The House of Representatives has resolved to set up an Ad-hoc Committee to investigate international shipping line operators in Nigeria over alleged non-compliance with the country’s Cabotage Act, Local Content Laws, and Tax Laws, as well as their general operational structures.
The resolution followed a motion moved by Hon. Aniekwe Peter Udogalanya, drawing attention to serious regulatory breaches and unfair trade practices by foreign shipping companies operating in the Nigerian maritime and logistics sectors.
Moving the motion, Hon. Udogalanya recalled that both domestic and international shipping companies operating in Nigeria are legally bound to comply with the Coastal and Inland Shipping (Cabotage) Act of 2003 and the Nigerian Oil and Gas Industry Content Development Act of 2010.
However, the House noted with concern that an increasing number of international shipping firms are expanding into end-to-end logistics. Under the guise of providing an integrated “door-to-door” supply chain, these foreign operators have acquired or controlled local vessels, terminal interests, trucking fleets, and barge services.
Furthermore, the lawmaker highlighted that foreign operators frequently import expatriate personnel to fill technical and management roles that qualified Nigerian professionals are fully capable of undertaking.
The House expressed deep worry over opaque commercial practices, insider arrangements, and pricing strategies used by international shipping lines to consolidate market control. The parliament warned that such behavior borders on extortionate and monopolistic conduct, severely threatening:
Indigenous participation and capacity development in the maritime sector;
Job creation along the maritime and logistics value chains;
The integrity of Nigeria’s local content and cabotage laws; and
The economic sustainability of local operators and the broader Nigerian economy.
Stressing the urgency of safeguarding the national economy and protecting domestic businesses, the House emphasized the need for a comprehensive assessment of anti-competitive practices, abuse of market dominance, insider trading, and tax compliance across the shipping sector.
Consequently, the House resolved to set up an Ad-hoc Committee tasked with probing:
The organizational structure, staffing composition, and operational scope of foreign shipping lines in Nigeria;
Compliance with manning, crewing, and inland logistics requirements under the Cabotage Act and Local Content framework; and
Adherence to Nigerian tax laws and revenue obligations.
The Ad-hoc Committee has been mandated to complete its investigation and present its findings to the House within four (4) weeks for further legislative action.
