NIMASA seeks improved visibility for $195m Deep Blue project, to revise MoU with Navy

The Nigerian Maritime Administration and Safety Agency (NIMASA) has said that it will be engaging the Nigerian Navy to revise the Memorandum of Understanding (MoU) guiding the $195m Deep Blue project in an effort to enhance its visibility and effectiveness on the nation’s waterways.

The Director General of NIMASA, Dr. Dayo Mobereola, stated this in response to complaints from indigenous ship-owners about poor visibility of the project’s assets during the 2024 Stakeholders Engagement meeting in Lagos on Tuesday.

Dr. Mobereola assured that talks will be held with the Naval hierarchy to improve the Deep Blue assets and make the project more impactful and visible.

He said the new agreement will ensure the project aligns with its original purpose and agenda.

His words, “Since my assumption as the DG of NIMASA, I have met with the Chief of Naval Staff three times on this particular Deep Blue project.

“I can assure you that very soon, we are going to have a new Memorandum of Understanding that will make the Deep Blue project more impactful and visible. The new agreement will ensure the project is directed to the agenda and purpose behind its creation.”

He added that NIMASA will review modalities to ensure the Cabotage waiver regime favors indigenous ship-owners, and the Federal Government will engage with foreign insurance firms to understand why war risk premiums are being charged on Nigerian cargoes despite the country not being at war.

“The last time Nigeria was at war was in 1966. We will all be meeting with the foreign insurance underwriters to know why we are still paying this premium,” he said.

Earlier in his address, the Minister of Marine and Blue Economy, Adegboyega Oyetola, emphasized the ministry’s commitment to unlocking the Cabotage Vessel Financing Fund (CVFF) to support the growth of domestic shipping businesses.

The Minister who was represented by the Permanent Secretary Oloruntola Olufemi, reaffirmed the government’s focus on the maritime sector as a key driver of national economic growth.

He pledged to create an enabling environment that fosters business success and industry-wide development.

“Our efforts to enhance efficiency, transparency, and competitiveness in the sector are already yielding positive results. The NIMASA Act has promoted safety standards, enforced regulations, and boosted investors’ confidence.

“We are exploring fiscal and trade policies to promote greater participation of Nigerians in the shipping industry. A major part of the plan is to unlock the Cabotage Fund for disbursement to support the growth and development of shipping businesses in the country.

“The Ministry is committed to delivering this soonest. Our attention to the shipping industry must be holistic, encompassing investments in the fleet, improvement of regulatory frameworks, upscaling of local manpower and capacities, fine-tuning of operational efficiencies, and increasing turnover and revenue.

“We must work together to reverse unfavorable terms of trade in the sector for the benefit of our economy. Moving forward, our collective resolve must be to foster collaboration among regulators and stakeholders to streamline processes and enhance efficiency.

“Shipowners and operators are the backbone of the maritime sector, contributing to trade, transportation, and job creation. We acknowledge the challenges you face, from safety and security concerns to regulatory hurdles and market fluctuations. It is the resolve of the government to address these challenges and foster a conducive environment for your operations,” he stated.