Special tariff regime proposed for vessel acquisition

A tripartite arrangement between the Federal Ministry of Finance, the Customs Service and the Nigerian Maritime Administration and Safety Agency (NIMASA) seeks to encourage the expansion of Nigeria’s indigenous fleet through the creation of a special tariff regime for vessel acquisition in the country.

Speaking on the sidelines of the recent Offshore Technology Conference in Houston, Texas, NIMASA Director General Dakuku Peterside said that the agency is in discussions with the Federal Ministry of Finance and the Customs Service regarding the need to create a special tariff regime for parties importing vessels and vessel parts into the country.

According to Peterside, the high cost of vessel acquisition is gradually driving away many indigenous players in the maritime sector, a trend which the NIMASA is keen to reverse. He stated as follows:

At the moment, a temporary import permit mainly granted to foreigners attracts just one per cent but importing vessels by Nigerians attract 13 per cent so it’s difficult to compete. We are engaging the Nigeria Customs Service on the need to review this regime. We have also made appreciable progress in our discussions with the Central Bank of Nigeria to ensure Nigerians in the maritime sector have access to single digit facilities so they can compete favourably with their international peers.

For further information on this topic please contact Victor Onyegbado at Akabogu & Associates by telephone (+234 1460 5550) or email (victor@akabogulaw.com). The Akabogu & Associates website can be accessed at www.akabogulaw.com.

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