The Nigerian maritime sector is poised for a significant transformation as the Federal Government, through the Minister of Marine and Blue Economy, Adegboyega Oyetola, has declared its intention to terminate the practice of granting waivers under the Coastal and Inland Shipping (Cabotage) Act of 2003. This landmark decision aims to bolster indigenous participation and growth within the shipping industry, paving the way for enhanced local capacity and job creation. The announcement comes on the heels of a strategic partnership between Nigerian National Petroleum Corporation (NNPC) Shipping, Stena Bulk, and Caverton Offshore Support Group, forming a joint venture known as Unity Shipping World. This new entity is set to revolutionize tanker operations, transporting crude oil, refined products, and LNG within Nigeria, West Africa, and on a global scale.
The Cabotage Act, designed to protect and promote Nigerian shipping interests, restricts domestic coastal shipping activities to vessels owned, crewed, and built or flagged in Nigeria. However, the frequent issuance of waivers to foreign vessels, often justified by perceived insufficient local capacity, has inadvertently stifled the growth of indigenous shipping companies. This practice has deprived Nigerian operators of crucial opportunities within their own domestic market, hindering their development and competitiveness. Minister Oyetola’s resolve to end this waiver regime marks a turning point, signaling a commitment to empowering Nigerian shipping and reclaiming control over the nation’s maritime domain.
The Minister emphasized that the era of indiscriminately granting waivers is drawing to a close. He stressed the importance of developing Nigerian tonnage, supporting local employment within the shipping sector, and providing indigenous operators with a level playing field to flourish. This decisive move is not merely a policy shift, but a strategic imperative to unlock the full potential of Nigeria’s maritime industry, fostering sustainable growth and reducing reliance on foreign shipping entities. Crucial to this strategy is the effective disbursement of the Cabotage Vessel Financing Fund (CVFF), a vital resource designed to empower indigenous operators to acquire modern vessels and compete effectively against established international players. This fund, previously subject to delays and controversies, is now positioned as a critical tool in the transition towards a self-reliant and robust Nigerian shipping sector.
The formation of Unity Shipping World represents a tangible example of the kind of progress Minister Oyetola envisions for the industry. This joint venture combines the expertise of NNPC Shipping, the global reach of Stena Bulk, and the local knowledge of Caverton Offshore Support Group, creating a synergistic partnership poised to elevate Nigerian maritime operations. The new entity is committed to building a modern fleet, optimizing operational efficiency, and upholding the highest standards of service, while simultaneously prioritizing the training and empowerment of Nigerian seafarers. This focus on local talent development underscores the commitment to building a sustainable and skilled workforce within the Nigerian maritime sector.
Bode Makanjuola, CEO of Caverton Offshore Support Group, hailed the joint venture as a transformative development for Nigeria’s maritime industry. He highlighted the company’s dedication to providing efficient, reliable, and sustainable maritime transport services, emphasizing the strategic combination of local expertise with international best practices. This partnership is designed to create a maritime powerhouse, proudly flying the Nigerian flag and contributing significantly to the growth of the nation’s shipping capabilities. The combined experience and resources of the partners will enable Unity Shipping World to compete effectively on a global scale, bolstering Nigeria’s position in international maritime trade.
The leadership of the partnering companies expressed strong confidence in the potential of Unity Shipping World. Panos Gliatis, Managing Director of NNPC Shipping, emphasized the importance of the venture in enhancing domestic refining, imports, and exports, solidifying Nigeria’s role in global energy logistics. Erik Hånell, President and CEO of Stena Bulk, echoed this sentiment, aligning the partnership with his company’s strategic goals of operational excellence and expansion into key energy markets. This joint venture not only strengthens Nigeria’s energy and shipping landscape but also represents a significant step towards achieving self-sufficiency and global competitiveness in the maritime sector. The collective vision of these partners is set to propel Nigeria to the forefront of the maritime industry, creating a ripple effect of economic growth and job creation throughout the country.
