Connect with us

Headlines

Oyetola expresses determination to stop granting waiver requests under Cabotage regime

–– vows to resuscitate abandoned National shipping carrier initiative 
Funso OLOJO 
In a determined effort to boost indigenous participation in shipping, the Minister of Marine and Blue economy, Adegboyega Oyetola, has vowed not to entertain any request for waivers under the Cabotage regime.
The Coastal and Inland Shipping Act, also known as the Cabotage Act, restricts domestic coastal shipping to Nigerian-owned, Nigerian-crewed, and Nigerian-built or -flagged vessels.
 However, waivers have often been granted to foreign vessels when local capacity is deemed insufficient.
Over the years, these waivers, which are at the prerogative of the minister, have significantly limited the growth of Nigerian shipping companies, depriving them of critical opportunities in the domestic shipping space.
However, speaking recently while receiving a high-level delegation from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group at the Ministry in Abuja, Minister Oyetola stated his firm resolve to reverse this trend.
The visit comes on the heels of the formal unveiling of Unity Shipping World (USW), a newly formed joint venture by NNPC Shipping, global maritime giant Stena Bulk, and Nigerian offshore service leader Caverton Offshore Support Group.
The joint venture aims to establish a robust tanker operation capable of transporting crude oil, refined products, and LNG within Nigeria, West Africa, and globally.
“The era of indiscriminate waivers is coming to an end,” Oyetola declared.
“We cannot continue to undermine our local capacity under the guise of temporary foreign intervention.
“It is time to build Nigerian tonnage, support Nigerian jobs, and give indigenous operators a fair chance to thrive. That is the only sustainable path to maritime development.”
As part of this renewed focus on indigenous capacity, the Minister had earlier directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to immediately commence the process that will lead to the disbursement of the Cabotage Vessel Financing Fund (CVFF).
The fund, which has accumulated over the years from Cabotage levies, is intended to assist Nigerian shipowners in acquiring vessels and enhancing their operational capacity.
“The disbursement of the CVFF is no longer optional — it is imperative,” Oyetola stated.
“Our indigenous operators must be empowered to acquire modern vessels and effectively render services that have, for too long, been dominated by foreign shipping concerns.
“As we work to bring the waiver regime to a close, this support becomes even more critical.”
In the meantime, the Minister also reiterated his commitment to resuscitate the moribund national shipping carrier initiative which was initiated and later abandoned during the last administration of President Mohammed Buhari
Also speaking during the visit, the CEO of Caverton Offshore Support Group, Bode Makanjuola, described the joint venture between his company, Stena Bulk and NNPC Shipping as a game-changer for Nigeria’s maritime industry.
He said the newly formed Unity Shipping World (USW) will deliver efficient, reliable, and sustainable maritime transport services.
 According to him, the company will focus on building a modern fleet, acquiring both new and existing vessels, and optimizing cost and operational efficiency.
He said USW’s fleet is expected to primarily support NNPC’s logistics requirements, while also catering to the broader energy sector, including other oil producers and traders.
He emphasized the company’s focus on sustainability, safety, and long-term value creation, highlighting the importance of building capacity for Nigerian seafarers.
“This partnership is the culmination of extensive planning and shared vision,” said Makanjuola.
 “It combines local expertise with international best practices to create a maritime powerhouse. Unity Shipping World will proudly fly the Nigerian flag and play a critical role in training and empowering Nigerian seafarers.”
Managing Director of NNPC Shipping, Panos Gliatis, said, “With this strategic alliance, we are enhancing domestic refining, imports, and exports — reinforcing Nigeria’s pivotal role in global energy logistics,” Gliatis said.
Stena Bulk’s President & CEO, Erik Hånell, echoed the sentiments, noting that the venture aligns with his company’s goals.
“We are committed to operational excellence and expanding into key energy markets,” Hånell stated.
 “This partnership supports our long-term strategy while advancing Nigeria’s energy and shipping landscape.”
Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Analyses

The trillion naira vault: Building political-proof ports for Nigeria

The Monday Discourse with Ibrahim Nasiru focuses on the strategy to lock away the NPA’s port modernisation funds from the groping hands of the politicians in other to avert the calamity which befell the infamous Cabotage Vessels Financing Fund (CVFF)
Following up on the intense national discussion regarding the NPA’s ₦1.489 trillion revenue target, here is a preview of my analysis on how we can structurally lock this massive wealth away from bureaucratic hands.
We cannot allow the historic failure of the Cabotage Vessels Financing Fund (CVFF) to paralyze our economic imagination.
The solution to Port decay isn’t to stop collecting funds, but to change who holds the keys to the vault.
From deploying bankruptcy-remote SPVs to issuing local currency infrastructure bonds backed by pension funds, this piece outlines the exact financial engineering needed to modernize Apapa and Tin Can Island.
Watch out for the full analysis tomorrow.
Continue Reading

Headlines

At World Environment Day celebration, NIWA renews commitment to clean, secure waterways 

Umar Yusuf Girei, NIWA Ag. MD
Gloria Odion, Maritime reporter
The Acting Managing Director/Chief Executive Officer of the National Inland Waterways Authority (NIWA), Umar Yusuf Girei, has reaffirmed the agency’s commitment to maintaining clean, safe and sustainable inland waterways as Nigeria joins the global community to mark the 2026 World Environment Day.
The celebration, themed “Urbanisation and Climate Change: Building Resilient Cities for a Sustainable Future,” draws attention to the environmental challenges accompanying rapid urban growth and climate change impacts.
In a statement delivered at NIWA Headquarters in Lokoja, Girei extended greetings to cities across the country, noting that urban areas are increasingly expanding around waterways which continue to serve as vital centres of commerce, culture and economic activity.
He, however, warned that urbanisation places significant strain on the environment, leading to challenges such as rising temperatures, flooding and erosion, all of which require urgent and coordinated response measures.
According to him, NIWA views inland waterways as natural infrastructure for building urban resilience, explaining that properly managed rivers and channels help mitigate flooding by serving as drainage pathways, while also offering a cleaner, low-carbon option for transporting goods and passengers.
Girei reiterated the Authority’s commitment to responsible dredging, protection of riverbanks, and sustained efforts to keep waterways free from pollution and indiscriminate waste disposal.
He also stressed that government cannot shoulder the responsibility alone, urging Nigerians to contribute by disposing of waste properly, planting trees along riverbanks, reporting illegal dredging and encroachment activities, and supporting environmental protection initiatives.
He further encouraged greater adoption of water transportation as a safer and more sustainable alternative to road transport across the country.
Continue Reading

Headlines

Tope Fajemirokun, WABOTAN President, decries high cost of water transportation in Nigeria 

Funso OLOJO, Editor 

 

The President of the Waterfront Boat Owners and Transporters Association of Nigeria (WABOTAN), Mr. Tope Fajemirokun, has lamented the prohibitive cost of water transportation in Nigeria which he said has continued to discourage Nigerians from using this viable mode of transportation.

Fajemirokun make this observation during a live Radio broadcast in Lagos.
The WABOTAN President further disclosed that commuters pay more using water transportation than when using road transportation, a development which he feared was inimical to the growth of water transportation that he believed was a viable alternative to road transportation.
According to him, a commuter pays as high as N10,000 commuting on waters from Badagry to CMS, Lagos on two- way journey.
“The cost of water transportation remains high. For example, a commuter travelling from Badagry to CMS may spend about ₦5,000 each way, amounting to ₦10,000 daily on transportation alone.
” This is one of the major factors discouraging passengers from using the waterways. That is why we are appealing to government at all levels to invest more in the sector,” he added.
To bring the cost of water transportation down, Fajemirokun called on government to invest more on water transportation and also give assistance to private operators in the business.
He lamented that rising fuel prices have significantly affected the operations of boat owners and transporters, noting that the increase in fuel costs, coupled with prevailing economic challenges, has made it difficult for operators to acquire new boats and expand their businesses.
 “When you are in business, you must continue to improve and invest in it despite the challenges,” he said.
He also expressed appreciation to NIWA and LASWA for their commitment to maintaining safety standards on Nigeria’s waterways.
Fajemirokun further outlined several initiatives undertaken by WABOTAN to educate its members on safety practices ahead of the rainy season.
 “Since the beginning of the year, we have been educating our members on safety measures.
“We have conducted two safety induction programmes this year and are currently planning another one before August.

“With the support of my friend and brother, Frank Meke, the programme will bring together stakeholders, the media, and regulatory agencies to further strengthen safety awareness,” he stated.

The WABOTAN President noted that the association has implemented several safety measures in preparation for the rainy season and acknowledged the efforts of regulatory authorities in sensitizing operators and passengers.

 “A few months ago, LASWA invested significantly in clearing water hyacinth from Lagos waterways. Water hyacinth is a fast-growing aquatic plant that obstructs navigation and poses safety risks on waterways,” he explained.

Fajemirokun said WABOTAN has enjoyed strong cooperation from both LASWA and NIWA in promoting safety and regulatory compliance across the sector.

 “We have received tremendous support from LASWA and NIWA, and we are working closely with them.
“However, we remain particularly concerned about Rivers and Bayelsa States, where incidents on the waterways tend to increase during the rainy season due to their proximity to the Atlantic Ocean.

“With NIWA’s support, we are intensifying sensitization efforts in those states and across other parts of the country,” he said.

He added that several states are establishing their own waterway authorities and commended NIWA for providing guidance and support in that regard.

Speaking on the need to phase out unsafe banana and wooden boats, Fajemirokun called for greater government intervention and financial support for operators seeking to invest in safer and more modern vessels.

“The government needs to come to our aid, just as the Lagos State Government has been doing.

“Eliminating banana and wooden boats will be easier if government provides the necessary support and investment.

” State governments should also invest more in water transportation to ensure that Nigerians can fully benefit from the opportunities offered by the waterways,” he said.

He further urged government authorities to take a more active role in developing the water transportation sector, noting that the high cost of water travel discourages many commuters.

Also speaking on the programme, veteran maritime journalist Frank Meke acknowledged government efforts but stressed that more needs to be done to unlock the full potential of Nigeria’s water transportation system.”Our roads are heavily congested. As we speak, Apapa remains gridlocked. Imagine the impact if government invested more in water transportation.

” Sometimes, there appears to be more lip service than concrete action. The blue economy holds enormous potential.
” Look at the investments and sacrifices being made by associations like WABOTAN to strengthen the sector.

” Government agencies should demonstrate a similar level of commitment,” Meke said.

He also expressed concern about states such as Kwara, Niger, Benue, and Taraba, where waterways could serve as a more affordable and efficient means of transporting agricultural produce.

According to him, many farmers in these states need reliable and cost-effective transportation options to move their goods to market, making water transportation a viable alternative.

Meke called on the government to declare a state of emergency in the water transportation sector, emphasizing the need for alternative modes of transportation beyond road networks.

“Nigerians need efficient alternatives to road transport, and WABOTAN has played a significant role in advancing the sector.

“Government should provide soft loans to boat operators to enable them to acquire modern vessels.
“Investment should not be limited to boats alone; there is also a need for continuous training of boat captains, crew members, and even passengers.

” As the rainy season approaches, we must prepare adequately for emergencies,” he stated.

Fajemirokun concluded by urging all boat operators to prioritize safety at all times and ensure that passengers wear life jackets before embarking on any journey.

 “Safety must always come first. Boat operators and passengers should never neglect the use of life jackets, regardless of the distance of the journey,” he advised.
Continue Reading

Trending