Abstract
Shipping is very essential to the economic development of every country with inland waters. Countries with seafaring history establish cabotage laws which applies to merchant ships in order to protect its domestic shipping industry and restrict foreign vessels participation or competition in domestic coastal trade. Cabotage policy is considered as a protectionist policy used to safeguard the indigenous shipping industry against unfavourable competition with foreign companies especially on the carriage of cargoes within the country enacting the policy. These countries adopt either strict or liberalized cabotage regime in order to achieve the above. Due to the effect of cabotage policy in maritime trade and the critical role the coastwise and inland waterway transportation play in a nation’s economy, Nigeria enacted the coastal and inland shipping (Cabotage) Act 2003 with the objectives to restrict the use of foreign vessels in the domestic coastal trade; promote the development of indigenous tonnage and establish a cabotage vessel financing fund. This paper discussed the concept of cabotage, the historical background of cabotage, the cabotage regime, the Cabotage Act, the Institutional body responsible for the implement of the Cabotage Act in Nigeria and the effect of the Cabotage Act on Nigeria economy. The paper adopted the doctrinal methodology and found that cabotage policy is important and should be implemented in every country that wants to encourage indigenous shipping participation in her indigenous shipping industry.
Nnowi Precious Chioma, pp 16 – 29
