Committee on National Fleet recommends zero duty on imported vessel – Hassan Bello

Tayo Oladipupo    |

As part of efforts to reposition the shipping subsector of the Nigerian maritime industry, the National Fleet Implementation Committee has tabled its requests before the Federal Government as incentives to make Nigerian shipping subsector compete globally.

Barrister Hassan Bello, Executive Secretary and Chief Executive Officer of the Nigerian Shippers’ Council who is the Chairman of the Committee disclosed at the 20th Anniversary Lecture/Awards and Patrons Investiture ceremony held in Lagos recently by the League of Maritime Editors that the committee had also met with the Nigerian Investment Promotion Council to work out modalities for the incentives as every other industry had gained the incentives except the shipping industry.

Bello informed that the committee aimed to bring shipping into priority area under the government arrangement.

He said, “What we want in summary is zero duty import for vessels, tonnage tax, abolishing of temporary importation permit, shipping sector support fund to the tune of 2% to 9% per annum, this is in addition to the Cabotage Vessel Finance Fund (CVFF), waiver of export tariff for use of Nigerian vessels, right of first refusal for national carrier in procurement process for cargo.

“We also have advocated a change of Nigeria crude oil policy and we are working with the NNPC for the first time this experiment is going to come along and we thank NIMASA also for emphasizing this, Corporate Affairs Commission to adopt FIRS zero duty for ship finance registration which is substantial and preferential berthing privileges.

“We also engaged with the Ministry of Budget and National Planning, we visited the Honourable Minister and he realized that the Economic Recovery and Growth Plan (ERGP) fits solely with the idea of the national fleet because of its inclusiveness, development of infrastructure, employment creation, wealth creation, national pride and serve as a centre for diversification.

“So, the committee demanded the inclusion of transport specific incentives into already existing incentives which exist for other sectors. All this will be available when we are through. We don’t want to give you loan and you could not pay”, he said.

He added that part of the terms of reference given to the committee included providing guidelines on the procedure and processes, to examine the possibility of using existing shipping companies to grow a Nigerian fleet as well as elaborate on identified areas of requisite government support and so on.

The Council’s boss recalled that membership of the committee started small but had grown because of the exigencies adding that it had a representative of the Federal Ministry of Transport, Nigerian Shippers’ Council, Nigerian Ports Authority, NIMASA, NEXIM Bank, Ship owners associations, Association of Master Mariners, Marine Engineers and Surveyors and NNPC.

He continued, “In line with the mandate given to the committee, the members carried out several consultations including addressing the members of the National Economic Management Team headed by the Vice President.

“The committee introduced the Fleet Development Project to the EMT and solicited for incentives and I am happy to report that soon, these incentives will be rolled out and we are going to have a large configuration of all people in the maritime sector, so that we can discuss these things. It is not something that is hidden, we are operating in an open society and so, we will be able to discuss and debate this”.

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