FUNCTIONS OF CABOTAGE DEPARTMENT

The Cabotage Department is under the headship of a Director who oversees and coordinates the overall activities of the two main sub-divisions in the Department.
The Department is charged with the responsibility of implementing the Coastal and Inland Shipping (Cabotage) Act 2003. In pursuit of this objective, the Department performs two important and crucial functions in the Agency. Firstly ensuring Cabotage compliance on the part of all operators in the trade and secondly, generation of revenue through payment of 2% surcharge on contract sum as well as fines, etc.
These key functions naturally placed the Department into two broad sub-visions thus Cabotage Vessel Financing Fund (CVFF) and Trade and Development (T&D) other important functions being carried out by the Department includes:-

1. Collaborating with relevant Government Agencies on effective implementation of the Cabotage Regime
2. Application of Guidelines and Regulations in liaison with other Departments/Units of the Agency to ensure seamless procedures and processes;
3. Promotion of cabotage trade towards ensuring awareness, enlightenment and sensitization amongst stakeholders;
4. Updating of database on the cabotage operational activities;
5. Identification of existing facilities (Jetties, Terminals, Platforms, Rigs, Ship/yards);
6. Facilitate capacity Building and Development for staff and stakeholders on cabotage related issues;
7. Ensuring that all vessels that engage in coastal shipping in Nigeria are built in Nigeria, owned by Nigerians, manned by Nigerians and registered in Nigeria;
8. Where a vessel is needed in Nigeria but does not meet any of the above requirements, the Department is to process a waiver application from the charterer on the particular requirement they are seeking to be waived and ensure that no indigenous capacity is available in that area before recommending to the Honourable Minister of Transport for approval;
   In carrying out these functions, the Department is to ensure that the Oil and Gas Industry which is the mainstay of the Nigerian economy and provides over 80% of the cabotage trade business, is not destabilized;
9. Collection of 2% of the gross contract sum performed by all cabotage vessels in Nigeria, for the Cabotage Vessel Financing Fund. This Fund is meant to be used to help indigenous operators acquire vessels to gradually take-over fully from the foreign operators;
   Disbursement of the CVFF to qualified indigenous companies for tonnage capacity building