In 2003, the cabotage law was adopted with the provisions of the empowerment of local investors to take domestic trade controls of shipping and develop enough muscle to assume the right place for Nigeria as maritime nation in the movement of its import / export cargoes including oil and crude oil to international markets. Implementation / enforcement of provisions of the Act must be constantly monitored to ensure that the aims and objectives of the law are vigorously pursued and accomplished. Thus, the objective of the study is to verify the alleged relentless domination of coastal services by foreign flag operators; the impact on the Coasting Trade Act 2003 on the development of local capacity in terms of tonnage, human resources and support of cargo. Research has made an effort to highlight the points of view of people who are relevant to the study, which formed the literature. The main instrument used for the study is a set of questionnaires used in a population of 55 industry stakeholders which 27 responded. The obtained data were statistically analyzed with the model and the circular of chi-square graphics for presentation as an explanatory model. The results of the study revealed factors that impede the achievement of the objectives acts such as lack of funds, failure on the part of NIMASA to process loan applications for financing funds cabotage vessels for expansion tonnage; lack of commitment and NAPPIMS PPMC to ensure cargo assistance to indigenous operators; NIMASA lukewarm in implementing the provisions of the Act. The study also noted that most of cabotage vessels operated by most shipping companies are indigenous below specified standards and are seaworthy. It was also noted that there was a growing lack of specially trained sailors and certified marine engineers and navigators to exploit some coastwise vessels available. Study the strategies recommended to improve indigenous participation and reduce foreign domination. For example, NMASA is invited to make installation Financing Fund cabotage vessel / loan accessible to local operators for fleet expansion and take solid steps to sea-cadet training ship to improve control and avoid importing labor. PPMC and NAPPIMS should guarantee long-time charter fleet as a kind of incitement against time to rest. On the other hand local operators should try to present standard and navigable for ships optimal cabotage operations and clean marine insurance. Local Capacity Development.