Assessment of Cabotage Act implementation and its effect on Nigerian seafarers

Donatus Onwuegbuchunam,Moses Olatunde Aponjolosun,Ayotunde Oludare,Okafor Onyekachi

doi:10.14254/jsdtl.2020.5-1.12

Abstract

This paper is based on a study that was carried out to assess the implementation of cabotage act in Nigeria from the perspectives of the seafarers and shipowners who are considered as the major stakeholders in maritime sector and are directly affected by this act. The objectives of this study were to evaluate cabotage operations and to ascertain the effect of cabotage act implementation on Nigerian seafarers onboard cabotage vessels. Primary data was used through a design of questionnaire and interview. Fifty (54) copies of questionnaires were retrieved out of 60 copies that were administered. The method of data analysis was descriptive using statistical mean and percentages with the aid of Statistical Package for Social Sciences (SPSS) version 23. The data collected were measured in 5-point Likert scale with a hypothesized mean of 3.00. The findings of the study revealed that despite some successes recorded in the aspect of increase in the number of cabotage vessels operating on Nigeria waters and increase in the number of Nigerian seafarers employed onboard these cabotage vessels , there are still some challenges in respect to the implementation of this act such as, low capacity of Nigerian ship building industry to meet the demand of cabotage trade market, inability of shipowners to access fund to enhance their operations, lack of adequate attention to the condition of service and welfare of Nigerian seafarers onboard cabotage vessels. This study recommends investment in Nigerian shipbuilding industry in order to meet the demand of cabotage trade and also seeks enforcement of the ratified Maritime Labour Convention by Nigeria Maritime Administration and Safety Agency (NIMASA) in order to ensure better working and living conditions for Nigeria Seafarers.

Highlights

IntroductionCabotage Act (2003) was enacted in order to reduce or eliminate the dominance of foreign vessels in Nigeria waters and spur the growth of indigenous shipping companies engaging in coastal trade in order to contribute to the growth and development of Nigeria economy. Nwekeaku and Atteh (2016) were of the opinion that cabotage act was introduced to stimulate, empower and reposition the indigenous shipping lines for active participation in the Sub-Saharan shipping tractions.Oluremi (n.d) was of the view that the approach of protecting domestic shipping companies by prohibiting foreign ships from participating in domestic or coastal shipping is one which is recognized all over the world as that based upon the realization that the protection of nation’s maritime industry is an avenue for economic advancement and availability of defence/security in situation of national emergencies and crisis
The findings of the study revealed that despite some successes recorded in the aspect of increase in the number of cabotage vessels operating on Nigeria waters and increase in the number of Nigerian seafarers employed onboard these cabotage vessels, there are still some challenges in respect to the implementation of this act such as, low capacity of Nigerian ship building industry to meet the demand of cabotage trade market, inability of shipowners to access fund to enhance their operations, lack of adequate attention to the condition of service and welfare of Nigerian seafarers onboard cabotage vessels
The respondents acknowledged that implementation of cabotage act has really been beneficial as it has led to the growth of indigenous shipping companies and increase in the number of Nigerian seafarers employed

Summary

Introduction

Cabotage Act (2003) was enacted in order to reduce or eliminate the dominance of foreign vessels in Nigeria waters and spur the growth of indigenous shipping companies engaging in coastal trade in order to contribute to the growth and development of Nigeria economy. Nwekeaku and Atteh (2016) were of the opinion that cabotage act was introduced to stimulate, empower and reposition the indigenous shipping lines for active participation in the Sub-Saharan shipping tractions.Oluremi (n.d) was of the view that the approach of protecting domestic shipping companies by prohibiting foreign ships from participating in domestic or coastal shipping is one which is recognized all over the world as that based upon the realization that the protection of nation’s maritime industry is an avenue for economic advancement and availability of defence/security in situation of national emergencies and crisis. Cabotage Act (2003) was enacted in order to reduce or eliminate the dominance of foreign vessels in Nigeria waters and spur the growth of indigenous shipping companies engaging in coastal trade in order to contribute to the growth and development of Nigeria economy. Cabotage acts which requires that vessels trading within the country’s coastal waters should be built domestically, owned and manned by nationals of the country was enacted in 2003 in Nigeria. The coastal and inland shipping act 2003 identified four pillars of cabotage which are vital to its implementation. These four pillars give exclusive control and operations of domestic shipping to Nigerians. These four pillars stated that; (i) vessels must be built in Nigeria (ii) vessel(s) must be registered in Nigeria (iii) vessels must be wholly manned by Nigerians (iv) vessels must be wholly owned by Nigerians

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