The Indigenous Shipowners Association of Nigeria (ISAN), has
asked the Federal Government to put in place incentives to enable indigenous
operators perform better in domestic shipping, otherwise known as cabotage.

General Secretary of ISAN, Capt. Olaniyi Labinjo, made the
plea during an interview with our correspondent on Monday in Lagos.

“There are no established rewarding incentives as well as
patronage policies and guidelines for Nigerian operators engaged in domestic
shipping.

“This is unlike what obtains in other maritime jurisdictions
such as the UK, US, Canada, India, Indonesia and Malaysia, where their
governments have robust promotional and support initiatives,” he said.

Labinjo recalled that the association had submitted a
memorandum to the National Assembly in this regard during the Presidential
Maritime Retreat held in Abuja in July.

The ISAN scribe said that there was need to develop several
incentives, including cargo support, tax relief, duty waivers for ships and
spares.

He also urged government to provide financial incentives and
reduce port and harbour dues for cabotage vessels.

Labinjo expressed concern on the absence of a conducive
environment for the indigenous shipping fleet, adding that government should
encourage local ship owners who, according to him, have invested so much in the
business.

He also suggested exemptions from customs duty, company tax,
exemption of seafarers from tax, as some forms of relief which could be granted
the ship owners.

“The Cabotage Act at present provides that Nigerians must
carry 50 per cent of Nigerian-generated cargo, but since inception in 2004, not
one tonne has been carried by a Nigerian and there is need for this to be
corrected.

“Government fails to realise that by buying one ship and
giving incentives, so many people would be employed.

“ For example, the maritime newspaper publishers, insurance
companies, legal professionals and all other persons providing ancillary
services will be employed, ” he said.

Labinjo added that part of the recommendations of ISAN is a
call for the establishment of a board that would be responsible for licensing
of cabotage vessels and granting waivers to applicants, after giving indigenous
ship owners the first option of refusal.

He suggested that the composition of the board should
include a representative of ISAN, with the board being responsible to the
Minister of Transport.

“This is in line with practices in other jurisdictions,
namely USA, UK, Malaysia, Indonesia, India and Canada.

“Therefore, Sections 10 to 22 of the Cabotage Act should be
amended.” he added.

The ISAN scribe also urged that government should review the
penalties for contravening the Cabotage Act, saying that compared with other
jurisdictions, the penalties were light.

“We propose a very stiff penalty under Part VII, Sections
35-41 to include, but not limited to forfeiture of the offending vessel, a fine
of a minimum of N200 million and imprisonment for a minimum term of five years,
to deter would-be offenders.

He said that another area the association suggested for
review in the Act was the requirement for vessels to be built in Nigeria.

Labinjo, however, noted that this might be difficult as the
country lacked regular power supply and the raw material, steel