Petroleum import: Reps to quiz NNPC, Amaechi over contracts to foreign ship owners

.As SOAN decries foreign vessels dominance

Jonas Ezieke, Abuja.

The House of Representatives Committee on Local Content Development and Monitoring on has resolved to invite and grill  the Managing Director of Nigeria National Petroleum Corporation NNPC Mallam Mele Kyari and the Minister of Transport Mr. Rotimi Amaechi over the fragrant abuse of the Cobbotage Act 2003 in the award contracts for supply of petroleum products to foreign shipping companies.

Chairman of the House Committee Hon.Legor Idagbo and members of the committee had made the resolve following the revelations by stakeholders at an investigative hearing on the need to expand the capacities of indigenous shipping companies for the supply of petroleum products.

The lawmaker had noted that the NOJIC Act and the Cabbottage Act 2003 are two key legislations that are intended to make the maritime sector of the nation’s economy perform optimally.

The Committee further noted that the NNPC is having a record of having engaged 20 foreign vessels contracted for the importation of petroleum products in Nigeria viz: premium motor spirit, automotive gas oil and duty purpose kerosene.

Director-General of the Nigerian Maritime Administration and Safety Agency NIMASA Dr.Bashir Jamor had in a presentation to the committee revealed that the NNPC’s record of contract for the supply of petroleum product by foreign vessels is a total of twenty (20).

He further hinted that by the provisions of the Cabbottage Act 2003 only ships built in Nigeria by Nigerians can operate in the nation’s coastal waterways without violating the law.

On whether these foreign concerns had been granted waivers for import duties payment to Nigeria government, he said that some thirty (30) vessels were given.

Moreover, the Ship Owners Association of Nigeria SOAN had lamented that the coastal trade and shipping business in the country had been taken over by owners of foreign vessels.

The Chairman of the body Dr.Mkgeorge Onyung had told the probe panel that shipping companies make half year profit of 50,000 dollars adding that there is need to build capacity of local shipping companies.

He had told the committee that the tonnage capacity and coastal shipping capabilities of indigenous shipping companies had improved remarkably in the last two decades due to capital investment by ship owners who now own fleet of vessels in the nation’s waterways