Nigeria’s maritime sector has undergone significant reforms, but the impact on local content development remains a concern.
The sector’s contribution to the economy is substantial, accounting for 16% of GDP in 2023. However, indigenous players are being excluded from major activities, with foreigners dominating the scene.
Experts argue that a deliberate policy is needed to promote indigenous participation in the sector. The Nigerian Content Development and Monitoring Board (NCDMB) has been successful in increasing local content participation in the oil and gas sector, but a similar approach is needed in the maritime sector.
The Cabotage Act, enacted in 2003, aims to develop the local shipping industry, but its implementation has been ineffective.
The law establishes that no foreign vessels should operate in Nigerian waters without indigenous ships having the right of first refusal.
To address these challenges, experts recommend reviewing the NIPC Act, making the Cabotage law work for the country, expanding the scope of presidential executive orders, and replicating the Local Content law of the oil and gas sector in the maritime sector.
