Nigerian ship owners have advised the Ministry of Marine and Blue Economy to completely stop the waivers for foreign operators in Cabotage trade.
The President of Nigeria Shipowners Association (NISA), Otunba Sola Adewumi made this call while speaking at the recent stakeholders meeting organized by the Ministry of Marine and Blue Economy in Lagos.
According to the group, one of the initial steps towards effective implementation of the Cabotage Act should be the eradication of waivers as it will enhance the participation of indigenous ship owners.
“The complete eradication of waivers under the Cabotage regime is crucial. This action would significantly bolster the opportunities for Nigerian shipowners, fostering a more competitive environment that could lead to increased contracts and employment within the local maritime sector,” NISA President said.
He, however, advised the Nigerian government to consider the establishment of a specialized maritime bank, opining that such financial institution would offer financial assistance at single-digit interest rates, thereby providing a much needed impetus for growth and development in the maritime industry.
The NISA helmsman called for the implementation of the Cabotage Vessel Financing Fund (CVFF), stressing that the fund is pivotal in providing financial support to operators within the industry, thereby enhancing their capacity to compete more robustly on a global scale.
Noting the need to promote shipbuilding, Adewumi observed that efficient ship building cannot be achieved without the commencement of Nigerian steel rolling mill.
“Promoting local shipbuilding can play a significant role in reducing costs for shipowners. This strategy would not only make ship acquisition more affordable but would also stimulate the local economy and technological development.”
“The payment of port charges in local currency is a strategic move that can alleviate the financial burden on Nigerian shipowners, making their operations more economically viable.”
“Investing in research and training is essential for capacity building within the maritime sector. This approach ensures that the workforce is skilled and knowledgeable, ready to meet the challenges and demands of a rapidly evolving global maritime industry,” the NISA President said.
On National Carrier Status, he argued that granting national carrier status to Nigerian ship owners would provide them with preferential treatment in national and international trade, thus, enhancing their competitiveness and visibility in the global maritime industry.
NISA President also described the setting-up of an African Protection & Indemnity (P&I) club as a strategic move that would provide tailored insurance and risk management services that cater specifically to the unique needs of the African maritime sector.
