Expert seeks removal of waiver in Cabotage Act to boost local capacity

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By Steve Agbota

President, National Association of Licensed Customs Agents (NCMLCA), Lucky Amiwero, has asked the federal government to revise and eliminate certain waiver clauses within the Coastal and Inland Shipping (Cabotage) Act, the Nigerian Maritime Administration and Safety Agency (NIMASA) Act and the Nigeria Oil and Gas Industry Content Development Act, which he said were impeding the development of indigenous operations in the nation’s maritime sector.

In a petition addressed to President Bola Tinubu and obtained by Daily Sun, Amiwero said the federal government  should ensure the effective implementation of various policies, including cargo reservation, incentives/subsidies and restrictions on domestic trade (Cabotage), in addition to focusing on shipyard and shipbuilding, fleet expansion programs, the development of maritime infrastructure and capacity-building initiatives.

He said these measures are aimed at activating the blue economy, thereby creating sustainable economic growth, social integration and livelihood improvement.

However, in the letter, Amiwero called for the abolition of waiver clauses in the cabotage operation outlined in Sections nine through 13, aiming to bolster capacity and create job opportunities.

He criticised the clauses allowing the minister to issue waivers on every aspect of the cabotage regime which he argues dilutes the involvement of indigenous operators and perpetuates the dominance of foreign entities in the sector.

He warned that the continuation of these waiver clauses could lead to a predominance of freight activities by foreign operators, significant capital flight, underemployment among Nigerian operators and a lack of ownership and skill development in maritime infrastructure due to the preference for foreign operators facilitated by waivers.

In the letter, he  recommended a mandatory review of the waiver system by the National Assembly every five years, as stipulated in Section 14(2) of the Cabotage Act—a review process that should have commenced in 2008 to strengthen the capacity of indigenous operators within the cabotage regime.

Additionally, he also called on Tinubu to develop the national carriers’ status, as outlined in the NIMASA Act, to support the expansion of fleets and the carriage of shared cargo.

“This move is expected to enhance local capacity in ship ownership, manning, and construction, as well as in other maritime infrastructures. Other suggestions include, implementing the reserved cargo policy to ensure that Nigerian-flagged vessels carry at least 50 per cent of cargo generated through technical assistance, and that NIMASA collaborates with other federal agencies to facilitate this process,” he added.

In the letter, Amiwero seeks the Federal Government’s prompt action on these recommendations to stimulate the Blue Economy and achieve sustainable economic growth, social integration, and enhanced livelihoods across Nigeria.

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