In the maritime realm, a nation’s stature is gauged by the proportion of the world’s total tonnage carried by vessels flying its flag. Reflecting on the late 1970s and early 1980s when the Nigerian National Shipping Line (NNSL) boasted 24 vessels, it is crucial to acknowledge that even at its peak, indigenous shipping companies carried a mere 11% of Nigeria’s total traffic volume and earned less than 9% of the total freight revenue.

While the maritime sector has evolved steadily since the enactment of the Nigerian Port Authority (NPA) Act in 1954 and subsequent milestones like the merger leading to the establishment of NIMASA in 2006 and the Cabotage Act of 2003, challenges persist. The sector’s growth has been influenced by international conventions, alliances like the Abuja Memorandum of Understanding (MOU), and strategic collaborations within the African sub-region through bodies like the Association of African Maritime Administration (AAMA).

Presently, approximately 85% of marine vessels operating in Nigerian domestic waters are owned by foreign operators, highlighting a significant foreign dominance in Cabotage. However, only about 5% of product tankers engaged by the PPMC (NNPC) in coastal lifting of petroleum products are owned by Nigerians. This disparity in ownership contributes to substantial revenue repatriation, amounting to about US$32.67 million annually.

Examining maritime traffic volume from 2004 to 2017, it becomes evident that foreign domination persists. A mere 4.21% of vessels were handled by indigenous operators, while foreigners commanded 95.79% of the total volume. Such dominance extends to cargo throughput, with indigenous operators accounting for only 4.16% of the total tonnage between 2004 and 2017.

Addressing these challenges is imperative for the realization of Nigeria’s Cabotage regime. Efforts to enforce Cabotage regulations and empower indigenous operators can significantly impact the sector’s growth, fostering economic benefits, revenue retention, and the establishment of Nigeria as a formidable player in the maritime industry.

Dr. Jamoh, the Director-General and Chief Executive Officer of NIMASA, shares these insights exclusively for The Guardian.