Nigeria loses $900bn over Cabotage Law — Port Council
The Nigerian Port Consultative Council (NPCC) has disclosed that the federal government’s failure to effectively implement the Cabotage Law has resulted in significant economic losses of about $900bn. The Cabotage Act, enacted in 2003, aims to promote the development of indigenous tonnage and restrict the use of foreign vessels in domestic coastal trade. Despite its […]
The Nigerian Port Consultative Council (NPCC) has disclosed that the federal government’s failure to effectively implement the Cabotage Law has resulted in significant economic losses of about $900bn.
The Cabotage Act, enacted in 2003, aims to promote the development of indigenous tonnage and restrict the use of foreign vessels in domestic coastal trade.
Despite its potential to boost the Nigerian economy, the law remains largely unenforced.
This is coming just as the federal government on Thursday promised to revive critical fishing terminals to boost local fish production.
- Shareholders back ASO Savings’ N120b recapitalisation
- Nigeria to save N3trn annually from cassava bioethanol – Shettima
Speaking at the 2nd Quarter Citizens and stakeholders’ engagement meeting held in Lagos on Thursday, Chairman of the NPCC, Mr. Bolaji Sunmola, stressed the need for Nigeria to intensify its commitment to local content enforcement.
The Chairman who also called for an emergency declaration over the continued non-implementation of the local content law, added that government must chart a practical and urgent course for its successful implementation of Marine and Blue Economy, particularly within the nation’s port sector.
“We are gathered not just to celebrate the approval of a visionary policy, but to chart a practical and urgent course for its successful implementation particularly within our port sector, which remains the heartbeat of Nigeria’s marine and blue economy.
“The National Policy on Marine and Blue Economy is a transformative blueprint, promising a future where maritime assets become pivotal to job creation, inclusive growth, and sustainable development. However, a policy no matter how comprehensive must translate into visible action, measurable outcomes, and prosperity for our people.
“Let me therefore offer some thoughts on how we can turn policy into performance, based on the position paper to be submitted by the Nigerian Ports Consultative Council.
“First, we must intensify our commitment to local content enforcement. Nigeria loses over nine billion dollars annually due to under-enforcement of the Cabotage Act. This is an economic and patriotic emergency. Our ports must now prioritize indigenous and maritime services terminal operations; participation in shipping by national/indigenous companies must not just be present—they must be protected and empowered to lead.
“Second, despite the initiative by Customs, cargo dwell time in Nigerian ports is unacceptably high. This is a major deterrent to trade and a direct cost to the economy.
Through digital reforms, port community systems, and continuous customs modernization, we must cut this down to acceptable international standards. Every hour saved at our ports brings us closer to global competitiveness.”
Reacting to the development, Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola stated that the approval of the National Policy on Marine and Blue Economy by the Federal Executive Council marks a critical turning point providing a comprehensive framework to unlock value across our marine ecosystems.