Merchant Navy cautions NPA against planned introduction of Wreck Insurance

Tayo Oladipupo |

Nigerian Ports Authority (NPA) has been cautioned against the planned introduction of Wreck Insurance for vessels calling on the Nigerian waters.

The group, the Nigerian Merchant Navy Officers and Water Transport Senior Staff Association (NMNOWTSSA) said that the policy could scare away vessels from Nigerian ports.

The National President of the association, Engr. Matthew Alalade who gave this warning in an interview with newsmen in Lagos on Tuesday said that the policy was good but averred that it could lead to vessel drought in Nigerian ports.

Alalade pointed out that vessels were no more calling on Nigerian ports as they used to stating that, most of the operations hitherto carried out in Nigeria by vessel owners are currently being done in the neighbouring countries.

He however cautioned that if the neighbouring countries don’t have such policy as wreck insurance and Nigeria is coming up with one, it may end up empowering them to take more of the goods meant for Nigerian ports.

His words, “So, it is a good thing if it is being done in this region, we must weigh the options. They may carry it out on vessels that are ageing because if you slam it on all the vessels, the ship owners may hide under the policy and go to other neighbouring countries. Now, they are going to Lome, Senegal to do most of the businesses even dry docking.

“So, the government may be losing revenue in that way. I will plead with the government to take a second look at it. Most of the vessels don’t come to our ports again because of high charges and you are now adding another burden again to the ship owner.

“I just pray they don’t declare our country a war zone that they won’t be able to come again because it will mean another cost for our importers which will ultimately be transferred to the final consumers.

“But if they want to introduce wreck insurance, they should look at some classes of vessels, look at the ones that are ageing, NIMASA has Port State Control which will go onboard a vessel to check to see that the vessels are still healthy,” he said