“We are committed to operational excellence and expanding into key energy markets,” Hånell stated. “This partnership supports our long-term strategy while advancing Nigeria’s energy and shipping landscape.”
The Cabotage Act of 2003 was designed to protect Nigeria’s domestic shipping industry by reserving coastal and inland shipping routes for Nigerian owned, crewed, and built or flagged vessels. But for years, waivers have been liberally issued to foreign vessels under the justification of limited local capacity. This, many industry watchers say, has stifled the growth of local shipping companies and drained economic value that could have been retained within the country.
0 Comments