shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » GOVERNMENT SHOULD NOT HAVE HAND IN ANOTHER NATIONAL CARRIER

GOVERNMENT SHOULD NOT HAVE HAND IN ANOTHER NATIONAL CARRIER

by Joshua
August 23, 2010
in Uncategorized

Sometime, in 2008, the Maritime Reporters Association of Nigeria (MARAN) organized a seminar in Lagos; the focus was on ship financing, with specific interest on how to stimulate renewed interests in how to improve on the nation’s indigenous bottoms.

Probably arising from the seminar and probably because the government was no longer favourably disposed to funding ship acquisition or floating a commercial shipping enterprise, the Indigenous Shipowners Association of Nigeria (ISAN) toyed with the option of floating a mega shipping company. This has remained only an idea since it was mooted about a year ago.    

Almost one year after the seminar and after a long period of silence, the  then-minister of transport, Alhaji Ibrahim Bio went ahead to drop the hint that government had given approval to the Nigerian Maritime Administration and Safely Agency (NIMASA) to float another national carrier; albeit, in partnership with the private sector.

Since 1995, when the then-minister of transport, Major General Ibrahim Gumel (now deceased) supervised the liquidation of the nation’s national carrier; the Nigerian National  Shipping Line (NNSL), Nigeria has been ‘plummeted’ from a nation of almost 25 publicly – owned ships to a nation that can not at the moment boast of any national carrier.

We are told that Nigeria has about 1,286 ships on her registry, but we dare ask: how many of them are actually owned by Nigerians and what is the deadweight of each of the ships? 

For those who have also had to ask the question about the current status of Nigeria as a maritime nation without a ship, the answer should start from the foray which Nigeria made into shipping and ship ownership with the birth of NNSL, the subsequent death of NNSL, the creation of an interventionist policy called Ship Acquisition and Ship Building Fund (SASBF) and the abuses which the scheme was subjected to and its subsequent scrapping.  The birth of a successor company to NNSL; in the name of Nigerian Unity Line (NUL) and its death (or still birth) will offer a good thesis on how and why government businesses fail in Nigeria.      

While the defunct NNSL (at a time) had a fleet that is in excess of 21 bulk cargo carriers, beneficiaries of the SASBF could only account for a few vessels that could not stand the test of time.  None of the few ships that were bought with the SASBF loans is still sailing.

And since the failure of both the NNSL and the SASBF, the challenge has been: how does Nigeria get back on track as a ship owning nation.

While some may argue that government’s direct participation in shipping through tonnage ownership is no longer in vogue, especially as most African nations have done away with the idea, it is also arguable that government can not completely divest from this core sector of the nation’s economy.

We note that there have been feeble attempts on the path of the Nigerian Maritime Administration and Safety Agency (NIMASA) to galvanize the finance sector, especially the banks to embrace ship financing. Very few banks have shown cautious interest in funding ship acquisition, majority of the banks prefer to fund acquisition of service vessels in the oil and gas sector. Acquisition of container ships and bulk carriers is understandably out of it.
 
Not until the Cabotage law came into the center stage, there was little or no interest on the part of the financial institutions to be a part of efforts that were aimed at boosting indigenous fleet.

We recall that when government threw its weight behind fleet expansion through the SASBF, there was no Cabotage. Although, it is almost six years since Cabotage law came into effect, it has not enhanced ship acquisition, neither has it enhanced the fortunes of indigenous ship owners.

Our thinking is that since one of the core functions of NIMASA is improvement of Nigeria’s participation in sea borne trade, it should begin to fashion out a workable and sustainable way to boost our indigenous fleet, even if it is centred on acquisition of Cabotage vessels.

It is incumbent on the agency to carry out the mandate of improving the nation’s bottoms as given to it by the Federal Government of Nigeria through the NIMASA Act of 2007.

We agree that the banks are very relevant, but since they are still largely reluctant, it is our candid opinion that NIMASA should take this mandate more seriously by designing a format that will safe the nation the embarrassment of being a ‘shipless’ maritime nation. 

While we will not support the loud calls by some stakeholders for the government to venture into ship-owning business for the second time, we strongly advocate an urgent disbursement of the CVFF by NIMASA.

Good enough, NIMASA has appointed four commercial banks as primary lending institutions for the purpose of administering the CVFF, but reports have it that the funds available are far too insignificant to meet the need of indigenous shipowners who have waited for years.   

Notwithstanding, we strongly advocate that government should leave ship financing for the private sector. It has been said on many occasions that if two previous experiences failed, there is absolutely no guarantee that a third attempt will be any better.

 


Related Posts

Despite ₦5.17trn Surplus, Dollar Dominates Nigeria-China Trade As Naira-Yuan Swap Struggles

Despite ₦5.17trn Surplus, Dollar Dominates Nigeria-China Trade As Naira-Yuan Swap Struggles

June 30, 2025
Meningitis: Death Toll In Kebbi Hits 56 – Govt 

Meningitis: Death Toll In Kebbi Hits 56 – Govt 

March 24, 2025
Navy Rescues 8 Police Officers,1 Civilian From Boat Accident In Bayelsa

Navy Rescues 8 Police Officers,1 Civilian From Boat Accident In Bayelsa

January 8, 2025
PHOTO NEWS: SIFAX Thanksgiving and Night of Praise 2.0

PHOTO NEWS: SIFAX Group Thanksgiving and Night of Praise 2.0

December 18, 2024

Discussion about this post

Latest News

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

July 11, 2025

Customs, NAFDAC Inaugurate Implementation Committee for 2024 MoU

Nigeria Customs Intercepts Container with Over 10,000 Donkey Genitals

Senate Hails Adeniyi’s Election as WCO Council Chair, Says It’s  a Major Win for Nigeria’s Global Trade Leadership

Oyetola Launches Door-to-Door’ Diplomacy for Nigeria’s IMO Council Bid

FG Urged To Link Warri-Itakpe Rail To Inland Ports, Road Networks

Red Sea Operation Rescues 4 More From Cargo Ship Sunk By Houthis

Shippers’ Council Set to Establish Border Information Centre at Idiroko, Bolster Trade Efficiency

NSC Boss Urges Cooperative Members to Invest in Housing for Long-Term Wealth

FAAN, Customs Intensify Efforts To Exit Grey List

Lekki Port Expands Reach with Transhipment to West African Ports, Eyes 500,000 TEUs in 2025

MAMAL 2025: MARAN Targets Maritime Fraud, Demands End to War Risk Premiums on Nigerian Trade

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition