Business
Maritime Expert Seeks Review Of Cabotage Law
Vice-President Yemi Osinbajo (left), in a handshake with the Managing Director, United Integrated Construction Limited, Mr Faved Azize, at the foundation laying ceremony of Galaxy Mall and Galleria in Kaduna, yesterday
A maritime expert, Mr John Egesi, yesterday advised the Federal Government to review the Cabotage Law in line with the current realities in international trade.
Egesi, a former director in the defunct Nigerian Maritime Authority, gave the advice in an interview with newsmen in Lagos.
He said the law, which seeks to put the control of the maritime industry in the hands of local operators, had not achieved its objectives.
This, he said, was because the industry lacks the ingredients to drive needed growth.
The expert argued that the world had become a global village, pointing out that any law that limits the activities of foreign operators would be deemed to be irrelevant.
“The Coastal and Inland Shipping Law, otherwise known as the Cabotage Law, essentially seeks to stem foreign dominance in the activities of the maritime industry.
“This is with a view to empowering indigenous operators.
“But with the realities in the industry today and the trend in international trade, I do not think the law is still relevant and should, therefore, be reviewed.
“In the first instance, the law restricts the use of foreign vessels in domestic coastal trade but the question is how many vessels do we really have?
“Most of the so called ship owners are just ship owners in name but they are not making any investments in the industry. So how will they operate efficiently?
“Also, the law prescribes the building of ships locally, but as of today, we do not have the capacity to do that.
“As a matter of fact, nobody builds ship entirely anywhere in today‘s world.
“Most of the vessels in use today, even by the core maritime countries like Philiphines, England and China, are built with components from all over the world,’’ he said.
Egesi said that maritime operation was not cheap, adding the present cabotage law could undermine the inflow of foreign capital if strictly implemented.
He said the law, as presently structured, was not suited for Nigeria as it did not have the export edge.
“My suggestion, therefore, is that the government should assemble a team of experts to review the law in line with the current realities.
“They should come up with a new law that will address the problem of local capacity and should not discourage foreign involvement.
“The world is a global village and if we really want to move forward, we should strive to match up with foreign competition.
“This we can do, by putting in place the right local structures,’’ he said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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