Categories: Maritime

COVID-19: FG considers tax incentives for maritime sector

By Chiazo Ogbolu
Lagos, Sept. 23, 2020 The Federal Ministry of Transportation is proposing tax incentives for the maritime industry to stimulate investment and boost activities, amid downturn caused by COVID-19 pandemic.

The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, disclosed this in a statement in Lagos on Wednesday.

Jamoh who conveyed the ministry’s position to the Minister of Finance, Hajiya Zainab Ahmed, reiterated the commitment of the Minister of Transportation, Mr Rotimi Amaechi, toward ensuring the growth of the maritime sector.

He noted that many governments around the globe had introduced massive tax reduction or elimination to spur activities in key sectors to reduce the impact of COVID-19.

“The maritime sector is critical in the growth and development of transportation and, by extension, international trade.

“Thus, the need for Federal Government-oriented programmes and stimulus packages to deliver a response that catalyses a sustainable economic development cannot be overemphasised,” Jamoh said.

He listed the proposed incentives as zero import duty for brand new vessels imported by Nigerians or Nigerian shipping companies for use in foreign or domestic trade.

Jamoh said that others were 0.5 per cent import duty for vessels aged between one year and five years intended for use in foreign or domestic trade, and one per cent import duty for vessels aged between five years and eight years intended for use in foreign or domestic trade.

He said that there was also a proposal for zero import duty for parts or components imported by Nigerian shipyards for local ship building.

He explained that it would be for an initial period of four years after which it could be reviewed by government.

“All these are expected to give the sector the vibrancy it needs for growth”, he said.

The NIMASA director-general said the incentives were being proposed because of the importance of the Nigerian maritime sector to the entire sub-Saharan African region.

According to him, Nigeria accounts for more than 65 per cent of the entire shipping trade of the sub-African continent as well as the largest producer and exporter of oil and gas on the continent.

“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 investments in the maritime industry,” he said.

Naija247news Media, New York is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Recent Posts

Nigeria’s biggest bank targets 100 million customers to drive Africa expansion

Access Bank Plc, Nigeria’s biggest lender, plans to more than double customer numbers over the…

19 mins ago

Nigeria Stock Exchange opens week with 0.04% loss

By Chinyere Joel-Nwokeoma Lagos, Nov. 23, 2020 The domestic equities market on Monday extended its…

36 mins ago

Naira depreciates marginally to dollar at parallel market

By Fabian Ekeruche Lagos, Nov. 23, 2020 The Naira lost marginally to the dollar at…

48 mins ago

Seme customs intercept 24 tokunbo vehicles, 1716 bags of rice, others in 7 weeks

By Raji Rasak Seme (Lagos State), Nov.23, 2020 (NAN) The Seme Command of the Nigeria…

57 mins ago

NEPC, MDAs working to clear N124bn backlog of export claims – Director

By Emmanuella Anokam Abuja, Nov. 22, 2020 The Nigerian Export Promotion Council (NEPC) says it…

1 hour ago

Katsina State Govt. disburses N2bn loan to traders, small businesses

By Zubairu Idris Katsina, Nov. 22, 2020 The Katsina State Government says it has disbursed…

1 hour ago