Provide enabling fiscal, regulatory environment for indigenous Shipping, SOAN urges FG

THE Ship Owners Association of Nigeria (SOAN) has said that the only way to unlock opportunities for seafaring in Nigeria is for the Federal Government to provide an enabling fiscal and regulatory environment for indigenous shipping capacity to be enhanced.

Disclosing this at the 2024 Day of the Seafarers celebration in Lagos, President of SOAN, Mr Sonny Eja, explained that the government must look at disbursing the Cabot Vessel Finance Fund (CVFF), lower or cancel Customs duty rates for ships and spare parts and consider tax holidays for operators if it aims to spark a significant increase in Nigerian vessels which will lead to more seafaring opportunities in the country.

According to the SOAN President “I am delighted to join you all on this special occasion to celebrate seafarers who contribute to the safe and efficient operation of ourships. They play an important role in the global economy by providing an invaluable link in the world trade value chain of which over 90 percent is carried by sea.

“The Day of the Seafarer is a celebration organized by the International Maritime Organization (IMO) on June 25th annually to recognize the contribution of seafarers to international trade and world economy.

The theme for this year’s celebration is “Navigating the Future, Safety First”.

“Even the SOLAS convention places emphasis on minimum safety standards in operation of ships that signatory states must comply with. These ships are operated by our Seafarers.

“Today, we gather to discuss and interact with a view to shaping the future of Nigeria’s maritime sector. A new dawn for seafaring should be harnessed to provide employment opportunities for the nation’s teeming youths.

“Esteemed seafarers, I salute and celebrate you for your pivotal contributions to the development and sustenance of the Nigerian economy.

“This celebration should instill a sense of inclusion, value and dignity amongst seafarers. It should also provide another opportunity to discuss the myriad of challenges plaguing seafarers in Nigeria and internationally with emphasis on safety and the future of seafaring.

“For Nigeria, one way to unlock the opportunities for seafaring is to provide an enabling fiscal and regulatory environment for indigenous shipping capacity to be enhanced. The disbursement of Cabotage Vessel Finance Fund (CVFF), lower or zero Customs duty rates for ships and spare parts and tax holidays for operators are some approaches that could spark a significant increase in Nigerian vessels, thereby leading to more seafaring opportunities.

“Ship owners can play a role in the training of seafarers; but this burden also falls on the IMO, Flag States, operators and training academies. Thorough and timely education of seafarers would impart the skills needed to operate ships competently in the digital age, and familiarize them with alternative energy technologies, including fuel-specific fire fighting techniques.

“As President of the Ship Owners Association of Nigeria (SOAN), I want to reiterate the need for ship owners to adhere strictly to high safety standards in their operations to stem the tide of accidents on board,even as I encourage my colleagues to prioritize the prompt payment of seafarers wages.

“There is a general shortage of skilled labour (seafarers) globally and the maritime industry is faced with significant challenges attracting and retaining qualified seafarers. This global problem bares up an opportunity for significant youth employment for Nigeria. With the right policies, requisite training, and an optimized shipping industry, Nigerians can emerge the world’s major supplier of seafarers.”

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