Challenges and Prospects of Indigenous Shipowners’ Participation in Oil Shipment In Nigeria

Abstract

If Nigeria's  economy  is  essentially  import  based,  then  the  issue  and  fact that her  infrastructure  for  industrial  development   and  export  are  grossly underdeveloped,   when  the  nation   is   having   abundant   national  mineral resources  to  improve  on  her  foreign   earning,  being  a  maritime  and  oil producing nation, Nigeria  is  not gaining enough from this natural  resources due to  the  poor  position   of policy   guiding  the  shipping   trade  and  oil business. In this research work emphasis was laid on indigenous shipping operations in the areas of cargo oil shipment (importation   and exporting) with the necessary policy guiding the operation   in the business i.e.  the National Shipping Policy Act of April, 1987 and the United Nation Conference on Trade and Development (UNTAD) code of conduct on conference   lines and the role of Nigerian National Petroleum Corporation (NNPC) in area of oil shipment as defined by the NNPC policy on oil transportation by sea. Emphasis on the demerits of foreign shipping lines, continued domination of the shipping   trade particularly   in area  of oil  cargo;  the  challenges, prospect and the need of indigenous participation in oil shipment  business, that Nigeria  can use at the benefit of balance of payment  was researched. While, the foreign shipping lines and operators continue to dominate the oil shipment trade in Nigeria even at the turn of the 21st century, Nigeria's corporate   policy   on   shipping   especially   as   it affects her   indigenous operations remains hazy and at best epileptic. This research work in addition unraveled some of the policy and action that have kept Nigerian   Indigenous   Shipping Companies   in a perpetual state of near paralysis and how such avoidable trends could be reversed in favour of growth and development of the Nation in general.

DOI: 10.7176/JRDM/77-04

Publication date:July 31^st 2021