THE IMPACT OF CABOTAGE ACT ON ENTREPRENEURIAL

OPPORTUNITIES AND NIGERIAS ECONOMIC GROWTH

BY

AUGUSTINE NWEZE PhD

(MATRICULATION NUMBER: 8225)

BEING A DISSERTATION SUBMITTED IN PARTIAL

FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DOCTOR OF PHILOSOPHY OF MANAGEMENT (IN

ENTREPRENUERSHIP) OF THE ST. CLEMENTS UNIVERSITY

JULY 2006.

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APPROVAL PAGE

This is to certify that this research project was carried out under our

strict supervision and has been approved for submission to the

Department in partial fulfillment of the requirements for the award of

the Doctor of Philosophy of St. Clements University.

...................................................... ..................................

Project Supervisor Academic Adviser

.

..

Administrator

St. Clements University

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DEDICATION

I dedicate this project to God Almighty, who is the foundation

of all knowledge; for His loving kindness to me throughout my

academic pursuit; for His divine providence, inspiration, financial

and other provisions.

ACKNOWLEDGEMENT

My late father had a dream for me to be educated at the highest

level in a reputable university in Europe or America. Though an

illiterate, my father left an instruction with my late elder brother that

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in case he did not survive the civil war that he (my elder brother)

must endeavor to send me to Cambridge for my university

education. Unfortunately he died when I was just in primary school

and could not live to see his dream come true.

My immediate elder brother, Christopher, whom my late father

instructed to ensure this dream was realized picked up from where

my father stopped. Again death called on April 5, 2006, when I was

putting finishing touches to this dissertation and took Christophers

life too.

This dissertation marks the end of a rigorous and long academic

pursuit, the realization of a dream, and the beginning of a new and

exciting career in academics.

There are several people, without their help, this investigation would

not have been possible and they are hereby acknowledged.

My sincere and profound gratitude goes to my academic adviser,

Prof. David Iornem, whom I have learned a great deal since our first

meeting in Kaduna in 1986, both on personal and academic levels.

I am highly indebted to Prof. Pat Utomi who supervised and helped

a great deal to shape the ideas contained in this dissertation. Prof.

Utomi also encouraged me to investigate this topic at a corporate

retreat event held for the management staff of National Maritime

Authority (NMA) in Ibadan. He was the one who told me and

encouraged me to further my academics. He guided me all the way

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from the questionnaire design stage to the actual writing of this

dissertation. I am grateful to him for also taking time off his ever

busy schedules to review the first drafts.

From Chief Chris Asoluka, a Maritime Lawyer and Consultant, I

learned a lot about the maritime industry. He not only granted me

interviews but also gave me materials on the subject or referred me

to where I could get them. To him I owe a lot of gratitude for his

advice right from the start, and also for being such an invaluable

resource.

I commend with gratitude the assistance given to me by the

following people: Momoh-Jimah Oyarekhua, a maritime

entrepreneur, Ray Ugochukwu, Joseph Akpa, A. C. Kambia, Eric

Ighalo, Emmanuel Offei, Nicholas and Eno Ekperi, Taiwo Akerele

and my able Chauffeur, Ogbonnaya Agwu who couriered the

manuscript to and from the computer typing center.

I am equally grateful to the following National Maritime Authority

(NMA) staff for granting me interviews (audience): Adejare

Shobayo, Director of Research, Vidon Jaule, Former Commercial

Director, Hajia Tumaka, Corporate Affairs, Irene McFoy, and Mr.

Igbecha both of Cabotage department, and other NMA staff I may

not mention their names due to lack of space. Many thanks to all

those who took sometime off their busy schedules to respond to the

survey questionnaires.

I say great thank you to my colleagues at the Lagos Business

School, Pan African University for their support and encouragement.

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Special mention must be made of Solomon Avbioroko for being a

good friend and a strategic ally and also for his wise counsel, Dr.

Obinna Muogboh for his encouragement, Prof. John Elegido and Dr.

Doyin Salami for indirectly goading and challenging me to further

pursue my academics, and not forgetting the amiable Prof. Albert

Alos, Vice Chancellor, Pan African University. To all of you I am

very grateful.

I am very grateful to true members of my extended family especially

my fathers children who believed in me both living and those who

died during my academic journey. They include: Chaka, Francis,

Queen, Joseph (Pa Joe), Christopher (diseased), Odi (diseased),

Ada, Lawrence (teacher), Sylvester, Aja (Bamoko), Chinweuba,

Elizabeth, Oyiri (Eunice), Ogonna, Engr. Odi Jr., Glory, Uzo, Maria,

Enyi, Oyiri (Aniezi), Cecilia, Nnenna.

I am deeply grateful to my late father, who had the dream of

educating me to the highest level. Many thanks also to my mother,

Mary Una Nweze and my younger sister, Queen Nweze-Eliogu who

supported me all through the journey. Queen was always

encouraging me to hang in there during my difficult moments. She

was always proud to have me as her brother. My mother taught me

to seek first my education and every other things will fall in place.

Finally, my special gratitude to my lovely wife, Barrister Gloria

Austin Nweze, and my wonderful children: Peniel, Beulah and

Hallel. They all burned the midnight candles with me. I am very

grateful to them for creating the right atmosphere for me to

concentrate, especially when writing this dissertation. I also want to

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thank them for their love which made it possible for me to strive to

be a better person always.

May God Almighty richly bless and reward all of you in your

endeavors.

ABSTRACT

It is imperatively impossible never to explore the avenues that exert

impact on the citizenry of Nigeria vis--vis an improvement on the

national per capita income, hence, improved national income and

standard of living. Cabotage as coastwise and/or inland water trade

has tremendous impact on the nations economy and of which, the

study is aimed at exploring the impact on the Nigerian Entrepreneur

through cargo reservation, transportation and haulage of wet and

dry cargo within and outside the Nigeria waterways. The study will

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invariably evoke, recreate and set in motion the profound

implementation of the cabotage so as to exhibit its true impact as

expected

Cabotage Act has a lot of business opportunities of which among

others are:

To radically enhance indigenous capital formation in

maritime business;

To transfer technology and technical skill, to Nigerians;

To drastically improve the maritime industry practitioners

management skills;

To create more jobs for Nigerians in the industry;

To improve our national finances, especially as regards to

foreign exchange conservation, and;

To enable Nigerians and government to have greater

control over our national maritime security.

It is the equal responsibility of the private, local, state and national

stakeholders to shape the strategies and actions necessary to

develop the desired state of the Nigerian Cabotage.

The cabotage that will host potentials, which will be technological

advanced, safe, secure, efficient, effective, accessible, globally

competitive, dynamic, affordable and environmentally a responsible

system.

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TABLE OF CONTENTS

S/NO PARTICULARS PAGE

1. Title Page

2. Approval Page ii

3. Dedication iii

4. Acknowledgement iv

5. Abstract viii

6. List of Tables xxi

7. List of Figures or Illustrations xxiv

8. List of Appendices xxv

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CHAPTER ONE

1.0 Nigeria Maritime: The challenge of Economic

Growth in Nigeria - Introduction 1

The Nigerian Economy 1

The challenges 5

The Economy 10

Inflation Rate 10

Fiscal Operation 11

Government economic drive 11

Gross Domestic Product (GDP) 12

National Economic Empowerment and

Development strategy (NEEDS) 14

Macroeconomic and Stru