The National President of the Nigerian Association of Master Mariners (NAMM), Capt. Tajudeen Alao has said that the revelation by the Nigerian Maritime Administration and Safety Agency (NIMASA) that it is in talks with the Central Bank of Nigeria (CBN) for the provision of special foreign exchange intervention and loan repayment scheme for ship owners in Nigeria is a step in the right direction.
It will be recalled that the Director-General of NIMASA, Dr. Dakuku Peterside had during a parley with journalists in Lagos a fortnight ago disclosed that the agency was in talks with the CBN management for a special foreign exchange intervention and loan repayment scheme for shipping development in Nigeria.
Reacting to the disclosure, Capt. Alao state that the special foreign exchange intervention for ship owners was long overdue adding that this should have come to the shipping sector before it was eventually offered to the aviation sector.
According to him,” Some years ago, they went on a retreat and the aviation sector got the concession. In that retreat about five years ago, maritime sector should have gotten it because all over the world, maritime has duty free concession, spare parts for ships. What they have done is good because they have not done it before but more importantly is the duty on ships registered in Nigeria. When you register a ship in Nigeria and the ship is sailing international, you pay 10% duty and it is duty free.
“In shipping, it is the multiplier effect that we should concentrate on, the industries that grow around shipping, the ships and spare parts. So, you bring the ship because it is registered in Nigeria, if that ship comes to Nigeria, nobody asks you for duty but the point it is coming from outside Nigeria and it is going away, the customs will ask you to come and pay duty. Imagine you buy a ship of $2,000,000 and then they ask you to come and pay $400 to $500 and maybe this ship will be due for dry docking in another 18 months, which is another $400 to $500.
“So, this thing they are doing is in the right direction but it must be a government policy, CBN cannot decide because customs will demand for duty”.
On the loan repayment scheme for the ship owners, he said,” Loan repayment scheme from commercial banks, I don’t think NIMASA has any role to play to get a single digit loan”.
On the disbursement of the Cabotage Vessel Financing Fund (CVFF), the NAMM boss informed that the Minister of Transportation, Hon. Chibuike Amaechi was being courteous because people had been given such money in the past and they didn’t pay back.
“If they look at serious players in the industry who have contributed so much money, then they deserve to have facilities but you must have a proper structure on the ground with DOC, you must have qualified people, technical, ship managers, it is not going to be a one man business where you will just divert that money to go and buy house in Ikoyi or in Dubai, that is what has been happening”, he added.
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