Effects of the Cabotage Regime on Indigenous Shipping Companies in Nigeria

• Author(s): Wachuku Achor; Azubuike John Chuku; Daniel Tamunodukobipi
• Paper ID: 1713574
• Page: 1320-1350
• Published Date: 19-01-2026
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 7 January-2026

Abstract

This research looked at how the Nigerian government's 2003 Cabotage Regime affected the growth of local shipping enterprises. The introduction of the Cabotage Regime in 2003 was an independent variable, and it included both tight and liberalized cabotage policies. The development of indigenous shipping businesses was measured using the dependent variable, which is the activity of building ships, the Cabotage vessel finance fund, and human capacity building. The study employed a cross-sectional survey research design, and its theoretical foundations were the theory of relative state autonomy and the theory of policy implementation. We mostly relied on primary and secondary sources to compile our data. A structured questionnaire was used to gather primary data that was relevant to this investigation. All 101 registered indigenous shipping businesses in Nigeria comprised the study's population. However, the research focused solely on twenty-four (24) registered indigenous shipping enterprises. The research managed to collect 136 questionnaires out of a total of 144 that were distributed to 24 indigenous shipping enterprises in Nigeria. After reviewing all of the questionnaires, however, 133 (or 92.36%) were deemed useful for the analysis of the research. With a Cronbach's alpha threshold of 0.70, the research instrument was found to be reliable. The data was analysed using descriptive and inferential statistics in the research. The study objectives and hypotheses were tested using SPSS 25.0 and multiple regression analysis with an ordinary least squares estimator. The study found that there is much potential to improve the effectiveness of the Cabotage Regime 2003 in terms of shipbuilding, the cabotage vessel finance fund, and the human capacity building of indigenous shipping enterprises, all thanks to the rigorous cabotage policy. The research concluded that stringent cabotage rules help shipyards grow in Nigeria, but that issues with government policy inconsistencies, bad corporate practices, and procedural obstacles, among others, have hindered their implementation. The analysis identifies Section 9, which permits foreign ownership, as a weak point in the Cabotage statute. Findings indicate that human capacity building, a measure of indigenous shipping businesses' growth, is significantly impacted by stringent cabotage policy, which is a component of the Cabotage Regime 2003. However, the influence on the shipbuilding activity fund is favourable but small. Accordingly, the report suggested that the government initiate a procedure to evaluate the current Cabotage Regime in light of ground realities, ensuring that Nigerians reap the benefits of the program as intended.

Keywords

Cabotage; Indigenous Shipping; Cronbach's; Independent Variable

Citations

IRE Journals:
Wachuku Achor, Azubuike John Chuku, Daniel Tamunodukobipi "Effects of the Cabotage Regime on Indigenous Shipping Companies in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 7 2026 Page 1320-1350 https://doi.org/10.64388/IREV9I7-1713574

IEEE:
Wachuku Achor, Azubuike John Chuku, Daniel Tamunodukobipi "Effects of the Cabotage Regime on Indigenous Shipping Companies in Nigeria" Iconic Research And Engineering Journals, 9(7) https://doi.org/10.64388/IREV9I7-1713574