Nigeria loses $700 million to oil shipment monthly

The president, Nigeria Indigenous Ship Owners Association (NISA), Mr. Aminu Umar, said the nation was incurring loss to the tune of 700 million dollars monthly as a result of dominance on crude oil shipment by foreign ship-owners.

Umar who made this known on Thursday in Lagos persuaded the Federal Government to grant local ship-owners between 10 to 20 per cent allocation in lifting crude oil.

“Almost 70 to 77 crude oil vessels load oil monthly out of Nigeria, the foreign ship-owners do not employ Nigerians and they do not pay tax. What we are telling the Federal Government is to give us the support so that we can take at least 10 per cent of the crude oil vessels operating in Nigerian waters, “Umar said

He said that if government could allocate local ship-owners 10 per cent to lift crude oil, it would be helpful as they would provide job opportunities for the populace and would retain the proceeds in the nation’s banks.

Umar said that local ship-owners would also remit taxes which would serve as a massive revenue base for the government and also assist the government in its responsibilities.

He noted that the association was ready to partner with the government to check the shortcomings in crude oil trade.

Umar lamented that there was no participation by indigenous ship-owners in the shipment of crude oil, stating that policies by the government have not been friendly to local shipowners. He urged government to give local ship-owners maximum support and to also create a conducive environment for them to succeed.

Umar said that the recent changes in leadership of the maritime sector had slowed the association down in arranging meetings with both the minister of transportation and heads of maritime agencies.

He said that the association would like to partner with government for proper understanding of the maritime industry as an alternative to foreign exchange challenge confronting the nation.

Umar said that freight earnings through the maritime industry could be an alternative source of revenue, if government could grant at least 10 per cent of indigenous ship owners the license to lift crude oil.

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