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NIMASA reads riot act to IOCs, says no more Cabotage waivers

Following barrage of criticisms on the inability of the agency to disburse Cabotage Vessel Financing Fund (CVFF) amongst indigenous shippers to deepen their capacity, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, has said the Agency will no longer encourage the application of any form of waivers under the Cabotage Act.
He warned the oil firms operating in Nigeria to gear up for strict compliance to Cabotage payments, saying the era of waivers is no more.
Speaking during a meeting with the Oil Producers Trade Sector (OPTS) in Lagos, Dakuku said NIMASA was on the verge of ending such waivers. He urged industry players to draw up a five-year strategic plan for the cessation of application for Cabotage waiver and also pursue the utilization of Nigerian-owned vessels for marine contracts.
In his submission, Peterside averred that “Our laws forbid foreign vessels operating in our territorial waters save for compliance with the Cabotage Act. We also want to increase the number of Nigerians who participate in the marine aspect of your business and we are working closely with the Nigerian Content Development and Monitoring Board (NCDMB) to have a joint categorization of vessels operating under the Cabotage Act in order to ensure the full implementation of the Act.”
Dakuku urged the international oil companies (IOCs) to support NIMASA’s bid to ensure full implementation of the Act, adding that it would equally be of more benefit to the investors in the sector as it will be cost effective for them to engage Nigerians. Commenting on the previous resolutions with the OPTS, Dakuku stated that there was need for the trade section of the oil producers to fulfill their own part of the agreement. He said NIMASA will not compromise the growth of the maritime sector, especially when it comes to the issue of enforcing statutory regulations enshrined in the Agency’s empowering instruments.
The DG further stated that in NIMASA’s bid to grow the industry, it would not hesitate to wield its powers where necessary, adding that the agency’s mandate is strictly regulatory. But he also noted that NIMASA preferred the method of engaging key players in the industry for symbiotic benefits.
According to him, “We don’t want to change our rules of engagement to a confrontational one because the mandate we have is that of the Nigerian people, to grow shipping for our economic benefits. In this wise, we urge you to cooperate and collaborate with us where necessary so that we can have an all-inclusive maritime sector”.