Greek shipping company wins Nigeria’s coastal, bunkering services contract

IN total disregard for Nigeria’s content laws, the Coastal and Inland Shipping Act (Cabotage) and the Presidential Executive Order No.5 which addresses the exclusion of Nigerian ship-owners and operators, a Greece based shipping company, Messrs UNIBROS, with eleven foreign-flagged coastal tankers, has bagged Nigeria’s Coastal and bunkering vessel contract from the Nigerian National Petroleum Corporation (NNPC). This is even as indigenous ship-owners have said Nigeria stand to lose about $100 million annually as capital flight from the recently signed contract.

In a letter addressed to the Group Managing Director of the NNPC dated April 22, 2021, the Ship Owners Association of Nigeria (SOAN) protested over what it called the bad faith and lack of patriotism shown by the NNPC towards indigenous ship-owners.

According to the letter titled ‘Breach of Nigerian Content and Cabotage Laws in the award of contract to foreign vessel owners for coastal shipping of petroleum products in the Downstream petroleum sector’, a copy of which was made available to the Nigerian Tribune, the SOAN lamented that despite the fact that Nigerian ship-owners had demonstrated capacity to operate this kind of contracts, and had accepted willingness to accept freight payments in Naira, the contract had been given to a Greek shipping company that would accept freight payment in Dollars, thereby resulting in a further drain of Nigeria’s scarce foreign exchange resources.

“We point out to you that this contract award to UNIBROS Shipping company will result in amplification of capital flight valued in excess of $100 million annually to the detriment of our economy. In addition, no Customs import duty has been paid for any of the eleven vessels UNIBROS is deploying to execute this contract, again in breach of our nations monetary and fiscal policies. Nigerian owned, operated and flagged vessels are made to pay full Customs duty and appropriate taxes on earnings which foreign shipping companies have continually evaded.

“Also note that no seafarer training or local content strategic plan whatsoever is in place in line with the NOGCID laws. In terms of capacity building, neither UNIBROS nor any other foreign shipping company is made to comply with the major pre-qualification requirement for consideration in the coastal and bunkering vessel services tender process, as required by the Nigerian Content Development and Monitoring Board (NCDMB).

“We, therefore, implore you to use your good office to reverse and cancel this contract which was not subject to public tender in line with Nigeria’s public procurement procedure.

“We are delighted to inform you that SOAN members are standing by with Medium Range (MR), Long Range (LR) and Handy-Size tanker vessels to meet your coastal and import shipping requirement within short notices, subject to bankable contract terms and conditions,” the SOAN President, MkGeorge Onyung stated.

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