BUSINESS

NIMASA’s policy somersault and hanging promises

&NewLine;<p><strong><em>The Coastal and Inland Shipping &lpar;Cabotage&rpar; Act&comma; 2003 enacted by The National Assembly of The Federal Republic of Nigeria on  April 30&comma; 2003 was the patriotic efforts of late Senator Martins Yellowe&comma; &lbrace;Rivers West&rcub;&comma; stakeholders comprising captains of the maritime industry in Nigeria&comma; maritime lawyers&comma; representatives of oil companies and members of the relevant committees of the National Assembly who converged at a business luncheon under the aegis of the MARITIME LAW GROUP of Olisa Agbakoba and Associates at the Apapa Club in 2002&period;The Act&comma; which protects domestic shipping industry from foreign eclipse&comma; preserve domestically owned shipping infrastructure for national security purposes and ensure safety in congested territorial waters&comma; is now seem by industry watchers as mere tissue paper as Dakuku Peterside led NIMASA has become political rendezvous <&sol;em><&sol;strong><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Despite claiming that enforcement of cabotage&NewLine;policies led to the creation of 7&comma;000 jobs for Nigerian seamen and raising&NewLine;cabotage trade by 32 percent in just six months&comma; Dakuku Peterside&comma;&NewLine;director-general&comma; Nigerian Maritime Administration and Safety Agency &lpar;NIMASA&rpar;&comma;&NewLine;has admitted that the agency has failed in the implementation of the country’s&NewLine;cabotage laws&period; Yet&comma; there does not seem to be any sign that the success point&NewLine;would be hit any soon&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>NIMASA is Nigeria’s apex maritime regulating&NewLine;agency charged with the implementation of the country’s coastal and inland&NewLine;Shipping Act&comma; now known as the Cabotage Act&comma; which was enacted to activate&NewLine;cabotage trade and maritime development in Africa’s biggest economy&period;<br>&NewLine;The cabotage act had made trading on Nigeria’s coastal waters&NewLine;the exclusive preserves of vessels owned by Nigerians&comma; built-in Nigeria&comma; manned&NewLine;by Nigerian seafarers and maintained in within the country&period;<br>&NewLine;16 years later&comma; the NIMASA enforcing regulations for local&NewLine;content in shipping businesses have failed to enforce the act&comma; as foreign&NewLine;vessels with foreign seafarers continue to do business in Nigeria’s cabotage&NewLine;waters&comma; with no local ships as competitors&period;<br>&NewLine;At the assumption of office by the current management&comma; hope&NewLine;went high for a positive change and a real&nbsp&semi;Tons development to begin in&NewLine;the maritime sector&comma; especially as the Nigerian government also changed&period; There&NewLine;were promises of turning the maritime industry around and returning billions of&NewLine;naira to the government from the sector&comma; but no improvement&comma; no better&NewLine;harmonisation and no good fortune has been seen in Nigeria’s maritime sector&period;<br>&NewLine;Last month&comma; Peterside&comma; the NIMASA chief said the agency had&NewLine;stopped waivers for foreign vessels to operate in Nigerian cabotage waters&comma;&NewLine;while informing Nigerians that his enforcement of the cabotage act had led to&NewLine;creation of 7&comma;000 jobs and raising cabotage platforms and vessels by about 32&NewLine;percent&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>His claims came in spite of cries of local&NewLine;operators that foreign vessels were having a field day in Nigeria’s coastal&NewLine;waters&comma; while some maritime workers accused him of bringing too much politics&NewLine;into his job as chief executive of the maritime regulatory agency&period;<br>&NewLine;Peterside&comma; who abandoned the glary reality about the&NewLine;underdevelopment of&nbsp&semi;Nigeria’s cabotage trade however&comma; told the Alumni of&NewLine;Maritime Academy of Nigeria&comma; Oron that the enforcement of the cabotage&NewLine;compliance strategy put in place by his NIMASA to &OpenCurlyDoubleQuote;stop waivers on manning for&NewLine;prescribed categories of officers in vessels engaged in the cabotage trade has&NewLine;increased the number of Nigerians onboard vessels by 7&comma;000&period;”<br>&NewLine;He said the implementation of cabotage policies was not a job&NewLine;for NIMASA alone&comma; stressing that NIMASA cannot enforce the cabotage act all on&NewLine;its own&period;<br>&NewLine;&OpenCurlyDoubleQuote;NIMASA alone cannot achieve the aspirations&comma; intents and&NewLine;objectives of the Cabotage Act&period; I believe that we have not done very well but&NewLine;there is need for improvement&period; The greatest thing that can happen to us to&NewLine;achieve the Cabotage law is collaboration and cooperation&period; If we leave NIMASA&NewLine;to drive the Cabotage law&comma; till tomorrow&comma; we will not achieve anything&period; But if&NewLine;the regulator&comma; stakeholder and industry all come together&comma; that is the only way&NewLine;we can achieve the aspiration of the Cabotage law&comma;” he stated&period;<br>&NewLine;&OpenCurlyDoubleQuote;We have started a process of cessation of granting of&NewLine;waivers which all of us agreed has been abused over time&period; In the area of&NewLine;manning&comma; we have put in place what we call the new cabotage compliance&NewLine;strategy&comma;” he maintained&comma; adding&comma; &OpenCurlyDoubleQuote;We are going to create incentive for those&NewLine;who are going to build vessels in-country&period;<br>&NewLine;He however said a new policy to ban importation vessels for&NewLine;cabotage trading was getting the support of other agencies of government&comma; which&NewLine;input are needed to enforce the ban&period;<br>&NewLine;&OpenCurlyDoubleQuote;We have got the buy-in of Customs&comma; Central Bank&comma; NNPC and&NewLine;other stakeholders to enforce ban on importation of vessels for cabotage&NewLine;trading&period; We have decided that certain categories of vessels cannot be built&NewLine;outside this country by the end of next year&comma;” he said&period;<br>&NewLine;This is not the first time the NIMASA boss would be making&NewLine;promises of creating incentives for shipyards in Nigeria&period; In October 2015&comma;&NewLine;shortly after he became the director general of NIMASA&comma; he had embarked on a&NewLine;tour of all NIMASA formations and maritime operators facilities across the&NewLine;country&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;At the Onne Free Trade Zone&comma; where the West Atlantic Shipyard operates&comma; he had made the same promise&period; He also promised to acquire vehicles and marine platforms to help NIMASA officials go deeper into the waters to enforce cabotage regulations&comma; but till date&comma; the promises are still hanging&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p><em>Culled from Business AM<&sol;em><&sol;p>&NewLine;

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