NIMASA Act: FG Urged to Allocate 50% Cargo to Nigeria Flagged Vessels

Eromosele Abiodun

As the 9^th assembly embarked on the amendment of the Nigerian Maritime Administration and Safety Agency (NIMASA) Act 2007 and the Cabotage Act 2003, customs agents in the country have called on the federal government to ensure the call for Nigeria flagged vessel to carry 50 per cent of cargo generated in the country is backed by law.

They agents said carriage of bulk or liquid cargo must be initiated by NIMASA to empower the indigenous operators reference to the statute.

National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), the umbrella body of customs agents in Nigeria, Lucky Amiwero stated this in his submission to the National Assembly Committee on Marine Transport.

As part of their recommendation, the agents said, National carriers status should be developed and facilitated by NIMASA for the expansion of fleet for the carriage of shared cargo based on the Act. On national carriers,  it is the agency that will develop and implement policies and programmes, which will facilitate the growth of the local capacity in ownership, manning and construction of ship and other maritime infrastructure as contained in section 22 (K) of NIMASA ACT 17 of 2007.

“Tthe sharing ratio of 50 percent of cargo to and from Nigeria, must be implemented to galvanize and kick start the participation of indigenous operators.  Nigeria flagged vessel must carry 50 per cent cargo generated through technical assistance, NIMASA must work out modalities for the proper implementation with conjunction with the Federal government of the technical assistant policy as contained in the law.

“The carriage of crude and petroleum product to and from Nigeria must be implementation   to build capacity and generate employment  as contained in the law. The government should administer policy for the development of shipping in general, develop and implement policies and programmes,which will facilitate the growth of local capacity in ownership, manning and construction of ship and maritime infrastructures.”

They also urged the national assembly to review and remove the waiver clause of the cabotage of section 9,10 11, 12 &13 to build capacity and generate employment.

They urged the government to implement the provision on towage, carriage of petroleum product, navigation in inland waters, shipyard and ship and manning so as to build capacity and generate employment

“The federal government should implement the local content on labour requirement, contract and manufacture of the local content. The Nigeria content monitoring board in conjunction with NIMASA shall have powers to enforce compliance and relevant section of coastal and inland shipping (Cabotage Act) in relation to matters pertaining to Nigeria content development, Section (105), “they stated.

Speaker of the House of Representatives, Femi Gbajabiamila had while declaring open the two day public hearing by the House Committee on Maritime Safety Education and Administration on the Merchant Shipping Act, Repeal and Enactment Bill 2021, Nigerian Maritime Administration and Safety Agency Act Repeal & Enactment Bill 2021, Coastal & Inland Cabotage Amendment Bill 2020, noted the need for appropriate regulation of the Nigerian maritime industry in tune with realities of the times to ensure maximum utilization of the nation’s maritime sector.

On her part, Chairman House Committee on Maritime Safety Education and Administration Honorable Linda Ikpeazu said the public hearing was to ensure that the decision of the Legislature regarding the Bills are taken from well informed position premised on submisions from maritime stakeholders from all aspects of the industry.

She said: “It is common knowledge that the maritime sector is a foundation and catalyst to growth of nations that possess marine endowments. Nigeria, by any standard, is well endowed by ocean coastline, rivers, and a rich marine bio-diversity.

“Not only are we focused on making the maritime sector a key alternative source of revenue and economic growth to our dwindling oil resources, we are also poised to develop a prosperous blue economy for our nation, akin to similar success in the maritime nation around the world.

In his submission, the Minister of Transportation, Rotimi Amaechi, commended the National Assembly for embarking on the review of the Laws governing the maritime sector noting that the new NIMASA Bill under consideration, will enhance the capacity of the Agency to effectively regulate the Nigerian maritime industry in line with international best practice.