LEGAL APPRAISAL OF NIGERIAN MARITIME ADMINISTRATION AND SAFETY AGENCY (NIMASA) THROUGH CABOTAGE VESSEL FINANCING FUNDS

Abstract

Shipping plays an important part in the economic life of nations. This is because it provides an inexpensive way of carrying people and goods from one place to the other, compared with other modes of transport. It may be between one country and another or even within a particular country, moving from one coast to the other. The demand for shipping is an indirect one as it is not demanded as an end in itself, but only as a means to an end. In other words, it is a derived demand, since it does not create its own demand, but its demand is derived from trade in goods. Despite the existence of the Cabotage policy as enshrined in the Cabotage Act, in addition to the provision of vessel purchase fund, the development of indigenous shipping has not significantly improved. The Nigerian Cabotage Act appears to be skewed in favour of foreigners and to the disadvantage of Nigerians. The renewed efforts of government, especially NIMASA, if sustained, will change the situation for the better. Also, on the Cabotage Vessel Financing Fund (CVFF), government should make haste to ensure that all impediments to access the Fund by indigenous operators are promptly removed and commence disbursement of the Fund. This will ensure the acquisition of relevant and needed vessels by the indigenous shipping operators, thereby giving them the necessary impetus to actually participate in the cabotage trade to the benefit of Nigerians and the achievement of the objectives of the Cabotage Act.