Dakuku assures Shipowners of cheap funding with reformed Ship Registry

Abiola Seun |

The Nigerian Maritime Administration and Safety Agency (NIMASA) has said that reforming the nation’s ship registration office would attract funding from international financial organisations and reduce insurance premiums on vessels.

This was disclosed by the Director General of NIMASA, Dr Dakubu Peterside on Monday at the handing over ceremony of the final report of the committee on the activities and operations of the Nigerian ship registration office.

According to the NIMASA boss, the Nigerian ship registry would drastically reduce insurance premiums payable by vessels on the registry.

He said, “A ship registry gives access to funding in international financing space. If the vessel is registered in Nigeria ship registry and the ship registry commands respects, financial institutions can deal with the ship, when they know about the integrity of the Nigerian flag they can transact and accept capital at a competitive and a relatively cheaper rate. There is funding but if a vessel is not in a flag that commands respect, people will deal with the vessel with caution and be circumspect.

“If your vessel today is registered under the Nigerian flag, the insurance companies, P and I clubs in London will treat you with some caution and if we enhance the quality of Nigerian flags, the insurance firms both in London and any country can deal with the vessels knowing that are technically solid, with good safety records and bringing some values with insurance premiums coming down.

The DG who was visibly elated over the thorough job done by the committee said a respected ship registry would enhance standard and provide seatime for Nigerian seafarers.

“The third is that a respected ship registry would attract the best hands to work for you. It enhances the standard of the Nigerian seafarers. So, if a ship is flagged UK then all the seafarers are found to be competent and once they leave, they can be employed anywhere because they have worked in a British flagged vessel before so if Nigeria ship registry earns that reputation, we can’t be fighting everywhere looking for training berth for our cadets. They can practice on vessel flagged by Nigerians and become employable anywhere in the world.”

“Another thing Nigerian flag will do is acceptability in other countries because before now when we go to other countries, their port state control officers will delay us and make it a vessel of interest but if they are sure of the quality of the flag, they know that you meet all the technical standards set by the International Maritime Organisation IMO) or the regional MoU but if it were to be a flag believed to be substandard, one become a target for port state inspection, vessels delayed among others.”

Peterside who assured of speedy implementation of the report as from 2020,assured that the nation would have a vibrant and effective ship registry.

His words, “We are expected to see the Nigerian ship registry that is respected across the globe, attractive to ship owners that responsive to the yearning of ship owners, which are the first thing we are expect to see. The second one is operational, we are expect to see Nigerian ship registry that is efficient, effective and responsive to change and the other one is that we are expect to see the Nigerian ship registry that is automated and meet international standards satisfaction and in the next few hours or days, we are expect to see implementation committee that would follow through to ensure that every single recommendation is implemented to the later. We have the will, the courage to reform and reposition the Nigerian ship registry.”
Speaking earlier, the chairman of the committee, Engr. Emmanuel Ilori noted that an improved ship registry would enhance Nigeria chance atvthe coming IMO Council election.

He however advised strict implementation of the recommendation of the report for notable changes in the country.

Ilori said, “As at the time you asked us to do this assignment nobody was proud to fly the Nigerian flag and one of the first things we did was to find out what led to the lack of confidence and technical integrity from financial institutions, but today there has been improvement.

Ilori expressed confidence that if the tenets of the reports were implemented religiously, the nation’s ship registry and the entire maritime space would observe notable changes.

He also noted that the effects of an improved ship registry would give the nation added advantage in the next International Maritime Organization (IMO) Council elections.