The Nation Newspaper

Tag: Cabotage Act

  • How NNPC, PPMC violated shipping laws – Ex- NIMASA boss

    The Nigerian National Petroleum Corporation (NNPC) and the Pipelines and Products Marketing Company (PPMC) on Wednesday urged the Federal High Court in Lagos to strike out a suit accusing them of violating the Cabotage Act.
    A former Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General, Mr Raymond Omatseye, through his firm Polmaz Limited, is seeking an order directing NNPC and PPMC to cancel all contracts with foreign flagged vessels operating in Nigeria’s coastal waters without licence.
    The plaintiff is also urging the court to direct the defendants, except NIMASA, to pay fines stipulated in the Cabotage Act for their alleged violation of the law.
    Polmaz said NNPC and PPMC engaged the vessels in domestic coastal trade without requisite licenses being issued or any waivers granted to them as stipulated in the Act.
    It urged the court to determine whether Nigeria’s shipping laws have not restricted foreign flagged vessels, or vessels not owned or built by Nigerians and registered in Nigeria from engaging in domestic coastal trade within the country’s territorial waters.
    Joined in the suit as third to ninth defendants are NIMASA and the vessels’ operators, namely Olimpex Nigeria Limited, Unibros Shipping Corporation, Africulti Limited, Marika Investments Limited, Nidas Marine Limited and Prometheus Maritime Limited.
    The plaintiff, in its originating summons, sought a declaration that the operation of the foreign flagged vessels operated by the fourth to ninth defendants and their engagement by NNPC and PPMC in domestic coastal operations are in clear violation of Section 5 of the Merchant Shipping Act and several sections of the Coastal and Inland Shipping (Cabotage) Act, No. 5 of 2003.

     

  • Ship owners lament failure of Cabotage Act

    The Indigenous Ship Owners Association of Nigeria (ISAN) has bemoaned the inability of the Federal Government to enforce the Coastal and Inland Shipping Act 2003 (Cabotage Act) to enable its members participate in crude oil lifting.

    Speaking in Lagos, ISAN General Secretary, Capt. Niyi Labinjo urged the government to implement the law so that indigenous companies participate in oil business.

    The country, he said, exports about 2.5 million barrels of oil daily, wondereing why indigenous ship owners are not empowered to lift about 1.5 million barrels.

    The banks, Labinjo said, are willing to give them loans if the government can give them appreciable quantity to carry.

    He cited Brazil where the government approved about 700 agencies, which were issuing certificate of compliance on local content.

    Labinjo said about five years ago, the government trained 200 cadets under the National Seafarers Development Programme, and regretted that since there was not enough shipping companies to work with, the cadets had been rendered jobless.

    He advised the government to provide enough funds for the Maritime Academy of Nigeria (MAN), Oron, Akwa Ibom, to enable it produce skilful cadets.

    Labinjo sought proper compliance with the Nigerian Content Act and encouragement to participate fully, in the Cabotage regime.

    “We will continue to press the government. We’ll continue to make our views known about the need for proper compliance with cabotage; about the need for proper compliance with the Nigerian Content Act.

    “If we have a government that insists that this year out of the 2.5 million barrels of oil that Nigeria exports, 1.5 million barrels would be carried by Nigerians and they say, ‘ISAN take this 1.5 million barrels, go and carry it, we will gladly go to the bank; the bank will give us money and we will do it’.

    “So, if you now say, ‘what is our expectation? ’Then, we will now say this year, we will struggle to carry the one million the government has given to us and hopefully by next year, we will do 1.5 million barrels. That is the expectation.

    “That is what has happened in the case of Brazil.Their government insists that you must use local content and the government approves about 700 agencies which were issuing certificate of compliance on local content.

    “So, if you are producing this locally and it is being used by the oil and gas sector, someone will intend to continue to do it,” he said.

  • Ship owners deplore govt’s failure to enforce Cabotage Act

    The Indigenous Ship Owners Association of Nigeria(ISAN) has deplored the Federal Government’s inability to enforce the Coastal and Inland Shipping Act 2003 (Cabotage Act) to enable them participate in crude oil lifting.

    Speaking with The Nation in Lagos, ISAN General Secretary Captain Niyi Labinjo urged the government to implement the law to give indigenous shipping companies opportunity to participate in oil business.

    The country, he said, exported about 2.5 million barrels of oil yearly, wondering why indigenous ship owners are not empowered to lift about 1.5 million barrels.

    The banks, the ISAN scribe said, were willing to give them loans if the government could give them appreciable quantity to carry.

    He gave the example of Brazil where the government approves about 700 agencies which issue certificate of compliance on local content.

    Labinjo said about five years ago, the government trained 200 cadets under the National Seafarers Development Programme. He noted that since there were not enough shipping companies to work with, the cadets have been jobless.

    He advised the government to provide enough funds for the Maritime Academy of Nigeria, Oron, Akwa Ibom, to enable the academy to produce skilful cadets for the nation.

    He, therefore, sought proper compliance with Nigerian Content Act and encouragement of the association to participate fully, in the cabotage regime.

    “We will continue to press the government. We’ll continue to make our views known about the need for proper compliance with cabotage; about the need for proper compliance with the Nigerian Content Act.” If I have a government that is insisting that this year out of the 2.5 million barrels of oil that Nigeria exports, 1.5 million barrels would be carried by Nigerian and they say ISAN take this 1.5 million barrels, go and carry it, we will gladly go to the bank; the bank will give us money and we will do it.

    “So if you now say what is our expectation then we will now say this year we will struggle to carry the one million the government has given to us and hopefully by next year, we will do 1.5 million barrels. That is the expectation.

    “That is what has happened in the case of Brazil. Their government insists that you must use local content and the government approves about 700 agencies which were issuing certificate of compliance on local content.

    “So if you are producing this locally and it is being used by the oil and gas sector, someone will intend to continue to do it,” he said.

  • Use of old vessels detrimental to Cabotage Act

    Why are Nigerians not benefiting from the Cabotage Act? It is because of the acqusition of single haul vessels by the International Maritime Organisation (IMO), says Executive Chairman, Blessed Agencies and Shipping, Mr Raymond Oluwa.

    He said the Federal Government should be blamed for the influx of old vessels on the territorial waters.

    “If you allow ship owners to bring old vessels into the country and you register them as cabotage vessels, then you must be ready to give them jobs; forget about IMO laws and the other laws because you have collected money from the owners for registration,” he said.

    Oluwa called on the Nigerian Maritime Administration and Safety Agency (NIMASA) to ensure that indigenous ship owners are given jobs by the oil firms since they were registered by NIMASA under the Act.

    A maritime lawyer, Mr Festus Olayinka, said the payment of fees while applying for waiver under the Act is responsible for the circumvention of the law.

    He alleged that waivers are granted “before approval because those who apply for waivers are made to pay while their applications are still being processed.”

    He added: “The Act stipulates 100 per cent for rating; 60 per cent of officers or Nigerians and 40 per cent for foreigners. But the foreigners come in with a waiver clause that the country does not have qualified hands to man the industry.

    “Also, if you want a waiver to be granted, you apply to NIMASA and your file would be taken to Abuja for ministerial approval. Before the approval comes from Abuja, you must have paid money to NIMASA.

    “After collecting my money, it is as good as saying that you have granted me the waiver because it would be difficult for you to return my money because by the time the file leaves for Abuja, the job would have been done.”

    He said the influx of old vessels in the territorial waters was due to illegal bunkering.