The Nigeria Shippers’ Council has said that the continuous carriage of Nigeria's crude oil on Free On Board (FOB) basis is injurious to the nation's economy, even as the Council has harped on the need to develop indigenous shipowners and patronise them.
This is even as the Nigeria Shipowners Association (NISA) has called on the Federal Government to look inwards and develop the nation's maritime sector, saying that it is the only way out of the present economic recession in Nigeria.
The Nigeria Shippers’ Council has said that the continuous carriage of Nigeria's crude oil on Free On Board (FOB) basis is injurious to the nation's economy, even as the Council has harped on the need to develop indigenous shipowners and patronise them.
This is even as the Nigeria Shipowners Association (NISA) has called on the Federal Government to look inwards and develop the nation's maritime sector, saying that it is the only way out of the present economic recession in Nigeria.
Executive Secretary of the Shippers’Council, Barrister Hassan Bello made the call yesterday at his office in Lagos when the new executives of the Nigerian Shipowners Association (NISA) led by its President, Capt. Niyi Labinjo paid him a courtesy visit.
Bello said that the regime of the carriage of Nigeria's crude oil will have to be adjusted from FOB basis to Cost Insurance and Freight (CIF) in order to serve Nigerians. He stressed that the carriage of the crude oil on FOB basis is detrimental to the development of the country.
He said it is surprising that Nigeria and two other countries among OPEC members are the only countries that still allow their crude oil to be carried on FOB basis.
Bello said the Council has already made presentations to President Goodluck Jonathan that this should be reversed in the interest of Nigerians.
"We have to think about what is obtainable in other climes, we have to protect our indigenous shipowners, we have to encourage them, develop them and patronize them, we have to even reserve cargo for them"
"The Cabotage should also be implemented, even in the brown waters; ships should be crewed and owned by Nigerians. We should remove all areas of pretence, every nation has areas of special interest that it has to protect, there are local interests to protect" he said.
Bello sought the collaboration and partnership of NISA, especially on the implementation of government's fiscal policies.
He said that gaining NISA recognition and partnership will further enable the Council to have the muscle to implement its mandate.
Speaking earlier, NISA President, Capt. Labinjo charged the Council's boss to accord Nigeria shipowners proper recognition as investors in the nation's maritime sector in order to stop them from divesting to other countries.
Labinjo also charged the Federal Government to look inwards and utilise untapped maritime potentials in order to put an end to the present economic recession in the country.
"We have the Cabotage Act, and furthermore Nigeria is in recession, it was the recession of the then that caused America to create the Jones Act in 1920, we must look inwards, the alternative to shore up the economy of Nigeria in the face of the crashing and sliding crude oil pricing is the maritime sector" Labinjo stated.
He sought the support of the Shippers Council to organize a forum of interaction between NISA and other stakeholders in the maritime sector, saying that NISA members provide a lot of job opportunities in the country and as such should be given certain incentives.
"By all standards, we are not small scale or medium scale investors, we are Nigerians who have invested millions of dollars, let government make use of the best of our worst service, we can only improve", he told his host.
Discussion about this post