Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial
Services Industry
Tax System
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods Exportation of Goods
COVID-19 Economic
and Fiscal Measures
1.4.26 Nigerian Maritime Administration and Safety Agency (NIMASA)
NIMASA was established on 1 August 2006 from the merger of the
National Maritime Authority and Joint Maritime Labour Industrial Council,
both of which were former parastatals of the Federal Ministry of Transport.
One important objective behind the establishment of NIMASA is to improve
Nigeria's potential to earn foreign exchange through the development
of its shipping industry and accelerate the rate of growth of the national
economy.
The NIMASA Act, which was enacted in 2007, repealed the following pieces
of legislation:
• Nigerian Shipping Policy Act Cap. 279, LFN, 1990;
. Nigerian Maritime Labour Act, 2003;
• Section 288 of the Merchant Shipping Act, Cap. 224, LFN, 1990¹³; and
•
Merchant Shipping (Delegation of Powers) Notice under section 395 of
the Merchant Shipping Act, Cap. 224, LFN, 1990.
Based on the NIMASA Act, the Merchant Shipping Act, 2007, and the
Coastal and Inland Shipping (Cabotage) Act, 2003, NIMASA has the
mandate to perform the following functions among others:
. pursue the development of shipping and regulate matters relating to
merchant shipping and seafarers;
administer the registration and licensing of ships;
• regulate and administer the certification of seafarers;
establish maritime training and safety standards;
• regulate the safety of shipping as regards the construction of ships and
navigation;
•
provide directions and ensure compliance with vessel security
measures;
• provide maritime security;
• control and prevent maritime pollution;
provide direction on qualification, certification, employment and welfare
of maritime labour;
13 The Merchant Shipping Act, Cap. 224, LFN, 1990 itself was repealed in its entirety and replaced by the Merchant Shipping Act, No. 27 of
2007.
17
Investment in Nigeria Guide - 8th Edition
•
develop and implement policies and programmes which will facilitate
the growth of local capacity in ownership, manning and construction of
ships and other maritime infrastructure; and
•
enforce and administer the provisions of the Cabotage Act, 2003.
In addition to the above, NIMASA is empowered to make recommendations
to the Minister of Transport on the grant of national carrier status to
indigenous shipping companies. It also monitors the activities of vessels
of such companies following the grant of national carrier status; and is
expected to assist indigenous companies in the areas of fleet expansion
and ship ownership.
Upon being granted national carrier status, NIMASA ensures that
indigenous shipping companies exercise Nigeria's carrying rights, such as
the exclusive right to carriage of export and import cargo belonging to the
Federal, State and Local Governments, and the right to carry at least 50%
of bulk dry and liquid cargo, etc.
1.4.27 The National Agency for Science and Engineering Infrastructure
(NASENI)
NASENI was established by the NASENI Act, Cap N3 LFN 2004 in 1992
with a mandate to manage the research and development of capital goods,
production and reverse engineering to enhance local mass production of
standard parts, goods, and services required for the nation's technological
advancement.
Section 20 (2)(b) of the Act imposes a levy of 0.25% on the "income or
turn-over of commercial companies and firms with turnover of #4 million
and above" The levy, which is tax deductible, would be collected by the
FIRS or any other suitable means as may be specified by the Agency.
Since its enactment in 1992, the funding provisions of the NASENI Act
have not been fully implemented, especially with respect to the levy
on commercial companies and firms that meet the turnover threshold.
Consequently, His Excellency, President Muhammadu Buhari, GCFR
during the NASENI Governing Board meeting on 26 January 2021 directed
the Honourable Minister of Finance, Budget and National Planning, and
Chairman of the FIRS to collect and subsequently remit the statutory
levy due to the NASENI to enable it to achieve its mandate. Following
the Presidential directive, the NASENI Governing Board increased the
#4 million threshold to #100 million. However, the Act does not empower
the Governing Board to vary the threshold.
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