Bayo Akomolafe 
Tunji Brown, former Secretary General and member of the Board of the Nigerian Shipowners Association (NISA), has called for the removal of the waiver clause in the Inland and Coastal Shipping Act 2023 (Cabotage Act) and its replacement with a right of first refusal provision to ensure that local shipowners have a fair opportunity to compete for contracts.
Brown expressed concern over the law’s failure to provide Indigenous companies with the essential financial support necessary for effective participation in Nigeria’s maritime trade.
He noted that replacing the waiver clause with a right of first refusal provision would give Indigenous companies a significant advantage during bidding processes.
According to him, the disbursement of the Cabotage Vessel Financing Fund (CVFF) presents a pivotal opportunity to strengthen the capacity of Indigenous shipowners, significantly boost Nigeria’s Gross Domestic Product (GDP), and create millions of jobs across the country.
He emphasized that the waiver clause should be expunged because Cabotage is fundamentally a domestic trade issue, not a foreign policy matter.
“We have a wealth of qualified Nigerians ready to manage this business,” he stated.
Brown also criticized the current 2 percent revenue that the Nigerian Maritime Administration and Safety Agency (NIMASA) collects from every vessel docking in Nigeria, stressing the need for legislative action to increase funding to enhance the development of the CVFF.
It was revealed that the failure to effectively implement the disbursement of the CVFF over the past 22 years has severely limited Indigenous shipowners’ ability to develop their capabilities and seize the opportunities envisioned by the Coastal and Inland Shipping Act.
Approximately 22 years after this law was enacted and following eight failed attempts to disburse funds, stakeholders in Nigeria’s maritime sector have reached a consensus on the urgent need for disbursement to occur within the time frame specified in recent publications by NIMASA.
Brown said: “The law has failed to provide Indigenous companies with the essential financial support necessary for effective participation in Nigeria’s maritime trade. Also, the inclusion of a waiver clause has been detrimental to the objective of empowering Indigenous businesses.”
He added, “To bolster Indigenous participation, the National Assembly should replace the waiver clause with a right of first refusal provision. This change would provide Indigenous companies with a significant advantage during bidding processes and ensure that local businesses have a fair opportunity to compete for contracts.”
Brown argued that the justifications for maintaining the waiver clause no longer apply, making its removal imperative.
