Shipowners in Nigeria have renewed their call for the introduction of zero duty on the importation of vessels into the country by Nigerian-owned shipping.
The vessel owners claimed that their demand was based on the promise by President Bola Tinubu-led administration to develop and harness the potential of the Blue Economy for sustainable economic growth.
Championing the cause of the ship owners at a one-day stakeholders’ interactive forum organised by the Nigerian Maritime Administration and Safety Agency (NIMASA) to introduce its newly appointed Director-General, Dr Dayo Mobereola, to the industry stakeholders, the President of the Nigerian Indigenous Shipowners’ Association (NISA), Alhaji Umar Aminu, maintained that it had become imperative for the government to introduce some fiscal incentives that would boost the indigenous shipping segment.
Aminu pointed out that among shipping nations of the world, it is only in Nigeria that shipowners were being made to pay duty on the importation of vessels and spare parts, thereby causing operational challenges for the shipowners and making it difficult for them to compete with their foreign counterparts enjoying zero duty on vessel imports and other incentives.
He cited some developed countries where the government provides several fiscal incentives, which include but not limited to zero duty on vessel import, waivers on tonnage, among several others.
Umar, who is also the President of the Nigerian Chamber of Shipping and chairman, Maritime Sectoral Group of the Lagos Chamber of Commerce and Industry (LCCI), expatiated: “It is only in Nigeria that we pay duty on the importation of vessels. There are absolutely no incentives here unlike what is obtained elsewhere.
“For instance, in the UK, in addition to importing their vessels duty free, shipowners pay what they call one per cent tonnage tax, what this means is that shipowners pay tax on only one per cent of their total annual tonnage as an incentive. In countries like Singapore and Germany, shipowners are given 10-year tax waivers to help them grow but here, we get nothing.”
In his speech, the new Director-General of NIMASA, said the aim of the meeting was to interact with the stakeholders, get their inputs, which would guide the new management on its policy direction, assuring that the agency during his tenure will collaborate with all industry stakeholders to grow maritime business.
