The global decline in oil prices has led to decline in sponsorship and ineffective enactment to apply the Cabotage law, among various other challenges has affected the fortunes of Nigerian ship owners resulting in their non-serviceable bank loan for vessel purchases rising to N5 billion. The native vessel owners have expressed their concerns over harsh business conditions which have tossed at least half the vessel operators out of business.
The former president, Nigerian Ship-owners Association (NISA), Chief Isaac Jolapamo has raised apprehensions over non-serviced loans for vessel purchase and piling up of loans in the banks. Panafric Ocean and Energy Ltd, owned by the secretary-general of NISA, Tunji Brown has been listed by the Federal bank owing debts worth N220.7 million on the bank’s delinquent credit facility. Johnson Oyewole Fashawe owned Mofaz Shipping Line has also been declared on the list as a delinquent bank debtor. Close on their heels, Rangk Ltd owned by the former military administrator of Lagos State, Capt. Ndubuisi Kanu has an outstanding debt of N4.50 billion from a report provided by Asset Management Corporation of Nigeria (AMCON) in 2015.
Tunji Brown, Secretary-general of NISA & owner of Panafric Ocean & Energy Ltd has stated “We (indigenous ship-owners) are seriously affected. We are unable to get jobs. Banks are running after us to pay back loans. We are not able to access loans anymore because loans already provided to ship-owners are not being paid so we are facing a difficult time”.
Isaac Jolapamo, Former president, Indigenous Ship-owners Association of Nigeria (ISAN) has expressed concern that ship ownership and management in Nigeria is no longer a profitable venture due to rising debts, though stringent measures are in place where only experienced ship professionals are given access to funds. The bad debts in Nigerian banks amount from N3 billion to N5 billion. The former Chief also requested the Nigerian government to step in and take efforts to “reverse the trend” as shipping industry is important for the economy, foreign exchange and creation of jobs. He has also emphasized stringent measures to enforce the Cabotage law to profit the natives rather than foreigners.
It is reported that several native shipping companies located in Lagos like Potram Nigeria Ltd, Joseph Sammy, Genesis Worldwide Shipping, Multi-trade Group, Equatorial Energy, Oceanic Energy, Morlap Shipping, Peacegate, Pokat Nigeria Ltd, Al-Dawood Shipping, Potram Nigeria Ltd and Joseph Sammy are completely out of business or in an exhausted state as of now.
Lagos-based lawyer, Donald Egho has said that the government is losing a gigantic $5 billion in revenue due to the absence of Tax Appeal Tribunal (TAT) panel. TAT is a tax system laid out to ensure transparency, fairness, minimise delays, and avoid bottlenecks in tax matters and to improve tax payer’s confidence in the Nigeria’s tax system. He emphasized that without TAT measures in place the revenue to the government will remain suspended since no policies or panels are present to resolve this issue. He also criticized the internal revenue state boards of imposing arbitrary and illegal taxes levied on the public. Mr. Egho stresses that this unfavourable situation will lead to breakdown of law and order if the issues are not sorted out by the Government at the earliest.
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Source: Leadership
