Fresh hope for local ship owners as full implementation of Cabotage begins
Determined to ensure that the jobs due to indigenous ship owners are properly guarded from the hands of foreign operators, the Nigerian Maritime Administration and Safety Agency (NIMASA) has perfected arrangement to commence full implementation of Cabotage Act.
The plan is finalise towards ensuring that Nigerians are adequately patronised by the International Oil Companies (IOCs) operating in Nigeria.
The Inland and Shipping Act (Cabotage), which has been repeatedly abused years after its enactment, is an act that reserves the right to local seaborne trade to vessels flying Nigerian flags, crewed, registered and owned by Nigerians, with the sole aim of creating jobs and wealth for Nigerians. Unfortunately, close to 13 years into existence, the act is yet to fully benefit Nigerian ship owners as bulk of the nation’s shipping are still dominated by foreign vessels.
Speaking recently in Lagos during an interactive session with IOCs, Dakuku Peterside, director general of NIMASA, said the agency would no longer tolerate disregard for the provisions of Cabotage and other environmental laws by international oil companies in Nigeria.
To develop the nation’s economy, the NIMASA boss stated that IOCs needed to be mindful of all existing laws and regulations in the discharge of their duties as applicable sanctions would be meted out to erring companies.
According to him, the situation where IOCs engage foreign vessels to do jobs that Nigerian ship owners have adequate capacity and equipment to do, will no longer be tolerated, as this has been a major bane in the development of Nigeria’s shipping industry.
“All international oil companies must give NIMASA ample notice of vessel requirements so that the agency can engage indigenous operators with the needed capacity to do the job instead of giving such job to foreign operators,” Peterside directed.
Continuing, he pointed out that the aim of the Cabotage Act is not to generate revenue in terms of waivers paid to government by foreign vessels, but to build the requisite capacity for indigenous players, which will in the long run generate wealth and create employment for Nigeria’s teeming population.
Peterside, who commended the IOCs for their compliance with payment of statutory levies, however noted that the argument on the payment of Cabotage levies on Floating Production Storage and Offloading (FPSOs) facilities and other offshore platforms is unnecessary. “By our laws, FPSOs and other offshore platforms are Cabotage vessels that are subject to NIMASA’s regulation and payment of statutory levies.”
While calling for synergy with the oil companies, the DG promised that the agency will deepen its collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) for the benefit of indigenous operators in Nigeria’s maritime environment.
“Whether you are into shipping or shipping related business, NIMASA has a role to play in ensuring that the business is done seamlessly without security risk. NIMASA under my watch is committed to raising a high level of service delivery. Thus, the need for all players to share relevant information that would assist the agency in carrying out its statutory responsibilities,” he explained.
Uzoamaka Anagor-Ewuzie