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Author Topic: FG threatens to shut IOCs over Cabotage Policy abuse  (Read 747 times)

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FG threatens to shut IOCs over Cabotage Policy abuse
« on: December 18, 2014, 02:00:06 PM »

The Federal Government said it will shut any International Oil Company caught subverting the provisions of the Coastal and Inland Shipping Cabotage Act 2003 in its bid to ensure that the interest of Nigerian operators are protected.

The Cabotage Act 2003, which is complemented by the Nigerian Content Act 2010 both of which seek to enhance indigenous participation in the shipping and oil and gas sector, provides that vessels to be used in the coastal an inland trade in the country must be built in Nigeria, owned and manned by Nigerians.

But more than 10 years after the coming on stream of this legislation, most of the activities in the maritime and oil and gas sector are still dominated by foreign players due to the activities of these IOCs, who subvert these provisions by giving jobs meant for Nigerians to foreigners.

Director-General of the Nigerian Maritime Administration and Safety Agency NIMASA, Dr. Patrick Akpobolokemi, who spoke newsmen in Lagos, hinted that the agency will no longer take it lightly with any IOC caught subverting the course of the legislation, wich is geared towards promoting indigenous participation in these two all-important segment of the nation’s economy.

He disclosed that the agency has in the last few years commenced meetings and discussions with the IOCs and some relevant government agencies such as the Nigerian National Petroleum Corporation NNPC and Pipelines Marketing Company Limited PPMC with a view to making the IOCs always conscious of the need to adhere strictly to the provisions of the Act in terms of indigenous participation.

It was gathered that one of the outcomes of the meeting held with a recent meeting with the IOCs was the setting up of a committee and sub-committees to work out modalities on how the indigenous operators would be fully integrated into the activities of the IOCs, which is one of the ways of ensuring that they are carried along.

“Nigerians must be given right of first refusal in the award of Cabotage contracts and any IOC that violates this provision will have itself to blame because we have sensitised them enough and many other times, I write them personal letters, especially when I hear that they have acquired new vessels and so no one would claim ignorance”, the DG said.

He also said that as part of measures to ensure that the IOCs comply with the regulations, the agency incorporated members of the Oil Producing Trade Section OPTS, a section of the Lagos Chamber of Commerce and Industry LCCI.

The NIMASA-boss also disclosed that the agency has recently commenced similar meetings with NAPIMS, a subsidiary of the NNPC with a view to ensuring strict compliance with the provisions of the Cabotage.

It was further gathered that the agency has created jobs for Nigerians under the Cabotage regime, as it compels IOCs in the course of inspections and survey of ships to bring more Nigerians on board their vessels to fill up the nation’s quota under the Cabotage and Local Content Acts.

Adewale Odubiyi
Owner, Nigeria Oil & Gas Forum

Nigeria Oil & Gas Forum

FG threatens to shut IOCs over Cabotage Policy abuse
« on: December 18, 2014, 02:00:06 PM »


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