Director General, Nigerian Maritime Administration and Safety Agency NIMASA, Dr. Bashir Jamoh.

As part of efforts to cushion the negative effects of the coronavirus pandemic and also stimulate investment in the maritime industry, the Federal Ministry of Transport is seeking a regime of tax incentives to boost activities in the industry.

Director-General of the Nigerian Maritime Administration and Safety Agency NIMASA, Dr. Bashir Jamoh, who conveyed the ministry’s position to the Minister of Finance, Zainab Ahmed, in Abuja, reiterated the commitment of the Minister of Transport, Rotimi Amaechi towards ensuring the growth of the maritime industry in Nigeria. He said many governments across the globe had introduced massive tax reduction or elimination to spur activities in key sectors and rev up their economies during the coronavirus pandemic.

Dr. Jamoh stated: “The maritime industry is crucial to the growth and development of transportation and, by extension, international trade in the country. Thus, the need for Federal Government-oriented programmes and stimulus packages to deliver a response that stimulates a sustainable economic development cannot be over-emphasised.”

The DG said the proposed incentives included zero import duty for brand new vessels imported by Nigerians or Nigerian shipping companies for use in foreign or domestic trade; 0.5 per cent only import duty for vessels aged between one and five years intended for use in foreign or domestic trade; and one per cent only import duty for vessels aged between five and eight years intended for use in foreign or domestic trade.

There was also a proposal for zero import duty for parts or components imported by Nigerian shipyards for local ship building, which will be for an initial period of four years after which it can be reviewed by government. All these are expected to give the sector the vibrancy it needs for growth.

The NIMASA DG said the incentives were being proposed because of the importance of the Nigerian maritime sector to the entire sub-Saharan African region. He emphasised that Nigeria accounted for more than 65 per cent of the entire shipping trade of the sub-African continent. Nigeria is also the largest producer and exporter of oil and gas in the continent and Africa’s largest economy, he said.

The maritime industry is crucial to energising economic growth and development, as it facilitates trade between countries. Nigeria’s economy has witnessed substantial growth in the last two decades owing to the reforms that boosted private sector investment in the maritime industry through the port reform programme.