Reps probe $10bn revenue loss in NIMASA

House of Representatives on Wednesday unveiled plans to investigate the alleged $10 billion revenue loss due to leakages and operational deficiencies in Nigerian Maritime Administration and Safety Agency (NIMASA).

The resolution was passed sequel to the adoption of a motion sponsored by Jones Onyereri, chairman, House Committee on Banking and Currency.

To this end, Speaker Yakubu Dogara referred the motion to the joint committee on Maritime Services, Education and Administration for further legislative action and report back within six weeks.

The Committee was mandated to obtain inputs from maritime stakeholders for the purpose of “recovery and improvement of operational efficiency, cleaner ocean and safer shipping as stipulated in the International Maritime Organisation (IMO) charter and the NIMASA Act.”

NIMASA was saddled with the responsibility of ensuring cleaner and safer shipping, capacity building and controlling the maritime safety, administration and security in the country.

In his lead debate, Onyereri alleged that the ineffective execution of the agency’s mandate over the past few years resulted in financial leakages, maritime insecurity and operational decline.

He said cases of revenue losses based on the leakages in 3 percent levy on wet and dry charges, 2 percent surcharge and other revenue sources amounted conservatively at $10 billion over a period of 8 years.

Onyereri explained that the evasion of the payment of levies was occasioned by unauthorised midstream discharges of cargoes by IOC and oil servicing companies, thereby depriving the country of huge sums of revenues.

The lawmaker further alleged that NIMASA failed to interface with Nigerian National Petroleum Corporation (NPC) and IOC over its lifting of crude oil, which are based on the free on board (FOB) instead of cost, insurance and freighting (CIF), for the purpose of enforcing the payments of the 3 percent levy.

He said the problem of under-billing of the 3 percent levy following lack of the actual earnings by shipping companies, flouted the benchmark approach to the 3 percent levy payment for both dry and wet cargoes.

According to him, the activities of vessels on temporary importation licence posed a great threat to the Cabotage Act of 2003, which promotes indigenous participation in coastal trade.

While calling for the intervention of the House, Onyereri alleged that the nefarious activities of oil drilling and dredging companies evade compliance largely to the waivers NIMASA granted, which was said to have caused wilful default, neglect and outright revenue evasion.