FG to launch national shipping carrier, end waivers to foreign vessels

Adegboyega Oyetola, minister of marine and blue economy, says the federal government is planning to end the issuance of waivers under the Coastal and Inland Shipping Act of 2003.

Oyetola spoke on Sunday in Abuja during a meeting with a delegation from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group, according to a statement by Bolaji Akinola, his spokesperson, cited by NAN.

The meeting also marked the official unveiling of Unity Shipping World (USW) — a new joint venture between the three firms — which aims to build a strong tanker operation capable of transporting crude oil, refined products, and LNG across Nigeria, West Africa, and globally.

The statement said the meeting reaffirmed Oyetola’s commitment to reversing the over-reliance on waivers for foreign vessels in Nigerian waters.

The Cabotage Act restricts coastal shipping to Nigerian-owned, Nigerian-crewed, and Nigerian-built or -flagged vessels. However, due to limited local capacity, waivers have frequently been granted to foreign vessels.

Speaking during the engagement, Oyetola criticised the trend, saying the over-reliance on foreign waivers had stifled the growth of local shipping firms and reduced opportunities for Nigerian maritime professionals.

He said the decision to discontinue the waivers is intended to strengthen the maritime sector, creating jobs, and increasing indigenous participation in the nation’s shipping industry.

“The era of indiscriminate waivers is ending. We can’t keep weakening local capacity under the guise of temporary foreign assistance,” the minister said.

“It is time to build Nigerian tonnage, support local employment, and give indigenous operators a fair chance to succeed.”

To support the transition, Oyetola directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the disbursement of the cabotage vessel financing fund (CVFF).

The fund, generated through cabotage levies, is designed to help Nigerian shipowners acquire vessels and expand their operational capabilities.

The minister emphasised the urgency of disbursing the fund, describing it as “vital” for empowering local operators in the face of reduced foreign waivers.

“As the waiver era ends, supporting indigenous shipowners becomes even more crucial,” he said.

He also reaffirmed the federal government’s plan to launch a national shipping carrier through a public-private partnership (PPP), aimed at boosting Nigeria’s influence in the regional maritime sector.

‘USW WILL SERVE NNPC’S LOGISTICS NEEDS’

Also speaking, Bode Makanjuola, chief executive officer (CEO) of Caverton Offshore, described the USW as a “transformative” venture for the country’s maritime industry.

He said the USW would provide efficient, reliable, and sustainable marine transport services for the country’s growing energy needs.

Makanjuola added that the company would build a modern fleet by acquiring both new and existing vessels, while prioritising cost and operational efficiency.

According to the CEO, the fleet will primarily serve the Nigerian National Petroleum Company (NNPC) Limited’s logistics needs and also support other oil producers and energy traders.

“This partnership reflects careful planning and a shared vision. It combines local expertise with global standards for real impact,” Makanjuola said.

“Unity Shipping World will proudly fly the Nigerian flag and help train the next generation of seafarers.”

On his part, Panos Gliatis, managing director of NNPC Shipping, said the alliance would enhance domestic refining and support Nigeria’s global energy logistics role.

Erik Hånell, president and CEO of Stena Bulk, said the partnership aligns with the company’s strategy to grow its presence in key energy markets.