Conference Paper

CABOTAGE SHIPPING IN NIGERIA: A CATALYST FOR MARITIME TRADE AND COASTAL ECONOMIC DEVELOPMENT

The maritime sector remains a significant contributor to economic growth, international trade facilitation, and coastal economic transformation. In Nigeria, cabotage shipping was introduced through the Coastal and Inland Shipping (Cabotage) Act of 2003 as a strategic policy initiative aimed at promoting indigenous participation in domestic maritime transportation, enhancing local shipping capacity, and reducing dependence on foreign operators. This paper examines the role of cabotage shipping as a catalyst for maritime trade and coastal economic development in Nigeria. The study adopts a qualitative research design, relying on secondary sources of data, including government policy documents, maritime regulatory reports, academic publications, and industry-related literature. Data were analyzed through thematic analysis to identify key patterns relating to indigenous participation, maritime trade expansion, employment creation, and economic development within coastal communities. Findings reveal that cabotage shipping has the potential to strengthen Nigeria’s maritime industry by promoting local ownership of vessels, creating employment opportunities, encouraging coastal trade activities, and supporting economic growth in maritime-dependent communities. However, the effectiveness of the policy has been constrained by challenges such as inadequate maritime financing, weak regulatory enforcement, limited shipbuilding capacity, insufficient infrastructure, and continued dominance of foreign shipping operators. The paper concludes that strengthening institutional frameworks, improving access to maritime investment opportunities, developing indigenous shipping capacity, and ensuring effective implementation of cabotage regulations are essential for maximizing the contribution of cabotage shipping to Nigeria’s maritime trade and coastal economic development. Keywords: Cabotage Shipping, Maritime Trade, Coastal Development, Indigenous Shipping, Blue Economy, Nigeria.