House of Reps moves to plug leakages in maritime sector

To address the lingering problem of revenue leakages put at $10 billion annually, House of Representatives Committee on Maritime, Safety, Education and Administration has issued a notice of public hearing summoning 1,319 companies to appear before it on June 15, in Abuja.

In an advertisement published in the newspapers, the Committee also invited critical stakeholders in the maritime sector – Nigerian Maritime Administration and Safety Agency (NIMASA), Central Bank of Nigeria (CBN), Nigerian Custom Service, Nigerian Immigration Service, among others.

The Committee, chaired by Mohammed Umar Bago, said it aimed to investigate leakages and operational deficiencies in NIMASA, hence the invited companies would answer questions relating to freight levy, Cabotage surcharge, and sea piracy, among others.

According to the Committee, the move seeks benchmark approach as opposed to actual freight charges in the determination of 3 percent of freight levy of both dry and wet cargoes midstream clearance and discharge of cargo vessels and vessels on temporary importation

It also seeks to investigate activities of foreign flag vessels in coastal trade and ship-to-ship discharge of wet cargo from mother vessels to daughter vessels.

Also, concealment of marine spread of oil and gas contract agreements in EPCI illegal Cabotage exemptions, dredging and reclamation activities within Nigerian waters will also be addressed, it noted.

Indigenous operators have said their biggest challenges in the sector include access to finance, yet there is a N40 billion vessel finance fund idling away in banks.

“Government really should address this issue, the funds were created to enable local operators acquire ships and improve maritime operations, but lack of political will has left the sector not meeting its potentials,” Henry Ojogho, managing director of Broron Oil and Gas, said.

Industry operators are hopeful that these challenges will be addressed at the public hearing.

Some of the companies summoned comprised Agip Energy and Natural Resources; Broron Oil and Gas; Capital Oil and Gas; Dangote Cement; Dangote Flour; Dangote Fertiliser, Dangote Sugar, Dangote Refineries; Deep Sea and Oil; Delta Marine Shipping Coy; Elf Petroleum; ExxonMobil; Fatoil Services; Fatman Oil and Gas Services; Global Company; Global Gas and Refining; Halliburton Energy Services Nigeria; Halliburton Operation Nigeria, and others.