F.G considers tax holiday for maritime sector

By Eniola Idris

In a move to stimulate investment and boost activities in the maritime industry, amid the downturn induced by COVID-19, the Federal Ministry of Transportation is seeking a package of tax incentives for the sector.

The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh, disclosed this yesterday told the Minister of Finance, Hajiya Zainab Ahmed, in Abuja, that the move was to further support the growth of maritime sector.

He said 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 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 catalyses a sustainable economic development cannot be overemphasised.” Jamoh stated.

The NIMASA boss 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 per cent only import duty for vessels aged between one and five years intended for use in foreign or domestic trade; and one per cent 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 government. All these, he said are expected to give the sector the vibrancy it needs for growth.

According to Jamoh, the incentives were being proposed because of the importance of the Nigerian maritime sector to the entire sub-Saharan African region.

He emphasised that Nigeria accounted for more than 65 per cent 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.

By Eniola Idris

In a move to stimulate investment and boost activities in the maritime industry, amid the downturn induced by COVID-19, the Federal Ministry of Transportation is seeking a package of tax incentives for the sector.

The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh, disclosed this yesterday told the Minister of Finance, Hajiya Zainab Ahmed, in Abuja, that the move was to further support the growth of maritime sector.

He said 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 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 catalyses a sustainable economic development cannot be overemphasised.” Jamoh stated.

The NIMASA boss 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 per cent only import duty for vessels aged between one and five years intended for use in foreign or domestic trade; and one per cent 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 government. All these, he said are expected to give the sector the vibrancy it needs for growth.

According to Jamoh, the incentives were being proposed because of the importance of the Nigerian maritime sector to the entire sub-Saharan African region.

He emphasised that Nigeria accounted for more than 65 per cent 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.