Nigeria’s House of Representatives Calls for Urgent Reforms to Boost Shipping Industry
The Nigerian House of Representatives has reiterated its call for the urgent need to amend the Nigerian Maritime Administration and Safety Agency (NIMASA) Act of 2007 to enhance shipping operations in the country. The call was made during the presentation of a book titled “Nigeria’s Shipping Policy and Maritime Trade up to the Early 21st Century” written by Edmund Chilaka.
The House Committee on Maritime Safety, Education, and Administration highlighted the need to revisit the 17-year-old NIMASA Act, which has been criticized for being outdated and ineffective. The committee proposed several areas of amendment, including the modernization of terms, the introduction of an open international registry, and the enhancement of prosecutorial powers of the agency.
According to the statement, stakeholders and experts at the event emphasized the critical need to increase cargo allocations for indigenous shipowners. They argued that such measures would support sustainable local shipping operations and strengthen Sections 35-38 of the NIMASA Act concerning the Cabotage Vessel Financing Fund.
The House initiative aims to revitalize dormant sectors of the Marine and Blue Economy and mitigate capital flight, which currently sees an estimated $9 billion annually in freight costs paid to foreign shipping lines. Participants also called for clear cargo reservation policies and maintaining a percentage of cargo for domestic shipping companies, in addition to a more proactive role for NIMASA in international trade and cargo management.
However, the statement lamented that despite the focus on NIMASA’s legislation, officials from the agency were notably absent from the event. The absence of NIMASA officials has raised concerns about the agency’s commitment to the proposed reforms.
The Nigerian government’s efforts to revitalize the country’s shipping industry are crucial to boosting the economy and reducing reliance on foreign shipping lines. The proposed reforms aim to create a more favorable business environment for local shipowners and operators, which could lead to increased economic growth and job creation.