The House of Representatives Committee on Maritime Safety, Education and Administration has pledged to overhaul Nigeria’s outdated maritime laws to promote indigenous vessel ownership and support the growth of the local shipping industry.
During an oversight visit to the Nigerian Maritime Resource Development Centre (NMRDC), the Committee’s Deputy Chairman, Hon. Uduak Odudoh, highlighted the dismal level of indigenous vessel ownership, with less than 5% of ships operating within NIMASA’s regulatory oversight owned by Nigerians.
Key Takeaways:
Outdated Laws*: The Committee acknowledged concerns about the outdated state of existing maritime laws and assured stakeholders of a review and modernization to reflect global best practices.
CVFF Fund*: The activation of the Cabotage Vessel Financing Fund (CVFF) is expected to significantly reduce capital flight, increase employment, and stimulate economic growth within the maritime value chain.
Implementation Framework*: The Committee commended the Minister of Marine and Blue Economy for bold steps and charged NIMASA to develop a strong and transparent implementation framework.
Quotes:
Hon. Uduak Odudoh*: “This is unacceptable, and we believe the tide is about to turn. With the CVFF now finally activated and domiciled with the Central Bank of Nigeria, we are optimistic that more Nigerians will soon be able to own and operate vessels.”
Dr. Dayo Mobereola*: “The CVFF is revolving and patient capital, with single-digit interest rates and long repayment tenures to encourage sustainable growth in the sector.”
Next Steps:
The Committee will provide legislative and financial support, including approvals for supplementary budgets, to address operational challenges facing NIMASA and the broader maritime sector.
NIMASA will continue to support indigenous shipowners with financial and operational resources to enhance their competitiveness globally.
