The Nigerian Maritime Law Association (NMLA) has called for the removal of import duties on cabotage vessels to promote the growth of the indigenous shipping fleet ahead of the planned disbursement of the Cabotage Vessel Financing Fund (CVFF) next month.
Speaking at the 2025 NMLA Seminar held in Lagos last week, Mr Boniface Igwe, former Director of Cabotage at the Nigerian Maritime Administration and Safety Agency (NIMASA), argued that waiving import duties on such vessels would significantly lower procurement and operational costs.
He also said eliminating these duties would give local shipowners a competitive advantage over foreign operators engaged in Nigeria’s coastal trade.
“It is high time NIMASA began engaging with the Nigeria Customs Service to consider waiving certain duties in support of Cabotage implementation,” Mr Igwe stated, noting that effective and well-monitored Cabotage enforcement could boost Nigeria’s cargo tonnage, enhancing the country’s chances of securing a seat in Category ‘C’ of the International Maritime Organization (IMO) Council.
Similarly, Mr Fubara Anga, a Senior Advocate of Nigeria (SAN), stressed the need for the NMLA to present a national strategy document to the government outlining a framework for the disbursement and implementation of the Cabotage Fund.
According to him, this would ensure the fund achieves its intended goals.
Mr Anga added that building local capacity would not only strengthen the domestic shipping sector but also increase government revenue.
In his remarks, former Executive Secretary of the Nigerian Shippers’ Council, Mr Hassan Bello, described a well-structured Cabotage regime as a potential game changer for the local shipping industry.
He expressed optimism that, if properly managed, the CVFF disbursement could enable Nigerian shipowners to compete effectively with their foreign counterparts.
Recall that NIMASA has announced plans to commence the disbursement of the $700 million CVFF in August.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower Nigerian shipping companies through access to structured financing for vessel acquisition. However, successive administrations failed to operationalize the fund—until now.