The Nigerian Maritime Administration and Safety Agency (NIMASA) announced plans on Tuesday to engage the Nigerian Navy regarding efforts to review the Memorandum of Understanding (MoU) guiding the $195m Integrated National Security and Waterways Protection Infrastructure project, otherwise known as the Deep Blue project, in order to enhance its visibility on the nation’s waterways.
Reacting to complaints by indigenous ship-owners over poor visibility of assets of the Deep Blue project during the 2024 Stakeholders Engagement meeting held in Lagos, the Director General of NIMASA, Dr. Dayo Mobereola, explained that talks would be held with the Naval hierarchy to better improve the Deep Blue assets.
Dr. Mobereola stated, “Since my assumption as the DG of NIMASA, I have met with the Chief of Naval Staff three times on this particular Deep Blue project.
I can assure you that very soon, we are going to have a new Memorandum of Understanding that will make the Deep Blue project more impactful and visible. The new agreement will ensure the project is directed to the agenda and purpose behind its creation.”
Regarding the Cabotage waiver, the NIMASA DG assured that modalities would be reviewed to ensure that the regime is in the best interest of indigenous ship-owners and not in favor of foreigners.
On the charging of war risk surcharges on Nigerian-bound cargoes by foreign insurance underwriters, the NIMASA DG explained that the Federal Government would soon sit down with these foreign insurance firms to understand why war risk premiums are being charged on Nigerian cargoes when the nation is not at war.
“The last time Nigeria was at war was in 1966. We will all be meeting with the foreign insurance underwriters to know why we are still paying this premium,” the NIMASA DG added.
Delivering the keynote speech earlier during the meeting, the Minister of Marine and Blue Economy, Adegboyega Oyetola, said the ministry is exploring fiscal and trade policies to promote greater participation of Nigerians in the shipping industry.
Oyetola, who was represented by the ministry’s permanent secretary, Oloruntola Olufemi, said the ministry is committed to unlocking the Cabotage Vessel Finance Fund (CVFF) for disbursement to support the growth and development of shipping businesses in the country.
According to him, the attention of the ministry to the shipping industry is holistic, encompassing investments in fleet, improvement of regulatory frameworks, upscaling of local manpower and capacities.
“Our efforts to enhance efficiency, transparency, and competitiveness in the sector are already yielding positive results. The NIMASA Act has promoted safety standards, enforced regulations, and boosted investors’ confidence.
We are exploring fiscal and trade policies to promote greater participation of Nigerians in the shipping industry. A major part of the plan is to unlock the Cabotage Fund for disbursement to support the growth and development of shipping businesses in the country.
The Ministry is committed to delivering this soonest. Our attention to the shipping industry must be holistic, encompassing investments in the fleet, improvement of regulatory frameworks, upscaling of local manpower and capacities, fine-tuning of operational efficiencies, and increasing turnover and revenue.
We must work together to reverse unfavorable terms of trade in the sector for the benefit of our economy. Moving forward, our collective resolve must be to foster collaboration among regulators and stakeholders to streamline processes and enhance efficiency.”
The Minister, who is the former governor of Osun State, revealed that the government identified the maritime sector as a pivotal area of focus, and the ministry is committed to creating an enabling environment for business to thrive.
“As we navigate the complex waters of global trade and economic uncertainty, we must recognize the significance of the marine and blue economy sector in stimulating national economic growth and development. The government has identified this sector as a pivotal area of focus, and we are committed to creating an enabling environment that supports your businesses and promotes the growth of the sector as a whole.
Shipowners and operators are the backbone of the maritime sector, contributing to trade, transportation, and job creation. We acknowledge the challenges you face, from safety and security concerns to regulatory hurdles and market fluctuations. It is the resolve of the government to address these challenges and foster a conducive environment for your operations,” he stated.