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Experts push for tax concession to promote maritime investments

To boost investment in the country's maritime sector, Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, has urged the Federal Government to implement tax holidays.

He made the call at the second Maritime Breakfast meeting organised by the Nigerian Maritime Law Association (NMLA), with the theme: “The Interplay of the Maritime Industry and the Macro Economy in Nigeria – The Way Forward.”

He established that trade within Africa would be facilitated by the removal of non-tariff trade barriers and import levies.

Increased trade prospects, Rewane observed, might be advantageous to the maritime sector as they would allow for greater cross-border movement of commodities within the African Continental Free Trade Zone (AFCFTA).

He said that the AFCFTA will ease trade flows and promote international trade, adding that the vast amount of commodities involved in cross-border trade will benefit investments in the logistics and transportation industry.

He said: “There are three dynamics – leadership, policies, and institutions. If you have good policies, good leadership, and weak institutions, the economic outcome is negative.

“If you have bad leadership, strong institutions and good policies, the economic outcome is positive.

“If you have good leadership, strong institutions, and bad policies, the economic outcome is positive. So what is common to positive economic outcomes is strong institutions.”

The economist further stressed the need for public-private cooperation for infrastructure improvements in port facilities, connectivity, and logistics, citing corruption, smuggling, and manual processes as reasons for cargo diversion to Benin Republic and Togo.

As well, President of the Nigerian Maritime Law Association (NMLA), Funke Agbor, declared that expansion in the marine industry would inevitably result in all-encompassing national economic development.

Agbor recalled the challenges with foreign exchange and how the naira fell against the dollar.

She said: “We are talking about maritime, logistics, international trade and we can’t even import goods with naira, we have to change it into dollars through the Central Bank of Nigeria (CBN).

“There are certain things that have to be in place. We need to have the right leadership, right policies, and strong institutions.”

According to NMLA President, the federal government's effort to generate revenue requires that taxes be effectively collected in order to fund social amenities like infrastructure, water, and electricity.

She was, however, upbeat that the government would recognise the integral role of the maritime industry to the country's economic advancement.