Nigerian ship owners have condemned the new $2000 charge introduced by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) for Coastal Vessel License (CVL), describing it as multiple taxation in the nation’s shipping sector.
Indigenous operators disclosed on Tuesday at the 2-day 2024 Stakeholders’ Engagement by the Federal Ministry of Marine and Blue Economy, in Lagos.
The $2000 levy, according to operators, is a newly introduced charge collected by NMDPRA from ship owners; while another separate N2million is equally levied on ship owners by the oil regulatory agency.
Speaking at the event, a former Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Barr. Temisan Omatseye, described this development as an abnormally even as he stressed that the NMDPRA)l has been encroaching into the regulatory functions of NIMASA by licensing tanker operators in the country.
Omatseye, however, noted that the responsibility of oil regulatory agencies should be focused on the petroleum products conveyed by the tankers and not the vessels.
“NMDPRA insisting on two licenses which should be outside the scope of their regulation. Each ship owner pays $2,000 to register with NMDPRA and they are equally asking now another N2million from ship owners. These are for Coastal Vessels License and they even issued a regulation in line with the Petroleum Industry Act (PIA) to give them that power.”
“Nonetheless, there are international provisions governing these activities and they are vested in NIMASA as Nigeria’s maritime regulator. The major conventions include the United Nations Convention on the Law of the Sea (UNCLOS), International Convention for the Prevention of Pollution from Ships (MARPOL), among others enforced by NIMASA. The ministry should ensure that NIMASA implements these international conventions already domesticated.” Omatseye stressed.
At the summit, operators in the oil sector including the Chairman of Sea Transport Group and President of Nigerian Chamber of Shipping (NCS), Alhaji Aminu Umar; President of Nigeria Shipowners Association (NISA), Otunba Sola Adewumi; among others confirmed the development.
Meanwhile, efforts by our correspondent to get a response from NMDPRA were futile until presstime as the Authority’s spokesman could neither take calls nor reply them.
In his welcome address at the event, the Minister of Marine and Blue Economy, Hon. Adegboyega Oyetola CON, described ship owners as the backbone of the nation’s maritime sector.
“Ship owners contribute to trade, transportation, and job creation. We acknowledge the challenges you face, from safety and security concerns to regulatory hurdles and market fluctuations. It is the resolve of government to address these challenges and foster a conducive environment for your operations,” the Minister said.
Oyetola, who was represented by the Ministry’s Permanent Secretary, Mr. Oloruntola Olufemi, assured that the Ministry is exploring fiscal and trade policies to promote greater participation of Nigerians in the shipping industry.
“Our efforts to enhance efficiency, transparency, and competitiveness in the sector are already yielding positive results. The NIMASA Act has promoted safety standards, enforced regulations, and boosted investors’ confidence. A major part of our plan, is to unlock the Cabotage Fund for disbursement to support the growth and development of shipping businesses in the country. The Ministry is committed to delivering this soonest,” the Minister stated.
