DG NIMASA, Dr Bashir Jamoh.

Strong indications emerged that the Federal Government may soon begin the implementation of zero import duty on the importation of brand new vessels, especially tankers into the country, an indication that indigenous ship owners may soon heave a sigh of relief.

This cheering development, which is in line with efforts to enhance the participation of Nigerian ship owners in the lifting of petroleum products, at least within the coastal and inland shipping segment, is coming after several years of agitation and pleas.

Director General of the Nigerian Maritime Administration and Safety Agency NIMASA, Dr. Bashir Jamoh gave this indication in Lagos at the weekend while fielding questions from newsmen during a briefing with the Minister of State for Transport, Senator Gbemi Saraki, which wrapped up the Minister’s five –day fact-finding visit to the seaports in Lagos and other related maritime facilities.

He disclosed that the agency is working with the Central Bank of Nigeria CBN, the Federal Ministry of Finance and Nigeria Customs service to ensure effective coordination of the zero duty incentive, which is also designed to boost the competitiveness of the Nigerian ship owners with their foreign counterparts.

He also noted that as part of efforts to check the abuse of the incentive, the government and its relevant agencies have adopted a graduated import duty regime so that the ship owners do not utilise the zero duty window to import rotten buckets in the name of tanker vessels.

The DG said: “What we have done is to peg zero duty for all brand new vessels while import duty on other categories of used ships are graduated in terms of the age; the older the vessel, the higher the import duty on them. The essence is to ensure regulation and control in order to check the import of rickety vessels.”

Recall that the Nigeria Customs Service had over the years been speaking on the possibility of introducing zero duty payment on the import of vessels, insisting that it is only a fiscal policy implementation agency and not a policy making organisation.

The service had argued that if the government through the Ministry of Finance approves such import duty regime, the service has no choice but to implement it fully as it does in the case of other items imported into the country.

It was further gathered that with the approval of the zero import duty on brand new vessels, NIMASA would further intensify its ongoing discussions with the CBN on the need to convince the commercial banks to charge one -digit interest rate on bank loans and other facilities meant for the acquisition of vessels, which is the case for other foreign liners, which obtain bank facilities at two per cent interest rate or less.