Master Mariners Raise Alarm Over Local Content, Cabotage Levies

The Nigerian Association of Master Mariners, (NAMM), has raised alarm over the payment the 1.5 percent (1.5%)  Local content and two percent (2%)  Cabotage levies by indigenous operators.
The group also said that the double levies paid by indigenous operators in both the maritime and oil and gas industries were beginning to impact negatively on local businesses in the country.
President of the Association, Captain Ade Olopoenia said that both the Cabotage and Local Content Acts have failed to achieve the purpose of building indigenous capacity.

The Nigerian Association of Master Mariners, (NAMM), has raised alarm over the payment the 1.5 percent (1.5%)  Local content and two percent (2%)  Cabotage levies by indigenous operators.
The group also said that the double levies paid by indigenous operators in both the maritime and oil and gas industries were beginning to impact negatively on local businesses in the country.
President of the Association, Captain Ade Olopoenia said that both the Cabotage and Local Content Acts have failed to achieve the purpose of building indigenous capacity.
He said that both the Cabotage and Local Content Acts were also suppose to promote the development of indigenous commercial marine trade in the nation’s coastal waters.
Olopoenia noted that the collection of both levies have increased the cost of doing business in Nigeria adding that some of these policies were suppose to be a stop gap to protect local investment.
According to the group’s President, with foreign dominance on coastal trade Nigerian businesses will continue to be short changed.
He observed that Nigerian businessmen now add the two percent and 1.5 percent of the value of their contract  as against removing the percentage from the contract sum.
The group also fingered the Nigerian National Petroleum Corporation, (NNPC), as a major clog in the businesses of local operators as the Corporation always support the mother vessels to deny local operators from loading their vessels.
“Whenever local vessels come along side the mother vessels, the maters of these mother vessels will chase away indigenous vessels and they (local operators) go and complain to NNPC, they hardly do anything about. it”  he added.
Members of the group however agreed to set up a task force to work with the relevant government agencies with a view to ensuring that government rescind either of these levies.
He further explained that what the Cabotage Act is to the Maritime industry is what the Local content is to the oil and gas industry.
He said “This issue must be addressed, we will visit the Ministry of Transport as soon as a minister is appointed, vessels of certain tonnage must not be allowed in to the country as Nigerians have the capacity to handle coastal trade”.