NIMASA Media Chat on August 12, 2024 addressed by new DG, Dr. Dayo Mobereola
…Explains Stand on MFD, CVFF
The Director General of the Nigerian Maritime and Safety Administration (NIMASA), Dr. Dayo Mobereola, on Monday faulted the continued imposition of War Risk Insurance Premium on vessels coming to Nigerian ports even as the main reason for the tax is no more.
Speaking during his maiden enlarged media chat in Lagos, the Doctor of Transport Economics, who majored on Maritime averred that it is wrong to continue to place the War Risk tax on ships calling on Nigeria when it has become very clear that sea piracy on the Nigerian waters which was the main reason is no more.
He further argued that “Nigeria has not had any case of piracy for the past three years, yet the war risk premium imposed on ships coming into Nigeria persists due to the influence of a cartel within the international insurance sector and making shipping business so Nigeria rather expensive”, he affirms that “The matter shall be tabled with the United Nations”.
Maritime analysts say the implications of the War Risk Insurance on ships coming to Nigeria is very large and chops deep cut on the costs of shipping which translates to higher costs of imported goods. According to them, shippers will have to push the War Risk tax on goods which will further hike prices of goods.
On the fate of the Modular Floating Dock acquired some years ago by NIMASA, Dr. Mobereola averred that the agency is currently working on putting the modular floating dock into very good use.
He said that once it is in use, it will be beneficial to the economy, seafarers and the agency.
The DG disclosed that the management team visited the site of the floating dock last week at the Continental Shipyard, Apapa, as part of the efforts to put the facility into good use.
Indications are that the floating dock may be relocated where it is appropriate.
On the Cabotage Vessels Financing Fund (CVFF), the DG said the fund remains intact with the federal government.
He disclosed that based on the experience of the past when such fund failed with many beneficiaries not paying back what was given to them, the agency is looking at ways of fine-tuning the disbursement.
According to him, a new process is being considered for the best use of the fund.
He said, “The CVFF is with the federal government and it is for the use of shipowners. It has not been touched, it is not a revenue, it is a contribution towards the development of the Nigerian shipping industry and shipowners.
“That is recognised and that is what it is going to be used for as long as we come back with the fine-tuned guidelines on how to use it which we have been working on with my Executive Directors day in day out.
“We are also exploring other avenues to ensure that this CVFF is not just CVFF but enlarged in such a way that we can even leverage on it”.
