Not less than 10,908 vessels belonging to foreigners called at Nigerian ports between 2016 and 2017, carting away about $16.2 billion as a result of the lack of capacity on the part of Nigerian ship-owners.
This is even as the Executive Secretary of the Nigeria Shippers’ Council (NSC), Mr. Hassan Bello who doubles as chairman, Nigerian Fleet Implementation Committee (NFIC) stressed the need for special incentives to investors in order to encourage indigenous ship acquisition and fleet expansion in Nigeria.
The high influx of foreign ship into Nigerian and the attendant huge revenue drain was contained in a document obtained from the Nigerian Maritime Administration and Safety Agency (NIMASA). According to the document, in 2016, 2,047 vessels called at Nigerian ports with Dry Cargo Import while 987 vessels did Dry Cargo Export.
The total amount carted away in these transactions was $3.7billion. In the same year, 2,468 vessels imported and exported Wet Cargoes worth $3.8billion.
In the document in 2017, a total of 1,967 vessels came into Nigerian ports with Dry Cargo Import while 1,145 vessels did Dry Cargo Export with a total of $4.3billion freight paid by Nigerians. On wet cargoes imports and exports, 2,294 vessels called at the port with $4.2billion lost as freight.
Perhaps, corroborating the above, the Shippers’ Council boss who was delivering a paper titled “Indigenous Fleet Development, What Options?” at a maritime conference recently, canvassed that in order to ensure Nigerian indigenous fleet is developed, there is need for zero import duty on vessels as well as abolishing of temporary importation permit.
He disclosed that, the Nigerian Fleet Implementation Committee has identified zero import duty on vessels, as well as tonnage tax as topmost among the various incentives that are required for the growth of indigenous fleet in Nigeria.
Other incentives he listed are: “Shipping Sector Support Fund, Real Sector Support Fund -2% per annum /9%,Waiver of export tariff for use of Nigerian vessels, waiver of tonnage tax, Right of first refusal for National Carriers in the procurement process for cargo, issuance of Work permit only upon verification of unavailability of ratings or officers”.
Other incentives that were advocated by the Shippers’ Council boss include, “a very strong safety administration system and procedures in support and protection of the registered ships, a systematic approach to the establishment of merchant shipping security and administration that provide confidence in shipping trade and understanding of the international shipping community.”
and then