• Wednesday, April 24, 2024
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NIMASA targets 5-year Cabotage waiver cessation in Nigeria’s shipping business

Nigeria’s shipping business

Determined to enhance indigenous participation in Nigeria’s shipping business through the implementation of the Cabotage Act of 2003, the Nigerian Maritime Administration and Safety Agency (NIMASA), has earmarked plans to end Cabotage waivers for foreign owned ships within the next five years.

This was the outcome of a recent meeting held between NIMASA and its stakeholders in Lagos, on the need for collaboration in order to facilitate optimal implementation of the Cabotage law.

Recall that part III, section 9-11 of the Coastal and Inland Shipping (Cabotage) Act, 2003 provides for waiver on the requirements for ownership and manning of Cabotage vessels by Nigerians and also building of such vessels in Nigeria, where capacity is lacking.

However, in order to encourage more indigenous participation, which is the essence of the Act, NIMASA is desirous of stopping these waivers and has put in place a strategic plan in that regard. It includes the New Cabotage Compliance Strategy (NCCS) under which certain categories of waivers have been suspended.

Dakuku Peterside, director general of NIMASA, said during the meeting that the Agency was determined to ensure that Cabotage waivers were stopped in the next five years.

“NIMASA’s mandate is all about promoting and regulating shipping in Nigeria and we have no intentions to stifle anybody’s business. Rather, we are committed to promoting, protecting and providing the enabling environment for the local ship owners to grow and compete with their international counterparts. We are determined to work with our stakeholders,” he said.

Represented by Gambo Ahmed, executive director, Maritime Labour and Cabotage Services, Peterside told the stakeholders that part of the strategy to bring an end to the issuance of waivers was to develop infrastructural capacity and human capital with respect to training of seafarers to attain global standards.

He called on the stakeholders to cooperate with the Agency to realise the Cabotage implementation, adding that it holds a huge potential to create jobs, add to the Gross Domestic Product (GDP), and bring about a boom in the economy.

Temisan Omatseye, a ship owner, noted that NIMASA was the only Agency recognised and mandated by the government to regulate and enforce shipping activities in Nigeria.

Omatseye urged the Agency to use the powers bestowed on it by law to ensure total compliance with the Cabotage Act and apply punitive measures against erring shipping companies.

“If we don’t begin to enforce the Cabotage law, the use of the Cabotage Vessel Financing Fund (CVFF) will be defeated,” Omatseye added.

On his part, Neeraj Kumar of TMC Shipping Pvt, India, commended the efforts of the Agency towards ensuring the implementation of the Act, stating that the ports are critical to economic growth.

Kumar pledged India’s willingness to collaborate with Nigeria, especially, in the area of shipbuilding.

Other stakeholders, who spoke at the event, unanimously applauded the efforts of the present management of NIMASA towards actualising a robust maritime sector through various stakeholder-oriented programmes and promised their full support and cooperation.

They also called on the Federal Government to support the Agency to ensure greater indigenous participation in the maritime sector.

 

AMAKA ANAGOR-EWUZIE