Analysis of Maritime Cabotage Policy Implementation and Its Effect on Nigerian Shipping Industry Development

The Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003 was designed to reserve coastal trade for Nigerian-flagged vessels and promote indigenous maritime sector development. More than two decades after enactment, its implementation record and impact on the shipping industry remain contested. This study analyses the implementation of Nigeria's cabotage policy and its effect on indigenous shipping industry development. A mixed methods design is employed, combining content analysis of regulatory enforcement records from the Nigerian Maritime Administration and Safety Agency with structured interviews of 30 indigenous and foreign-owned shipping company officials and survey data from 50 maritime sector professionals. The study evaluates fleet growth in Nigerian-flagged vessels, cabotage waiver trends, indigenous capacity utilisation rates, and the development of supporting maritime industries. Findings reveal persistent implementation weaknesses, with the cabotage waiver system routinely exploited to circumvent the indigenisation intent of the Act. Indigenous shipping companies remain constrained by access to affordable vessel acquisition finance, high operating costs, and skills gaps in vessel management. Fleet growth in the Nigerian indigenous segment has been modest, averaging 4.2 percent annually over the review period, against a policy target of 20 percent. The study identifies an analytical gap in examining how financing infrastructure failures interact with regulatory design in constraining cabotage policy outcomes. Recommendations include the operationalisation of the Cabotage Vessel Financing Fund, stricter waiver issuance criteria, and a time-bound capacity building programme for indigenous operators. Keywords: cabotage policy, Nigerian shipping, maritime development, indigenous capacity, NIMASA.