NIMASA boss Dakuku Peterside calls for single-digit fund to boost cabotage law
CRUDE OIL PRICE UPDATE Brent crude: $71.18 | WTI crude: $65.24 • Urges tax reduction for indigenous players •Contests recent data on piracy, kidnappings Interbank rate N306.05 | Parallel market: N360
NIGERIAN Maritime Administration and Safety Agency (NIMASA), has called on the Central Bank of Nigeria (CBN), to float a single-digit intervention fund and special foreign exchange vehicle, to encourage more indigenous participation in the maritime sector.
This is just as the agency seeks tax rebates for local operators as enjoyed by foreign shippers, to reduce funding challenges impeding growth in the sea economy.
Updating senior journalists on developments in the industry and NIMASA activities in the last one year, its Director-general, Dr. Dakuku Peterside, argued that access to finance is the single biggest problem inhibiting greater success of the Cabotage law.
To this end, Peterside said the Agency is in talks with the financial CBN, the Ministry of Finance, and the Federal Inland Revenue Services (FIRS), to also treat Maritime as a priority sector and avail it with these demands to boost development in the industry. He noted that the measures would not only provide the right investment climate, but also encourage greater foreign direct investment in the sector.
Peterside disagreed that lack of access to the over $124million Cabotage Fund, a pool of contribution by maritime operators is frustrating higher level of local development in the sector.
He said: “Even if we made available all the entire amount in the Fund, it would still not be enough, as these can only buy about two vessels. To be competitive, maritime should be regarded as a priority sector, and CBN should create a special fund at single digit interest rate to attract more indigenous players.”
He added that NIMASA’S intension with the Cabotage Act, is to give opportunities to more Nigerians to take charge of the costal trade. He explained that access to the Cabotage Fund had been restricted because approval for disbursement had not been given. “The Minister of Transport (Rotimi Amaechi), has to give the final approval; and also, he is mindful of protecting the Fund, so that it is not misused for other purposes.”
Peterside equally disagreed that about 80 per cent of indigenous shippers have closed shop due to unfavourable climate, saying that “the figures are nowhere near 40 per cent. “
He, however, agreed that a number of vessels had been idle in the recent time, which he attributed to a lull in oil and gas activities, adding that NIMASA is mindful to get activities going because the downturn also means lower revenue for the Agency, which collects statutory two per cent charges on all active vessels.
To boost Cabotage development, he said NIMASA has registered 125 new vessels in 2018, against 94 in 2017, in addition to ensuring that about 2,840 Nigerian officers and ratings were recommended to be placed aboard Cabotage vessels this year, against 1,789 recorded last year.
Furthermore, he said the Agency observes zero tolerance on granting manning waivers, to increase indigenous participation in ownership, building, manning, and registration of Cabotage vessels.
Besides, he said the Federal Government is also pushing ahead with facilitating the registration of a flag-flying Nigerian vessel, to trade in the international waters, as there is presently none. He noted that given government’s efforts to diversify the economy, the maritime industry, which employs over 100,000 workers across the value chain, offered the best opportunities to do so; but its contribution to the nation’s gross domestic product has not been properly captured, a development that has been taken up with the National Bureau of Statistics (NBS).
WITHIN the last seven years, Nigeria, through the effort of the National Office for Technology Transfer (NOTAP) has saved over N200 billion in capital flights that could have gone into exchanges.
The Guardian gathered that the figure rose from N188.2 billion in 2014 to the current N200 billion.
NOTAP, which has legal identity to implement the acquisition, promotion and development of technology and regulate inflow of foreign technology into Nigeria, said it achieved this through refusal to approve importation of technologies and services that, could be rendered by Nigerians.
At a post-event interview with journalists in Lagos, yesterday, the DirectorGeneral and Chief Executive Officer, Dr. Dan AzumiIbrahim, revealed that NOTAP designed various initiatives to strategically absorb foreign technologies with a view to building capacity for promotion of local contents.
Lamenting that over 90 per cent of technology used in running various sectors of the Nigerian economy was foreign; Ibrahim said there was need to save the country from foreign dominations.
According to him, lack of credible research institutions has been contributing significantly to the challenge the country is facing in developing and deploying locally made technologies to the country’s problem, which has been borne out of inadequate funding for the education sector.
At the event, which was a one-day sensitisation workshop on technology development initiatives organized by NOTAP and PZ Cussons Nigeria Plc, the DG noted that there was also need to build capacities and competencies around indigenous businesses in the country.
According to him, it has become imperative to partner the private sector to drive innovation and development in the country, “this formed the need for the partnership with PZ Cussons Nigeria Plc, and they have been very supportive.”
To the Managing Director, PZ Cussons Nigeria Plc, Christos Giannopoulous, all sectors of the economy require technology to thrive, but that technology must be defined according to its relevance to the country’s economy.
He said the partnership with NOTAP was to further create and develop technology to boost STIS in the country.
Giannopoulous, who revealed that PZ is 119 years in Nigeria, noted that research needed to be problem solving – linked to industry, adding: “There is need for a centre for all research data and that regular engagement such as a national conference would go a long way to transform STI.”
To the Guest Speaker, the Secretary to Adamawa State Government, Umar Bindir, there was need to create research and development centres if the country must do well with Science, Technology and Innovation (STI), stressing that getting the right syllabus for this would go a long way in bringing the best out of the country.
According to him, the population of Nigeria should serve as a great advantage for the development of STI, saying the education sector must be revamped if we want to innovate as a country.