In a decisive move to strengthen Nigeria’s maritime sector, create jobs, and boost indigenous participation in the shipping industry, the Honourable Minister of Marine and Blue Economy, His Excellency Adegboyega Oyetola, has announced plans to bring an end to the issuance of waivers under the Coastal and Inland Shipping Act of 2003.
The Coastal and Inland Shipping Act, also known as the Cabotage Act, restricts domestic coastal shipping to Nigerian-owned, Nigerian-crewed, and Nigerian-built or -flagged vessels.
However, waivers have often been granted to foreign vessels when local capacity is deemed insufficient. Over the years, these waivers have significantly limited the growth of Nigerian shipping companies, depriving them of critical opportunities in the domestic shipping space.
Speaking recently while receiving a high-level delegation from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group at the Ministry in Abuja, Minister Oyetola stated his firm resolve to reverse this trend.
The visit comes on the heels of the formal unveiling of Unity Shipping World, USW, a newly formed joint venture by NNPC Shipping, global maritime giant Stena Bulk, and Nigerian offshore service leader Caverton Offshore Support Group. The joint venture aims to establish a robust tanker operation capable of transporting crude oil, refined products, and LNG within Nigeria, West Africa, and globally.
“The era of indiscriminate waivers is coming to an end”, Oyetola declared. “We cannot continue to undermine our local capacity under the guise of temporary foreign intervention. It is time to build Nigerian tonnage, support Nigerian jobs, and give indigenous operators a fair chance to thrive. That is the only sustainable path to maritime development.”
As part of this renewed focus on indigenous capacity, the Minister had earlier directed the Nigerian Maritime Administration and Safety Agency, NIMASA to immediately commence the process that will lead to the disbursement of the Cabotage Vessel Financing Fund, CVFF. The fund, which has accumulated over the years from Cabotage levies, is intended to assist Nigerian shipowners in acquiring vessels and enhancing their operational capacity.
“The disbursement of the CVFF is no longer optional — it is imperative”, Oyetola stated. “Our indigenous operators must be empowered to acquire modern vessels and effectively render services that have, for too long, been dominated by foreign shipping concerns. As we work to bring the waiver regime to a close, this support becomes even more critical.”
The Minister also reiterated his commitment to launching a national shipping carrier through a Public-Private Partnership, PPP model — an initiative that will position Nigeria as a dominant maritime force in the region.
Also speaking during the visit, the CEO of Caverton Offshore Support Group, Bode Makanjuola, described the joint venture between his company, Stena Bulk and NNPC Shipping as a game-changer for Nigeria’s maritime industry.
He said the newly formed Unity Shipping World, USW will deliver efficient, reliable, and sustainable maritime transport services. According to him, the company will focus on building a modern fleet, acquiring both new and existing vessels, and optimizing cost and operational efficiency.
He said USW’s fleet is expected to primarily support NNPC’s logistics requirements, while also catering to the broader energy sector, including other oil producers and traders.
He emphasized the company’s focus on sustainability, safety, and long-term value creation, highlighting the importance of building capacity for Nigerian seafarers.
“This partnership is the culmination of extensive planning and shared vision”, said Makanjuola. “It combines local expertise with international best practices to create a maritime powerhouse. Unity Shipping World will proudly fly the Nigerian flag and play a critical role in training and empowering Nigerian seafarers.”
Managing Director of NNPC Shipping, Panos Gliatis said, “With this strategic alliance, we are enhancing domestic refining, imports, and exports — reinforcing Nigeria’s pivotal role in global energy logistics.”
Stena Bulk’s President & CEO, Erik Hånell, echoed the sentiments, noting that the venture aligns with his company’s goals.
“We are committed to operational excellence and expanding into key energy markets”, Hånell stated. “This partnership supports our long-term strategy while advancing Nigeria’s energy and shipping landscape.”
Photo: (L-R): Director, Maritime Safety and Security, Federal Ministry of Marine and Blue Economy, Mr. Babatunde Bombata; Director General, Nigerian Maritime Administration and Safety Agency, NIMASA, Dr. Dayo Mobereola; Permanent Secretary, Federal Ministry of Marine and Blue Economy, Mr. Olufemi Oloruntola; Chief Executive Officer, Caverton Offshore Support Group, Mr. Olabode Makanjuola; Honourable Minister of Marine and Blue Economy, His Excellency Adegboyega Oyetola; Chief Executive Officer, Stena Bulk, Mr. Erik Hanell; Managing Director, NNPC Shipping Limited, Panos Gliatis and Chief Operating Officer, Caverton Offshore Support Group, Mr. Rotimi Makanjuola, when the officials of Caverton, Stena Bulk and NNPC Shipping visited Oyetola in his office in Abuja, recently.
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