The general Nigerian economic landscape could be seen as challenging, but its robustness and potential make it worthwhile for parties that do their research. As the Nigerian ship charter market is estimated to be worth at least $10 billion, there is a lot of potential for interested parties to benefit.
The president recently assented to the Suppression of Piracy and Other Maritime Offences Bill, successfully concluding almost a decade of advocacy to implement such a law in order to curb and deter sea piracy, armed robbery and other unlawful acts at sea. The new law has ended the controversy around whether the crime of sea piracy is defined in any local legislation and bestowed on the Federal High Court exclusive jurisdiction to determine matters of armed robbery and other unlawful acts at sea.
Wrecks pose a real danger to navigational safety and the marine environment and their expeditious removal, control and management is therefore a key concern. The issue of wreck control in Nigeria has been the subject of an increasingly fierce conflict between the Nigerian Inland Waterways Authority, the Nigerian Maritime Administration and Safety Agency and the Nigerian Ports Authority.
A tripartite arrangement between the Federal Ministry of Finance, the Customs Service and the Nigerian Maritime Administration and Safety Agency (NIMASA) seeks to encourage the expansion of Nigeria's indigenous fleet by creating a special tariff regime for vessel acquisition in the country. According to NIMASA Director General Dakuku Peterside, the high cost of vessel acquisition is gradually driving away many indigenous players in the maritime sector.
The Nigerian Maritime Administration and Safety Agency has announced a five-year strategic plan to stop the issuance of cabotage waivers. This plan appears to be a tacit admission that the waiver regime – which was intended to be a stop-gap measure pending the development of indigenous capacity – is derailing the country's lofty cabotage goals. Nonetheless, the cessation of the issuance of cabotage waivers represents a significant shift in policy.