Home Maritime Digest Nigeria on the verge zero import duties on new vessels

Nigeria on the verge zero import duties on new vessels



The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has revealed that the Federal Ministry of Transportation is on the verge of zero import duty on new vessels, parts for shipbuilding and repairs following years of agitation by indigenous shipping operators for import duty waiver as obtained in the aviation sector.
Dr Bashir Jamoh made this assertion while conveying the Ministry’s position to the Honourable Minister of Finance, Hajiya Zainab Ahmed. NIMASA Boss reiterated the commitment of the Honorable Minister of Transportation, Rt. Honourable Rotimi Chibuike Amaechi, towards ensuring the growth of maritime in Nigeria saying the ministry also proposed other tax incentives for maritime industry operators.
According to the well enlighten scholar, many governments around the globe had introduced massive tax reduction or elimination to spur activities in key sectors and rev up their economies during the coronavirus pandemic. “The Nigerian maritime sector is critical in the growth and development of transportation and, by extension, international trade in the country. Thus, the need for Federal Government-oriented programmes and stimulus packages to deliver a response that catalyzes sustainable economic development cannot be overstressed”

The DG said the proposed incentives included zero import duty for brand new vessels imported by Nigerians or Nigerian shipping companies for use in foreign or domestic trade; 0.5 percent only import duty for vessels aged between one and five years intended for use in foreign or domestic trade; one percent only import duty for vessels aged between five and eight years intended for use in foreign or domestic trade.

There was also a proposal for zero import duty for parts or components imported by Nigerian shipyards for local shipbuilding, which will be for an initial period of four years after which it can be reviewed by the government. All these are expected to give the sector the vibrancy it needs for growth.

The NIMASA DG said the incentives were being proposed because of the importance of the Nigerian maritime sector to the entire sub-Saharan African region. He emphasized that Nigeria accounted for more than 65 percent of the entire shipping trade of the sub-African continent. Nigeria is also the largest producer and exporter of oil and gas in the continent and Africa’s largest economy, he said.

It is worthy of note that the maritime sector is a crucial energizer of economic growth and development, as it facilitates trade between countries. The Nigerian economy has witnessed substantial growth in the last two decades owing to reforms that boosted private investment in the maritime industry.