Compel IOCs to patronise indigenous shipowners, port owner tells Fedderal government

THE NIGE RIAN GOVERN MENT HAS been charged to compel international oil companies (IOCs) to give oil freight jobs to indigenous shipowners operating in the country’s Cabotage waters.

Vicky Hastrup, chairman of Seaport Terminal Operators Association of Nigeria (STOAN), while reacting to recent acquisition a large crude carrying vessel by an indigenous oil company, BrittaniaU said the federal government needed to protect the local oil firms and indigenous shipping lines by enforcing policies and laws in favour of cabotage tradNIGERIA’S ing, to ensure that there are jobs for the indigenous shipping lines.

“The acquisition of the largest vessel in Nigeria by a woman was a very daring move and needs to be commended. To acquire vessels to service the international oil companies (IOCs) is not a mean feat and that is why the federal government must make and enforce enabling laws and policies to support such investments,” she told Financial Street in a chat.

Uju Ifejika, CEO of Brittania-U, an indigenous oil firm operating in the upstream sector, acquired the biggest vessel owned by any Nigerian for crude oil freighting.

“I was very proud that a woman has the capacity and courage to acquire a big vessel like that,” Hastrup said.

She continued, “Nigeria’s policies do not encourage such investments. She is not even sure how many of the IOCs will be willing to give her jobs. We have a lot of foreign ships still doing cabotage trading and they are getting support of the IOCs. Government need to enforce the enabling policies to propel Nigerian businesses in the maritime sector because at the end, the foreign shipowners take the money to their country. The money they make from here will not be spent in Nigeria.

“Vessels don’t come cheap. They are bought at tens of millions of dollars. She would not have been able to acquire the vessel without support by Nigerian banks, but if she is not given jobs by the IOCs how will she service the credit? Nigeria needs to create the enabling environment for more of this kind of bold investment decisions to be made. A lot of Nigerian shipowners used to have vessels in the past but now how many of them have vessels IOCs should be compelled to patronise indigenous shipowners.”