Nigerian shipowners resume agitation for zero duty on vessel import
![](https://i0.wp.com/www.thecable.ng/wp-content/uploads/2020/08/Vessel-2.jpg?resize=426%2C284&ssl=1)
Nigerian shipowners have resumed their demand for the introduction of zero duty on the importation of vessels into the country by Nigerian owned shipping lines in line with the pledge of the Bola Tinubu-led Federal Government to develop and harness the Blue Economy potential to enhance economic growth and development.
Speaking on behalf of other shipowners at a one-day stakeholders’ interactive forum organised by the Nigerian Maritime Administration and Safety Agency NIMASA to present its newly appointed Director General, Dr Dayo Mobereola to the industry stakeholders, President of the Nigerian Indigenous Shipowners’ Association NISA, Umar Aminu, noted that it was high time the government introduced some fiscal incentives that would boost the indigenous shipping segment.
He noted that among shipping nations of the world, it was only in Nigeria that shipowners are made to pay duty on the importation of vessels and spare parts, which unfortunately accounts for why the indigenously owned shipping companies are struggling to compete with their foreign counterparts, which import their vessels duty free and still have access to low-cost funds and other incentives.
He cited some developed nations 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 doubles as President, Nigerian Chamber of Shipping and chairman, Maritime Sectoral Group of the Lagos Chamber of Commerce and Industry LCCI said: “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.”
Meanwhile, the new DG, who addressed the stakeholders, had noted that the aim of the meeting was to feel the pulse of the stakeholders, get their inputs, which would guide the new management on its policy direction. Mobereola had however assured that the agency under his watch would work in close association with the stakeholders.
Recall that the immediate past DG of NIMASA, Dr Bashir Jamoh, had told the indigenous shipping firms sometime in March, 2021 that President Buhari would soon approve a zero import duty regime for brand new vessels imported by indigenous shipping lines as proposed by the agency.
He had also claimed that NIMASA was liaising with the Federal Ministry of Finance, which was then working on the details of the graduated import duty regime for used vessels as well as the zero duty payment on brand new ships, which would soon be presented to President Muhammadu Buhari for approval.
Jamoh, who left office on March 10, 2024 following the expiration of his four-year tenure, had also claimed that the agency was working with the Central Bank of Nigeria CBN with a view to introducing some monetary incentives for the indigenous shipowners to enhance their ability to acquire vessels that could compete with their foreign counterparts.
It was gathered then that the agency, the ministry and CBN were working towards adopting the zero duty regime for all brand new vessels while graduated import duty regime would be applicable to categories of used ships on the basis of the older the vessel, the higher the import duty on them. The essence was to ensure regulation and control in order to check the import of rickety vessels.
Leave a Reply