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CABOTAGE LAW AND IT’S BENEFIT TO THE ECONOMY IN NIGERIA.
The Coastal and inland shipping ACT otherwise known as the Cabotage ACT was enacted in 2003 in order to restrict the use of Foreign Vessels in domestic coastal trade to promote the development of Indigenous tonnage and to establish a cabotage vessel financing fund and for related matters.
The ACT is stratified into nine parts and dealing with different aspects of the ACT namely
Part 1 Short Title And Interpretation, Part II Restriction of Vessels In Domestic Coastal Trade ,Part III Waivers ,Part IV Licence To Foreign Vessel ,Part V Registration, Part VI Enforcement ,Part VII Offences ,Part VIII Cabotage Vessels Financing Fund ,Part IX Miscellaneous.
Nigeria aspires to be amongst the top 20 largest economies by the year 2020 according to the economic policy of Vision 2020 and successful implementation of the Cabotage Laws in Nigeria is critical to the success or otherwise of the plan because of the important role shipping plays in not just the movement of goods and services around the country and the revenues collected as tax from companies in the sector.
The ACT would also catalyze the growth and development of the transportation sector due to the over dependence of the nation on road transportation and the consequent damage of the roads since the collapse of the railway system in Nigeria. The growths are expected when the dredging activities currently going on in the nation’s inland waterways are concluded.
Other benefit of the ACT also includes creation of employment opportunities, development of inland waterway depot and technology transfer in the areas of repair and building of vessels in the country.
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CABOTAGE LAW AND IT’S BENEFIT TO THE ECONOMY IN NIGERIA.
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