‘FG Not Playing Its Proper Role In Marine and Blue Economy’ – Ogbeifun

BY EGUONO ODJEGBA

Frontline indigenous ship owner and chairman of Starzs Investment Company Limited, Engr. Greg Ogbeifun has faulted the Ministry of Marine and Blue Economy for continuously wobbling and fumbling at initiating the right strategy to drive the new dream.

Engr. Ogbeifun speaking during the event

The respected stakeholder and industry player identified the greatest challenge confronting the marine and blue economy as lack of proper insight in relation to effective and functional policy formulation, national interest and human capital initiative required to participate in global trading.

Ogbeifun who was speaking as a guest participant at the One-Day National Discourse with the theme “The Human Capital Component: Assets and Infrastructure for The Blue Economy” stressed that unless and until the right strategy for the development of the industry is put in place, no meaningful progress will be made.

Ogbeifun said that while talking and engagement is good, he noted that such talks must not only effectively implementable but productive with a multiplier positive impact on trade and investment; and devoid of the prevailing atmosphere of official disincentive under which local investment in shipping is discouraged through unwieldy and unfriendly tax impositions and restrictions.

The outspoken shipping tycoon accused the federal government and its agencies of frustrating local shipping investments while giving all manners of incentives to foreign flagged ships; describing the attitude of the federal government as the single greatest disservice to the growth of the industry.

“So it’s not just about talking, all right thinking persons who are into shipping agree that it is urgent that the government, initiated by the private sector, goes back to global trading and protect the country.

“So let us not work blindly, let’s work with strategy. We don’t need government to do that, we will get the money. So what is the role of government? Let us take Nigerian shipping line for example, why is it that not one is registered and flagged in this country?”

He painted a sad picture of the unhealthy and unpalatable regime of repressive and insensitive tax visited on local shipping players, who have all but for a few opted to be doing their business flying foreign flags.

“The second issue as a ship owner… my last ship was built in China, commissioned in 2018. That ship then cost about USD18million, I decided that this ship must meet all Nigerian requirements so it will fly the Nigerian flag, including manning and I sent my crew to China to go and bring that ship against all advice and they did but guess what! Because I wanted to be a good patriotic Nigerian, my total cost of bringing that ship into the country and for being a good citizen, that ship cost came to about 14% of the total cost of the ship.

“But guess what, my contemporaries who were doing the same job were bringing their foreign ships into the country and our law says that they will post one percent of the custom bond of that ship, that’s where we are. I am disadvantaged by being a Nigerian.”

Ogbeifun said the very opposite in terms of capacity building support is what other nations provide for their citizens, and urged the minister of the marine and blue economy to take cue from what obtains elsewhere towards the drive in the international shipping trade.

“If you’re going to have a global trading ship and you don’t have a proper flag you are in trouble because many ports will not let you come in. So those countries what did they do to get it right? They declared zero duties on vessel purchase, 5 years tax holiday, your VAT is zero; they bring all those things to make your cash flow manageable for the first 5 years because shipping is capital intensive.

“This way, the government is working with you to make sure you stand firm and remain in business. This is the way to go and until we adopt and resolve to do what successful shipping nations have done to sustain their shipping lines, we may just be groping in the dark.”

Others who made presentations and interventions at the event organized by Maritime Insider Newspaper at the Rockview Hotel Apapa Lagos, last Thursday, October 17, 2024 include Captain Emmanuel Iheanacho, who doubled as chairman of the event, Dr. Emeka Akabogu, Otunba Sola Adewumi, President of Nigeria Shipowners Association (NISA), Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola and Captain Iheanacho Ebubeogu.