Government in a fix over Investors deadline for national shipping line

ABIOLA Seun

The Federal Government is currently in a fix as it missed a key timeline put forward by international investors on the path to the establishment of a new national carrier meant to replace the liquidated Nigerian National Shipping Line (NNSL).

It would be recalled that on receiving the report from the Olu Akinsoji led committee which he had set up to draw up the template for the establishment of a new national carrier in June 2017, Chibuike Rotimi Amaechi, Minister of Transportation had stated that, “Investors have given us August 2018 as deadline on this issue. And we have said government is going to use part of the cabotage fund in this direction.

“We must also advise on how to choose who qualifies to benefit from the fund because the 60 per cent that we have must be accessed from the cabotage as part of their equity contribution.”

Amaechi’s plan for a new national carrier is anchored on the private sector whereby 60 per cent will be owned by local private investors while their foreign counterparts are expected to hold 40 per cent stake.

He had assured stakeholders of government’s political will at ensuring that the new project gets cargo to carry, adding that the present government was determined to do everything possible to ensure that the new national carrier succeeds.

On presentation of the report from the Chairman of the committee in June last year, the minister had immediately constituted an implementation committee headed by the Chief Executive Officer of the Nigerian Shippers’ Council (NSC), Mr. Hassan Bello.

However, since the report was submitted, nothing has been heard from the Ministry of Transport, even as the August deadline given by investors has come, thereby raising fears that the effort may yet be another pipe dream ambition.

Making a case for the new carrier in his committee’s report, Akinsoji said in 2014 that Nigeria lost $2.2 billion that year because of the absence of national shipping line.

According to him, “If 50 per cent out of the 5,000 ships that landed in Nigeria in 2014 were Nigerian ships and managed by Nigerians, the country would have saved $2.2 billion.”

He said Nigerian seafarers that would have been engaged to work on the fleet would have been earning about $3,000 per month.

Akinsoji added, “So you can imagine the number of families that would have benefitted from that, and these are the kind of losses that we are making by not having ships carrying our cargoes on the international waters.”