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Former DG Kicks Against Merger of NIMASA with FIRS, Customs

By Danlami Nasir Isah

Former Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Ade Dosunmu, has kicked against the proposed merger of the Agency with the Nigeria Customs Service and the Federal Inland Revenue Service (FIRS), calling it a serious misconception and dangerous for the future of shipping and maritime industry in Nigeria. 

It would be recalled that the Presidential Policy Advisory Group had classified NIMASA as a revenue-generating agency, thereby proposing a merger of NIMASA, Customs and FIRS.

But reacting to the proposal, Dr. Dosunmu explained that NIMASA, which was created in 2007 following the merger of the National Maritime Authority (NMA) and the Joint Maritime Labour Industrial Council (JOMALIC), derives its powers from the Merchant Shipping Act (2007), the NIMASA Act (2007() and the Coastal and Inland Shipping (Cabotage) Act (2003).

According to Dr. Dosunmu, NIMASA is a maritime safety administration body, which is responsible for regulating shipping activities in Nigeria with a view to achieving safer shipping and cleaner oceans as mandated by the International Maritime Organisation (IMO) through its various conventions and protocol. 

The former DG also described the activities of Floating Production, Storage and Offload (FPSO) vessels such as Agbami, Bonga, Egina, Akpo, which engage in crude oil exploration and production offshore Nigerian waters, as all potential polluters of the country’s waters.

In a related development, the Lagos Chamber of Commerce and Industry (LCCI) has also expressed concern over the proposed merger of NIMASA with FIRS and Nigeria Customs Service to form the Nigerian Revenue Services (NRS).

The Chamber stated that while it understands the Federal Government’s arguments on the proposed merger, which borders on improving efficiency in collecting all direct and indirect taxes and levies, the merger should not impede the ease of doing business.

In a letter to President Bola Ahmed Tinubu, dated July 10, 2023, and signed by its President, Michael Olawale-Cole, LCCI asked the government to ensure that the fallout of the proposed merger, such as staff rationalization, realignment of operating structure, accountability, and transparency, are adequately dealt with.

His words: “The LCCI supports the Government’s desire to curb the rising cost of governance, its readiness to declare a state of emergency on revenue generation, and its resolve to tackle them headlong.

“While we commend the Government on some of its recent measures to stop wasteful spending, we urge the Administration to halt the revenue leakage of more than $ 5 billion paid as freight to foreign ship owners. The Chamber’s perspectives are in tandem with the Government’s need to check the over-bloated and inefficient workforce of the Ministries, Departments, and Agencies (MDAs).

“Regarding the merger, we are willing to nudge the Government to embrace critical stakeholders’ engagement and consultation, which we hope will provide further insights into charter-specific responsibilities and possibilities.”

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