The Minister of Transport, Alhaji Yusuf Suleiman, stated recently that the inability of both the NNPC and ISAN to reach a compromise is responsible for the exclusion of indigenous operators in the lifting of the nation’s crude oil.
Speaking at a stakeholders meeting attended by members of ISAN and officials of the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Ports Authority (NPA) and Nigerian Shippers’ Council (NCS) at the Eko Hotel and Suites, Victoria Island, Lagos, the minister said the major reason indigenous shipping operators have not been participating in the lifting of Nigeria’s crude oil is because ISAN and NNPC have been unable to reach a compromise over the lingering issue.
Suleiman explained that the NNPC requires indigenous operators to buy certain class of vessels before they can participate in the lifting of the nation’s crude oil, while members of ISAN harp on getting the jobs before the acquisition of the vessels that meet the NNPC’s specifications.
“This meeting does not change the position of the NNPC, in the sense that they want to be sure that it would not jeopardize their operations by engaging ISAN and Nigerian shipping companies to move the crude oil. They want to be sure that you have the capacity to do it. That is basically the bottomline. And I remember that that was why during our meeting in Abuja, myself and the Minister of Finance specifically said that we will talk to NNPC to start the process,” he said.
“And that was why the issue of bilateral cargo came in, and we said that, let us say that now ISAN would start carrying bilateral cargo and let us ask the Nigerian shipping companies to start carrying bilateral cargo and let’s see the progress made in that direction, which will enable government to a take decision with respect to other cargo,” Suleiman said.
The Transport Minister lamented that Nigeria copied the Jones Act of the United States (US) wholesale as its own version of the Cabotage Act without putting into consideration, Nigeria’s present state of development, which, he said, has been the major problem with the Act.
In his words: “I believe what we did was to import the Jones Act fully without putting into account our present state of development. In the United States, it was said that all government cargo must be carried by American flagged ships, built ships and manned ships. That is understandable, because they had the capacity and the resources to do that, because, by the time the act was enacted, they were one of the greatest ship building countries in the world.”
Chairman of ISAN, Chief Isaac Jolapamo, in his contribution lamented that, going by the association’s research , the country was losing an estimated N1.56 trillion annually due to foreign participation in the lifting of Nigeria’s crude oil, adding that in the process, about five million jobs are given to foreigners annually. He explained that that is because key stakeholders are not contacted before decisions are taken by government. He noted that of the 2,000 vessels owned by his members, none is involved in the lifting of Nigeria’s crude oil.
pmnewsnigeria.com/2011/03/28/cbn-nnpc-isan-others-meet-over-crude-oil-lifting/
Speaking at a stakeholders meeting attended by members of ISAN and officials of the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Ports Authority (NPA) and Nigerian Shippers’ Council (NCS) at the Eko Hotel and Suites, Victoria Island, Lagos, the minister said the major reason indigenous shipping operators have not been participating in the lifting of Nigeria’s crude oil is because ISAN and NNPC have been unable to reach a compromise over the lingering issue.
Suleiman explained that the NNPC requires indigenous operators to buy certain class of vessels before they can participate in the lifting of the nation’s crude oil, while members of ISAN harp on getting the jobs before the acquisition of the vessels that meet the NNPC’s specifications.
“This meeting does not change the position of the NNPC, in the sense that they want to be sure that it would not jeopardize their operations by engaging ISAN and Nigerian shipping companies to move the crude oil. They want to be sure that you have the capacity to do it. That is basically the bottomline. And I remember that that was why during our meeting in Abuja, myself and the Minister of Finance specifically said that we will talk to NNPC to start the process,” he said.
“And that was why the issue of bilateral cargo came in, and we said that, let us say that now ISAN would start carrying bilateral cargo and let us ask the Nigerian shipping companies to start carrying bilateral cargo and let’s see the progress made in that direction, which will enable government to a take decision with respect to other cargo,” Suleiman said.
The Transport Minister lamented that Nigeria copied the Jones Act of the United States (US) wholesale as its own version of the Cabotage Act without putting into consideration, Nigeria’s present state of development, which, he said, has been the major problem with the Act.
In his words: “I believe what we did was to import the Jones Act fully without putting into account our present state of development. In the United States, it was said that all government cargo must be carried by American flagged ships, built ships and manned ships. That is understandable, because they had the capacity and the resources to do that, because, by the time the act was enacted, they were one of the greatest ship building countries in the world.”
Chairman of ISAN, Chief Isaac Jolapamo, in his contribution lamented that, going by the association’s research , the country was losing an estimated N1.56 trillion annually due to foreign participation in the lifting of Nigeria’s crude oil, adding that in the process, about five million jobs are given to foreigners annually. He explained that that is because key stakeholders are not contacted before decisions are taken by government. He noted that of the 2,000 vessels owned by his members, none is involved in the lifting of Nigeria’s crude oil.
pmnewsnigeria.com/2011/03/28/cbn-nnpc-isan-others-meet-over-crude-oil-lifting/
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