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FG to disburse $350m cabotage funds, says DG NIMASA
Baring any last minute change of decision, the Federal Government will this week disburse $350m cabotage funds with the inauguration of the special committee by the Minister of Finance, Budget and National Planning, as 11 banks have already been shortlisted for the purpose.
Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh gave the indication during a Presidential Media chat anchored by the Presidential Communications team at the State House, Abuja.
The Cabotage Vessel Financing Fund (CVFF) is an intervention fund specifically created to help develop indigenous shipping capacity in Nigeria.
Jamoh disclosed that 11 banks have so far been listed to disburse the fund, sourced from 2 per cent contribution by indigenous ship owners from every contract executed in the nation’s waters.
According to him, the disbursement of the CVFF is backed by the provisions of Section 42(1)-(2) of the Cabotage Act 2003, enacted to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in domestic coastal shipping.
Jamoh lamented the absence of indigenous fleets, just as he said the disbursement of the funds will not only enhance local shipping business, but also assist in creating jobs for the over 2041 Nigerian Seafarers trained by the Agency.
He disclosed that NIMASA has trained about 2041 Seafarers in various institutions overseas, and of these number, over 800 have secured various jobs with other shipping companies abroad.
“We are unable to retain them here, due to the absence of fleets to provide jobs for them in Nigeria, after their training overseas. One vessel can employ up to 40 of them. Shipping business is capital intensive, thus government need to give helping hand to potential ship owners. We need them to feed into our own system if the fleets are available.
Shedding light on the payment of ‘War Risk Insurance’ imposed on shipments of goods into Nigeria, the DG stated that NIMASA was working to exit Nigeria from such charges, following safety recorded at the Gulf of Guinea, adding that efforts had begun to ensure that shipments of goods and services to Nigeria from Europe no longer attract ‘War risks insurance.’
He revealed that payment of war risks insurance had been going on for 25 years following insecurity in the Gulf of Guinea, but noted that with the recent safety recorded in the region, ships coming into Nigeria waters don’t need to pay such risks.
Specifically, War Risk Insurance is a type of insurance, which covers damage due to acts of war including invasion, insurrection, rebellion and hijacking, which is commonly used in the shipping industry.
He explained that there are three basic insurance charges, including war risk insurance, insurance on the valuables in the ship and personnel insurance for workers in the ship.
According to him, these were the three key elements, which we ought not to be paying, as they are responsible for 90 per cent increase in prices of goods and services imported into Nigeria.
“They have commended NIMASA for the security recorded in the Gulf of Guinea and we are waiting for the report from the Lloyds of London and very soon, we hope to exit these insurance.”
Speaking on NIMASA’s achievements, he disclosed that the agency remitted N30b into federation account in the first half of 2022.
He said security in the Gulf of Guinea had been largely aided by the deep blue project, adding that, “the Gulf of Guinea has recorded zero attacks since the last quarter of 2021 to date. We have not experienced any attacks in Nigeria since the last quarter of 2021 to date which was why they have removed us from the piracy list.”
He further disclosed that the agency has five vessels and ordered 7 new ones with wrecks removal contractors on site removing wrecks.
“Under the deep blue project, the agency acquired 2 special mission vessels, 3 special mission helicopters, 16 armored vehicles that can enter the creeks, 2 special mission aircrafts, 17 special interceptors, 4 unmanned air surveillance for data transmission for possible intervention, 600 specially trained forces to respond to threats on the high sea.”
The Commissioner of Police in Osun, Mohammed Abba, has pledged collaboration with the National Drug Law Enforcement Agency (NDLEA) in tackling the menace of drug Abuse in the state.
A statement by the Police Public Relation Officer, CSP Yemisi Opalaola, on Thursday in Osogbo, said that the commissioner made the pledge while playing host to NDLEA State Commandant, Adetula Lawal.
Abba expressed his readiness to further strengthen the healthy partnership between the two agencies.
The police commissioner said that the fight against drug abuse required collective efforts.
According to him, many of those committing crimes are doing so under the influence of dangerous drugs.
Abba promised to provide the necessary support to the NDLEA in the state.
The statement quoted Lawal as commending the police commissioner’s efforts in combating crime and criminality in the state.
He reiterated the agency’s collaboration with the police, as a leading security agency to tackle the menace of drug abuse and trafficking in the state.
Financial experts have raised alarm that the implementation of the 4 per cent Free-On-Board (FOB) Levy on imports would exacerbate inflation in the country.
The News Agency of Nigeria (NAN) report that the Nigeria Customs Service (NCS) on Feb. 5 announced its introduction of the FOB levy on imports.
According to Abdullahi Maiwada, the spokesman of the service, the introduction of the levy was in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4 per cent charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service.”
However, a former Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, Dr Wale Adegbite and Evans Osabuohien, a Professor of Economics, said that the levy would worsen the nation’s inflation rate.
In separate interviews with the News Agency of Nigeria (NAN) on Monday in Ota, Ogun, Adegbite and Osabuohien of the Department of Economics, Covenant University, said that the policy would negatively impact the economy.
The former MAN chairman said that the 4 per cent levy by the NCS “is a disaster and will worsen an already bad situation with multiple devastating effect on the economy.
” Why would the government inflict more hardship on the population as this new policy will certainly lead to more price increase, thus further increasing the country’s inflation rate.
“In addition, the masses will suffer more because of the impending price increase without any corresponding increase in income.”
Also, Osabuohien said that though the new FOB policy by the NCS was meant to generate more revenue for the federal government, but it would negatively impact on the economy.
He said that the NCS action would increase the cost of living of households.
The economist explained further that the development would increase the cost of operations of Small Medium Enterprises (SMEs), especially those companies that depend on imported raw materials for their production.
“This additional cost to be incurred through the 4 per cent increase in FOB would be transferred to the consumers and it would automatically trigger increase in the nation’s inflation rate,” Osabuohien said.
U.S. President Donald Trump plans to impose tariffs of 25 per cent on steel and aluminium imports into the United States, he said on Sunday.
“Any steel coming to the United States is going to have them, 25 per cent tariff,” Trump said, according to journalists travelling with the president. When questioned about tariffs on aluminium imports, Trump replied, “25 Per cent for both.”
Trump also confirmed his plan to announce further reciprocal tariffs in the coming week.
He spoke of an announcement on Tuesday or Wednesday.
“Very simply, if they charge us, we charge them, Trump told reporters, adding that the tariffs would go into effect almost immediately.”
U.S. tariffs of 10 per cent on Chinese goods took effect from Feb. 4.
The planned tariffs of 25 per cent on Mexico and Canada were suspended for an initial period of 30 days following promises from the two countries to increase border security measures.
Trump won November’s presidential election promising to slap high tariffs on foreign goods to reduce U.S. trade deficits.
He implemented a number of duties during his first term from 2017 to 2021.
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