The Indigenous Shipowners Association of Nigeria (ISAN) has asked the Federal Government to put in place incentives to enable indigenous operators perform better in domestic shipping, otherwise known as Cabotage.
General Secretary of ISAN, Capt. Olaniyi Labinjo, made the plea during an interview with on Monday in Lagos.
The Indigenous Shipowners Association of Nigeria (ISAN) has asked the Federal Government to put in place incentives to enable indigenous operators perform better in domestic shipping, otherwise known as Cabotage.
General Secretary of ISAN, Capt. Olaniyi Labinjo, made the plea during an interview with on Monday in Lagos.
“There are no established rewarding incentives as well as patronage policies and guidelines for Nigerian operators engaged in domestic shipping. This is unlike what obtains in other maritime jurisdictions such as the UK, US, Canada, India, Indonesia and Malaysia, where their governments have robust promotional and support initiatives,'' he said.
Labinjo recalled that the association had submitted a memorandum to the National Assembly in this regard during the Presidential Maritime Retreat held in Abuja in July.
The ISAN scribe said that there was need to develop several incentives, including cargo support, tax relief, duty waivers for ships and spares.
He also urged government to provide financial incentives and reduce port and harbour dues for cabotage vessels.
Labinjo expressed concern on the absence of a conducive environment for the indigenous shipping fleet, adding that government should encourage local ship owners who, according to him, have invested so much in the business.
He also suggested exemptions from customs duty, company tax, exemption of seafarers from tax, as some forms of relief which could be granted the ship owners.
“The Cabotage Act at present provides that Nigerians must carry 50 per cent of Nigerian-generated cargo, but since inception in 2004, not one tonne has been carried by a Nigerian and there is need for this to be corrected.
“Government fails to realise that by buying one ship and giving incentives, so many people would be employed.
“ For example, the maritime newspaper publishers, insurance companies, legal professionals and all other persons providing ancillary services will be employed, '' he said.
Labinjo added that part of the recommendations of ISAN is a call for the establishment of a board that would be responsible for licensing of cabotage vessels and granting waivers to applicants, after giving indigenous ship owners the first option of refusal.
He suggested that the composition of the board should include a representative of ISAN, with the board being responsible to the Minister of Transport.
“This is in line with practices in other jurisdictions, namely USA, UK, Malaysia, Indonesia, India and Canada.
“Therefore, Sections 10 to 22 of the Cabotage Act should be amended.'' he added.
The ISAN scribe also urged that government should review the penalties for contravening the Cabotage Act, saying that compared with other jurisdictions, the penalties were light.
“We propose a very stiff penalty under Part VII, Sections 35-41 to include, but not limited to forfeiture of the offending vessel, a fine of a minimum of N200 million and imprisonment for a minimum term of five years, to deter would-be offenders.
He said that another area the association suggested for review in the Act was the requirement for vessels to be built in Nigeria.
Labinjo, however, noted that this might be difficult as the country lacked regular power supply and the raw material, steel.
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