Nigerian shipowners protest continuous foreign participation in cabotage trade

The Shipowners Association of Nigeria (SOAN) has decried continuous award of contracts to foreign vessel owners into the Cabotage regime for coastal shipping of petroleum products in clear contravention of the Cabotage and Local Content Acts.

In a protest letter dated March 22, 2022 and addressed to the Director General of the Nigerian Maritime and Safety Agency (NIMASA), Bashir Jamoh, SOAN accused NIMASA of still granting waivers to foreign flagged vessels operated by Messrs Unibros/Orion Marine to participate in the domestic shipping of petroleum products that is sole reserved for Nigerians.

According to the letter signed by the SOAN President, Mkgeorge Onyung, and copied the Group Managing Director of NNPC, Mallam Mele Kyari and the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, the group called on NIMASA to exercise her mandate to stop any illegality and ensure the vessel owners pay relevant Customs import duties on the vessels, “with evidence provided before adopting the Nigerian flag just like the Nigerian- owned and flagged vessels operated by Nigerians.”

While commending NIMASA, NNPC and NCDMB for the multiple levels of dialogue on the issue, SOAN noted that it will amount to an act of economic sabotage if foreign-flagged vessels are allowed to operate in the nation’s waters in disregard to extant laws and regulations.

The letter titled “Re: Registration of foreign flagged vessels into the Cabotage regime for coastal shipping of petroleum products” a copy of which was made available to Maritime Today Online reads in part, “The Nigerian National Petroleum Corporation (NNPC) has broken an over 40-year record by giving Nigerian shipping companies the commercial opportunity to supply coastal vessels to NNPC/Marine Logistics for shipping of petroleum products with Nigerian Flagged coastal tankers.

“Your agency efforts and the proactive steps taken by the Executive Secretary, NCDMB and House of Assembly is highly commendable and most appreciated.

“However, it is of grave concern to this laudable initiative that foreign-flagged vessels operated by Messrs UNIBROS/ORION MARINE are issued waivers from your good office to partake in the domestic shipping of petroleum products in contravention of our Cabotage and Local Content legislations.

“ORION MARINE is just an agency and not OWNER of vessels presented to you. During the Legislative public hearings, vide a letter from the Chairman of Federal Inland Revenue Service (FIRS), UNIBROS is not a Nigerian registered taxpayer but has operated in Nigeria illegally for over ten years.”

“We bring this to your notice to exercise your mandate to stop any illegality and ensure they pay relevant customs import duties on these vessels, with evidence provided before adopting the Nigerian flag, just like the Nigerian-owned and flagged vessels operated by Nigerians. Arrest these vessels immediately or cause them to pay the prescribed federal government taxes they have been illegally avoiding. Charge them the requisite penalties in line with section 35 for offences against the Cabotage Act.

“NNPC has endorsed Nigerian ships as they have met all legal and technical compliance requirements of the Cabotage and NOGICD acts, including flying the Nigerian Flag, import duty payment, taxes, etc., to mention a few. We reiterate that NIMASA, under your leadership, is vested with the power and legal backing to protect and promote indigenous shipping development.

“SOAN believes that a sincere harmonious synergy with NIMASA is the key to unlocking the economic prosperity and sustainability of our Maritime industry.”