FG moves to scrap foreign vessel waivers, launches new era for Nigerian shipping
The Federal Government through the Minister of Marine and Blue Economy, Adegboyega Oyetola, has announced a decisive move to end the longstanding practice of issuing waivers under the Coastal and Inland Shipping Act 2003, in a bid to revitalise Nigeria’s maritime industry.
The decision was disclosed in a statement by the Minister’s spokesperson, Dr Bolaji Akinola, following a high-level meeting with representatives from NNPC Shipping, Stena Bulk, and Caverton Offshore at the Ministry’s headquarters in Abuja.
During the meeting, which also marked the unveiling of Unity Shipping World (USW), a new joint venture between NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group, Oyetola reiterated his determination to halt the habitual granting of waivers that have allowed foreign vessels to operate freely within Nigerian coastal waters.
Unity Shipping World has been set up to establish a robust tanker operation for transporting crude oil, refined petroleum products, and liquefied natural gas (LNG) across Nigeria, West Africa, and international waters.
The Minister took aim at the waivers system, describing it as a policy failure that has stunted the growth of local shipping companies and denied Nigerian seafarers and maritime professionals critical job opportunities.
“Waivers were meant to be temporary measures, not permanent substitutes for building indigenous capacity,” Oyetola said.
“We cannot continue to weaken local enterprise under the pretext of foreign support. The time has come to strengthen our own fleet, support home-grown employment, and provide Nigerian operators with the competitive edge they deserve.”
The Cabotage Act, which came into force in 2003, restricts the operation of coastal and inland shipping services to Nigerian-owned, crewed, built or flagged vessels. However, due to inadequate domestic capacity, successive governments have routinely issued waivers, allowing foreign-flagged vessels to carry out these operations.
Oyetola revealed that, as part of the strategy to phase out the waiver system, he has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence disbursement of the long-awaited Cabotage Vessel Financing Fund (CVFF). The fund, accumulated through cabotage levies, is intended to support Nigerian shipowners in acquiring vessels and upgrading their operations.
“The disbursement of CVFF is now critical,” the Minister stated. “It is the practical support our operators need as the era of foreign waivers comes to an end.”
He also reaffirmed plans to establish a national shipping line through a Public-Private Partnership, aimed at bolstering Nigeria’s maritime presence in regional and global markets.
Bode Makanjuola, Chief Executive Officer of Caverton Offshore, described the launch of Unity Shipping World as a turning point for Nigeria’s maritime sector. He said the new venture would offer reliable, cost-effective and environmentally responsible marine transport services tailored to Nigeria’s energy demands.
According to Makanjuola, USW plans to assemble a modern fleet by acquiring both new and existing vessels, with a strategic focus on operational efficiency. While the fleet will primarily serve NNPC’s logistical needs, it will also cater to other oil producers and energy firms.
He stressed that the joint venture is committed to sustainability, safety, and seafarer training, laying the groundwork for long-term sectoral development.
“This collaboration represents meticulous planning and a common vision. It merges Nigerian expertise with international best practices to deliver meaningful results,” Makanjuola said.
“Unity Shipping World will proudly fly the Nigerian flag and train the next generation of seafarers.”
Panos Gliatis, Managing Director of NNPC Shipping, noted that the partnership would play a key role in supporting domestic refining capacity and Nigeria’s broader involvement in global energy logistics.
President and CEO of Stena Bulk, Erik Hånell, echoed the sentiment, stating that the joint venture aligns with his company’s broader international objectives.
“We are committed to operational excellence and strategic growth in crucial energy markets. This initiative will contribute significantly to Nigeria’s shipping and energy sectors,” Hånell said.
