Indigenous ship owners have decried the continuous award of contracts to foreign vessel owners in the Cabotage regime for coastal shipping of petroleum products in contravention of the Cabotage and Local Content Acts.
Findings revealed that one year after the attention of the Nigerian Maritime Administration and Safety Agency (NIMASA) was drawn to the breach of the Nigerian Oil and Gas Industry Content Development (NOGICD) and Cabotage Acts in the award of contracts in the coastal shipping of petroleum products, foreign operators continue to practice cabotage trade on the nation’s territorial waters, thereby meddling in a trade meant for indigenous operators, The Trumpet gathered.
Expressing concern over the development, the Ship Owners Association of Nigeria (SOAN) sent a letter to the Director-General of NIMASA, Dr. Bashir Jamoh, and copied Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari and Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote.
In the protest letter dated March 22, 2022, the indigenous ship owners alleged that NIMASA was still granting waivers to foreign vessels operated by Unibros/Orion Marine to participate in the domestic shipping of petroleum products solely reserved for local operators.
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In the letter endorsed by President of SOAN, Mkgeorge Onyung, the ship owners urged NIMASA to exercise its mandate, stop any illegality and ensure that the vessel owners pay import duties on the vessels and provide evidence before adopting the Nigerian flag just like the Nigerian-owned and flagged vessels operated by Nigerians.
While commending NIMASA, NNPC and NCDMB for the dialogue on the issue, SOAN noted that it would amount to economic sabotage if foreign flagged vessels were 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 reads: “The NNPC has broken over 40-year record by giving Nigerian shipping companies the opportunity to supply coastal vessels to NNPC/Marine Logistics for shipping of petroleum products with Nigerian flagged coastal tankers.
“Arrest the vessels or cause them to pay the prescribed Federal Government taxes they have been avoiding and charge them the requisite penalties in line with section 35 for offences against the Cabotage Act.
