The cabotage law was enacted in 2003, with the provisions of empowering local investors to take domestic trade controls of shipping and develop sufficient muscle to assume the right place for Nigeria as a maritime nation in the movement of its import / export cargoes, including oil and crude oil, to international markets. The implementation and enforcement of the Act’s provisions must be constantly monitored to ensure that the law’s aims and objectives are vigorously pursued and accomplished. Thus, the study’s goal is to verify the alleged constant dominance of foreign flag operators in coastal services; the impact of the Coasting Trade Act 2003 on the development of local capacity in terms of tonnage, human resources, and cargo support. According to research made an effort to highlight the points of view of people who are relevant to the study, which formed the literature. The primary research instrument was a set of questionnaires distributed to a population of 55 industry stakeholders, of which 27 responded. The obtained data were statistically analyzed using the model and chi-square graphics for presentation as an explanatory model. The study’s findings revealed factors that impede the achievement of the Act’s objectives, such as a lack of funds, NIMASA’s failure to process loan applications for financing funds cabotage vessels for expansion tonnage; a lack of commitment and NAPPIMS PPMC to ensure cargo assistance to indigenous operators; and NIMASA’s lukewarmness in implementing the Act’s provisions. According to the study, the majority of cabotage vessels operated by most shipping companies are indigenous, meet specified standards, and are seaworthy. It was also noted that there was a growing shortage of specially trained sailors, certified marine engineers, and navigators to exploit some of the available coastwise vessels. Investigate the strategies proposed to increase indigenous participation and reduce foreign dominance. For example, NMASA is encouraged to make installation Financing Fund cabotage vessel / loan available to local operators for fleet expansion, as well as to take concrete steps to improve control and avoid importing labor. As a kind of deterrent against time to rest, PPMC and NAPPIMS should guarantee a long-term charter fleet. Local operators, on the other hand, should strive to present standard and navigable services.


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