MORE facts have emerged on why the Memorandum of Understanding signed between Nigeria and a Singaporean firm, Pacific International Lines (PIL), in August 2016 over national carrier/fleet status has yet to commence.
Speaking to select maritime correspondent’s on Friday ahead of the 2017 Annual General Meeting of the Ship-owners Association of Nigeria (SOAN), in Lagos, President of SOAN, Engr Greg Ogbeifun explained that Nigeria’s tax laws put the Singaporean firm off from the onset of the MoU agreement.
According to Ogbeifun, “I was part of the delegation that went with the Minister of Transportation to Singapore in 2016 during the signing of the MoU.
“Along the line, after we had signed the MoU in Singapore with PIL, the company came up with issues as regards our local tax laws. Firstly, PIL made reference to our local laws that will not make the agreement viable. And they put it in black and white that unless some of this laws are reviewed, it will be hard for them to fly the Nigerian flag. That was the biggest setback for that MoU.
“This is also affecting our crude oil tanker quest. We have to decide if we want these things to happen in Nigeria. Let’s review our laws, just like what Malta did.
“Malta turned around its maritime administration by reviewing its tax laws. Malta made its tax laws attractive for international participation, and today that country is the envy among maritime nations.
“What are we talking about? If you are an American, or a Briton or a Greek, and you decide to buy a crude oil tanker that will fly your country’s flag, the government has a law that allows you to bring in your tanker into your country on zero duty payment.
“In Nigeria, if you are bringing in a canoe, a tugboat, speedboat or a tanker, the sum total of the importation cost that you will pay is about 14%.
“So if you buy a crude oil tanker for $100m dollars, if you take it to America, you will pay zero duty as long as it is carrying an American flag. Same in Britain and Greece. But if you bring it to Nigeria, you will pay N14m even when it is flying Nigerian flag.
“Again, you have to remember that Nigerian flagged tankers will be competing with foreign flagged tankers in the same market, so automatically, the Nigerian flagged tanker is already disadvantaged.
*That is one reason PIL slowed down on the MoU it signed with the Nigerian government. PIL put it in writing that unless these tax laws are reviewed, it won’t be able to fly the Nigerian flag.”
On the forthcoming AGM, Ogbeifun explained that the Edo State Governor, Godwin Obaseki and the Minister of Transportation, Rotimi Amaechi has already signified intention of gracing the associations end of the year get together dinner come December 7th.
“SOAN AGM/Dinner is for all ship-owner. We have even sent an invite to the Nigerian Ship-owner’s Association (NISA). We are also reaching out to other ship-owners that don’t belong to any associations
“This year, we have decided to have a workshop so that our outing won’t just be a social event, but an intellectual one that will address critical issues that we think the industry needs for its survival.
“The workshop is expected to bring together all shipowners, policymakers, industry players and business leaders. The theme this year is “Giving critical lifeline to the Nigerian Maritime industry,” Ogbeifun stated.
and then