FG Moves to End Foreign Vessel Waivers, Unveils New Maritime Powerhouse

In a bold push to revamp Nigeria’s maritime industry, Adegboyega Oyetola, Minister of Marine and Blue Economy, has announced the federal government’s plan to phase out waivers for foreign vessels operating under the Coastal and Inland Shipping Act (Cabotage Act) of 2003.

Oyetola announced on Sunday during a high-level meeting in Abuja with top executives from NNPC Shipping, Sweden’s Stena Bulk, and Nigeria’s Caverton Offshore Support Group. The meeting also marked the official unveiling of Unity Shipping World (USW) — a new joint venture aimed at creating a world-class Nigerian tanker fleet for transporting crude oil, refined petroleum products, and liquefied natural gas (LNG) within Nigeria, across West Africa, and globally.

“The era of indiscriminate waivers is ending. We can’t keep weakening local capacity under the guise of temporary foreign assistance,” Oyetola said.
“It’s time to build Nigerian tonnage, support local employment, and give indigenous operators a fair chance to succeed.”

The Cabotage Act was designed to promote local participation by restricting coastal shipping to vessels that are Nigerian-owned, crewed, built, or flagged. However, a longstanding reliance on foreign waivers — due to the limited capacity of local operators — has undermined this intent.

Oyetola was firm in his criticism of the practice, arguing that it has stalled the development of Nigeria’s maritime ecosystem and deprived local professionals of critical opportunities.

To support the transition away from waivers, the minister directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin immediate disbursement of the long-awaited Cabotage Vessel Financing Fund (CVFF) — a multi-billion naira initiative meant to empower Nigerian shipowners to acquire vessels and scale up operations.

“As the waiver era ends, supporting indigenous shipowners becomes even more crucial,” he added.

The unveiling of Unity Shipping World marked a milestone in Nigeria’s efforts to dominate regional shipping lanes. The joint venture, backed by public and private capital, aims to serve the logistics needs of the Nigerian National Petroleum Company (NNPC) Limited and other regional players.

Bode Makanjuola, CEO of Caverton Offshore, called the initiative a “transformative step” for the industry.

“Unity Shipping World will provide efficient, reliable, and sustainable marine transport services. We’re building a modern fleet to serve Nigeria’s energy sector — proudly flying the Nigerian flag,” Makanjuola said.
“This is more than a business deal. It’s a national mission.”

Managing Director of NNPC Shipping, said the partnership would bolster domestic refining operations and position Nigeria as a strategic hub in global energy logistics.

Erik Hånell, President and CEO of Stena Bulk, echoed that sentiment, stating that the venture aligns with their long-term strategy to grow in high-potential energy markets.

As part of its broader maritime vision, the federal government is also planning to launch a national shipping carrier through a public-private partnership (PPP), aiming to enhance Nigeria’s influence in global trade and logistics.