Controversy trails NIMASA’s directive on foreign account payment

Questions are being raised on integrity, red tape and capital flight , as they relate to the decision of the Nigerian Maritime Administration and Safety Agency (NIMASA) that fees accruing to the agency be paid into foreign bank accounts.

A letter to that effect, written by NIMASA and addressed to various shipping agencies, which was seen by BusinessDay, was dated January 12th  2015 and titled ‘Payment of NIMASA Statutory levies’.

The letter says: “…that with immediate effect, your next payment of the 3 percent sea protection and waste collection levies as applicable, be paid into the NIMASA UK Bank account below.”

Shipping sources tell BusinessDay that as a result of this directive, the ship documentation processes with NIMASA are usually delayed.

“This is not good for shipping companies. Moreover the centralisation of payments into only one bank is not best practice and deprives other banks of such benefits, especially by a public institution.”   

Taiwo Akinpelumi, managing director of Oceanic Energy Limited, an indigenous shipping firm, who says that the payment of the Nigerian Maritime Administration and Safety Agency (NIMASA) 3 percent statutory levy and 2 percent cabotage surchage to a bank that is domiciled offshore Nigeria results in delay of documentation process of shipping firms.

Akinpelumi further states that the procedure delays turnaround time of ships.

He describes the policy as a stumbling block to the growth of businesses and adds  that the payment policy leads to high operational cost for the charterer, cargo owner and ship owner, who spend huge sums to keep vessels operational in the midst of delays.

He said this will also take away funds which should  circulate within the nation’s economy to other countries, resulting in capital flight in the banking sector.

“Many shipping firms have lost the confidence of their clients who are compelled to pay demurrage for the delay and we need the incoming director general of NIMASA to reverse this directive.”

Responding to Businessday questions, an inside source at NIMASA who did not wish to be named, said that since the agency issued that circular, shipping companies were still paying the NIMASA 3 percent statutory levy into Nigerian-based accounts and the agency has not stopped any company from doing so.

“Despite the circular, we gave them the option of either paying to banks located in-country or offshore in London, depending on the one that is convenient to the company in question. NIMASA has never made it compulsory that shipping firms must pay into a centralised.”

According to the source, the payment was formerly contracted out but when the agency discovered that the contractor was not remitting on time and that was delaying documentation, the agency allowed companies to make direct payment into a convenient bank.

The source, who insisted that NIMASA has the right to make a choice of bank, also said that the option of paying into a London account has been there all along, and no company has ever written to the agency to complain about it.

BusinessDay efforts to get official clarification and response from management of NIMASA on ways to address the current dilemma of shipping firms in this regard, proved abortive, as our correspondent was told by an insider source that heads of departments of the agency were in a management meeting.

AMAKA ANAGOR-EWUZIE