Protectionist vs liberalised maritime cabotage policies. Coastal and inland shipping cabotage act nigerialaw. The reason behind the cabotage law is essentially for economic reasons. In a suit initiated by phoenixtide before the federal high court, marked as fhclcs60920, both companies formed a partnership after the cabotage act of 2003 came into effect. This act may be cited as the costal and inland shipping cabotage act, short title. Poor nigeria seafarers salary as major obstacle to cabotage act published on september 4, 2015 september 4, 2015 34 likes 19 comments. Freedom of information act central bank of nigeria. In essence, the system of maintaining domestic shipping industry. In may 2003, the federal government of nigeria signed the cabotage bill, which had earlier been passed by the national assembly into law. Consequently, the ghana maritime authority gma, has initiated moves to push for a cabotage act to. Shipping act cap, 224, laws of the federation of nigeria 1990. The nigerian cabotage act defines cabotage as the carriage of goods or passengers either by vessel or by vessel and any other mode of transport, from one place in nigeria to any other place in nigeria or a vessel engaged in any other marine transportation activity of a commercial nature in nigerian territorial waters.
It was enacted april 30, 2003 by the national assembly and became. Permission to engage in cabotage is, in general, strictly restricted in every country. The risk and resource borne in and by factors in maritime trade are of such volume that either due diligence or litigation on them necessarily has to pay the lawyer. Guidelines on implementation of coastal and inland shipping cabotage act, 2003. Opinion the cabotage act, known more appropriately as the coastal and inland shipping cabotage act 2003, has been operational for over ten. The law intends to lift the longstanding cabotage restrictions imposed upon foreign vessels. The local content act and the cabotage act have a direct impact on the organizational structure of stakeholders in the nigerian oil and gas industry. The nigerian cabotage act defines cabotage as the carriage of goods or. Time limit for carrying out the three cabotage operations the time limit of 7 days for cabotage starts at midnight 00. Nationality requirements and cabotage restrictions in.
In may 2003, the federal government of nigeria signed the cabotage bill, which had earlier. Enactedby the national assembly ofthe federal republic of nigeria parti. All shipping companies carrying on business in nigeria must register with nimasa. Benefit maximizing criteria from the nigerian coastal and.
Cabotage act nigeria pdf the nigerian maritime administration and safety agency nimasa has started seizing vessels for violating provisions of the cabotage law. Jan 30, 2012 under the cabotage act, nigerian waters is defined to include inland waters, territorial waters or waters of the exclusive economic zone and the meaning given to them by the national inland waterways authority decree of 1997. Oil spill problems and management in the niger delta. Freedom of information act 2011 laws of the federation of nigeria an act to make public records and information more freely available, provide for public access to public records and information, protect public records and information to the extent consistent with the public interest and the protection of. 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. This study analyzed the implementation of the policy. Awaiver granted under this act shall specify theperiod oftime for which it shallbe valid, which period shall not in any circumstance exceed one 1 year. Foreign firms violating nigerian cabotage act the guardian. 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.
The legal framework for undertaking business in nigeria yinka agidee the rock and partners globe building 3rdrd floorfloor. 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. Pdf the year 20 marked a decade of the implementation of cabotage law in nigeria. Pdf notable amendments to nigerias cabotage act ngozi. It refers to transit of a vessel along the coast of a nation for the purpose of trade from one port to another within the territorial limits of that nation. This act may be cited as the costal and inland shipping cabotage act. The bill is now known as the coastal and inland shipping cabotage act 20031 and its objective is basically to restrict participation in the coastal or domestic trade in nigeria to nigerians.
The cabotage act also requires cabotage vessels to be registered by the registrar of ships in the special cabotage register, domiciled with nigerian maritime administration and safety agency nimasa. It is 10 years since the coastal and inland shipping, act, known as cabotage act in nigeria was enacted to give local shipping companies a comparative advantage over their foreign counterparts. Cabotage may not be commenced until all the goods carried in the course of the incoming international carriage have been unloaded. A study of the cabotage policy in nigeria from the prisms of. Coastal trade or cabotage means a the carriage of goods by vessel, or any other mode of transport, from one place in nigeria or above nigeria waters to any other place in nigeria or above nigeria waters. The problem with nigeria is that the act enforcing the new regime is far from being implemented and so market liberalisation is still in force. Nigeria, nimasa, m, nimasa, maritime, cabotage act, shipping.
The purpose of this study is to critically examine the nigerian cabotage law and its policy. At a time when many offshore support vessel osv owning companies are struggling due to the global fall in oil prices and over capacity, those owners with partnerships across the region which allow them access to cabotage areas are perhaps faring better than their competitors. Irrespective of the nationality of the airlines majority owner, the carrier would incorporate itself in a certain country, and operate under its regulatory control. The kernel of this paper is to critically analyse the cabotage regime in nigeria from the. This act is to restrict the use of foreign vessels in domestic coastal trade to promote the development of indigenous tonnage, establish a cabotage vessel financing fund and for related matters. In nigeria, the nigerian ports authority npa is the body responsible for regulating the use of nigerian ports and the legislation, which establishes the npa is the nigerian ports authority act npaa 1999. Jurisdiction jurisdiction over the matters and offence referred to in this act lie with the federal high court. Criminal code act taxes and levies approved list for collection act 1998 value added tax act 1993 vat amendment act 2007 federal inland revenue service establishment act 2007 personal income tax act 2004 personal income tax amendment act 2011 money laundering prohibition act 2011 iii. May 23, 2010 it must be put in focus that the cabotage act came to existence because of the need to gradually encourage the nigerian maritime indigenous operators to actively participate in shipping business, but several years after, the people for which it is intended are still crying foul, which simply means that there is a crack in the law itself. Cabotage definition of cabotage by the free dictionary.
These statutes specifically deemphasise, restrict and seek to regulate foreign participationoperation in the oil and gas and the inland. There are several things to consider about the format of this matrix. Usually, this coastal trading is regulated by the national law of the host nation. Cabotage the nigerian perspective the rock and partners. Nigerias cabotage act is known and referred to as the coastal and inland. Ghana maritime authority pushes for cabotage act to ensure. Cargo means goods carried in or on a vessel whether or not of conunercial value and includes livestock.
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 cargoes including oil and crude oil to international markets. The federal high court had rendered a decision of significant consequence on the enactment. The export of its hydrocarbon deposits is beneficial to nigerias economy and, in light of this, the cabotage act has a fundamental role in the advancement of the countrys economy and trade relations. Pdf the coastal area of the niger delta is the home to oil explorations and exploitations in nigeria. The cabotage law came into force in april, 2004 cabotage act, 2003 aimed at reserving the costal shipping for nigeria nationals. The effects of cabotage regime on indigenous shipping in nigeria. Nigeriaa country with a large muslim population and a known history of religious tensioncould have been predicted. It is 10 years since the coastal and inland shipping, act, known as cabotage act in nigeria was enacted to give local shipping companies a comparative advantage over. Although there has been a flurry of maritime legislation in nigeria, the principal body of substantive shipping laws is contained in the merchant shipping act, 2007 msa, the nigerian maritime administration and safety agency act, 2007 the nimasa act, the coastal and inland shipping cabotage act no. February 2016 rowing your boat down our stream nigerian. Pdf a study of the cabotage policy in nigeria from the prisms of. Federal republic of nigeria council on foundations. Sep 17, 2018 more recently, nigeria, which for many years has operated cabotage services in a liberalised environment, also adopted a strict cabotage regime. Cabotage definition and standards for emergency exemption.
The dissertation also analyses the effects of the policy on indigenous shipping. Poor nigeria seafarers salary as major obstacle to. Pdf the maritime industry is adjudged the safest and more environmentally friendly mode of transportation. This study analyzed the implementation of the policy over the 10. An analysis of the challenges hindering the nigerian cabotage act. Carriage of goods and passengers originating from a point in nigeria intended for nigeria but transiting. Federal republic of nigeria companies income tax act 19. Carriage of cargo between two points within a country by a vessel or vehicle registered in another country.
Opinion the cabotage act, known more appropriately as the coastal and inland shipping cabotage act 2003, has been operational for over ten years now. Section 41 of the npaa gives the minister of transport power to create areas designated as compulsory pilotage districts. 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 nigeria s domestic coastal trade, nevertheless a lot of opportunities exist for foreign involvement. May 10, 2017 the export of its hydrocarbon deposits is beneficial to nigeria s economy and, in light of this, the cabotage act has a fundamental role in the advancement of the countrys economy and trade relations.
The guidelines on implementation of coastal and inland shipping cabotage act 2003 was issued in april 2004 to facilitate implementation of cabotage. 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. Cargo means goods carried in or on a vessel whether or not of commercial value and includes livestock. Nigerian maritime administration and safety agency an act to provide for the promotion of maritime safety and security, protection in the maritime environment, shipping registration and commercial shipping, maritime labour, the establishment of nigerian maritime administration and safety agency. Pdf oil spill problems and management in the niger delta. Background the existing law provides a relatively broad definition of the term cabotage. Cabotage act and development of nigerian maritime the.
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