Why We Invited Amaechi, Others – Senate Committee

Why We Invited Amaechi, Others – Senate Committee

The Minister of Transportation, Rotimi Amaechi, has been invited by the Senate joint committees on local content, downstream petroleum and legislative compliance to, among other things, explain the influx of foreign vessels on Nigeria’s waterways.

Also invited are, the minister of state for petroleum, Timipre Sylva and the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mele Kyari.

The trio are also expected to give explanations over the alleged abuse of the Coastal and Inland Shipping (Cabotage) Act, 2003 and the Nigerian Content Act, 2010.

The panel is currently investigating the breach of Nigerian laws by foreign vessels in the coastal region of the country.

The committees were asked to carry out the investigation after the Senate deliberated a motion on the urgent need to investigate breach of Nigerian laws by foreign vessels in coastal shipping of petroleum products in downstream sector of the Nigerian maritime industry in December 2019.

The lawmakers had expressed worry that the influx of foreign vessels into Nigerian downstream sector is against the Cabotage Act.

The act clearly restricts vessels engaged in domestic coastal trade, such that, only wholly-owned, manned and registered Nigerian vessels can engage in the domestic coastal carriage of petroleum products within the coastal and inland waterways.

The Senate had also mandated the panel to investigate foreign ship owners of freight associated with downstream activities repatriated overseas by NNPC to the detriment of the local economy.

Our mission

When contacted, Mr Folarin said the panel had earlier invited the former Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dakuku Peterside, who “could not answer because they were not his responsibilities but that of the minister (Amaechi).”

“The Senate discovered that foreign vessels are still dominating the maritime industry and the local companies are saying Nigerians must have first option. Also, COVID-19 has exposed this so-called globalisation.

“For instance, the issue of waiver, all the foreign vessels plying our waterways, what is the criteria for their operations? Also, the two per cent paid to NIMASA after any business is done, will help develop the local industry. The money is being banked and we found out they have not spent a pennt. So we want to invite the minster and GMD NNPC to help us out and tell us why the business is being dominated by foreigners.”

He also faulted some ‘inconsistencies’ in the documents submitted by Mr Peterside. He said “some the names of foreign vessels are also the same names as the local vessels”.

“We can’t carry out the investigation without talking to the key players,” he said.

The invited parties are expected to appear before the committee after the Senate’s annual recess.